Real Estate Investing: 4 month update |
- 4 month update
- Do you have a parent LLC that owns your other LLCs? MI, USA
- Torn between selling or continuing to rent my house
- First Property In State vs. Out Of State
- Advise with first home (stay, rent, sell)
- Tips on purchasing a rental property with the help of my parents financially?
- Equity...Basic concept I may be misunderstanding!
- Can someone explain the difference between a conventional mortgage and a home equity loan?
- Should I sell my rental property
- How do you pay your HOA fees for your rentals?
- How can I partner with someone on an MLS deal rental that is a win win?
- New to Real Estate Investment and have some questions for the experienced experts.
- Web site for Airbnb/STR analytics by zipcode?
- Tips needed to reduce Title Company Fees - Refinance
- Credit loan (no job)
- Buying a second house what would you recommend?
- Interest rate surprise on investment and secondary homes advice
| Posted: 17 Apr 2021 06:04 PM PDT Just received 4th months rental payments: We have had a few repairs. Sewer main clog 600 Leaky bath valve 200 City furnace inspection 200 Furnace ignition problem 120 Hammer arrestees on washing machine 30 Total rental income so far has been 8800 Total mortgage taxes and insurance 3508 Total repairs 1150 Total earnings of just over 4K Current house value approx 260k Purchase price 180k + 15k getting it ready to rent. This is an update to: Bought first rental property.... Bought my first rental property over the summer. Info: Purchase price 180k 25% down Repairs and updating 15k Total cash in 67k took a few months to get the place fixed up House across the street in similar condition and smaller just sold for 275k Listed the place over thanksgiving week. Had approx 200 inquiries and had both units rented within 4 days. Upper unit 975 a month Lower unit 1225 Monthly cost taxes insurance and mortgage are currently 870. This will go up significantly when city takes the property out of homestead. About an extra 150 a month. Property has some deferred maintenance so the first few years we will need to save more of the rent towards replacing driveways and siding. Both are functional but at end of appearance life. Approximately 10k total to replace both. I think this property works for us in terms of return on investment, I saw a bunch of rules and other info about how to analyze a deal, but at the end I just ignored all that and looked at it this way am I significantly better off financially. Our 67k would return approximately 500k after 30 years in the stock market with average returns. This place will return around 1.5 million over that same 30 years. This is also assuming reinvesting profit and avg returns in the stock market. We make decent money (around 200k) so don't really need the income, but it's fun to try something new. [link] [comments] |
| Do you have a parent LLC that owns your other LLCs? MI, USA Posted: 17 Apr 2021 11:22 AM PDT I currently have a single LLC (with just me as the owner)- we will call it KM LLC. I bought 5 more rentals (I own 2 already) and I was advised to open 7 LLC's and put each rental under its own LLC and have each of those owned by KM LLC. So I would end up with KM as the parent LLC and the 7 new ones would be child LLCs. To those who have this as their current business structure: Has this complicated things for you? Made it better? How did you actually specify the parent LLC as the owner? On the articles of organization it just asks for Registered Agent and I don't think I can just put "KM LLC" there. I live in Michigan but interested to hear from you even if you're not in my state. Thank you [link] [comments] |
| Torn between selling or continuing to rent my house Posted: 17 Apr 2021 07:12 AM PDT *EDIT - Oh damn, my first silver. Cool! 😆 Hi all, I've been going back and forth trying to decide what I should do with my house. I purchased it 3 years ago come August, and l lived there for about two and a half years before I moved out recently when purchasing my current house. I am not new to real estate investing - including this house in question, I have 5 rental properties. SELL: If I sell the house, I expect I can get at least 230k for it. I purchased it in August 2018 for 173k. I currently owe 157k on it. After closing costs, and some light freshening up pre-listing, I expect to net at least 60k from the sale (I'm a real estate agent and thus will save money on the listing side since I won't have to pay a listing commission). Since I lived there for over two years, I should also be exempt from capital gains tax, which is a huge part of why I'm leaning towards selling right now. RENT: If I continue to hold onto the house, I can rent it for about $1,395/mo. My mortgage is $942/mo. After expenses, it cash flows $200~/mo. While that's not terrible, it's quite a bit less than my other investment properties. Where this house has made up for not having the best cash flow is in appreciation. It's in a great location with good schools, near a respected university, overall a very desirable part of town. I expect it to continue to appreciate strongly, assuming we don't see a big market crash or anything. If I sell the house, my plan would be to reinvest half of the cash into some renovations to two of my other rental properties which will result in increased rents/cash flow, and the other half I would use to convert the first floor of my garage at my primary residence into a studio apartment. I would then rent the apartment through Airbnb, or as a furnished monthly rental if Airbnb doesn't work out. I expect the conversion to cost about $30k, and I expect to make at minimum $800/mo from the apartment. At this point, I've been leaning towards selling, because it would place me in a comfortable position to really inflate my cash flow and overall put me in a more secure/less risky position. That being said, the city I'm in is growing fairly rapidly, and again, the house is in a very desirable part of town that I expect to continue appreciating strongly. I guess I'm just looking to get some thoughts/advice from other investors. Does it make sense to get rid of one property to increase the cash flow on others, and gain an ADU in it's place? Or should I hold onto this house? Help me out, Reddit! [link] [comments] |
