Real Estate Investing: Should I buy a duplex? |
- Should I buy a duplex?
- Looking to buy a home but only have $10k down as a down payment
- Owning a rental property out of state
- Is it worth it to rent out rooms in your own house?
- Is it ever worth keeping a property as rental even if it won’t cover full PITI payments?
- What's the easiest way to setup a JV for a property I can afford myself?
- If I owe $140k, sell for $200k and I’m not on the mortgage but I am the owner via quit claim deed how do I get that difference of $60k and when?
- Is it worth it to buy a place to live for 1 year before moving/renting it out in Austin?
- Books to read
- Hypothetical question- Canadian undergrad student
- Help please? I’m trying to buy a house that has a mortgage open on it from 1978?
- Quit Claim Deed with my uncle to help me with my mortgage but he gets some equity?
- Where to find a good CPA
- Questions about a triplex deal
- 1031 exchange
- Is Refinancing a Taxable Event?
- NZ tightens lending from fear of RE bubble? Foreshadowing the US or not applicable?
- Any advice? New here
- BRRRR Method question
- Has anybody issued hard money loans? What was your experience like?
- Cash Out Financing on Newly Built Duplex
- How should I Finance Repairs?
- How to structure partnership or buy rental property with friend?
- Real Estate taxation resources? CPA here looking to get a much more "in depth" knowledge of the in's and out's of RE investment taxation, business structuring, and other helpful tidbits.
| Posted: 09 Feb 2021 06:07 PM PST There's a duplex that recently went on the market right behind my old university (great potential for students to rent) and it's going for $149,999. Both units are 1 bedroom 1 bathroom and have recently been renovated inside and out (they're beautiful, but tiny!). Rent in that area usually goes for about $500-600. Annual taxes are about $750. I'd probably do an FHA loan where I would have to live in one for a year and rent the other. Houses in that area cost from $50k-$95k since they're all small and not very new. Is this a big red flag? Or do you guys think this duplex has potential? What really drew me to it what that it's walking distance to two higher education institutions. Let me know if you need more info to determine if it's a good or bad idea. TIA! [link] [comments] |
| Looking to buy a home but only have $10k down as a down payment Posted: 09 Feb 2021 12:39 PM PST Any chance I can get approved for a home around 350-400k in NC? Have 10k down ready but also have another $5k aside for emergencies and other things like fixing the house I have a 760credit score. 27 years old. First time home buyer. Make around 70k a year Want to see if I could be approved and if not what suggestions would you guys think [link] [comments] |
| Owning a rental property out of state Posted: 09 Feb 2021 07:04 PM PST Hey everyone, New to reddit and i really enjoy this sub. This is actually my first post! So i have been looking at roofstock properties for months now, found one i really liked in IL and finally did the math with having a property manager. The property manager eats ALL the profits and i'd have no cash flow just from that alone. Their fees are crazy. My question is, does anyone here manage or have experience managing out of state properties. Tips, does it work, do you recommend it etc. Any help or just thoughts in general are appreciated. Thanks! [link] [comments] |
| Is it worth it to rent out rooms in your own house? Posted: 09 Feb 2021 03:41 PM PST What have you liked and disliked about renting rooms in your own house? [link] [comments] |
| Is it ever worth keeping a property as rental even if it won’t cover full PITI payments? Posted: 10 Feb 2021 12:13 AM PST Hi RSI community, would love your opinion and knowledge regarding a real estate investment. Background: My SO and I are considering a 2nd house (or switching to another home). We live in an expensive city (Daly City, CA/5 mins from San Francisco) and looking to move to a neighborhood with better schools (don't have kids currently but plan to in the future). I really like our current home (location is great/by public transportation plus we remodeled it when we bought it 3 years ago) but want to purchase a property in a better school district and could potentially get rental income to help offset costs (i.e., a 2-story home with in-law unit which is common here). Dilemma: If we keep our current home, rental would only be ~$3,800-$4,000/month (based on comps in the area), which is $400-$600 below the PITI we're currently paying (mainly because property taxes are ridiculous). If we sell our house (~$1.15M based on current comps + appraisal from last year when we refinanced), after fees etc., we would only make ~$40K (taking into account purchase price + remodel) and it would take a while to find another house. Question: Would it hurt to keep our current home as a rental property (no cash flow and not even breaking even)? Or is the best thing to do just sell it and get another home? Not sure if the <$10K hit we'd take every year would be outweighed by the home's appreciation in value? [link] [comments] |
