Real Estate Investing: PSA: Make sure you verify your assumptions with research... or How a zoning department saved my butt |
- PSA: Make sure you verify your assumptions with research... or How a zoning department saved my butt
- Is it stupid of me to purchase an investment property as my first home?
- Airbnb or rental?
- Airbnb a property in Costa Rica?
- My friend and I are each purchasing an FHA property, but we want to each own 50% of the other's property. What is the best way to go about this?
- Poke Holes in My Plan
- Am I thinking of this correctly? Buying a property and having partner + friend move in..
- Single Family vs. Muti-Family vs. Apartments
- Sending out mail to buy homes
- Transferring Flip Property to LLC S-corp
- Money Required in Bank Account Before Closing
- Advice for new Rental Property Buyers
- Cash Offer Accepted: What else should I do before closing aside from the things listed?
- Sell or rent
- Flood map?
- Is Meet Kevin a good source of learning for how to get into real estate?
- How do you track your portfolio's value?
- Buying a $30k< home
- How salary affects maximum loan amount?
- Real Estate Investing and Exit Stategy from wage work (CA)
- Have you used a hard money lender before? Need advice
- Resource for tracking new home listings, completed sale prices, days on market, etc? Some of 'at-a-glance' overview via email or app?
- Down payment question
- Low LTV HELOC with small collection on credit report
| PSA: Make sure you verify your assumptions with research... or How a zoning department saved my butt Posted: 08 Mar 2021 06:40 PM PST tldr: We found a great airbnb property in a different state in a big tourist area that has tons of airbnbs, but one call to the zoning office saved us from a catastrophic investment. So we've vacationed in this town in a neighboring state before, using things like vrbo and airbnb, so we know it pretty well from the consumer standpoint, but we've never invested there. Recently though, we chanced upon a great opportunity to buy a private cabin 1 mile outside of town with an amazing view. It was on MLS and would get a lot of offers, but through some inside info we knew the adjacent parcels could be purchased off-market very cheaply, each with similar views. Tiny home airbnbs cash flow very well there, and running infrastructure to the parcels can be done very cheaply through the original property. This seemed like a no-brainer. Developing the extra parcels turned this into a very high cashflow investment. We felt very confident in the plan, and felt our offer would very likely to be accepted. We had the capital for an all cash offer so we could close as fast as possible, and I had already coordinated with a lender I've worked with before to get the ball rolling on that after the sale went through. Of course I read through the zoning codes because we needed to know that developing the land in this way was workable from a legal perspective, and even though the area is flush with short term rentals, I wanted to understand the rental permit and inspection requirements. Because it was on MLS, things moved very quickly. Everything was good to go, but we still had time before the offer needed to get in, so I decided to call the zoning office directly to confirm our plan was doable. No amount of due diligence is too much, right? It turns out the town is pushing through some of the most restrictive short-term rental regulations in the United States. The details are not sorted yet, so it didn't appear in their upcoming legislation area on the site, but among many new restrictions overall, the code changes would make it illegal to run a short-term rental unless it was out of your primary residence, and they have no plans to grandfather existing rentals. As expected, existing investors in the area are furious and raising hell, but the town does not seem to be backing down. Two other nearby municipalities have already adopted similar code changes. It's possible that the current plans won't go through, but it seems unlikely that no changes would go through in the end, and the intent of the council is clear. Even if the changes do get adopted, it's unclear whether the lack of grandfathering would stand up in court, but is that a battle we want to dive into? No. We scrapped the offer and walked away. Things could have worked out, but there are always other deals, and this is a risk and headache that is far outside what we're looking for. For the record, folks in zoning departments are awesome. The zoning offices around our normal investment area are all incredible, full of amazing folks that go out of their way to be informative and helpful. This out-of-state zoning department was no different. Of all the professionals I've dealt with for real estate investing, zoning officers are top of the class. [link] [comments] |
