Real Estate Investing: Blatant Self-Promotion Thread: February 14, 2021 |
- Blatant Self-Promotion Thread: February 14, 2021
- Collecting rent online from a tenant
- What to do with savings
- 1st time buyer, trying to understand actual monthly costs after deductions, etc.
- What’s the best software for tracking rents, expenses, credits etc for taxes?
- Insurance company won't cover 3 unrelated tenants in a 3 BR townhouse
- Purchasing first investment property, several questions for experienced landlords!
- Hawaii purchase
- Renovation Ethics and Gentrification
- Mentor question
- How to get a finders fee for real estate deal
- Wanting to house hack but just refinanced
- $200k to start section 8 portfolio
- Vet my Idea
- Prevent water pipes from freezing in rental properties?
- How to deal with these two roommates?
- Renting for first time (in Southern California)
- Home building company where first home sold would be to me?
- Worried I’ve made a mistake
- Rental tax utility deductions.
- Off market properties
- Question about (62!) violations on renovated multi family in Brooklyn we’re considering buying (our first home purchase)
- Leveraging assets to purchase a home
- Know any lenders that do ground-up construction loans for investment properties?
- I need help finding properties in my area.
| Blatant Self-Promotion Thread: February 14, 2021 Posted: 14 Feb 2021 12:00 AM PST Monthly Blatant Self-Promotion Thread (Within Reason)Welcome to this monthly series. This post will repeat monthly, on the 14th of every month. This is your opportunity to promote a blog you run, a YouTube Channel, real estate related business, or additional content that otherwise may be removed from the sub. This thread will be lightly moderated and the Mods do not endorse or condone any information found on content linked within this thread. Perform your due diligence. Caveat emptor! Rules
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| Collecting rent online from a tenant Posted: 13 Feb 2021 03:59 PM PST Hey Landlords! How do you accept online payments from your tenants? I just rented out my first rental and sent her a request for an e-check via PayPal for the first month and a deposit. I had forgotten that PayPal takes a percentage so it cost me about $75, so I don't want to use PayPal again. Oh, and it took about a week for the check to clear, and then PayPal held the payment for another week before I could put it into my account. Grrrr. I'm looking for a cheaper and better alternative than PayPal. What do you recommend? In the US (Washington State) [link] [comments] |
| Posted: 13 Feb 2021 07:34 PM PST I have $10k sitting in a high interest savings account for my rental houses. Ive done this so I can access it quickly when I need it for emergencies. I'm considering moving about half of my savings into s&p 500 index funds or moving it into a money market account. Thought? [link] [comments] |
| 1st time buyer, trying to understand actual monthly costs after deductions, etc. Posted: 13 Feb 2021 07:44 AM PST Hi all, I apologize if I shouldn't be asking for specific advice, feel free to delete the post. I've been reading a lot about deductions, etc. But I'd appreciate someone weighing in on my understanding. I'm in SF, renter, high income, single. I'm looking to buy a 2 unit building, and live in one unit, for $1.7m. It's two flats that are 1,200 sq ft each. I'd live in one. The other is rented for $2.8k/mo to protected rent controlled tenants (over 60, been there over 10 years). If you're unfamiliar with SF laws, it's safe to assume they'll be in the unit for the next 30 years and I can only raise rent by 1%/yr. So what's the actual cost to me? If I understand correctly, I can treat 50% as an investment property? The total costs are:
That's $60k in expenses, of which I can write off $30k against roughly $30k in gross rental income. And then on the half I live in, I can itemize deductions and deduct $10k in property taxes and $9k in mortgage interest (interest on $350k)? I currently take the standard deduction but this would allow a $29k itemized deduction instead which saves me roughly $6k/yr in federal tax ($17k larger deduction * 35% marginal rate). So putting that all together, I put 20% down, then every month I pay:
I bring in:
This means my total monthly cost is $5.2k + maintenance? On the downside, I'll have $340k tied up as the down payment. And the plus side, $33k of principal is paid off. So I'm only "losing" $2.2k/mo + maintenance. Is my understanding of all this roughly correct? Because I pay $4k/mo in rent right now so this all sounds very appealing. But I've never seriously looked into real estate before so it's a bit overwhelming to try to wrap my head around it all. Edit: 9am PT, I'm overwhelmed by the replies. Thank you, you are all too kind. I have to step out but I'll get to everyone's reply this afternoon when I'm home again. [link] [comments] |
| What’s the best software for tracking rents, expenses, credits etc for taxes? Posted: 13 Feb 2021 03:43 PM PST I am currently using cozy for my payment system which works great except I have run into a few issues on keeping track financially. 1. The data isn't formatted and maybe there is an easy way to do this? 2. It doesn't seem to keep track of more than one set of tenants in a single year. For example if tenant moves out mid year the report only shows the new tenant for the second half of the year not the first tenant for the first 6 months. I opened a ticket with them to ask about these things but thought I would check with others if they have a good system they use for keeping track of financials. Edit: looking for free software but would be open to hearing about whatever people recommend. [link] [comments] |