| First Property In State vs. Out Of State Posted: 17 Apr 2021 08:43 PM PDT I'm currently in the process of purchasing my first property. I am located in Northeastern US and I am looking to purchase in Southeastern US due to family being down there and better prices. My local area is outrageously expensive and I would love to purchase here but it is way out of my budget and the numbers would be hard to make work. The Southeast area I am looking in fits my budget much better and the numbers would be easier to make work most likely. Is this a smart idea to get my first property 500+ miles away or no? I know the answer is probably 'no it is not a good idea' because of management nightmares, but curiosity kills to hear others opinions. [link] [comments] |
| Advise with first home (stay, rent, sell) Posted: 17 Apr 2021 11:26 PM PDT Ok first post here so thanks for any advise/insight anyone has! This is what I am working with here. We bought our primary residence in 2012 so got a great price. Short story is we owe roughly 80k and the value as it sits is 280k roughly. The mortgage is under $800. We have outgrown the house and need to make a move BUT I am growing a pest control business and in anticipation of quitting my day job we are keeping bills as manageable as possible and have grown far too used to our far below normal mortgage in our area which is Las Vegas. I ask for the REI communities opinion on these three options. Stay, tough it out with less bedrooms than we need. We are possibly looking to pull equity out and do some renovations , repairs, and possibly even an addition if feasible to add a bedroom but the addition would be significant work. Rent it. 3bed 2bath with a pool on large lot for Vegas. Could likely get 1200-1400 a month. Doing this would still require some renovations to update it. Sell it. Would also require some renovations to update and likely push that sale price up over the 280k. The way I understand we would take no tax penalties? I would then go fha on a larger house, bank some of the proceeds, and when the new job secure invest. Just looking for some opinions and insight. Thanks! TLDR. First home, large equity, need bigger, starting company. Stay/Rent/Sell. [link] [comments] |
| Tips on purchasing a rental property with the help of my parents financially? Posted: 17 Apr 2021 03:47 PM PDT My family is into real estate and currently owns and manages 7 fully paid off rental properties. It has also been my dream to own rental properties, so I'm currently saving for a down payment on my first property. Within a year I expect to have $40-$60k saved. My parents have offered to help fund a rental property by taking out an equity loan on one of their own properties. My parents didn't ask for payment, but I know I won't be able to enjoy the fruits of success if I am handed a property. That's why I want to work out some sort of deal to make it a win win financially. I DON'T want to form an official partnership, have my parents get involved in the operations or with covering costs, have them own any part of the property, etc. Our "partnership" would simply be an unwritten one where I have decided to pay them back, since they have asked nothing in return but I want to do this anyways. I simply want to minimize how much I mix family with business. My first question is what are your thoughts on this? Is it a good idea? I feel that by my parents having access to an equity loan, it could be a huge benefit to me; however, I also know that money and blood sometimes don't mix... Which brings me to my second question - how do I keep this as simple as possible so that this doesn't become a business or something they are overly involved with? I understand that no matter what, a purchase like this would constitute some sort of partnership; however, I want to minimize that? Finally, if you think this could work, what would a structure look like for how much to take from my parents and how much to pay them back and over what time period? Much appreciated. [link] [comments] |
| Equity...Basic concept I may be misunderstanding! Posted: 17 Apr 2021 09:30 PM PDT If I buy a 400k house and over the course of 10 years pay off roughly 200k of the 400k 30 yr mortgage, when I sell the house for 400k, does the lender take 200k and give me the remaining 200k (half I own)? [link] [comments] |
| Can someone explain the difference between a conventional mortgage and a home equity loan? Posted: 17 Apr 2021 07:49 PM PDT My parents have a fully paid off rental unit that they are willing to take out equity on to help me purchase my first rental. I'm wondering what the difference is between an equity loan and just getting a conventional mortgage myself without my parents help. Thoughts? [link] [comments] |
