Real Estate Investing: SNL did a thing for Real Estate Investors :D |
- SNL did a thing for Real Estate Investors :D
- Sell a stock to pay off loan - does it make sense?
- Where to get money for a deal less than $100,000?
- No Income, Lots of Cash, Want to Get Into Commercial Real Estate
- To Buy, or Not to Buy?
- Tips for finding "investor friendly" (aka affordable) trades?
- Lender’s demands for closing
- Is there an salary threshold that it stop making sense to invest in properties?
- Newbie questions to Real estate Investing
- What’s the catch with tax defaulted properties for sale?
- Stocks—>???—>Rental property
- Where do I start?
- Am I about to make a mistake ?
- My business partners and I live in the same house. How much should we each pay in rent?
- How do I even get started?
- St Petersbrug vs Nashville vs Another City?
- Is it worth it?
- Can you rent from yourself?
- Best 5 percent loan on meh (680) credit?
- Tax return question
- 8-12% Cash on Cash ROI Still Realistic?
- Canadian wanting to buy property in the states
- How to decide on an offer on a home that needs to be demolished?
- Adding central AC to a summer rental? Is it worth the investment?
| SNL did a thing for Real Estate Investors :D Posted: 10 Feb 2021 11:57 AM PST |
| Sell a stock to pay off loan - does it make sense? Posted: 10 Feb 2021 07:24 AM PST I owe about 155k or so on a rental property that I currently charge about $2700 a month. Have just under 10 years left on the loan until it's paid off. I'm just wondering if it makes sense to sell a stock that I've made significant gains on (~120k), to pay down the loan and get it paid off quicker. It'll take a few years (maybe 4-5) to make back what I put down..obviously I would be increasing the rent over time as well. Would this make sense, or should I just leave it as is and do something else with the stock gains. Edit: I'm mid 40's, current rate on rental is 3.625%...I appreciate all the comments and feedback. The more I'm reading the more it doesn't make sense to pay down/off the loan. I'm considering taking out a Heloc on the property and purchasing another rental as well. Edit pt2: the stock in question is a FAANG stock, I'm currently up about 150% on it overall. The home was purchased in 09 for 328k, refi'd a few years ago to a 15yr, its now down to 155k or so with just under 10 years to go. Currently homes are going for just under 600k in the area (SoCal). I know that I would take a hit on capital gains (long term). I don't know what to do..leaning towards just doing the Heloc and buying another property. [link] [comments] |
| Where to get money for a deal less than $100,000? Posted: 10 Feb 2021 01:27 PM PST My partner is looking to get his first investment deal. Credit score at 780 but no real credit to speak of. We live together in a house in my name. His car was a cash purchase. The house he's looking to buy is $60,000 and so far banks are telling him nothing under $100k. Where does he go for money? Second question. I can loan him the money but (1) I don't know how to do that, and (2) what's the exit strategy if he can't get it financed to repay me? Or do I just consider it an annuity and leave it alone? [link] [comments] |
| No Income, Lots of Cash, Want to Get Into Commercial Real Estate Posted: 10 Feb 2021 05:44 PM PST I'll keep this short. I came across a substantial amount of money (for me) over the past few years from investing in stocks. I have absolutely no recurring income, just sitting on a bunch of cash/securities I will sell when long-term capital gains kick in. How would I get underwritten for a multifamily loan? I'm looking to buy a 5-16 unit property, spending around $500k-$1.5M, let's say. What kind of downpayment would I be looking at if I'm purely being underwritten based on the income the property generates with no experience as a landlord (i can hire a management company if needed) and are there any lending programs I should look into? P.S. I've arranged to speak with some loan officers but I'd like to hear your opinions before I bother them. [link] [comments] |
| Posted: 10 Feb 2021 09:23 PM PST I have two houses, currently -- one investment and one that I occupy but will turn over to rental use if I need to move. The investment cash flows roughly $700/month at the moment, and I have a W-2 job that pays well, so my overall D-2-I is about 20%. My personal home, if converted to rental, would cashflow similarly. Recently my employer has indicated that they'd like to transfer me, and in the location where I would work I have found a potential BRRR deal, which I identified because one of my colleagues lives next door to it and is anxious to see it not be vacant. The house has been not had any cosmetic updating, so it's a 1890s home in reasonably good shape except that the current owners intended to modernize and do an addition that would add about 30% more space. So at this point the house is missing the furnace and it's mothballed, but all others systems are intact and all new windows are awaiting installation. They would like to charge me $260K. With a basic cosmetic update and a new furnace, it would be worth maybe $50K more, and with the proposed renovation (which I believe I can do for $80kish) the comps suggest that it would be around $500k. So...were you me, would you buy it? [link] [comments] |