| Insurance company won't cover 3 unrelated tenants in a 3 BR townhouse Posted: 13 Feb 2021 10:17 PM PST I would greatly appreciate some advice re: rental property insurance. I'm planning to rent out my 3 BR townhouse that I've been living in for the past 5 years. My home owners insurance policy is with Farmers and I'm in the process of switching it over to a rental property policy. The insurance agent confirmed the Farmers policy will only cover up to 2 'unrelated' tenants. They do not offer a policy that will insure against 3 unrelated tenants, such as 3 students, or 3 working professionals. However, I can rent to a family of 5. Is that normal? The agent also checked within their "large partner network" of other insurance companies and confirmed that none will offer coverage for 3 unrelated people. [link] [comments] |
| Purchasing first investment property, several questions for experienced landlords! Posted: 13 Feb 2021 09:03 PM PST Appropriate tags included: Legal, Taxes, Insurance, & New Investor I am purchasing a Duplex investment property. Currently it has one unit rented, and the other is vacant. I will be working to remove the existing tenant as both units need a complete renovation. I was hoping to get some insights from the more experienced community. I am not sure of the greatest format to ask them in, but I will just try to list them here for anyone to answer! 1) I am purchasing this property under my name, but would like to transfer it to an LLC. I have had an LLC for years that has remain unused, but I have payed State Corporation Commission fees to keep it active. Is there any reason I should not transfer it to an LLC? 2) I am using a hard money lender for a cash purchase, and intend to refinance it later this year. Will this be possible if I move the property into an LLC? 3) Are there any insurance recommendations for landlord insurance with renovation coverage? I am having a fairly difficult time finding a suitable company. A lot of companies seem to not offer renovation coverage, which was recommended by my real estate agent. I do have a few companies on the list that do offer it, including Allstate but they are not available until next week. 4) I know there are a handful of great tax benefits to real-estate, I have no problem educating and learning myself so are there any recommended resources? Additional, what are some things to specifically look for? The property will be fully renovated, and if possible I would like to take advantage of my renovation costs to minimize my tax burden from rental income or personal income. I do intend to depreciate the property as a method of saving on taxes in the near term, even though it reduces the cost basis. I am sure I will have more questions, there is a lot going on and everything is finally happening, but fairly quickly. I am slated to close/take possession of the property in the next 10-15 days. I will be doing the demo work for the renovation myself, but contracting out the work. I will act as the GC for the work. Really excited, and I want to get this property finished so I can move onto my next property, my wife and myself are looking to purchase a home in the next few months and rent out the condo we currently live in as our second property! After that, before year end we are hoping to acquire a third rental property for a total of 3-5 units! [link] [comments] |
| Posted: 13 Feb 2021 10:45 PM PST This might be a the wrong sub but I an Looking to buy a home out in Hawaii using VA loan. I bought a home in Virginia last year that has a mortgage of 1250 plus 200 hoa plus 10% management fee 240 dollars. It rents for 2400. I am going to be stationed in Hawaii with my wife who is also military so we want to use the bah (6k a month) to put equity instead of renting. I am worried about inflation rising and with the low interest rates and 0 down I think it would be a good idea to purchase. Price range 700k-1.5 million. We were pre approved for 2 million. Thoughts, criticisms? [link] [comments] |
| Renovation Ethics and Gentrification Posted: 13 Feb 2021 10:26 AM PST Experienced contractor / developer with several total renovations under my belt. Have always selected houses that are no longer habitable and brought them back to their glory - usually historic and architecturally interesting projects - it feels good to bring back their former glory. Working on a new project in a region without opportunities like this (moving for personal / family reasons). Project built in the 70s, hasn't been updated much since then, horrible condition, mold, pests, leaks, you name it. In need of total rehab - honestly heartbreaking to know that people are living in these conditions. The building is occupied by several tenants, all month to month, paying way below market value because of the condition of the property. No crime problems in the region, just older people living in squalor for years in a terribly maintained property. Plan is to kick everyone out, gut the place, and put the units back on the rental market as STRs or LTRs at twice the value. The project doesn't work with the bank if those values aren't met. I have a lot of internal conflict with this process - I have never had to displace anyone - I've always renovated abandoned properties so this is a first, but there simply aren't projects like that in this new region. On one hand I am increasing the value of the neighborhood, reducing potential for health and environmental hazards (mold, disease, electrical fire etc.) The building is long overdue for renovation. On the other hand, this is textbook gentrification and I hate it for that reason - I don't want to move people out of somewhere they've lived for years, even if it is a detriment to their health and well being. Anyone else gone through this experience and have any feelings about it one way or another? Its a fairly rural area so I know this is a much more accelerated topic in larger cities (NYC etc.). Also I've already heard the "If you don't do it, someone else will" argument - I'm not looking for platitudes but meaningful ethics content here. [link] [comments] |
