Real Estate Investing: Tell me why I shouldn’t become a real estate agent just to buy a new house for myself? |
- Tell me why I shouldn’t become a real estate agent just to buy a new house for myself?
- I have very little real estate knowledge but have the ability to jump in. Please help a veteran out.
- Minimising my costs of having a rental "buy-to-let" property as an overseas investor
- Expected income multiplier as a value of the multiplex?
- Called 20 mortgage brokers and banks in the last 48 hours - This is the best rate I got
- My fence is falling apart. It is 20+ years old, and the wood is rotting. Cost to replace is $10k+. I will be renting out my single-family home at the end of the year. What is the smartest decision I can make from an investment standpoint regarding my fence?
- How did you scale in REI? How did you fund your projects?
- Favorite landlord insurance company?
- Mobile home park financing!!
- Eviction in Florida (Volusia County)
- If I buy a multi-family/ duplex and house hack, am I able to move into it and rent out my current property. Is there any advantage to this or is it better to just rent out the building and stay where I’m at?
- Escrow account. Yay or nay?
- Pros/Cons of buying a 5+ unit multifamily building and having a business loan, rather than several smaller purchases?
- Does this deal make sense to BRRRR or go conventional?
- Water question potential emergency
- Please Help motivate a new Investor
- I was gifted a large amount of money. Im already heavily invested into stocks. What type of real estate investing should I do instead?
- How do you model risk data and market rents?
- Purchasing a fully rented duplex on FHA questions for a new investor/home owner.
- 6 studio apartments or 8 efficiencies?
- Rental management good bad the ugly.
- SFH renovation to MFU
- First Time Investor looking for advice.
- How do those of you who invest in real estate but investing is not a full time job analyze a property
| Tell me why I shouldn’t become a real estate agent just to buy a new house for myself? Posted: 24 Mar 2021 10:56 AM PDT Let's say I'm in the market for a $2M home. Where I live, each broker splits a 5% commission, or 2.5% each. Therefore the I could potentially earn/save $50k on this transaction. In my state it costs less than $1000 with 40 hours of classes and a passed exam to become a real estate agent. Let's also assume that I am reasonably real estate competent. I currently own some other properties, know the local area well enough, and can do comps myself. So I don't get as much value from hiring an agent as a first time buyer for example. Assuming I had the time and energy to get the license, why wouldn't I do it? I would love for you fine folks to poke holes in this idea. Thanks! [link] [comments] |
| I have very little real estate knowledge but have the ability to jump in. Please help a veteran out. Posted: 24 Mar 2021 01:54 PM PDT I am a 100% disabled veteran, which means I can work but I also make 3400 a month with health benefits for the rest of my life. The only debt I have is $18000 in a car lease. I want to buy a multi family home here in Southern California. Live in one. Rent out the others but i'm afraid. I really don't know what i'm doing. I also like the idea of buying fixer uppers and well.. fixing them up for resale. Some people tell me you can buy a property, refinance it and use that cash to buy more property [link] [comments] |
| Minimising my costs of having a rental "buy-to-let" property as an overseas investor Posted: 25 Mar 2021 01:21 AM PDT I know this is more of an American-related subreddit, but I think any general advice would apply to me as well. I am currently in the process of investing in a buy to let in Manchester, UK with my family. I am a student there and my family lives abroad. After seeing all the different charges that come with it, I was wondering how I can minimize my expenses. From what I know, there's going to be ground rent, SDLT tax, service charge, solicitor fees, taxes, and a management fee for hiring a company to take care of the letting process. I thought about if I were to let it myself, but I am not that experienced nor am I super familiar with everything in manchester or how things work in the UK. I was wondering if there are ways to minimize costs a bit here and there and take advantage of things that experienced investors know to get around things. [link] [comments] |
| Expected income multiplier as a value of the multiplex? Posted: 25 Mar 2021 12:02 AM PDT I see some sellers state that they are listing the property at 100 times monthly rental income or 80 times monthly rental income. How do you feel about this type of valuation? If you think this is a reasonable way to value the property, what multiplier would you feel comfortable using? And why? [link] [comments] |
| Called 20 mortgage brokers and banks in the last 48 hours - This is the best rate I got Posted: 24 Mar 2021 05:30 PM PDT Maybe it's just me, but I'm the type of person that sometimes does things backwards. I found a Condo in Downtown Tampa (Channel side) that I want to pick up as a long term investment. Haggled my way to a good price with an extra parking spot. Received the contract today after the seller agreed to my offer yesterday. After the seller received my offer, I started calling brokers and banks, credit unions etc. With purchase price of $372,000, 30% down, condo, investment property, solid credit score (740+), 30yr mortgage and no points, I received offers ranging from 3.625% to - 4.5%. One offer stood out at 3.375%. So my question to people that recently started looking at mortgages for investment properties: Any of you found a better deal ? if so please share the lender's info. [link] [comments] |
| Posted: 24 Mar 2021 11:45 AM PDT My fence is dilapidated and needs some form of replacement (or serious repair). It is an eye sore to an otherwise nice, single-family home in a reputable neighborhood. I believe it is a poor financial decision to replace the fence at $10k+. I would love any suggestions r/realestateinvesting can offer. Thank you kindly. [link] [comments] |
| How did you scale in REI? How did you fund your projects? Posted: 24 Mar 2021 07:11 PM PDT I started REI back in early 2020, with 3 deals under my belt, I'm curious how you scaled your REI operation?
