Real Estate Investing: Just a friendly reminder- in a rising market everyone is a genius and it is very hard to go wrong. |
- Just a friendly reminder- in a rising market everyone is a genius and it is very hard to go wrong.
- Good source for historical data on rent appreciation/depreciation in a US city over a period of time?
- Fix and Flip
- [landlord UK London] Landlord Electrical Safety inspection report (EICR) 2021 Guide
- Rental property refi cashout asap
- Boston Investing (House Hacking)
- What's going on with institutional investors in real estate?
- Property management apps?
- Can you really house hack in a high COL city?
- Purchasing a street/road?
- Pulling permits
- Taxes for rental income and capital gains?
- Adding a unit over a detached garage
- Does lack of appreciation ever stop you?
- Use my own money for purchase and rehab, or use expensive hard money loan?
- What would you do? Sell or rent?
- Purchasing Real Estate by buying an LLC
- Renter's insurance additional interest
- How has the pandemic affected your investment plans?
- Should I get a Real Estate License and represent myself as buyer to get the 3% commission?
- First property for rehab, rental, replat
- Should I invest with someone else or buy long-distance to get started?
- Cash out refi seasoned but haven't lived there
| Just a friendly reminder- in a rising market everyone is a genius and it is very hard to go wrong. Posted: 28 Mar 2021 05:07 PM PDT In a falling market there is very little you can do with a bad position to salvage anything. Even investors with a lot of deals under their belt have never had to swim against the current. It is terrifying. You can buy a flip today at the wrong price, hire a bad contractor and the market will float you to a profit like magic. If things turn even a good deal being managed well will be tough to exit in a positive position. I'm not saying the end is near, I'm just saying to keep your eyes wide open as interest rates climb a little and we face some unknowns. This is starting to give me deja vu. To head off the inevitable HOW questions: Flips: Have good margins on flips. Don't take on super intense long projects with difficult structural changes. Be conservative with all estimates Pass on mediocre deals Buy and hold: Be cash positive on day 1 Place tenants with recession proof jobs When you are upside down- just keep holding. Consider small multi family to have only partial vacancies. Be prepared do fix stuff DIY to stretch your cash reserves Have a solid cash reserve. Wholesale: Good luck. Don't have cash in the deal. Be ready to lose earnest money [link] [comments] |
| Posted: 28 Mar 2021 01:01 PM PDT Looking for a reliable source of data like Y-o-Y change in average rents in a city over time. Only found rentcafe for now which gives Y-o-Y change for just 1 year and rent amounts for the last 4 years only. It'd be nice to look at data over a longer period (like 10 years for example) [link] [comments] |
| Posted: 28 Mar 2021 07:16 AM PDT For a first fix and flip im looking at going for a $130 purchase with a $100k roughly for a full house rehab. House has a Arv of 400-500. Going full hard money hoping with a 6-8 month flip. Am i aiming too high ? [link] [comments] |
| [landlord UK London] Landlord Electrical Safety inspection report (EICR) 2021 Guide Posted: 29 Mar 2021 02:05 AM PDT What is an EICR? It is an abbreviation for an electrical installation condition report (EICR). The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into force on 1 June 2020. It and applies to all tenancies created on or after that date in England from 1 July 2020. The regulation requires landlords to have electrical installations in their properties inspected every 5 years. The test must be conducted by a qualified and competent person. Landlords must give a copy of the electrical safety report to their tenants and the local authority if asked. The British Landlords Association said that most landlords already check their installations regularly so they can provide a safe home for their tenants. NAPIT has provided guidance on the requirements to aid landlords to better understand the EICR legislation, its requirement and implementation. What do EICR regulations say: Private landlords need to ensure every electrical installation in their residential premises is inspected and tested at intervals of 5 years by a qualified and competent person. The EICR regulations for new specified tenancies in England apply from 1 July 2020. This includes all existing tenancies from 1 April 2021. The 'New specified tenancies' are deemed as any tenancy created on or after 1 June 2020. Following the inspection and testing, a private landlord must:
Action needed in case of an Unsatisfactory Report: Where an Electrical Installation Safety Report finds urgent remedial work or requires 'further investigation'. The private landlord must ensure that the necessary work is carried out by a qualified and competent electrician within 28 days (or the period specified in the report if it is less than 28 days), starting with the inspection and testing date. The landlord must then:
EICR Breach & enforcement action by the council Local authorities enforce the new regulations; they can impose a financial penalty of up to £30,000 if they find a landlord is in breach of their duty. Local authorities have the power to serve remedial notices on the landlord. Suppose the remedial notice is ignored and action is not taken with 28 days. In that case, the local authority can arrange remedial work to be carried out, with consent from the tenant, and recover the cost from the landlord. What EICR report should I be asking for? The report that you need to request is an Electrical Installation Condition Report (EICR). An Electrical Installation Condition Report (EICR) is a report carried out to check the safety of the existing electrical installation within a dwelling and is used to describe its condition. Parts of the system reported include consumer units, protective bonding, lighting, switches, sockets, etc. Its purpose is to confirm whether the electrical installation is in a safe condition for continued service. The EICR will show whether the electrical installation is in a 'satisfactory' or 'unsatisfactory' condition and detail a list of observations affecting the safety or requiring improvements. The EICR will have the following codes, which are industry standard, and they are simple to follow so all can understand them. Unsatisfactory Codes for EICR:
A Satisfactory Code is:
Action is needed if the EICR issued is unsatisfactory. If an EICR has a C1, C2 or FI code, it is unsatisfactory. If a C1 is discovered, the electrician will often use temporary measures to make the dangerous installation safe. Then, as is the case with a C2 or FI code, it is the owner's responsibility to arrange a repair, replacement, or further investigation within 28 days. A C3 code, 'improvement recommended', is given to aspects of the installation that do not present danger but increase the property's safety standard. Occasionally a C3 code may be attributed to an item that does not follow current regulations but did comply at the time it was installed. The C3 code does not mean the installation is unsafe and should not impose a requirement to have work carried out by the owner. Where there are only C3 observations listed, this will result in a satisfactory EICR being issued. Will I get a Certificate to prove my compliance? There is no requirement for a certificate, you will, however, receive a report which will be issued, and it must include the following:
As an EICR can be long and technical, NAPIT has created a "Landlord Electrical Installation Safety Record" which is easy to understand. If the EICR fails, will I need another electrical installation safety report done again? No. you just need the remedial work or further investigation to be done within 28 days or within the period specified on your report if it is less than 28 days. Landlords require written confirmation (Electrical Installation Certificates or Minor Work Certificates) from the electrician you use to do any rectification work to prove the necessary jobs have been completed. This must be kept with the unsatisfactory report. Do I need to send a copy of the EICR report with proof of remedial work being completed to the council within 28 days? This requirement has been specifically introduced to alert the council to any properties which may have been sub-standard but are now safe for the tenant. You must provide the council with the unsatisfactory report along with written confirmation to prove you have had the necessary remedial/or further investigative work done. How do I check if the electrician I use to test my electrical installation meets the qualified and competent requirement? Any Electrician you use to do the electrical inspection and testing in your property must have:
Using someone on NAPIT's Electrical Inspector register ensures that the above criteria are met. The advantages of using a registered company are:
Does my property need to follow the 18th edition of the Wiring Regulations? No- The 18th edition of the Wiring Regulations states the following: "existing installations that have been installed following earlier editions of the regulations may not comply with this edition in every respect. Which does not necessarily mean they are unsafe for continued use or require upgrading". What types of tenancy come under the EICR regulations? Suppose a private tenant has a right to occupy a property as their only or primary residence and pays rent. In such cases, the EICR regulations apply, subject to some excluded tenancies (set out in Schedule 1 of the Regulations). The regulation applies to assured shorthold tenancies and licences to occupy a residential property. Will an electrical report need to be done at the start or during a statutory periodic tenancy? For dwellings let on statutory periodic tenancy