| Is it stupid of me to purchase an investment property as my first home? Posted: 08 Mar 2021 12:16 PM PST I wanted to purchase a home as a first time homebuyer but I've found a home I love that is currently tenant occupied. I eventually plan on moving into the home but the tenants lease isn't up until January, meaning the only financing I could do would be for an investment property. [link] [comments] |
| Posted: 08 Mar 2021 03:21 PM PST Lets say demand is equal for both types of property. What would you choose and why? [link] [comments] |
| Airbnb a property in Costa Rica? Posted: 08 Mar 2021 05:53 PM PST Hi all! In my mid 30's with 115k saved up. The plan was to use this junk of capital on an investment property. I'm in California and never really wanted to buy an investment property here because 1. i don't have enough cash 2. ROI is super low (if any) with this small amount. For years I've been toying with the idea of buying out of state and never pulled the trigger. I recently starting thinking why not purchase in another country......specifically costa rica. Does anyone have experience in this realm? I'd like to airbnb in costa rica. [link] [comments] |
| Posted: 08 Mar 2021 07:56 PM PST My friend and I are purchasing 2 properties, one in each of our names with an FHA loan. We do want to own 50% of the others property but you can only have one FHA loan in your name at a time. What's the best way to have a side agreement so that we each own 50% of the others' property? I can't find a good template online for something like this. Any suggestions? Has anyone done this before? [link] [comments] |
| Posted: 08 Mar 2021 03:41 PM PST I've been investing in RE for a couple years now and want to really get the ball rolling with the BRRRR strategy, particularly delayed financing. For those of you that are unfamiliar with delayed financing, this allows you to refinance the property sooner than 6 months (with the amount you can pull out equal to total money in plus closing costs assuming the ARV allows it). My plan is to purchase 4 properties a year (1-4 unit each). I will buy the property cash, ideally do a light rehab, rent, refi, and then buy another property (and repeat every ~3 months). I've got good connections with realtors, contractors, handymen, and manage the rentals myself. After putting up to 10 loans into my personal name, then I'll refinance multiple into a commercial or portfolio loan to free up my ability to get more fannie/freddie loans. I've begun doing this with a SFH and am in the middle of the rehab and just started the refi. Has anyone done this strategy and what flaws do you see other than leaving your rehab costs into a property initially? The hope is to continue this strategy and build up larger and larger cash purchases until employing this type of strategy with apartment buildings. Tl;dr - Any dangers to watch out for with delayed financing BRRRR strategy? Thanks! [link] [comments] |
| Am I thinking of this correctly? Buying a property and having partner + friend move in.. Posted: 09 Mar 2021 12:31 AM PST Hello all, I'm a whirlwind two weeks I went from casually looking at places to discussing putting an offer on this Condo. Ideally, I would be living here with my partner who would move in with me, and a friend of hers who wanted to move in with us a few months ago. Would this be okay? I've informally spoken to my partner about how this could work (I'd pay more due to making a bit more and then she and her friend could pay the same, so example I pay $950 and they each pay $700). However I also understand that as this is a mortgage, I'm at an "advantage" as they'd be paying into it but not receive equity. I guess I'm wondering how this would best work taxes wise? I assume she and her friend pay me and then I pay the mortgage monthly. I've read a few posts saying it's better to not mention I'm renting to them but then others where they do... So I'm a bit lost! Would they pay me their rent and then I pay my monthly mortgage? In tax time, do they put they paid rent to me? If so, as this is paying my mortgage and I'm technically not making any income to this, how would that work tax wise? Sorry if this is a bit all over the place, any conversation is appreciated!! [link] [comments] |
| Single Family vs. Muti-Family vs. Apartments Posted: 08 Mar 2021 07:13 AM PST Fairly green investor here. I have SF rentals that consistently bring in between 1.25-1.75% of the purchase price in monthly gross rents. Annual costs (taxes, insurance, repairs, and management) are around 4.5% of the purchase price. Anyone have advice/experience on how this compares to the multi-family or apartment investments? (Edited 3% to 4.5% to include management fee.) [link] [comments] |
| Posted: 08 Mar 2021 06:24 PM PST I get these all the time on my rentals. I have been thinking about trying to do this to pick up some rentals or maybe even some good flips.. I'm looking for ideas as to what might actually work? I know it will depend on the person receiving it. Have any of you had any luck sending out mail or received any convincing ones you could pass along? Mostly will be sending to people with homes that need work or remodeled. [link] [comments] |