| What's the easiest way to setup a JV for a property I can afford myself? Posted: 09 Feb 2021 09:38 PM PST I found a great deal on a 4 unit multifamily, got pre-approved and am ready to close the deal. Talked to a buddy about it and he wants in. What's the dead-drop simplest way to do this? He wants equity not a loan. Should I transfer the property to a llc and just sell him part of the llc for cash, making him a passive equity partner? Or is this something I should structure before purchase, knowing that it might complicate the process. [link] [comments] |
| Posted: 09 Feb 2021 08:50 PM PST |
| Is it worth it to buy a place to live for 1 year before moving/renting it out in Austin? Posted: 09 Feb 2021 10:07 PM PST I'll be in Austin for at least the next year or two. I've never bought a house, but I was considering putting the next year's rent towards a home and then renting it out after moving. Is that feasible? Am I getting in over my head? [link] [comments] |
| Posted: 09 Feb 2021 06:07 PM PST Hey all, I am interested in real estate investing and have for the longest time. I've know people who do it and really enjoy it. I don't really know too much of the ins and outs. Yes I am super green in this field. We all start somewhere right? So with that being said, what are some of the best books out there that could help me gain some knowledge on real estate investing. I am also open to any youtubers that you follow that could help me! Thanks in advance! [link] [comments] |
| Hypothetical question- Canadian undergrad student Posted: 09 Feb 2021 10:59 PM PST 19 year old Canadian 2nd year undergrad student here. Might go to dental school (4 years) in the future. Lets say this costs around 400k CAD without interest factored in. After grad I'll be making at least 150k/year and slow growing (to 200k). However, paying I'll be paying the debt off for ~10 years. I'm also really interested in rental properties (duplexes especially). As a science student, I've always been interested in these entrepreneurial aspects - probably from my mom, who runs her own business. I could not go to dental school but instead get a masters degree and be working for ~80k / year. Salary much lower than a dentist, but I'll also be working during the degree, saving up. Last note, I'm graduating uni with 0 student debt (all paid off) and currently work part time as a lab assistant to gain experience and build a credit history. This will probably transition into a full time job in the future. my potential 2 years masters will be fully paid off from my job. Ignore personal preference right now. Lets say I had 400k to spend. Would you go to dental school for 4 years or as a downpayment on property? Save it? Or what. Any advice is helpful. Thanks. [link] [comments] |
| Help please? I’m trying to buy a house that has a mortgage open on it from 1978? Posted: 09 Feb 2021 07:21 PM PST I am Trying to buy a 2 family house in Brooklyn ny. I am supposed to close next week and the seller has mentioned there is a mortgage from 1978 that was not properly closed. The seller has mentioned that there is no balance on that mortgage. It's gone through different banks and they will not close the account. The seller has given an affidavit to the title company. The title company has agreed and the bank is ok with giving me a mortgage. My lawyer has never seen this. She mentioned I may not be able to get a home equity loan because of this? Because it's a lean even if there is no amount due. She said I can do a bar lean to close the account. But I think it must be hard to do if the seller has refused to do it. This is an estate sale. My lawyer said the title company will be held responsible if there is a balance due on the house. This is my first home purchase and I'm very nervous. Has anyone dealt with this? Should I buy the house? What issues can I face? Can I do a bar lean and close the account? My real fear is that I don't know if they are lying about the balance? I'm scared if there is an amount due on that balance and they come after me, or I can't sell or take a home equity on the house in the future. [link] [comments] |
| Quit Claim Deed with my uncle to help me with my mortgage but he gets some equity? Posted: 09 Feb 2021 07:50 PM PST Hi there, I am 24, and just got out the military. I used the VA loan to purchase a condo in Fremont, CA for about 490k with only 5% down, just through escrow with a friend that's the seller. I think the payments per month will come out to around 2700 a month (with $500) HOA included. My uncle (really trusted guy) came to me with an offer that he will pay me $1000 a month, to be placed on the quit claim deed. So that if I ever decide to sell the condo, he will get a percentage cut of the equity. I think it may be a good option to help me pay for the monthly mortgage on the condo as a single person. Is this worth it in your opinion for him to get a cut of the equity from helping me pay for the condo per month? He will not be living in it, just me. Or should I just continue to keep all the equity and make payments by myself? Which I think I can but I think a little help would be great. Thanks! [link] [comments] |