where the fixed term expires between July 2020 and April 2021 will need an inspection and test. For statutory periodic tenancies – where on expiry of the fixed term, the tenancy rolls over into a periodic tenancy automatically by statute. The periodic tenancy would be considered a new tenancy. Which means you must get an EICR. Does EICR Regulation apply to Houses of Multiple Occupation (HMO)? Yes, they do. The earlier regulations were repealed, and the new regulation applies to HMOs from 1 June 2020. If I did not give my tenant an EICR report within 28 days, does it prevent me from serving a Section 21 notice on my tenant? No, it does not fall under these new regulations. What happens if I do not have an EICR Report? The council can impose a financial penalty of up to £30,000. If a private landlord does not obtain a satisfactory electrical installation safety, report their property as set out in the regulations. Or you do not undertake the required remedial work or further investigation within the necessary timeframe. The local council must serve a remedial notice giving the landlord 28 days to act. If the landlord does not act, the council can instruct an authorised person to do the required remedial work with the consent of the tenant. The council can recover reasonable costs of the work from the landlord. Do the electrical regulations apply to fixed and portable electrical appliances? These regulations have not set any requirement on fixed or portable electrical appliances that a landlord has provided. However, it is strongly recommended any electrical appliances provided by a landlord to a tenant should be regularly electrically inspected and tested. It is recommended that the landlords consider testing fixed electrical appliances and the Electrical Installation Inspection and test simultaneously. You can read the BLA guidance on portable appliance testing. I cannot get the EICR report done due to my tenant self-isolating; what can I do? Provided you have evidence to show that you have tried to take all the steps to get the work done under the regulation. You will need to keep proof of communications with your tenant, the electrician, regarding the work, including any replies. This evidence should be sufficient. You can also provide other evidence that the installation is in good condition while you try to get the work done. You can read the COVID-19 pandemic government guidance for landlords and tenants here. Is an electrician allowed to enter my property during the Covid-19 pandemic? Yes, they should consider the advice published about the COVID-19 virus and social distancing when working in occupied homes. How long does it take to do electrical safety checks? It should take between 1 to 2 hours depending on the size of the property and the condition of the electrical circuit and the fuse box, also known as the consumer unit. Half of all UK house fires are caused accidentally by defective house wiring. Lack of regular electrical safety checks can be life-threatening. Also, every year over 65 people die from incorrect wiring. What does an EICR test report involve? An EICR test will check the condition of the electrical installation and evaluate how efficiently it is working. The test looks for any deterioration, defects, or areas of electric shock risks, safety and or fire hazards—safety issues like bonding or earthing of installations and any electrical equipment. Do landlords need an EICR? Legally residential landlords must obtain a report (Electrical Installation Condition Report) from the electrician conducting the inspection and test. The EICR will explain its outcomes and any investigative or remedial work needed. How much does an EICR test cost? The cost of an electrical installation condition reports (EICR) depends on how big the property is. The average price for a 3-bedroom house is between £80 to £140. Where can I get an EICR Report done? EICRs can only be carried out by qualified electricians with the relevant skills and competencies. You can check on websites like CheckaTrade. Is the 5-year electrical test a legal requirement? Yes, it is for residential properties. Private landlords must make sure every electrical installation in their residential property is inspected and tested at regular intervals of no more than 5 years. This must be conducted by a qualified and competent person. Do I need an EICR to sell my house? An EICR is not legally needed if you are selling your property. However, it may help potential buyers and give them peace of mind that the electrics are safe. How long is an EICR valid for? It is recommended an EICR is carried out every ten years, five years for privately residential rented properties. Or if there is a change of tenant in a dwelling. Can a tenant move in without an EICR? No, not if you do not have a valid EICR. However, new build properties should already have one. Suppose your rental property is a new build or has been completely rewired. In that case, you will not need to get an Electrical Installation Condition Report (EICR) until five years after your EIC was issued. [link] [comments] |