| Tips for finding "investor friendly" (aka affordable) trades? Posted: 10 Feb 2021 04:20 PM PST I'm trying to find a plumber to do a repipe of a house in Portland, and I keep running into retail priced trades people. My previous flip (in California) I was able to get a repipe done for $3k. Now I keep getting quotes for $9k, $10k even a couple for $15k! Any tips on finding more affordable trades besides craigslist? or at least streamlining the process of weeding out the more expensive companies quicker than an in person bid? [link] [comments] |
| Posted: 10 Feb 2021 01:23 PM PST Trying to buy a condo within 200k in Sacramento. Lender is asking that the property must be rented or I must have a renter in place before closing. He needs a signed lease and deposit in bank before funding can occur. Is this a common requirement from lenders and is there any way I can convince him otherwise? Just trying to see if any of y'all faced this hard deadline before and how you handled it. Thanks! EDIT: Lender says I don't need all these. But I do have to pay for an appraisal that will determine market rent. This is what he said when I asked him why I need tenants in place before closing: """ Don't need it – you will pay for an appraisal that will determine market rents Form 1007 or Form 1025, as applicable, and copies of the current lease agreement(s). If the property is not currently rented, lease agreements are not required and Form 1007 or Form 1025 may be used. """ [link] [comments] |
| Is there an salary threshold that it stop making sense to invest in properties? Posted: 10 Feb 2021 12:28 PM PST It's pretty straightforward that the higher income & savings rate you have, the easier it is to invest in properties. But is there a point that it stops making sense to add additional workload and stress to your plate (even with a great team / contractors) and instead just invest into stocks or other investment vehicles with minimal oversight? I'm guessing most with high earnings don't have much time to deal with potential issues with rentals. Even at a $150k salary, saving 50k a year for a down payment, only accounting for cash flow (not appreciation) would be allow you to buy a 200k property and might cash flow a few hundred and maybe 1000 a month once you get further into the loan. But that seems like a lot of effort and potential risk. I understand you have the pay-down of the loan, appreciation, and lowering value of the dollar as inflation racks up each year with the bonus of leverage that isn't accounted for in the cash flow, but I must not be seeing the full picture here. [link] [comments] |
| Newbie questions to Real estate Investing Posted: 10 Feb 2021 07:32 PM PST I am looking to buy my first rental property and was looking for advice from the group. For context married with 1 kid. High combined income (7 figures). Living in Bay Area Ca. Total Budget ideally 500k, max 1 Mill.
Thanks 😊 [link] [comments] |
| What’s the catch with tax defaulted properties for sale? Posted: 10 Feb 2021 10:56 PM PST So in my county if they don't pay taxes for 5 years they sell the property, from what I can see? But the prices don't make sense? Some are like $30k and others are like 2k(which are taxes) Obviously you're not buying any properties for that cheap what are you buying exactly? [link] [comments] |
| Posted: 10 Feb 2021 10:32 PM PST I'm looking for some advise on the best way to move my money from stocks/ESOP(employee stock ownership program) into a rental property. At the end of this year 2021 I will be eligible to move my stocks(value $90k) from an old employer. I have the option of being cashed out, but this brings an early withdrawal fee and also the taxes I have to pay on it, or the other option is to transfer it into a different investment/retirement account such as a 401k or an IRA or something similar. I have no clue the best option for me to take. My ultimate goal is to use it to start my rental property investments, cashing it out is easy because I have the cash and can down payment or use it however I want, I'm more curious if there are steps to take from transferring it into a different retirement account and using that as leverage or grabbing a loan? [link] [comments] |
| Posted: 10 Feb 2021 04:25 PM PST Hey everyone, I am really stressed out and I'm desperate for help. My wife and I just moved and we are blessed that she got a good job in St. Louis, Missouri. Because of this, and the fact that we have no car payment and low rent, I have a unique opportunity to do real estate investing or wholesaling. I want my family to have a good life, and I'm motivated to work however hard I need to to make that happen. I just don't know how to begin. I've looked at wholesaling, but if I put out mailers and bandit signs, and get a lead, who do I need to contact to get a contract written up? Should I write it myself? I know the contract should have a "subject to partner approval" stipulation, as well as a five day inspection clause. But I don't know if a lawyer would be a better choice to write assignment contracts and purchase agreements. Also, I interviewed at a reputable agency as they are in need of agents. Would working for a broker help me to learn about the industry? Would it be wise for me to make connections at the agency and learn the business? Or can I do it on my own? My parents are just starting out on real estate fix and flips, and I don't want to mooch off of them in their business dealings. However, the only reason they started the fix and flip business is because I told them I wanted to go into real estate. I didn't know at the time whether I would be doing fix and flips or wholesaling, but at this point I just need some direction. I'm motivated, and I'm desperate. [link] [comments] |