| Transferring Flip Property to LLC S-corp Posted: 08 Mar 2021 03:35 PM PST |
| Money Required in Bank Account Before Closing Posted: 08 Mar 2021 10:11 PM PST I'm in contract for a house but I won't have the full amount of the down payment + closing costs until a few days before closing. Would this be an issue? Do lenders require money in addition to the down payment as "cushion"? This is for a second home mortgage. Also, is it possible to refinance this loan in the future as commercial loan and then take out another second home mortgage? [link] [comments] |
| Advice for new Rental Property Buyers Posted: 08 Mar 2021 08:14 PM PST Hello -- We are a new LLC with all appropriate documents/licenses needed to operate. We are actively looking for our first rental property to purchase, and I am just curious what may be something you/your team wish you knew when you were in our seats? Thank you, [link] [comments] |
| Cash Offer Accepted: What else should I do before closing aside from the things listed? Posted: 08 Mar 2021 07:52 PM PST My first all cash offer was accepted. I have 5 days for due diligence and am planning on doing the following:
Is there anything else I should be doing during this period? We are closing in 30 days and since it's my first investment property I'm a little scattered. Appreciate the help. [link] [comments] |
| Posted: 08 Mar 2021 07:32 PM PST Could you please give me your opinion about this situation. I have a condo (not my personal residence) that is completely paid off. I just got done replacing old carpeting and redid the kitchen flooring myself. This particular condo association I've had experience with not the best with being responsive and they tend to allow things to go until they are a major problem. There are multiple condo buildings and the management has informed me that 65% of the condos are rented while the rest is owned. I've noticed that it seems to be a problem area where the cops seem to keep tabs by sitting in the condo parking lot occasionally. My condo has other concerns where it's an end unit and everyone around it has no respect but walks across the front lawn even crossing by the front window which disrespects privacy but the association says it's public property so they can't do anything about it. There are large trees in the front and back that I can eventually see the roots being a problem with the foundation but again the association says they won't do anything until it's a problem. I'm torn between selling it—-which all the condos in that complex are below market because people don't care and they have walked away from foreclosures or just want to unload their condo so the condo gets sold for a low price. Well that doesn't help me because the comps are low, so the banks give low appraisal values and I can't get much for the condo in selling it. But trying to rent it is a problem with the disrespectful neighbors, the unresponsive association, and the potential problems I see with the tree root system and foundation. What are your thoughts——is it just better to sell it and don't even get started renting it? I thought I was going to go the route of selling it but now I'm thinking that may not be such a good idea given the situation [link] [comments] |
| Posted: 08 Mar 2021 07:25 PM PST Is there an app that you can quickly access to flood zone maps from? [link] [comments] |
| Is Meet Kevin a good source of learning for how to get into real estate? Posted: 08 Mar 2021 07:23 PM PST What the title says, I'm a long way from being able to buy my first rental property but would like to hit the ground running when I start investing. [link] [comments] |
| How do you track your portfolio's value? Posted: 08 Mar 2021 09:32 AM PST We own a bunch of rentals in MN and TX. Because we invest long-distance, I've tried to check these markets' pulse once in a while, but it's been pretty random. I'd like to pick up on subtle changes automatically somehow. How do you keep track of your portfolio value estimate? Is there some automatic tool or API to do that? [link] [comments] |
| Posted: 08 Mar 2021 06:27 PM PST I've been recently looking into getting into real estate. Unfortunately I am completely new to this so I don't entirely have the funds to even getting a loan. My parents were interested in me finding a home for them to invest in and they said I could help. Unfortunately they're looking for houses under 30k but whenever I find one they complain it's too messy or in a bad neighborhood. Is this method a practical way for beginners to get into real estate? Any help appreciated. [link] [comments] |