| Rental property refi cashout asap Posted: 29 Mar 2021 01:41 AM PDT I am going to have to get a refi quote and everything under process for an emerging situation i have been looking at rates and they have been pretty bad for me. This is a 1m +sfr. I would have sold it but I do t have the time needed to get the property ready. What lenders are doing this amount of refi ? Eagerly awaiting for suggestions [link] [comments] |
| Boston Investing (House Hacking) Posted: 28 Mar 2021 06:51 PM PDT Hello all, Very new to the real estate scene but have listened to a lot of podcasts, ran analysis on several properties to learn to understand the numbers and what it would take. I am currently working to accumulate enough funds but was looking to do the traditional FHA loan with 3.5% down into a duplex or triplex and rent out the other units. Now, I currently live in a city in the southeast and am likely moving to Boston by years end. After looking at duplexes and properties in the area, Brighton, Allston etc. it became very clear very quick everything is extremely old and extremely expensive. Getting into a property worth 700k into the millions as my first property seems crazy to me. Am I thinking too much into this? If the numbers work to cover my mortgage or most of it while still putting away money for capex, maintenance, vacancies etc does it not matter that the property could be worth a million dollars? I just want to make sure I do this right and don't get in over my head where the property value may go down and then I owe more than what the home could be worth. I also see how this could be a good thing as a long term holder because I'm sure values would go back up and if anything, the equity I'd be building would be significantly more if things did go well than if I bought in a much cheaper part of the country. Lastly, does anyone have any idea why property is so expensive in the area? I understand the job scene is huge but don't see much appeal otherwise that would make prices be relative to NYC. Thanks! [link] [comments] |
| What's going on with institutional investors in real estate? Posted: 28 Mar 2021 08:36 PM PDT When it comes to supply and demand, I don't know how middle class millennials are tipping the needle despite what news reports say. Maybe I'm just salty after losing out on a full gut rehab needed-fourplex after a full cash offer with a 10-day close, but I'm starting to wonder if this market is being driven by huge companies willing to spend billions on acquiring real estate. A lot of the reasons about the average home buyer driving up prices just aren't ringing true. For example, in my market people are saying it's the influx of new residents from California... and yet, the CA market is still at full steam. Likewise, can the current economy support the average Joe wanting to buy his first home? While stocks have never been higher, there's this disconnect form main street in terms of wages and employment necessary to support a mortgage payment on a higher sticker price for a house, even with lower interest rates. I've heard rustlings and conspiracies that during BLM protests, downtown properties in Opportunity Zones got targeted for arson specifically so corporations could buy for pennies on the dollar (Catherine Austin Fitts, for anyone curious). My main premise is if there's a gold rush type asset grab in play here, done primarily by deep pocketed institutional investors. Does anyone know if this is true or not? And if it is, what does a more corporatized real estate market look like in terms of price and volatility? And are there types of real estate that hedge funds don't gravitate towards (ie, rural areas, land, etc)? [link] [comments] |
| Posted: 28 Mar 2021 10:43 AM PDT I just bought 5 multi units and will need help keeping track of everything. I would rather not use a property management company...are there any apps/websites that can help with this? even if its just help organizing everything? [link] [comments] |
| Can you really house hack in a high COL city? Posted: 28 Mar 2021 11:00 PM PDT Everything with more than 1 bedroom is $600k+, and rental income is mostly going to be less than mortgage, especially if you include HOA (no single family homes here) and property taxes. What am I doing wrong? [link] [comments] |
| Posted: 28 Mar 2021 10:56 PM PDT Curious if anyone has considered purchasing streets or roads for additional income via parking or speed can enforcement. I may be searching for this line of effort incorrectly but I have not seen much on the topic. Thoughts? Thanks [link] [comments] |