| Posted: 09 Feb 2021 06:24 PM PST I am having trouble finding a good CPA who understands running air bnbs as a business. Anyone have an idea on where to start? I went full time on short term rentals after the pandemic hit and I now manage 2 Airbnb units. Also, I have a long term rental property. Located in Austin TX Thanks! [link] [comments] |
| Questions about a triplex deal Posted: 09 Feb 2021 05:15 PM PST I am looking at a triplex currently. I would live in one of the units on this property. The catch is that the rent from the two other units would be about $250 less than the total mortgage. Tenants pay all utilities. So I am looking at paying ~$400 a month to live in this triplex. However, I want to move out in a year. After that, the unit I'm in (the smallest) rents out for ~$800. Remember that tenants pay all utilities. If the property is at max capacity (after I've moved out) I'm making ~$500. However, if one unit is vacant I'm losing ~$250 a month. Would you consider this a good deal? Is it normal to lose a small amount of money on triplexs at 66% capacity? Thanks! [link] [comments] |
| Posted: 09 Feb 2021 07:55 PM PST I am in the process of opening a 1031 account. I am using IPX for the exchange and wanted to know if the contract I sign with IPX do I need to show this contract to my lawyer or accountant before signing it or is it just a standard/generic form that I can sign and proceed with the process. Thanks in advance [link] [comments] |
| Is Refinancing a Taxable Event? Posted: 09 Feb 2021 07:52 PM PST I currently own a condo that I have been renting out for about ten years. I was recently looking to sell as the property has appreciated and then would look to move the proceeds to a 1031 exchange to limit my tax liability. However, I began wondering could I just refinance my mortgage at 75% value and take the proceeds from that and keep in my accounts or a CD until I find property. As long as I don't take a withdrawl of the refinance proceeds am I ok - and not taxed on the gains? [link] [comments] |
| NZ tightens lending from fear of RE bubble? Foreshadowing the US or not applicable? Posted: 09 Feb 2021 07:32 PM PST https://www.reuters.com/article/newzealand-economy-idUSL1N2KE2UP My understanding is they're not raising their equivalent of the fed funds rate, but rather just raising lending standards... making it particularly hard for investors/non-first time home buyers.
Everyone says the current market is hot... seems like the above would be a good solution. It wouldn't crash the market and would further increase the footing by making sure borrowers are in a even stronger D2I ratio. Thoughts?
Sounds familiar
I can't think of any reason the US shouldn't do this right now
Exactly. if you want to increase the housing supply you get a loan. If you are just rent seeking or hgtv flipper wannabe... cough up 40% down or kick rocks [link] [comments] |
| Posted: 09 Feb 2021 07:22 PM PST I'm 24 and in the process of saving for my first investment property. I'm wondering how much extra money would be smart to have. For example if I am going to put 60k down on a home, I'm thinking I should save 80k. Not only will this give me 20k for issues that come up and vacant months, but it could be a start to saving another 80k for a second property. My second home I plan to live in one of the units for a while and rent the other. So at this point I have three units rented and essentially living for free. Is this too wishful thinking? I'm new to this so I'll take all and any advice. Btw I work full time obviously and would continue to through all of this. [link] [comments] |
| Posted: 09 Feb 2021 06:57 PM PST All of the texts and videos I have been seeing on the BRRRR method say that you "use someone else's money" to buy? Then at refinance you pay them back and get your loan through a bank. Why not just use your own money to pay cash for the property? Then go through the steps. Is that just a marketing gimmick to draw crowds that don't have enough savings? Or is there tactically an advantage to it? I guess the only real advantage I could see is you're leveraging someone's money to eventually pull out your own money. But I think I'd personally feel better being my own private investor. [link] [comments] |