| Posted: 13 Feb 2021 03:21 PM PST As somebody who's very interested in purchasing rental property and looking to start the journey, I'm curious how you all fell into it and learned everything you have from the beginning? Did you have a mentor, family member, or did you just read up and go all in on your first property? I'd kill to have somebody mentor me through the whole process. Don't really have any friends or family that have dabbled in real estate so I've had to acquire most of my information through YouTube, Reddit, forums etc. which helped me purchase my first home last year! But I feel like it's a different ball game when it comes to rental properties and more is at stake. Just wanted to hear your stories! Thanks, guys! [link] [comments] |
| How to get a finders fee for real estate deal Posted: 13 Feb 2021 12:08 PM PST Hello, My neighbor (tenants just moved out) is looking to sell his house after he fixes it up(per contractor, I've never met him). My best friend wants to buy it. How do I go about getting a finders fee in the state of Connecticut if an off market deal goes through? [link] [comments] |
| Wanting to house hack but just refinanced Posted: 13 Feb 2021 04:37 PM PST Hello, as the subject says, I just refinanced my house to lose PMI and lower the payment but was looking to buying and move into another house. With good credit and cash in the bank, is there any reason I shouldn't be able to buy a new primary residence due to the refinance? Since the new house will be my primary residence will I still be able to buy it with a 3% down payment or will it be treated like an investment and require 20%? [link] [comments] |
| $200k to start section 8 portfolio Posted: 13 Feb 2021 08:48 PM PST Have a friend that has $200k dedicated to start building a residential portfolio, preferably of Section 8 rentals. He asked my thoughts, and the basic recap is I suggested he use the cash to make purchases, assemble a small portfolio, then place the debt when he has a few stabilized units. One challenge is he came back with may not be bankable. And apparently some of the banks he talked to won't lend on lower end properties. How would you go about this? [link] [comments] |
| Posted: 13 Feb 2021 02:30 PM PST I want a tiny vacation home that would allow me to stay in the city I want without much maintance fees/purchase cost. The city I'm looking at is obviously expensive. I have seen a few lots come for sale that are about 3,500 sq ft at a reasonable price, in good and centric neighborhoods with ~350k homes on larger lots. I'm thinking that it would be good idea to to buy the lot and build on it a tiny home or put in a small, luxury manufactured home, and spend up to 150k total cost for a centric vacation home, no HOA. The zoning is RO-DISTRICT = (residential/office/livework). Would this be a good idea? Why or why not? [link] [comments] |
| Prevent water pipes from freezing in rental properties? Posted: 13 Feb 2021 12:26 PM PST New RE investor with a SFH, on the market to be rented/no tenant yet. Temperatures are freezing, is there anything I should do prevent frozen pipes? The temperature at the house is set to low. [link] [comments] |
| How to deal with these two roommates? Posted: 13 Feb 2021 07:46 AM PST 2 roommates, Paige and Brittany. This property is in Maryland. It is a condominium/townhouse. I am the landlord. Paige gave me notice that she wants to leave in 2 weeks at the first of the month. She cited that the place is getting too small for her and her daughter. I responded by telling her that that's fine but she's responsible for breaking the lease and paying the remaining months on the lease (that's what the contract states). When I told Paige this, she told me further that Brittany has a boyfriend that has a key to the place and seems to be always there. (This boyfriend is NOT on the lease). She stated that the boyfriend does laundry there and she doesn't think it's fair that she's staying there paying half the rent, but the boyfriend is always there. Specifically Paige said this: "Leonardo has a key to the house. He has been here everyday since November. He comes and goes in here regardless if Brittany is here, does his laundry here. I have not been given confirmation if he is living here but with all of this, I feel as though he is. He has brought his friends over, not consistently but it has happened a few times. It's not a good environment for my daughter. The main issue I have is my job. I need more space and I need to give my daughter more space. Each month, my work is doubling and I do not want to fail at my job due to not being able to move because I will still have to pay. Meanwhile, her boyfriend will continue to be here and I will not even live in this house. I hope you understand where I'm coming from. I will talk to Brittany today. I do need to have my own space but I don't find it fair to have to pay for half the rent for a place I don't live in and there is someone else living there and not on the lease but I understand when it comes to what lease terms state." What should I do next? The lease terms state that guests are not allowed to stay there for longer than a week unless approved by the landlord. Can I enforce anything legally as the landlord? Thanks!! [link] [comments] |