I'm working with a bunch of wholesalers, as I live about 2.5 hours from the market I invest in. With the BRRRR model, I feel like I can only do 3 deals a year using my own cash. Since refinancing takes about 2-3 month turnaround. I've heard of crowdfunding and private lending fund the entire deal (downpayment + purchase), in return, you offer either % in equity, agree to pay interest, or % of the cash flow. Anything else that could be offered in exchange for funding the deal? How do you find these creative funding sources? [link] [comments] |
| Favorite landlord insurance company? Posted: 24 Mar 2021 03:15 PM PDT Hi-- could you tell me your favorite landlord insurance company (preferably in FL and preferably for a house that is used both as a rental and occasionally as a second home) ? [link] [comments] |
| Posted: 24 Mar 2021 10:17 PM PDT How can I finance a mobile home park? Its a great investment but the bank requires an 80% ltv ratio and only loans on the cost of the land, so it's practically impossible to get a loan and the sellers will not consider owner financing. Its a great investment but I need to find 200k. Please help!! [link] [comments] |
| Eviction in Florida (Volusia County) Posted: 24 Mar 2021 05:50 PM PDT First eviction. Tired of the lies. Any help appreciated. Thanks. [link] [comments] |
| Posted: 24 Mar 2021 11:05 AM PDT I currently am living in my first home and saving up for future investment properties. I hear a lot about the advantages of house hacking but I only learned of this after I purchased a home. So I'm curious should I stay in my current residence or house hack and rent out the property and other unit/units of a multi-family. Or is kinda pointless and just stay in my current home and rent out the units of the multi-family? [link] [comments] |
| Posted: 24 Mar 2021 08:48 PM PDT Having a discussion with a friend. I just finalized a contract today (beginning escrow), and friend is finalizing a refi. I have an impound/escrow account on my first mortgage (primary residence). It's convenient to not have to worry about insurance and taxes. But at the same time, they are collecting my tax money and gaining interest on it until payment is dispersed every 6 months. I feel like it would make more sense to eliminate this account and pay for it myself and collect that interest in my own account? Tell me if this is assbackwards thinking before I finalize my monthly payments pls. TIA [link] [comments] |
| Posted: 24 Mar 2021 12:16 PM PDT I have been considering scaling up to 5+ unit multifamily places and doing a business loan. Does caprate get higher when you going into larger buildings? Any real benefit over several smaller places? [link] [comments] |
| Does this deal make sense to BRRRR or go conventional? Posted: 24 Mar 2021 07:40 PM PDT I'm looking at a deal that I could do 120k cash and put about 15k renovations.... ARV is 160/165k so hopefully I can do a 80% LTV and be all in 132k. Hopefully making me effectively only 3k in the deal Or I could do a 130k offer with 6% seller assist. I think this would bring me to 18200 down. Renos would still be 15k so it would bring me to 33k all in... Even if I packaged the repairs into the loan it would still be roughly $21k Worse case with the BRRRR is that I only pull out 120k and my only cost to purchase is the 15k reno it makes sense to BRRRR 100% right? I may have to pay 3-4k in interest to borrow the cash, but at the end of the day it makes better sense right? My realtor was saying the refinance rates also won't be as favorable, but still curious And I feel like a cash offer is more likely to be accepted? [link] [comments] |
| Water question potential emergency Posted: 24 Mar 2021 03:06 PM PDT Hello all just got a water bill for last month that had 187,000 gallons of water usage. Typical month is around 30k. Maintenance man is enroute but the water association is closed till the morning. No reported maintenance issues from tenants but we have one tenant currently being evicted. Other than maintenance and calling the water association are there any other things I can do to cover my bases. If the tenant being evicted was acting negligently any potential measures to recoup my costs? Update: The 6 unit complex I purchased was subdivided out of a bigger parcel of land. The parcel I didn't purchase had a vacant trailer. Well that trailer was on my meter even though I didn't own it. We had a freeze a few weeks back and it mush have frozen the pipes in the trailer. [link] [comments] |