| Am I about to make a mistake ? Posted: 10 Feb 2021 04:12 PM PST I want to buy a 3/2 townhouse. It's nice and in a A neighborhood. I have about 30k saved. Here are some numbers: Price:350k (closing costs covered by seller) 5% down conventional = $17500 down Estimated monthly PITI: $1800 Estimated rent (after I live it for a year): about 2k to 2.3k Am I being too optimistic here ? [link] [comments] |
| My business partners and I live in the same house. How much should we each pay in rent? Posted: 10 Feb 2021 01:49 PM PST I am part of an LLC with my business partners, who are also my best friends and roommates. I have approximately 27% ownership, roomie #1 has 43%, and roomie #2 has 30%. We own 2 rental units that are operating smoothly, but now we have some questions about the house we live in. We recently transferred the house we have been living in for 4 years from Roomie #1's ownership to be owned by our LLC. Here is the question that has been baking our noodles: If our mortgage payment is $500 per month, should we split that cost equally (33% each, approx $166 per month) or should we split it according to our ownership stakes in the LLC? As the lowest percentage owner I'm obviously biased towards the ownership stakes option because I'd be paying less (33% down to 27%). The opposite is true for Roomie #1, who would pay less from an equal split (43% down to 33%). His argument is that each of the 3 of us wear and tear the house equally, and thus we'd need to contribute equally based on what we use. He said that the unequal LLC ownership split is already taken care of by our company's ownership of the house, meaning we should pay equal chunks for the rent/mortgage. My argument is that our house's total rent/mortgage money is contributed to the business as capital, which then pays off the mortgage. If we contribute anything other than our percentage ownership amount then increasingly over time it would alter how much total capital we have each contributed towards the business, thus changing the ownership percentages of our LLC. Does anyone have a clear answer for what we should do? My friend (Roomie #1) is generally more knowledgeable about real estate and business ownership than I am, so I'm inclined to believe him, but I thought I'd double check with the good people of Reddit before making a decision. [link] [comments] |
| Posted: 10 Feb 2021 07:25 AM PST Hello all, I'm a WSB degen/lurker and after the recent events, I have more cash than I ever thought I'd have. What I'd like to do with it is buy a house in an area I'd like to live...eventually. (I'm from the DC area, so let's start there). I travel year round for work (currently living in Paris) so my idea is that I'd buy a place and then rent it out via one of those rental management companies until I can actually live in one place. Is this a good idea? Here's the thing, I don't even know enough to ask a question on how to get started. How does one even go about this? do I find a house via Zillow? and then go to a bank for a mortgage? do I go to bank and be like "hey I have this much cash for a down payment what kinda mortgage can I get" I have near perfect credit (800+) according to those free credit reports that come with my bank. How does a bank determine how much mortgage I can have. I saw some resources saying that I should put down 20%, is that just boomer advice? If can I pay for it in cash, does that make more sense than trying to bother with a mortgage. Can you explain it to my like I'm 5? So that I can explain it to my wife's boyfriend (sorry WSB leaking in) But actually what should I do? [link] [comments] |
| St Petersbrug vs Nashville vs Another City? Posted: 10 Feb 2021 08:15 PM PST Where should I invest? I'm searching either Section 8 or middle class dwellings with the highest rental cap rate and highest potential growth. St Petersburg is close to home and is promising, and Nashville is growing a lot. Austin would be there too but I've made many offers and it seems impossible to purchase a house this day and age. Any leads? [link] [comments] |
| Posted: 10 Feb 2021 07:49 PM PST As an example, the above would cost me $1500 a month Knowing the area I could maybe rent it for $2k, if I'm lucky. If I have 0% vacancy, I'd make $6k But one thing goes wrong (roof leak, foundation etc) and I'm in the red. Feels like a lot of work and risk for what will, after repairs etc, be less than $6k a year I could put the down payment into stocks and make $6.5k with zero work, possibly significantly more Does land lording make any sense if home prices aren't appreciating 5-15% a year? Sure somebody is "paying my mortgage" but how often is it truly THAT easy? I've never rented a place where I saw the landlord put it zero work/money and deal with no headaches ever. Is the only option to be a slum lord and buy places in the ghetto for 50-100k that you can rent out to criminals for $1100? Most places in my area have higher mortgages than rent [link] [comments] |