| How salary affects maximum loan amount? Posted: 08 Mar 2021 02:08 PM PST So I would like to purchase a property for myself around 650K-800K, in NYC. I have 0 debt, live at home and my credit score is excellent. Now I have the cash to put 20% down but before I subject myself to a hard credit pull; I have 1 question. Apparently the loan lenders use the last 2 years of salary as one of the factors in determining the max loan I can take. My problem is, I was making around 55k for the last 3 years and have now changed jobs, so I'm now making 110K+. Obviously if anyone runs the math there's no way someone making 55k could pay a 650k-800k mortgage by himself/herself, normally. With my new job (had it for 3 months) paying a 650k-800k mortgage is a non-issue and I'm including other expenses as well. So my question is, will the lender take into account my current salary and give me a higher loan or just qualify me by using my previous salary, in which case my max loan amount will be significantly less? FYI I know I could talk to a lender, but I'd rather hear what the experienced people on reddit have to say or maybe I can get some food for thought before I talk to a lender, since this is my first home purchase. [link] [comments] |
| Real Estate Investing and Exit Stategy from wage work (CA) Posted: 08 Mar 2021 02:04 PM PST I'm looking for any feedback and opinions from others (with skin in the game) on my approach to real estate planning; thanks in advance for any advice or input! Status: Holding 2 properties with loans that will be paid off in 2026, together they generate about $5k per month gross rent. Never intend to sell, unless its to upgrade to a larger properties or to reset depreciation. We are buy and hold investors, willing to buy a value add and renovate, but honestly after the time and effort of the last one, I'd seriously consider a turnkey next time. Goal: Family want to be free to travel while kids are still young. In 2026 Both of us parents will be in mid 50s, 1 child will be 14 yrs old, perfect age for some extended length trips and world travel. Considerations: We plan on downsizing after child is 18 to help pay for school, to be able to live cheaper on the existing income. Extended travel is the goal, but will mean substantial changes to our schooling and wage work income status quo. If we "wait", we could conceivably purchase another incoming property and pay it off over time and have more income than we need (8k/mo or more), but it would likely come together when we miss our window to enjoy the world and adventure together. I've known so many who waited until everything was ready, and then never did the life goal things that they worked so hard for. So apologies for the very broad question here, but I'm looking for reflections from others on more of the life goal considerations of real estate investing, and any wisdom that those further along may have to share. Thoughts? [link] [comments] |
| Have you used a hard money lender before? Need advice Posted: 08 Mar 2021 05:17 AM PST I am looking to flip a house and found a great local hard money lender to work with. His only up front fee is paying his attorney fee ($700) and then charges 12% interest. Hes agreed to fund 80% of the purchase price while I will fund all of the rehab. I'm somewhat confused in regards to whether I need to retain an attorney since I will be paying for his attorney? Also, what other questions should I be asking this hard money lender? He says there is no prepay penalty, as in I can pay off the loan at anytime. Thank You! [link] [comments] |
| Posted: 08 Mar 2021 10:46 AM PST I'm getting these monthly digest emails from my realtor for average home prices, new inventory, i ventory sold, and days on market. I'd like to sign up for this kind of thing in other areas too. I found mostly what i'm looking for on Redfin: shows charts of prices and inventory over time, lists all recent sales and how much over/under asking they sold for. Major drawback that makes it unusable, for sold listings and over/under on asking price it is only listings on redfin, rather than all sales for the area (and its a state with public data). (Specifically i am looking at Lake County IL but i assume any tool like this can be used for any county or zip) [link] [comments] |
| Posted: 08 Mar 2021 04:18 PM PST Hey guys, new investor here. I wanted to know how much down payment most of you typically put down for investment properties. I know if you put down less than 20% you have to pay mortgage insurance, so what are the pros and cons to this strategy? [link] [comments] |
| Low LTV HELOC with small collection on credit report Posted: 08 Mar 2021 09:24 AM PST Credit score: 770 Property Value: 400K+, primary residence, fully paid off. I'm trying to get a HELOC for 100K to purchase a rental property. However, I have a small collection on my credit report ($546) from 3 years ago. I applied at Figure this morning but was denied due to this collection. Any idea what kind of institution would work with me to get a HELOC against my primary residence? [link] [comments] |
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