| Has anybody issued hard money loans? What was your experience like? Posted: 09 Feb 2021 08:47 AM PST I might start issuing hard money loans with some excess capital that I have... anyone here with direct experience being a hard money lender? Any general tips for someone getting started? What type of collateral do you expect from the person borrowing? And what type of loan terms are you seeing? I have one real estate investor offering me 9% interest w/ 0 points. Is that fair? [link] [comments] |
| Cash Out Financing on Newly Built Duplex Posted: 09 Feb 2021 01:52 PM PST I'm nearing the end of a built on a duplex in an up and coming neighborhood. The house will end up appraising for more than the build cost + land cost. I currently have a builders loan and will need to cover that with a traditional loan once the loan is complete. Can do you a "cash out refi" type o of loan on a property that's not really being refinanced or can I only take out a loan for the amount of the construction costs? [link] [comments] |
| Posted: 09 Feb 2021 01:50 PM PST So I bought a house for cash that is in need of a pretty large amount of work, I was looking into refinancing into an FHA 203k loan to pay for repairs and hopefully take out some of the cash I already invested. Unfortunately they force you to hire a contractor to do all the work. I have a lot of experience working on homes and am more than capable of doing a majority of the work that needs to be done. So it looks like the only way I'll be able to finance repairs will be with a personal loan or hard money, I'd really like to get a mortgage right off the bat so I don't have to refinance again after I finish repairs and with rates being low. Are there any options for people who want to get a mortgage and do repairs themself? thanks! [link] [comments] |
| How to structure partnership or buy rental property with friend? Posted: 09 Feb 2021 01:42 PM PST So some background: Live in Southern California. I have a SFH and want to get into real estate investing. I would like to get a duplex but don't have enough for the 20-25% down payment required for an investment property on my own. Spoke to a friend who would also like to get into real estate but is essentially priced out of the market since they wouldn't comfortably afford anything on their own with the amount they have saved up and their salary. So I thought, we could partner up and get something together. The Plan.... maybe? : Essentially what we are thinking is, we get the duplex (mostly 2/1 & 2/1 or 2/1 & 3/1) in a different city, friend would live on one side for at least a year in order to take advantage of owner occupied lower down payment requirement (they have enough or most of what a 5% down payment may be). I am thinking of getting a HELOC and bankrolling any repairs/expenses to prep the other side for renting (STR or LTR, leaning towards STR), and potentially cover the amount that my friend may fall short on for down and closing costs. Recently several homes on the same street as mine, which have almost identical layouts and equal sqft. as my SFH, sold for $125-$150k more than I bought my house for so the equity in my house is there. After 1 year, friend would vacate and convert to rental. The numbers: Friend: Saved approx $15k. net is approx $2500 p/m Excellent credit. no major debt that I know of other than car payment. Currently rents a room for $500 in my house but would move to duplex in this deal. Me: Recently made improvements to home so only about $3k liquid $5k in stocks. Net income p/m- $4500 base. Excellent credit. Purchased home 3 years ago @305k Mortgage is $1600after refi- currently 1100 for my part. Have 2 vehicles owe a little bit on, about $7k total @ 0.9% interest on $4k, 0% on the rest. $2k on cc The duplexes I have seen are about $220-260k. Researching STR numbers for similar listings are $150- $250 per night The questions: First off I know I may need to talk to a financial advisor but I don't know what I don't know, so I want to be as prepared as I can. Is this doable? How would we spit the costs/profits? How do we structure a partnership and what sort of contract or partnership agreement do we put in place? Do we apply for a mortgage together? In terms of taxes- Do we each just report the profits as income on our respective regular taxes or do we need to set up a business and become employees? Any other things I'm missing? [link] [comments] |
| Posted: 09 Feb 2021 05:30 AM PST My background is extensively in audit. Outside of passing the tax section of the CPA exam (REG) and some taxation courses during undergrad and grad school, my knowledge is relatively limited when it comes to niche areas like this. I've been watching youtube videos, and picked up some books - but holy hell they are often so convoluted and MANY of them are extremely outdated. I assume some of you may do much of the tax planning yourself, or have a general idea of where to get some of this knowledge in recent years. Any suggestions for books/podcasts/or online videos that will be properly in depth for a CPA trying to learn this? [link] [comments] |
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