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    Real Estate Investing: CDC extends eviction ban through June 30

    March 30, 2021

    Real Estate Investing: CDC extends eviction ban through June 30

    CDC extends eviction ban through June 30

    Posted: 29 Mar 2021 12:19 PM PDT

    Duplex sounds too good to be true. What am I missing?

    Posted: 29 Mar 2021 09:22 PM PDT

    I've been trying to find a good city for a cash flow property (long term rental or Airbnb/short term rental). Most of the cities I've looked at don't have a lot of cashflow options.

    One city has several duplexes where the monthly mortgage would be like $800, and each unit is rented our already. One rents for $700 and the other for $850.

    This would be my first investment property, so I'm treading with caution and trying to learn what I'm doing. This sale sounds a little too good to be true though. What am I missing? What questions do I ask to make sure I'm not getting screwed over?

    submitted by /u/wizshelifa
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    Should I sell to avoid capital gains?

    Posted: 30 Mar 2021 12:15 AM PDT

    I have a 3/2 condo rental in Socal that I'm worried about. We are seeing comps where the property has gone up over 15% in the last 12 months. The property is barely cash flowing (actually didn't cash flow due to having to replace the garage door) and that is w/o a property manager. Those 2 reasons would be reasons to consider selling.... but the kicker is that we lived in the condo and it would qualify for the residential exemption. We were hoping to rent it for another year but the way the market has been going we are having a hard time finding a reason to keep it.

    Any thoughts?

    submitted by /u/SDSUrules
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    Spec Home Builders

    Posted: 30 Mar 2021 12:23 AM PDT

    For all of you spec home builders out there, what areas do you build in and what's your average price per sqft? I want to get into spec building but I want to hear about some of the profit margins from experienced spec builders. Luxury homes specifically.

    submitted by /u/programmingLuis
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    I have a tenant in a property I “own” (still have mortgage), should I use retirement money from previous employers to invest in real estate?

    Posted: 29 Mar 2021 08:17 PM PDT

    I have a tenant on one property I "own" (still have mortgage), should I use retirement money from previous employers to invest in real estate?

    Real estate investing advice for a newbie

    Hello,

    I'm 39 years old, I live in Texas, the real estate market where I live is really good.

    I currently have a tenant on a property I'm paying mortgage on.

    I would like to ask for recommendations from people with more experience.

    I'll provide you the info and what my goal is.

    I have a property I bought for $300,000, new construction, bought and built in 2016, 3 bed, 2 bath, 1 studio.
    Monthly mortgage payment is $1850.
    The principal balance is $214,000
    According to Zillow, estimated equity $119,600

    I'm currently renting it to a good, punctual tenant for $1975/mo, which is barely about $100 over the mortgage payment. I know this is not good because it's barely anything and then I'm supposed to be saving every month for when stuff breaks or 8 years from now when it needs a new roof or something else.

    According to Zillow the property is estimated at $333k
    According to xome the property is estimated at $315k
    But we know this is likely not accurate.

    I have...

    • IRA: $57,000 (rollovers from previous employer's 401k)
    • Retirement plan from previous employer: $78,000, vested balance $65,000
    • Savings: $70,000

    I have a stable, good paying job but try to keep my expenses low, even though I can afford more, I pay $975 rent.

    Some options are:

    1. Sell the house, buy a $200k home (with the money I got from the sale and savings) and live in it (no mortgage). Buy another $180k or $200k home and have someone else pay the mortgage for me.
    2. Use the savings and the IRA and retirement accounts to pay off the home I already own, keep renting it to my excellent tenant at $1975, and then after tax and insurance, I would keep/reinvest about $1100 a month, or use that to buy another one (maybe $200k home) and have someone else pay the mortgage for me.

    I know it's not recommended to get money from your IRA and 401k, because of penalties and well it's supposed to be for retirement. But would it be waaay to risky to keep reinvesting the money in real estate and I would be in charge of my own retirement? Wouldn't I get MORE return on investment if I buy homes, someone else pays the mortgage so someone else pays the debt, home keeps going up in value, and when the home is paid off, I get income from the home?

    Another goal. If I live in a home I paid-off, it would give me more confidence on leaving my good, stable job and start my own business, because I would need less money, just money for essential expenses.

    I appreciate your attention to my post.

    submitted by /u/leonels81
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    What is your strategy for being ready to buy in a downturn?

    Posted: 29 Mar 2021 06:41 AM PDT

    First of all I searched "downturn" in this sub to find answers to this and mostly just found aged-like-milk predictions about the market from 1 year ago. Yipes.

