Real Estate Investing: How Difficult is It To Find a Commercial Property Tenant |
- How Difficult is It To Find a Commercial Property Tenant
- Need Advice! Im thinking of selling my business to start house flipping
- First time investor - closing March 19. Last second feedback wanted.
- Advice for first time buying vacation property
- About to buy my first rental. Am I doing the math right? It looks way too simple
- Anyone get into real estate investing while working a full time job, as say an accountant?
- 1% or 70-80%
- Advice on new construction
- Doing a 1031 but inflating the purchase price
- Closing fee
- Thoughts on Foreclosed Condos?
- I've identified a property I want to put an offer on. I have no agent and the listing agent is refusing dual agency. How should I approach this?
- My friend's property burned down and he wants to sell it to me.
- Anyone here from Ontario?
- The best online calculator for real estate investing?
- Is it wise to buy a rental/investment property now?
- Inheriting paid off home in VHCOL area. Build up large SFH and use equity to fund investments or build into multifamily?
- Finally! No-Doc Refi Loan on 4-Fam Investment Property Held in LLC.
- Best Way to take over a mortgage/ transfer ownership
- Covid vaccine question Washington state [WA]
- Stuck in neutral
- First-Time Home Buying Advice (with the intent to turn into a rental property in 1-2 years)
- Looking for advice regarding how you choose what areas/neighbourhoods make good investments
- Is it smart to buy a 2nd home on the west coast?
| How Difficult is It To Find a Commercial Property Tenant Posted: 10 Mar 2021 07:11 PM PST I'm looking into buying a mixed-use building in Philadelphia that has a commercial unit on the ground floor, as well as two residential units above it. Is there anything I should know about this scenario specifically before putting in an offer? One of the two residential units is already leased, and I plan to live the one that is currently unoccupied. The monthly expenses not including maintenance come out to about $3600 a month. The unit currently being leased brings in $1650 a month. If you set aside an additional $1650 I can pay myself back for my unit, and I figure I can get at least the same $1650 for the commercial, this looks to me like a slam dunk positive cash flow. Is there something I'm missing? Is commercial rent usually lower than the residential rent? Is it difficult to get commercial tenants? This is in an in-demand neighborhood. Appreciate any help as I don't have much commercial experience. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Need Advice! Im thinking of selling my business to start house flipping Posted: 10 Mar 2021 11:43 AM PST I've owned a business for a few years and I'm not really liking it anymore. Someone has offered to buy it for $210k. I want to sell it and use the money to start flipping houses but I'm not sure if I should. I cant flip houses now because I only have $10k cash. I'm scared of the low inventory situation. I know construction so I'm not worried about that part. Im afraid if I just keep the business I'll let it slowly die and it wont be worth anything. Advice?? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| First time investor - closing March 19. Last second feedback wanted. Posted: 10 Mar 2021 02:00 PM PST Hey everyone, so I'm finally making the jump and closing on my first property on the 19th. It's a duplex just north of Orlando, FL. Im under the impression it's a great deal but I wanted to hear your opinions on it. Purchase price: $138,000 Renovations: $10,000 (that's max, should be closer to 7-8.) Total: $148,000 (Closing costs including insurance and tax escrow total $8,000) Financing: conventional 25% down at 3.5% for 30 years. PITI: $750 Water / sewer / garbage: $150 Management: $175 Misc repairs: $350 Rent post-rehab: $1,750 total (currently $1,475) Cash flow: $325 It was built about 110 years ago, but I have done thorough inspection including the foundation and have found 0 major issues. I found this one off-market. What do you guys think? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Advice for first time buying vacation property Posted: 10 Mar 2021 11:39 PM PST Hello! Very new to being in the buyers market. I'm currently in Vancouver, BC which is a market pretty much impossible to get into. Wont pass the government stress test as I'd need $150 000 down just for a studio condo. Therefore I'm looking at investing in Mexico and running the property as an Airbnb to partly pay it off. I assume I'd need a bank loan as Mexico doesn't appear to do mortgages. Currently I make $70 000 year (will be 50% remote in 3 years) and partner is $55 000 (fully remote). No debt and currently rent. After expenses my monthly earnings are around ~$2000, but could easily save a bit more. Not looking to buy right away as I'm wanting to save about $50k down for a loan. Goal is to start shopping in 2-4 years. Not sure what my price range would be at the moment, but ideally looking in Puerto Vallarta due to familiarity. I've researched doing Airbnb rentals and it seems doable but understandably not lucrative, so not entirely factoring that into my costs. Mainly just to help with the loan here and there. Partner would be able to manage the upkeep, listing, etc. Any advice? Again, new to this market. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| About to buy my first rental. Am I doing the math right? It looks way too simple Posted: 11 Mar 2021 02:23 AM PST I live in Madrid, Spain. The rent here has been rising crazy these past years. And I finally got a job back in December. I have already 1/3 of a house in my property (inheritance) that gives me monthly 250€. At my job I get 1700€ but the next 4 months I will.be getting 2000€. I am living at my parents home and have nearly no expenses. Up until now I've been saving the money I receive from rent and my salary I invest half and save the other half. I have 8000€ in savings + 2600€ in an emergency fund + 3500€ in the stock market (long term and not planning to take it out until 2025) + 3k that I have in my bank account for the day to day stuff. Living alone and renting would cost me 500€ to rent a tiny tiny studio + 150€ in groceries + 150€ in activities + 100€ in unexpected stuff. Approximately. Since I already have a 1/3 of a house completely paid in property I got interested in buying another and hopefully becoming financially free by 30. My plan is the following I can get a 90% mortgage at a fix rate of 1.8% for 30 years. I've been looking at houses in my city. And there are some great things I believe. Not in the city center, but well communicated with públic transport and with a lot of potential since people will eventually be needing to move a bit outside as prices in the inside of the city continue to rise. We are talking about a 30 min subway drive to the center so not a lot. I've been looking at 3 bedroom flats for 100k € or less and I found a couple that look good. Talked to the bank and my mortgage would look something like 350€ per month. In all the areas I could easily rent each room for 230€/250€ (+expenses) and I could live in the third. This would grant me a cash flow of 100€ minimum + the possibility to live rent free. My only concern is that most of this houses don't have elevators and I imagine if they are 1st of second floor it wont be a problem but maybe 5th it is. I am planning to rent by bedroom and not the whole apartment and the demand for young people and bedrooms is pretty high specially if I put it at a competitive price so I don't think this would be a problem now. But eventually in 3 years or so I would like to move out and repeat the operation and idk if a family (my ultimate target since I think it may be too much work to rent rooms) would move in there if the house has no elevator. Anyway for me numbers look clear. I know there are probably many other things to take in to account like repairs and maintenance and taxes. But as long as I buy something that doesn't need many repairs or some that I can do myself. It should be okay. My only concern is going all-in with my money in 5 months (all savings except the emergency fund) or wait a couple more months to have save even more. Even if I go all in if the numbers are correct it should be easy for me to keep saving right after I buy it. And right now the interest is so cheap 1.8% that I feel like I have to take advantage of it. As I said my goal would be in 3 years completely move out of that house and rent it and buy another one to do the same. But honestly numbers look so easy I don't know if I'm doing something wrong [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Anyone get into real estate investing while working a full time job, as say an accountant? Posted: 11 Mar 2021 02:16 AM PST Hi, I'm currently a sophomore in college majoring in accounting and wanted to know if anyone has worked in a career full time whilst also pursuing REI? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 01:20 PM PST As an investor, which is more important to you and why? Being able to rent the property for at least 1% of the purchase price in a area where homes are appreciating very well or getting the home at 70-80% of the ARV. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 11:20 PM PST Own a success rental business and am now in the final stages to built 5 units townhomes. Low returns expected due to lumber prices and the pandemic. Does it make sense to go ahead with the project or wait it out. Don't need the supplemental income. Appreciate any advice. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Doing a 1031 but inflating the purchase price Posted: 10 Mar 2021 10:59 PM PST Hello All, I have read everywhere and have not seen this question. I am selling a rental home and buying 2 parcels from one owner (1 has a home on it and a connected vacant land) I would like to purchase the house by using a 1031 and then basically pay nothing for the land and keep that as personal land. So, I am buying like properties and I am going to rent the new house but it happens that doing this deal lets me purchase the extra lot for nothing. Is this legal or can someone point out in the tax code where this is a no no - Thanks in advance! [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 09:47 PM PST Does anyone know what is "adjustments and other credits" in loan mortgage form refer to? Excuse me, in EST zone, too late to call the lender 🤣🤣 but really want to know coz it charge me 6K more. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Thoughts on Foreclosed Condos? Posted: 10 Mar 2021 05:30 PM PST Hey all, I was just wanting to know what everyone's thoughts were on foreclosed condos. I know with any foreclosed home there's typically a pretty substantial amount of risk when buying foreclosed homes, whether it be unpaid taxes, liens, damage, etc. My main reason why I ask about condos however is because you're only dealing with the unit itself, not the entire property. I would imagine this is a way of limiting the risk you're undertaking, especially considering the foreclosure aspect. As a benefit, if there are any amenities for the entire complex such as a gym or on-site laundry, this could be leveraged for further financial gain when renting out the unit. What does everyone else think? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 10:44 AM PST I found a duplex I like and want to purchase it as an owner occupied house hack. I come from a family of RE investors. We often search for homes ourselves and ask for dual agency with the listing agent. Listing agents usually jump at the chance for more commission. I realize lots of resources suggest against this but it's worked well for us in the past. However, the listing agent for this duplex does not want to do dual agency. They suggested we find an agent if we want to put an offer down. How would you proceed here? Should I find an agent to represent me and request that they give me a portion of their commission back as a buyer's credit since I've already identified the property? If so, how much commission is appropriate for this new buyer's agent? Or would it be possible to hire a RE lawyer to help me do this deal? Any guidance would be greatly appreciated, thank you! [link] [comments] | ||||||||||||||||||||||||||||||||||||
| My friend's property burned down and he wants to sell it to me. Posted: 10 Mar 2021 07:56 AM PST I am in the auto business and have an elderly friend who recently had his shop burn down and unfortunately the insurance did not want to cover him. He is really struggling as he made his livelihood from the shop and apparently didn't have much saved up. As Ive been helping him clean up he has told me he doesn't have the strength (or money) to rebuild it again as there is no one to help him and just wants to get rid of the headache its causing so he is willing to sell it to me. The property is .4 acres, industrially zoned and it completely burned down so its nothing but rubble and land. On the property appraiser's website, land is appraised at 110k and the buildings were appraised for about the same making the total value of the property as appraised by the county to around 230k. The catch here is that he doesn't own the property outright as he says he still owes the bank around 120,000k. He is personally willing to walk away if I give him 50k for it cash bringing the total cost close to say 180k for the land only. Theoretically if the deal did go through I would have to erect new buildings to be able to do anything with it I estimate that to be at most 50k (warehouse type building) bringing the total to around 230k. The property restored and fully operational I believe it to be worth at least 350k-400k in the current market but as I mentioned I am not a real estate investor so my main concern is that I am either calculating things wrong or he is asking for too much upfront which i believe to be the case. Also it would be my first real estate deal with these circumstances where he still owes money on the property so how would I go about setting that deal up from a legal stand point (contracts, debt, etc)? As far as my financials here is what ive got. I have a home appraised at about 230k which I own free and clear. I currently have about 80k cash so not enough to pay him both the cash he wants and erect new buildings but I guess I could easily loan out the 20k. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 10:54 AM PST Looking for someone from Ontario Canada in here that would be willing to let me pick their brain. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| The best online calculator for real estate investing? Posted: 10 Mar 2021 06:39 AM PST I'm looking for a simple online calculator to crunch some easy numbers. Ex: 50k investment into a group that will hold the property for 5 years with a base case LP IRR of 16.5% and a 1.94X equity multiple. How much would I make at the end? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Is it wise to buy a rental/investment property now? Posted: 10 Mar 2021 04:36 PM PST From Northern Virginia, one of the hottest real estate markets right now. Amazon is building their 2nd HQ, Microsoft is expanding their high tech centers and many more companies are moving in. All within 25 mile radius of my area. The real estate prices had not come down since 2009/2010 crisis. Am looking at a suburban property (townhouse)that's 1.5 miles from a future metro, 0.6 miles from a future shopping center. Built in 2004, an end unit town for about $600k. It will need another $10k to $15k fix up many wear & tear (rotten wood trims on the exterior, many minor fixes inside, potential HVAC replacement in the future and also kitchen renovation along with kitchen appliances). It would fetch about $2500 to $2750 in rent. In the future, when the metro opens, it might increase. Now all the properties of that size or smaller are going for 10% to 15% above list price. Inventory is extremely limited, so all buyers are waiving of all contingencies. Myself, tried 10+ offers so far. Most of them were up to 10 - 12% above list price and haven't had any luck. The smaller the unit, that number goes much higher. FOMO had set in big time! Few questions for veteran investors: 1) Our realtor who's also an investor thinks market will slowdown a bit later, but prices are not likely to decrease due to the expected growth in this area. Has anyone had any experience in such growing places? 2) Does it makes sense to buy an investment property where rent is not going to cover the expense? 3) Is buying within 2 mile radius of metro worth the premium, compared to 4 miles away (same price for similar sized, but 10 year newer property or same price, same age, but slightly bigger property) Any other thoughts or suggestions? (Thank you for reading the this post and would highly appreciate any inputs) [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 10:26 AM PST My wife and I are inheriting a home in San Francisco from my parents. The home is paid off but in desperate need of a remodel and we're trying to figure out what we want to do with it. Currently we are looking at two options; build it into a large single family home that we can comfortably stay in for possibly the rest of our lives or convert to multi family to produce some extra income. We have the funds saved to do this out of pocket so either option we pick we should be mortgage free if not have a very small mortgage afterwards. Single family: With the size of the lot and how high up we can build we could build a large 3000+sq home and still have a back yard. I like this option because we could potentially build something really nice, something we definitely would not be able to afford if we were buy the equivalent. Multi-family: There is definitely enough room to convert this into a duplex with two nice sized units, possibly even a triplex. Depending on the size of the units we could see $2500-4000 in rent per month per unit. We live in one and rent out the other(s). I was initially leaning towards the multifamily route. Pulling in that much extra cash a month and living rent free would be amazing. We cant live in a duplex forever though and would eventually need to move out to a SFH. If we build the SFH now we will have something we will never have to leave and it will also have a ton of equity that we can use to fund investments/rental properties. Are there other options Im overlooking? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Finally! No-Doc Refi Loan on 4-Fam Investment Property Held in LLC. Posted: 10 Mar 2021 04:13 PM PST Been trying to refi my 4-fam investment property for months now. It's on short term private money and my lender has been incredibly generous with extensions. I'm going on month 15 right now. Obvi tried to go conventional to take advantage of the historically low rates, but I'm self-employed and my tax returns don't necessarily pass the sniff test... I couldn't get past underwriting with any traditional lender. Feel like I struck gold with this no-doc loan. Current Terms: - 4.25% over 30 years fixed - 2 points to broker I had two BATNAs as a backup. Lender 2: 4.5% fixed over 30 2 points to broker Lender 3: 4.5% over 5 years w 25 year amortization .5 points to broker Please let me know what y'all think. Is anyone getting better terms on a nonqm / no-doc loan to properties held in LLC? If so, are you willing to share you lender's info? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Best Way to take over a mortgage/ transfer ownership Posted: 10 Mar 2021 03:19 PM PST Story is almost unbelievable but I swear it true. Family member recently came into some 'fuck you' money and says she is ready to stop making payments and just let the bank foreclose. Why? I have no idea. She has lived there a really long time and do to area appreciation and and from what I've heard she owes there is quite a bit of equity in the house. What are my options for assuming the mortgage or opening a new one even if it's well below fair market value of home? [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Covid vaccine question Washington state [WA] Posted: 10 Mar 2021 02:35 PM PST I am seeing conflicting opinions on if residential property managers and handymen qualify for phase 1B2 vaccine rollout. Does anyone have an authoritative source on this. I don't want to cut the line but if I qualify I don't want to wait. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Posted: 10 Mar 2021 02:35 PM PST Hello! So my sister and I are looking to get into real estate. I have begun to start studying for my license (literally just started) and she was previously licensed let it expire because of her military career. Her career is winding down and the town we lived in as kids is growing. We have a good amount in cash and good credit, both over 750+. We have decided to start a real estate venture together. We have a property in town (2.5 acres) that we have owned for the last 12 years. At one time we rented it out for like $650 2br 1 bath but it fell into disrepair (3 years) as life got too busy. It has slowed down a bit and I have been making repairs. We would like to get the first house repaired and then add a duplex initially with the potential of more buildings in the future if the numbers work out. We have no idea where to start to find a builder, a lender, a plan etc. She is still in the military and has approximately 2 years before she is free and clear. Any suggestions, tips or general direction would be greatly appreciated! [link] [comments] | ||||||||||||||||||||||||||||||||||||
| First-Time Home Buying Advice (with the intent to turn into a rental property in 1-2 years) Posted: 10 Mar 2021 09:24 AM PST As the title explains, my SO (of 6 years - unmarried) and I are looking towards the option of purchasing either SFH or a duplex in a large-scale metropolitan city in the northeast in 6 months' time (September 2021). We are undecided yet on the course of action for loan type, but I am aware of the implications involved in conventional vs. FHA. Here are the numbers:
We're looking at units in the $220k - $320k range to live in a semi-fixer-upper (livable for the next 1-2 years as we work and improve the living conditions). We started maxing our 401ks in 2021 which is why the actual monthly income is lower than the annual. Our current rent is $1500 total per month, and we have leftover that we want to save up for a downpayment but are unsure of what the best approach would be. Ideally, we'd like to use this first real estate venture as a learning experience and operate under one of our names, securing a low-rate and mortgage monthly payment below what we currently pay in rent. Eventually, 2-3 years the other one of us would take out a loan and repeat this process, and then we would most likely get married and repeat with a SFH or residence. A couple of things we're unsure of:
Any and all advice is appreciated! Really looking to do research or educate fully as we have 6 months to plan this out and hopefully generate our first positive cash flow rental out of this. We could most likely generate another $20k total of liquid assets in that time frame as well. We are 23 & 24 years old and are in very stable jobs, just want to mitigate financial risk by diversifying income streams towards the future. [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Looking for advice regarding how you choose what areas/neighbourhoods make good investments Posted: 10 Mar 2021 11:29 AM PST I understand real estate is usually a safe bet, but how can I get some insight into what areas might grow in value more than another. Any sources or advice is greatly appreciated, thanks [link] [comments] | ||||||||||||||||||||||||||||||||||||
| Is it smart to buy a 2nd home on the west coast? Posted: 10 Mar 2021 07:30 AM PST I live in Portland, Oregon, and bought my first house last summer for $540k. My wife and I are sick of living here, both work remote, and are considering moving to Southwest Washington (across the river from Portland) where we can avoid state income tax. Im debating on buying another house (for less than the first) and renting out my current home. From a real estate investing perspective, is it smart to own multiple homes that won't produce much rental income, and just count on the appreciation? Also, would it be smarter to sell my first house (estimates are over $600k), take the profits, and avoid having two houses in a market driven by low inventory and low interest rates? [link] [comments] |
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