| Renting for first time (in Southern California) Posted: 13 Feb 2021 07:35 PM PST Hello everybody, So I just have a question with renting as a tenant during this pandemic. We have just sold our condo, and have been looking for places to rent. Currently applying for one property that is asking for $3200 a month, and it's been on market for 2 days now but has 47 contacts on Zillow. We have offered initially $3500, and now $3600, so $400 above asking price but given that the agent of that house has said there are a lot of applications, is there still a chance we can get that house if we have the highest offer despite having only slightly worse credit and income when compared to other applicants? I have an agent that's helping me find rentals, and they have offered to be my co-signer, since in my family we make a combined I want to say, $6000 income monthly. But that's because one is unemployed and would otherwise be doing Uber. Our credit is good as well, it just appears that landlords are looking for income that's 3-4 times greater than the rent. I'm not sure if like that's too much, considering the pandemic. And also, we just sold our condo, so even if our monthly income is not extraordinary, can we use that to show we have money to pay off the payments every month? As well as having a co-signer that makes $100k plus a year be responsible in payments if we don't? (Co-signer is local as well). It's just very difficult to find a rental, and we have found out now that instead of moving out on the 15th, we have until the 28th of this month, so that's good since before hand we were stressed out in finding a place. What more is needed to strengthen my family's chances in renting an actual house? Feel free to lecture. We want to rent in a house for a year at least, please let me enlighten me and I can also provide more context and information if needed. Thank you! [link] [comments] |
| Home building company where first home sold would be to me? Posted: 13 Feb 2021 07:16 PM PST Considering getting into the home building business. I don't want the thread to get detailed into a discussion of how this will definitely fail or I shouldn't do it etc (it probably will fail). So let's just work under the assumption I'm going to move forward with this regardless. My question is, if I form a home building company, is there any reason I can't be my first customer? Wouldn't this be tax advantageous as I could write off architect fees, R&D, general loses etc? [link] [comments] |
| Posted: 13 Feb 2021 07:41 AM PST This is my first investment property. It was bought with a VA loan, 30 year, 2.6 interest rate. Live-in then rent long term for investment portfolio diversification. Here are the specs: 2b 1.5 ba townhome, 980 sqft. Bought for 119k in an area that has a median of 250k. Should rent for 1100-1200 based on comparable properties in the area. The neighborhood is safe but obviously pretty low income/blue collar. The property was very dingy/dirty and in need of updating. We've cleaned it thoroughly and are in the process of repairing/updating some items that should run us about 10k when it's all said and done. My problem: We've been here for 4 months. It's clear to us now that there is a German roach problem. We see them probably once every 2 weeks or so on average. They aren't just in the kitchen. We've had the place sprayed twice with no avail. They spray, there's a lull in bug sightings for a week or so, then we are back to seeing them every other week. I bought the growth inhibitors and bait gel and I'm gonna give those items a try. I've heard really good things about these products and I am very optimistic based on other's experience online. However, I am VERY bug-phobic and am having a hard time emotionally dealing with the stress every time I see a roach. I cook every day and just feel unclean in my kitchen. I just saw one in my silverware drawer two days ago. I've seen one on my bedroom ceiling as well. I'm freaking out a bit. I don't know if I should just tough it out and take care of the problem while I live here... Do I move out and clean well and use the extermination products and get it rented in the meantime? This seems like an ethical grey area. Do I sell the place cause roaches will always be a problem in a C class townhome? Could use some opinions to talk me off the ledge here... TLDR: Roaches in my first live-in then rent townhome. Freaking out. Do I deal with it, move out and deal with it, or sell? [link] [comments] |
| Rental tax utility deductions. Posted: 13 Feb 2021 02:54 PM PST First off, thank you for reading. I hope this is the right Sub for this question but I am struggling to find an answer to a couple of questions I have. Trying to do my 2020 taxes, and my current situation is I have two properties. In both I had renters for half the year last year. One House is my " address " but I am on the road 100% of the time with my job. ( possible relevant to one of my questions. )
Any help to start me in the right direction would be amazing. I appreciate your time. [link] [comments] |
| Posted: 13 Feb 2021 11:33 AM PST What do you tell the owner of an OMP you found , as to why your offer is lower than what homes, in similar condition, are going on for on the internet? Only thing I can think of is that, realtors take a chunk of it so price comes up some to make up for it, which may be the wrong thing to say. New investor, so correct me if I'm wrong. Thanks in advance for the useful information. [link] [comments] |