    People say they will buy buy buy if prices go down. But what is your strategy for being ready for that? Do you literally maintain cash for that? How do you decide how much cash? Or, how else do you plan to buy buy buy when there are deals all around but your own RE assets are also temporarily worth less?

    I have a handful of paid-for sfh, and my plan is to cash-out refi to buy more as I find great deals, not necessarily waiting for a market-wide decline. But if there WAS a market-wide decline, I wouldn't be able to pull as much cash at that point.

    I have no reason to believe prices will be declining any time soon. Just doing my best to be prepared!

    submitted by /u/wheredig
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    How to avoid reassessment when adding myself to the title of my primary residence.

    Posted: 29 Mar 2021 08:36 PM PDT

    I bought a home with my girlfriend a few years back. She is the only one on title. I want to add myself to the title but I'm worried it'll trigger a tax reassessment. How can I avoid this? Property is in LA county, CA.

    submitted by /u/estupid_bish
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    Sell or keep as a rental (capital gains)

    Posted: 29 Mar 2021 04:31 PM PDT

    I have a rental I purchased in 2013. It's been a rental for the last two years. It cash flows about $800 a month and I owe $225K, it's valued at approx $500K based on recent sales. I'm wondering if I should sell now to avoid capital gains or just keep it as a rental - I think it could cash flow up to $1000 a month in a couple years. There is some deferred maintenance to be completed on the house though (roof, chimney, update kitchen).

    Should I calculate the difference between selling now to avoid taxes or keeping it as a rental and that cash flow would cancel out what I'd pay in taxes on the future sell?

    Thanks.

    Edit: I purchased with an FHA loan so I only have about $20,000 of my own money invested in this.

    submitted by /u/gringosean
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    Fix and flip

    Posted: 29 Mar 2021 04:16 PM PDT

    Me and a buddy want to buy a house and flip it but I'm not really sure where to start , it's quite simple in black and white (buy low , fix and sell high) but I'm not sure what low technically is and what to sell it for , Basically what I'm saying is I don't know the grays and I'm really new to this kind of stuff , I've seen properties go for around 40k-50k but they're in the ghetto and idk what the resale value would be because again it's in the ghetto and nobody wants to live in the ghetto let alone not a lot of people could pay for houses in the ghetto

    submitted by /u/No-Zookeepergame-982
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    Where to start with out of state investing

    Posted: 29 Mar 2021 10:50 AM PDT

    I (24M) have an FHA mortgage on my primary residence, originated in Nov 2020 (<1 year). I live in a HCOL area, with rents nowhere near the "1% rule" and my property would not cash flow at the 1 year mark if I moved out and rented it. Because of this, moving out and house hacking a duplex/triplex in my area is probably out of the question for at least a year or 2.

    In May, I will have ~$90k cash, and I'm interested in investing in properties out of state, I'm just not sure where to start as far as building my team of property managers, agents, lenders, and contractors.

    For context, my fiancé (22F) and I have no debt besides our mortgage, both drive paid off cars, and all credit cards are paid off each month so we hold no balance. We are currently saving about $2-3k per month after all expenses, and we bring in ~$114k/yr combined pre-tax.

    Our goals are long term growth and mostly passive income, but we're young enough to take some risk and put in the work now to set up a more passive income later.

    We're really interested in the BRRRR strategy, but we're not sure if its doable long distance.

    I have a good amount of family members in and around real estate that can help me understand specifics of contracts and advise me on things to look out for, but I recognize that every market is different, and what applies here might not apply where we end up investing, so it's important to me that we find quality people to work with.

    Should I just start with market research, narrow in on a promising market and start googling people (agents/lenders/PMs/contractors) in that area?

    What are some questions I should use to vet my team?

    How much cash should we save for reserves?

    If you were in my position, would you take a totally different approach? Wait the year or 2 to gain enough equity to cash flow on my primary residence and look for a multifamily in my market? REITS, Syndications? Dogecoin?

    Any help is much appreciated, thanks in advance!

    Edit: How/when should I go about setting up an LLC? I've seen some back and forth on whether or not an LLC is even the best way to go, or if its necessary at all, but I just want to make sure all my bases are covered.

    submitted by /u/a-no-no-mouse1
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    Owning rental properties in neighborhoods that are predominantly owned?

    Posted: 29 Mar 2021 07:09 PM PDT

    Looking at a house currently in a solid school district but across the street is a not so great school district and progressively worse area

    Being said, it's relatively cheap for the school district

    The only rentals I can find are for 1-2 bed apartments in the area. No 3 bed for rent so I cannot really estimate what it would rent for.

    Are there any cons to investing in a rental property where most of (if not all) neighbors are owners?