| Posted: 10 Feb 2021 07:46 PM PST My employer gave me a relocation package which will pay for "temporary housing," but I've been approached about a really fabulous BRRR. Can I get someone in my family to buy it so I can rent it? Or can I somehow rent it from myself? [link] [comments] |
| Best 5 percent loan on meh (680) credit? Posted: 10 Feb 2021 07:39 PM PST Hi all, I had a preapproval for a house through better loans, and then had a credit pull, and, much to my dismay, my score was 80 points lower than what was showing up on Mint. Turns out, a bill that was being sent to my old address ended up in collections, so here we are. This is after going under contract on the house. Long story short, my rate on the 5 percent is 2.75, which is fine by me, but the issue is that the closing costs are about 5000 at this level, which brings my APR to ~3.4. I'm trying to avoid as much of the closing costs as possible, and am willing to take a bit of a hit on the interest rate- we plan on flipping in a year. I've reached out to several other places (loan depot, quicken loans, rocket loans, etc) since I had a hard pull done, and am wondering- what are my best options in this scenario? My wife is also sub 700 for the exact same reason btw. [link] [comments] |
| Posted: 10 Feb 2021 07:25 PM PST Hi all i know this will vary on many different things but hoping for generalization if this seems right...I paid someone to do my taxes since i bought my first multi this past year and they came up with a return of about $1500. The basic required info for you is that i make 150k/yr, the house was purchased for 700k with 20% down in april and i rented one unit and live in other. I pulled in 10k in rent from the other until from September to Dec. I spent about 23k on supplies and labor to fix up the unit before it was rented. I honestly thought i would end up getting much more. Is my tax guy missing something or was i just over zealous with what i was expecting to get back. [link] [comments] |
| 8-12% Cash on Cash ROI Still Realistic? Posted: 10 Feb 2021 06:56 PM PST My wife and I are looking into purchasing our first multi-family investment property. We finished the 'Invest In Real Estate' audio book from BP a couple weeks ago and learned quite a bit. We're currently living in a HCOL market and can't find a property that passes any of the principles on BP, so we've expanded our search to out of state. The potential candidate is a 4b/2b, turnkey duplex in a MCOL market. The property is already beautifully renovated, probably within a year or two max, and already has tenants until the end of the year. It's in a good part of town and it's likely to sell quickly for 450k or more. Since this is solely an investment property, we'll need to put down 25% before closing costs. Total monthly cashflow would be around 1k after adding the mortgage, tax, insurance, and vacancy calculations. The Cash on Cash ROI would be around 9%. Does this sound like a worthy investment? Is aiming for at least 8-12% Cash on Cash ROI still applicable in today's competitive market? Is there any additional due diligence that's recommended? [link] [comments] |
| Canadian wanting to buy property in the states Posted: 10 Feb 2021 06:15 PM PST Hey I own some rental properties in Canada but have started researching some American cities and the returns look much larger then in Canada. Was wondering if anyone on here is from Canada and has done any substantial real estate investing in the states and if so do you have any tips or pointers for somebody just starting their due diligence. Thanks! [link] [comments] |
| How to decide on an offer on a home that needs to be demolished? Posted: 10 Feb 2021 11:31 AM PST Hello! I may have an opportunity to buy a house, that on Zillow is showing value of about $700,000. BUT this house is falling apart and needs to be pretty much demolished and rebuilt. How do I decide on a realistic offer to present to this owner? Would appreciate any thoughts. Thank you! [link] [comments] |
| Adding central AC to a summer rental? Is it worth the investment? Posted: 10 Feb 2021 07:13 AM PST I have a 4bed 2bath summer rental located on Long Island out near the Hamptons (a very desirable summer spot) with private pool, private gated beach, etc. The only thing it lacks, is A/C, which is.. a big issue. I pay for the electric, unless it goes over a certain amount, then they're responsible for it. However, my best options seem to be a mini split system, and most comparables have these units as well. They are very efficient units as I'm looking at top of the line units. To do the entire house, it will run me around 23k all said and done, which from what I've gathered is a very good deal for doing a split level home in this area. From a investor perspective, would this be a good investment to do? The units are also able to heat up to -15 degrees, although during the winter I live in it or rent the downstairs for 6 months. I feel it will bring more attractive vacation tenants who are willing to spend a little extra for central ac, but looking for others opinions. Adding a window unit isn't my best option, as the common areas have large bay windows which are too big for window ac. Thanks! [link] [comments] |
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