| Posted: 28 Mar 2021 03:13 PM PDT Hello everyone. I am in the middle of my first real estate investment rehab. My dad, who has about 20 rentals is pretty much guiding me along the way. He never mentioned anything about pulling permits so I never thought it was a big deal, until recently I heard some horror stories where someone does a ton of work without a permit and something terrible happens like the foundation gets fucked and the house caves in or the city completely shuts them down and makes them tear everything out. At this point, I've completely changed the layout of my property by moving the staircase out of the middle of the room to the side to open up the house and also raise part of the floor about 6 inches because for some reason the room had a weird layout where half of the living room was 6 inches lower than the rest of the house. I opened up a wall and found that a lot of the old brick was crumbling and had someone come in and patch up the wall. I had an architect tell me it is safe and the work, in my unprofessional opinion, looks really good/professional. The architect is very professional and owns his own construction company that builds commercial buildings like retirement homes. However now I am freaking out about these changes without a permit due to these "horror stories". I know the textbook answer is get a permit, but this could take months. People who have been in similar situations, what are your thoughts? This is my first complete rehab, so I don't know what I don't know. [link] [comments] |
| Taxes for rental income and capital gains? Posted: 28 Mar 2021 06:50 PM PDT Hi all, I was thinking of investing in an out-of-state property and wanted to see if anyone can help shine some light on issues of rental income taxation and capital gains taxes (as a non-resident)? How do you guys report taxes on rental income and are any capital gains exempted from taxes (for non-primary residences)? P.S. Would also appreciate if you can tell me what accountant, tax software are best suited for real estate investments? [link] [comments] |
| Adding a unit over a detached garage Posted: 28 Mar 2021 06:13 PM PDT Quick question that I've been wondering. I own a live in 4 unit but it was originally a 5 unit and it is listed with the town as a 5 unit. I am wondering if I can build a detached garage with apartment above to replace my current garage? I am in MA by the way if it matters? Also if I can't under the 5 unit can I add it as an in-law I want to use it for my wife's parents? [link] [comments] |
| Does lack of appreciation ever stop you? Posted: 28 Mar 2021 08:33 PM PDT There is a property near me that should cash flow well and is relatively turn key. Only thing is it is listed for 26k more than it was sold for 24 years ago. I know cash flow is name of the game and any appreciation is just a cherry on top, but is my money better invested elsewhere? [link] [comments] |
| Use my own money for purchase and rehab, or use expensive hard money loan? Posted: 28 Mar 2021 08:19 PM PDT Hard money is fairly expensive. I have enough capital to purchase and rehab the whole project on my own. Is this common practice for someone with the means to do it themselves or would you always use a loan? [link] [comments] |
| What would you do? Sell or rent? Posted: 28 Mar 2021 08:02 PM PDT Hi everyone! I could use some advice. I bought a newly constructed townhome about 4 years ago to use as my primary residence. It's been a good couple of years at work and I just went under contract on a much larger home, that's a better fit for my needs and will be closing in a month or so. I'm finding myself lost on what to do about the townhouse. There are pros and cons either way and I'm hoping you guys will weigh in. Purchase price: $315k price today: $340-360k Estimated rental value: $1800 Mortgage (2.99% rate): $1500 HOA: $140 Selling: Pros: I feel like townhouses can only appreciate so high and the market is at a peak. It would be nice to get the liability off the books and make a few thousand profit plus get back my equity. I can move the cash in to my stock portfolio where I think it might perform better over time and be more liquid. Cons: I just refinanced a few months ago so it's tempting to hold on to it with the great rate. It seems like the conservative responsible choice on paper. Renting: Pros: cash flow and continue to build equity. Some potential it could appreciate. Cons: rising HOA cutting in to profits. Dealing with problem tenants potentially. Possible vacancy. Missing the chance to sell at the peak of the market. I need to make a decision this week but I keep going back and forth. If it was a big cash flow, it would be a no brainer. But I can't help but feel like it's not worth the trouble and then a few years from now the price stagnating. What would you do? [link] [comments] |
| Purchasing Real Estate by buying an LLC Posted: 28 Mar 2021 07:15 PM PDT I'm purchasing all the shares of an LLC from a family member. The only assets in the LLC are two lots. Given that we're family, I'm very familiar with the real estate being purchased, and we trust each other; we're closing the transaction without a title company or escrow. For purposes of property taxes, do I have an obligation to report the sale to the county? I'm purchasing the property for the exact value listed in the property tax bill. Thank you. [link] [comments] |