    I want to say this property is a great deal but with not knowing the rental demand, I have my doubts

    submitted by /u/soyerom
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    Add bedroom or add unit

    Posted: 29 Mar 2021 07:04 PM PDT

    My duplex currently has a two bedroom unit up and 1 bedroom down. The 1 bedroom unit is roughly 1000 sq ft (including part of it that is unfinished that is used for storage/laundry/utilities).

    What would be best roi? Add another bedroom in the basement? Or split the unit into two smaller one bedroom units?

    The unit already has two entrances, one of them is at the top of the stairs. So dividing wouldn't be overly hard. The windows on one side of the house are a decent size, but likely not legal for a bedroom. The other side has windows that should be legal for bedroom already.

    I know that splitting the unit will be much more costly, and basements are harder to rent out, but a unit is a unit. Should be able to rent for 1200/mo on the low end. In turn, the other unit (being made smaller) will probably bring in 200/mo less.

    Adding a bedroom would be fairly simple (cutting a concrete wall for a door would be the only thing I wouldn't do myself) and would increase the rent about 200/mo.

    I'm kind of leaning towards just adding the bedroom due to cost.

    submitted by /u/BruceMeldan
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    Expanding our land portfolio out of state and have questions for fellow investors

    Posted: 29 Mar 2021 05:57 PM PDT

    About a decade ago, my now wife and I separately purchased land in Colorado and Florida respectively. Nothing big. Around 50 acres each. We use them for personal use and go camping on either a couple times a year, absent COVID. We bought both from our family in cash for deed deals.

    Flash forward to today and we're in kind of a windfall (not GameStop) from an investment from around the same time. My wife wants to expand our land portfolio into New England around the Green and White Mountains, both as land to use for future cabins/ hunting/fishing, and to help preserve those areas for wildlife. Similar to what Jack Dangermond did.

    We live in Texas right now, and are looking for land in Vermont, New Hampshire, and Maine. Most likely around 1,000-3,000 acres in each, depending on what is available.

    My questions are:

    • Is it better to go through a single agent across all of the states?

    • Or is it advisable to get a local agent for each state?

    • Or should we just let our lawyer coordinate things for us?

    submitted by /u/thewaybaseballgo
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    Underwriter keeps adding conditions last minute

    Posted: 29 Mar 2021 05:53 PM PDT

    I'm getting my first mortgage and end the end phases of underwriting. Right after my offer was excepted and we gave the offer to my lender they came back with a set of conditions that I needed to meet.

    After sending them all of the documentation requested they continued to ask for the same documents multiple times after I've already submitted them. As we get closer to closing they keep adding more contingencies that were never mentioned before

    Is this common to keep adding more and more conditions during underwriting after the first or second set of contingencies?

    submitted by /u/Qppaid14
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    Covid Rent Moratorium

    Posted: 29 Mar 2021 02:04 PM PDT

    I have a few questions, can y'all clear them up?

    Is the Eviction Moratorium only on current leases? IOW, if a lease expires, or is currently month to month, does it still count? I have heard that if you're lease is month to month, you can legally get them to move out?

    I am closing on an MFH today. All of the current leases are month to month. I'm wondering if I should re-up, or just keep them as is. OR... any new leases, maybe they should be month to month.

    Thanks folks!

    submitted by /u/MrAnonymousForNow
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    Rate my Deal

    Posted: 29 Mar 2021 01:44 PM PDT

    Hi y'all,

    Looking to buy a side by side duplex (3br one side, 2 br other) in a steady growing area of Minnesota. It is on a one acre lot with a 3 car detached garage. Full basement access to both units with storage and W/D.

    Seller will be listing for $400,000 but will sell it to me for $425,000 without placing it on market.

    Bigger side is currently rented out for $1300/month but market is about $1500. I will be living in the smaller side for now, but it could rent for $1350 when I leave. I anticipate putting 10% down at about 3.5% rate. When I move out, it should cash flow about $300/month.

    What are your thoughts on this? Good deal or should I pass up on it?

    EDIT: I am going with a different lender and going FHA loan. I am doing the 3.5% down at a rate of 2.65% to have a monthly payment of $2550. Initial investment is $15,120. Does this change anyone's initial reactions?

    submitted by /u/kseidl28
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    Buying first home in another state on one income?