| Please Help motivate a new Investor Posted: 24 Mar 2021 12:45 PM PDT Good Day everyone, baby investor here in need of some motivation. Me and my wife have decided to go all in on this investing venture and we spend every second of free time learning and learning and learning to be as prepared as possible. We've had meetings already with 3 different realtor friends of ours and it almost feels impossible to try and find a property to either flip or wholesale. And after today's meeting we're starting to feel a little overwhelmed and demotivated. We live in the South Florida area and I know it's a sellers market and everyone is selling above value. We've even gone on batchleads and formulated a list of possible motivated sellers and have cold called over 100 different people, and still nothing. Is there a better place to find motivated sellers that I'm overlooking? Am I getting into this at the wrong moment? What do you guys recommend I should do? [link] [comments] |
| Posted: 24 Mar 2021 06:35 PM PDT I've been following the housing market and prices have gone significantly up with inventory being historically low. I'd have to overpay to be able to buy a house (as an investment) and I'm not looking to do that. I've thought about maybe just buying land and holding on to it? Is there anything else I can do real estate wise. My large sum of money is just currently sitting in the bank and I really want to put it to work but an overvalued stock market and rising housing prices is giving my anxiety of working it in either market. [link] [comments] |
| How do you model risk data and market rents? Posted: 24 Mar 2021 05:13 PM PDT When buying a multifamily property, how do you determine its risk and its market rent? Do you use assumptions about the area, trust comps, or have another way? Buying smaller multifamily properties seems like a very risky affair, since vacancy is felt more strongly than larger buildings. How do you make sure that these risks are adequately priced in? [link] [comments] |
| Purchasing a fully rented duplex on FHA questions for a new investor/home owner. Posted: 24 Mar 2021 04:59 AM PDT So I'm looking at a house that I love but is currently being fully rented by the previous owner. I'm qualified for the FHA at 3.5 percent but I know that I have to intend on moving into the residence. From what the realtor told me from the showing, the person on the first floor is planning on leaving. Am I still able to buy the house and just wait for the guy to leave for me to move in? Is there anyway around this aspect? Thank you everyone in advance, I hope this is the right flair! [link] [comments] |
| 6 studio apartments or 8 efficiencies? Posted: 24 Mar 2021 12:13 PM PDT Hello, this is my first post, but I have learned a lot from this sub as a lurker for almost a year. Now I am hoping for some advice. I currently own a Multifamily building consisting of 8 units, 6 1 bedroom apartments and 2 offices. There are 4 residential units on the top floor and two on the bottom behind the commercial units. I cannot rezone the commercial units into residential so I will be turning one into a laundromat and the other is just storage for now as I plan to expand into more properties in the area. The location is a low income/distressed area and I have 3 tenants, all section 8. I purchased the property in 2016 for $65K with a partner, who almost immediately screwed me out of the $60k hard money loan we secured for the rehab. I was able to refinance and am currently losing about $350 a month, but that's better than where I was a year or two ago. I have gone through squatters, bad tenants, and just poor management help. I am not going to say most of it wasn't my fault, I got desperate and did not make sound decisions, new baby on the way and sick wife will do that to you, I guess. I am now at a point where I can start the major remodel of the building. I have just gutted a unit on the second floor above the empty office space and have a couple of options. I was thinking of converting the 4 units on the second floor to 6 studio/efficiency apartments. The apartments would be about 355 square feet each, bathroom, small kitchen, and a closet or two depending on how I lay it out. I could also do 8 smaller units at about 250sq ft each, however, I think this may be too small, I don't know as I have not done the layout on that yet. The only major change to expenses, that I can think of, would be the sewer charge, which is $42/unit/month. I would also have to upgrade the main electric to 600 or 800 amp service, but I had to do that for the laundry anyway, so that cost is accounted for. The cost to gut and remodel each studio would be about $7k each unit. I am sure the taxes will be going up, however, I am in talks for a 10 year abatement and reduction of taxes. The tenants would pay for all their own electricity and double my water bill would be about $120/month. I currently pay for hot water and planned to install hot water heaters in each unit anyway, as well as efficient heaters, possibly A/C, mini splits or ptac. My numbers are as follows: 4 1BR units: AVG