| Posted: 13 Feb 2021 10:41 AM PST TLDR: can you get specific detail on violations prior to buying a property? Hi all - not sure if this is the right flair and hoping this is the correct sub (forgive me if not and any advice on where to repost is appreciated.) My husband and I are could use your help. We are trying to purchase a small two-family in Brooklyn (which we plan to live in and rent). We've had our offer accepted and our inspection done (which went well), but now see from the title search that there are 62 violations on the building (some violations on a gutted building we know are normal). The cost of the violations total around ~$12,000 (just in fines - not inclusive of actually fixing the issues. The seller will not agree to deliver the house free of violations, which leads us here. So for next steps we're trying to estimate what we might be getting ourselves into to determine if even with all these problems it is still "worth it" to us. (There are many pros to the house but also we are level headed enough to know there are other places in Brooklyn if this one doesn't make sense from a cost / benefit perspective. So here's my question - we can see that some of the violations are less serious and would not be that difficult to resolve ... but what we cannot tell is if any of the violations are surrounding large, structural things like, say, if the electrical system was never ok'd (or plumbing, or the structure itself) but they sealed the walls and moved forward anyway. We might even be willing to rip open the walls to get it up to code and remove the violations, but we'd love to know exactly what kind of sht storm were dealing with so we can be as educated as possible in making this decision (or running fast away from it!) I mean we don't have gold buried in the basement, weren't not under contact and we're happy to eat the cost spent on atty fees, inspection, title search etc. (That money was incredibly well spent for us to learn as much as we have *prior to contract!) Also, in case you are wondering, we have tried the transparent / good faith route with the sellers side and they have proven to be less than, let's say, cooperative (the sellers agent is mad shady and even there atty has shared with our atty that things pretty odd (he only deals with the agent and doesn't speak with the seller directly) ... Not that we care per se, but just to share some context that things are less than ideal from a communication standpoint. AND YES even with all this uncertainty we are still thinking about trying to make a deal. We'd appreciate any help you might be able to share. And regardless, thanks for being a great sub!! I've learned so much about passive income and schedule Es from lurking and it inspired me / given me the confidence and education to convince my husband to go down the multi fam route!! [link] [comments] |
| Leveraging assets to purchase a home Posted: 13 Feb 2021 04:20 PM PST I currently rent out a condo, and live in another condo. I have kids and space isn't cutting it anymore we need a house. Priority 1 is home (& schools). Plan is to cash out refinance both condos and rent out my current place. I want to look into an ARM for cheaper rates and a gamble since I don't care if I'm forced to sell in 5-7 years. I'm going to be taking a loss on rental income by $200 each which I personally don't care about since I'm still making money off principal and value increase (high cost area). I have some cash, some stock I can sell with little Capital Gains, and I can borrow some money on a Margin Loan. Credit is excellent. My questions are: am I going to run into trouble trying to get a loan if they can see my rental doesn't cover my costs? I think they only count 75% as income, and my broker didn't foresee a problem with my plan. I'm looking at 30% down or so depending on the home. I want to move to a REALLY nice neighborhood with excellent schools so I'm trying to stretch my assets as much as possible. Mortgage/taxes could end up as high as 50% of our after tax income. Worst case I can sell my current unit, but I don't want to rent while shopping, but I'm afraid of getting outbid because I have a sell contingency. Hoping for some insight or advice about my plan or what I'm missing. Thanks! [link] [comments] |
| Know any lenders that do ground-up construction loans for investment properties? Posted: 13 Feb 2021 02:54 PM PST Hey all, I own a piece of land in California I want to develop with 3-7 units. However, I'm having a hard time finding a lender that will do a ground-up construction loan for an investment property like that. I've been told if I can finance it, I can get a loan as soon as it's done. But I don't have nearly enough money to finance construction. Anyone know lenders that would do this? It might be long-term rentals or short-term rentals, or a mix, though that doesn't seem to really be the issue — regardless I can't find a lender to do ground-up on either. [link] [comments] |
| I need help finding properties in my area. Posted: 13 Feb 2021 02:46 PM PST Hey everyone this is my first ever reddit post. Does anyone have any tips on finding properties ? I just got done with my first flip (refi'd in order to keep the property) and I'm having tons of trouble finding a new property. Everything around me is under contract as soon as it hits the market. I'm currently using Zillow and realtor. I know some people in this group have allot of experience and I need to try and find an inside track. All experience and suggestions are greatly appreciated. [link] [comments] |
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