    Posted: 29 Mar 2021 04:55 PM PDT

    My long term partner and I are looking to buy our first home. We're unmarried, but planning to marry soon after the purchase of our first house. We live in one of the most expensive states in the US (Massachusetts) and are hoping to relocate to somewhere more affordable (We've been considering New Hampshire, and more recently looking into Georgia).
    We're trying to play it as smart as we can, but we're young and don't have many reliable people in our lives to guide us with advice on this, so we've been doing this all on our own which is so discouraging. We were working with a realtor in our area last year, but while we were in the steps of finding a place, I lost my job due to the pandemic. After a long break from house hunting, we're starting over.
    Since then I've been collecting unemployment and actually earning more than I did while working. My boyfriend has a well paying job that has been mostly undisrupted by the pandemic, aside from business slowing down a bit. I realize I need employment to be considered for the loan, but if he makes enough by himself, and I can earn enough to add to our savings for a down payment, is it realistic for us to begin house hunting again?
    He has perfect credit, no debt, etc. I'm newly establishing credit with no debt. We're both living at home to save costs on rent (though we both contribute rent to our parents).
    Each of us have about $25,000 saved up. Im currently in school full time and I plan to find a remote job once we begin seriously looking again, just to gain credibility, if the pay is right. He works for a well known auto dealership as a mechanic and will have no problem transferring jobs. I was previously a special education teacher licensed in Massachusetts, meaning I am eligible to work in any state. Where do we go from here? How do we start? Please only serious advice, I'm not looking for criticism here. Thanks in advance

    submitted by /u/milkandjoohoney
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    Experience with Private Money for Rental Down Payment

    Posted: 29 Mar 2021 10:53 AM PDT

    I have a coworker who reached out to me about being open to lending me money for a down payment on a rental property. The idea would be to do a cash out refinance once its seasoned and give him his money back with interest. What would be the best way to go about this?

    Have his money wired directly to the title company? Would a bank even accept this method of funds for the down payment? Any suggestions or or help is appreciated!

    submitted by /u/JT_4095
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    FHA loan for duplex/triplex?

    Posted: 29 Mar 2021 04:26 PM PDT

    I am considering buying my first property but am concerned with how expensive everything is right now in Phoenix. I can afford a mortgage but am thinking of doing a duplex/triplex through FHA instead to cut down on the mortgage. Any success stories or tips for doing this? Also, I am hearing advice from many people that now is not the time to buy - thoughts?

    submitted by /u/elgueroguapo
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    Can a college student buy a property?

    Posted: 29 Mar 2021 11:45 AM PDT

    Hello!

    I'm currently a student (20 y/o) in college and have around 40k-50k to invest. I've been able to make this money by working a ton and saving aggressively/investing over the last 6-7 years. Right now, I don't have a job and because most of my money came from things like tutoring/writing essays/babysitting/investing, I don't have an official job. I don't know if it matters but I have a great GPA at a top school with internships lined up and a high earning potential post-grad.

    I'm currently searching for an apartment with friends and just realized "why not buy one instead and have them pay my mortgage?" I have enough for a down payment but don't have the income to get a loan. Am I just fantasizing about a hypothetical that'll never happen? Or is there a way for me to make this a reality? Any information helps! Thanks!

    submitted by /u/statsmachine
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    Has anyone here invested in property in dubai?

    Posted: 29 Mar 2021 03:21 PM PDT

    I'm planning to buy a small apartment in Dubai as a buy to let. I'm looking at around a 9% yield and I've found properties that match that after calculating a decent amount in fees (around 10%)

    Can anyone share their personal experience investing in dubai? Upsides and risks?

    submitted by /u/zjb15
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    Rust Belt region (ohio/pa) - Land Bank Programs.

    Posted: 29 Mar 2021 11:34 AM PDT

    Has anyone worked with their regional or county land bank programs in the rust belt?
    If so, what has your experience been?

    I am seeing the possibility of buying some single family or duplex properties for under 5k, free and clear. Obviously, they need to be gutted to the studs, but in my area of the rust belt, the numbers, at least on paper look really enticing.

    Anyone take this BRRRR approach on land bank property? If so, does a hard money lender look more favorably at a construction project if the house is owned free and clear? Is there any special considerations I should be thinking about if I buy the house free and clear and then look for financing for the construction side of things? Anyone run into issues refinancing it after the construction project?

    submitted by /u/MLV07
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    Renters in Escrow

    Posted: 29 Mar 2021 07:47 AM PDT

    Waiting for my LLC to process so I can open my accounts to collect. Can I put my renters money in an escrow account until my LLC comes through and then I could just deposit that money into the proper place when it comes through?

    submitted by /u/jawnstein82
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    First time investor

    Posted: 29 Mar 2021 11:30 AM PDT

    Hey everyone! This is my first post here. I'm a current junior in college and I am very interested in investing in real estate. I have been running numbers (looking at Zillow, etc.) but I still feel like there's so much I dont know. Do you guys have any tips for a first time investor like me? Is anybody willing to walk me through a couple of their past deals so I can really grasp the process?

    Thank you I'm advance!

    submitted by /u/Top_Butterscotch6501
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