| Renter's insurance additional interest Posted: 28 Mar 2021 12:35 PM PDT So my wife and I bought our first 4plex and require our tenants to have renter's insurance. It seems prudent to be listed as an additional interest on the policy; but do so, the insurance company needs an address for us. Since we can't receive mail at the 4plex and don't want to setup and monitor a PO box solely for this, is there any way we can be an additional interest without giving the renters our personal home address? [link] [comments] |
| How has the pandemic affected your investment plans? Posted: 28 Mar 2021 11:34 AM PDT If you were planning on buying a house this year before the pandemic even began, would you still buy or would you wait it out? A lot of people are commenting about how houses in their neighborhood have shot up $100k+ in the last year or two. When things settle down will the prices stay up and just appreciate slower or will we actually see a decrease in the prices? As for the inventory issue, I don't see this getting better anytime soon. Either new construction will demand premium prices or existing homeowners will hold off from selling if prices drop. I mean, if they haven't sold now why would they when things drop? The only exception would be if we see massive defaults and foreclosures fallout from the pandemic. [link] [comments] |
| Should I get a Real Estate License and represent myself as buyer to get the 3% commission? Posted: 28 Mar 2021 11:23 AM PDT (California) Since the cost of housing is so expensive here in Silicon Valley, and I think I might have 3 real estate transactions in my 3-5 year future, I'm thinking of getting my real estate license so that I can save on the commission costs. The transactions would be at least $1.5m each, and possibly one closer to $2.5m (so we're looking at over $150,000 in commissions). Do I need to work for a broker (like Coldwell Banker, Alain Pinel, etc)? And if I don't actually work for any of these, am I still entitled to the 3% buyer's side commission? I'm sure people will espouse the benefits of an agent (and don't get me wrong, I'm not completely ruling one out, especially Redfin since I know they rebate back to their customer). But I know EXACTLY where I want to buy - literally it's like a 2 mile radius, sometimes even down to certain streets. I know how much things have been selling for here and how quickly they sell. Yes, I do understand there's a network between agents and they might have a jump on the property. However, I cant see how any seller in their right mind wouldn't list their house here to get the maximum exposure - you need to just post it and you'll have multiple offers over asking in less than 3 days. [link] [comments] |
| First property for rehab, rental, replat Posted: 28 Mar 2021 08:50 AM PDT Though I've helped my family with many rental property rehabs, this is my first purchase and I'm seeing potential, but looking to make sure it's doable. I bought a home on piers that needs a lot of love. It is zoned for multi family, and built on 3 lots. My intentions are to rehab to rent, while replat the land to 4 lots. Property is on corner, so intentions are currently duplexes or townhomes. Eventually when other properties are built, I want to demo the older home. My concern is as a first purchase, I'm worried I'm biting off more than I can chew or even know how to bite. If anyone has advice or insight, I'd love to hear it! Thank you. [link] [comments] |
| Should I invest with someone else or buy long-distance to get started? Posted: 28 Mar 2021 01:31 PM PDT Hi all, I have been looking to invest a portion of my portfolio into real estate for quite some time now but am not sure of how to take action on my first property. I recently had to move to NYC for work, so there is no chance of a move to an area with a better RE market any time soon, and I'm hesitant to go with a long distance purchase in an area I am unfamiliar with for my first purchase. I wanted to know what the sub thought of the idea of partnering up with someone to invest with that would handle the management after the deal is done while I am able to learn and gain some footing from my first deal. If this isn't the way to go, any advice on how to approach investing in my first property in this situation is appreciated. Thanks! [link] [comments] |
| Cash out refi seasoned but haven't lived there Posted: 28 Mar 2021 05:58 AM PDT Bought land in 2018. Accrued 170k in debt building a house worth over 250k. I just moved in and want to cash out refi to pay the debt off but my broker is saying I have to have lived there for at least 6 months. Is that correct? The way I read it I have to have owned it for at least 6 months. What are my options if my broker is right and I'm not eligible? [link] [comments] |
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