Rent – Sewer tax = 800 – 42 = $758 * 4 = $3,032 6 Studio units: 675 – 42 = $633 * 6 = $3,798 Additional rent: $766 * 12 = $9,192 I used the avg rents I am getting now for the 1BR, and avg rates for studio units I found in the area. Some of those were very small efficiencies, but I like to be a little more conservative. The $9k extra per year would pay for all 6 units in about 6 years. That is 16% extra cash flow, based off my $7k initial investment x 6 units is $35k. I would not be doing the upgrades all at once, just one side of the building at a time (center main hall). I must do the upgrades anyway, there are leaks, mold issues, lead paint, and just unusable spaces. I can go one step further and maybe do 8 efficiency units. The cost to remodel would drop to about 5k per unit, or 40k, as I would need 4 main sewer stacks and electrical chases anyway, these units would then all be mirror images of each other, increasing efficiency in the remodel. $550 - $42 = $508 * 8 = $4064 = $12k/ year additional income over 4 1 bedroom units. This means I can pay for 2 a year and the additional income after the fact would help pay the building off faster or go towards new properties. My biggest fear for this, would be in keeping tenants in the building. The apartments would be tiny, and the whole building may just be too crowded or just uncomfortable. I know the area may not support the most rent for all these upgrades, however, I refuse to allow someone to live in one of my places that I wouldn't be able to live in myself. I pay for monthly cleaning crew for all my tenants, and quarterly preemptive extermination. I found that this saves me money in the long run as I can keep the tenants that I want. Some of the other landlords in the area tell me they have better luck with studios as there is less space for their "guests" to come and stay. Anyway, please let me know any thoughts, experiences, or if you need more info. Thank you again. [link] [comments] |
| Rental management good bad the ugly. Posted: 24 Mar 2021 03:44 PM PDT Greetings fellow redditors. I find myself in an interesting position where I am moving away for a sizeable raise and need to decide what to do with my house. The easy choice is I can sell it for a few thousand of profit or break even. The choice I am most interested in is renting it. I had a rental management company look at it and they said I could get about 1k a month for it. They charge 10% of the rent and my mortgage and insurance is 600 a month. The rental company said that besides the roof and hvac since their tenants must have renters insurance I wouldn't be paying for much of anything inside the house besides vacancy. Based on this Info it seems obvious to rent, but I always hear about how bad and hard landlording can be. How has your experience been with using a rental management company it? Is what I'm being told too good to be true? [link] [comments] |
| Posted: 24 Mar 2021 03:40 PM PDT Is there a general rule of thumb of what you should do to convert a single family home to a multi Family unit. There are a couple properties I've looked at that have done the reverse, and my realtor said that since we would just make a cosmetic change on the inside by adding a wall to break up units, then it's no big deal to do, and we just need different insurance. But don't you need to go through your local jurisdiction to get re-zoned and get a separate electric meter and things like that? Or is that just a more so.. guideline.. and really if you're doing major work? [link] [comments] |
| First Time Investor looking for advice. Posted: 24 Mar 2021 03:30 PM PDT Hey guys! First time posting/investor and would love some advice. I've purchased a house last year with the intended purpose of a primary but ended up renting it out. As it sits, I'd really only get annually $480 cash flow after hoa/mortgage/property manager fees. I'm wanting to buy another primary and maybe keep this property to start my portfolio. But would it be smarter to just sell this property, hope for it to sell higher than what I paid, put a bigger down payment on new primary house and start over? The house was bought at $242k, poss worth $254k with $226k left on loans but unsure what it would really sell for in this market. [link] [comments] |
| Posted: 24 Mar 2021 11:30 AM PDT Hi all! I have not purchased a multifamily property before and I am wondering what the process of buying a small multifamily property looks like for someone who has a primary job that is not real estate investing. What tools do you use to analyze a property and what data do you use/how do you get it? If any of you could share what buying your property was like I would really appreciate it. Thank you all for your insights! [link] [comments] |
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