| Should I sell my rental property Posted: 17 Apr 2021 07:52 AM PDT I bought around 2010 for about $150k, and the house is probably worth $450-$550k right now. There's about $100k left on the mortgage. Between cashflow and principal repayment, it's making me about $13k/year. Rent for both units in the place combines to about $2100/mth, which is probably at least $500 less than market rate. I can't raise rent due to rent control. I'm in Ontario, Canada. I've put a moderate amount of work into the house but there's a lot more that could be done to raise its value. My financial situation is such that it would be difficult to renovate, although perhaps not impossible. I'm also fairly handy, but I haven't had a great at deal of available time due to work. I also tried to refinance recently but due to low (self-employed) income, and the fact that the house was appraised at $240k, I couldn't pull more money out of the house. $240k won't buy a hole in the ground in this area. I have resolved many issues that have come up thus far in terms of repairs, so there hasn't been much to do in the past 2 years. It's an older property (1940s), but still mostly sound. My thoughts are this:
I'd love to get advice from other investors! Thank you! [link] [comments] |
| How do you pay your HOA fees for your rentals? Posted: 17 Apr 2021 01:48 PM PDT How do you ensure that the annual fees get sent to your home address, instead of your rental? I accidentally did not pay my HOA fees for my rental, because I never received any communication to my home address. Clearly they have my home address, as the late fee letter I just got from an attorney the HOA hired was sent to my home address. Has anyone dealt with this? What do you do? [link] [comments] |
| How can I partner with someone on an MLS deal rental that is a win win? Posted: 17 Apr 2021 04:08 PM PDT There is a deal I found on the MLS that I want to lock up, turn key 4 bed. 160k and should rent for 2k all day. 9/10 school. Honestly think it's a listing error because even the estimated value is $100k over I'd be all over this if I didn't have funds tied up into a flip I expect it to cash flow $650 (With reserves) or so so there is plenty of room on the bone for a split or management fee. I am not a realtor so I simply can't list it or legally manage it so I would need to partner [link] [comments] |
| New to Real Estate Investment and have some questions for the experienced experts. Posted: 17 Apr 2021 07:44 PM PDT So, I've been doing some research into how to obtain both vacant land and vacant property and I've come upon useful information, but that info only prompts more questions. So, here goes.
3: Do I need an actual real estate and/or business license to do this or can it be done without them? I feel I will have more questions as I do more research, but I needed some fairly updated responses that included personal experiences when it comes to using real estate as cash flow and the variety of approaches one can/utilize take in this field. [link] [comments] |
| Web site for Airbnb/STR analytics by zipcode? Posted: 17 Apr 2021 03:47 PM PDT In some thread I saw a few links to websites that do analytics for AIRBNB and STR. Could someone link a few of those and tell me what you think of them? [link] [comments] |
| Tips needed to reduce Title Company Fees - Refinance Posted: 17 Apr 2021 01:29 PM PDT I am refinancing my investment property in texas. I first bought the brand new house in 2019.I got a refi quote and the loan officer mentioned, I could shop for Title Companies. In the past I have ignored and always went with whatever the lender provided. This time I want to see if there are title companies that would provide the best rates and service. May be we can all crowd source this information so that we all know the next time we know where to go. :) (Just like those who want to buy car extended warranties). As a first step, I emailed my closing company who helped when I bought the house for a quote and a discount (for being recurring customer). Also I do read in the sub that I could get a discount on title-insurance (re-issue rate) since my previous finance was within 3 years. More tips appreciated. :) [link] [comments] |
| Posted: 17 Apr 2021 01:04 PM PDT I lost my job due to pandemic, it was in the commercial real estate. I have experience with owning multifamily homes (non as right now). I own my home. How can i get a loan to start building single family homes with no job as right now? [link] [comments] |
| Buying a second house what would you recommend? Posted: 17 Apr 2021 12:13 PM PDT We are thinking of buying a second house to rent. We spoke to a mortgage specialist and he told us the interest rate for second home mortgages are high(over 3% at least) compared to what we got on the first house. Also he mentioned we will need to pay atleast 20% to get a mortgage and insurance rate is higher. I was wondering if we move to the second house and make our current house the rental property would that make things better? Would we still get terrible insurance rates/interest rate/high down payment? Also would the rates on our current house go up? We are just getting started so we dont have a lot of experience with this. We will appreciate any information we can get. [link] [comments] |
| Interest rate surprise on investment and secondary homes advice Posted: 17 Apr 2021 08:28 AM PDT I just got a verbal offer accepted on an investment rental in Fayetteville Ar. And discovered the rules have changed on rates for investment properties. I was expecting a rate of just over 3% and now due to the rule change I am looking at 4.5%. I use conventional financing. Not commercial. I asked Arvest bank and they now require 25% down. This has caught me off guard. What are some creative ideas to keep rates down and down payment to 20%. Purchase price is $150k. 20% down rate is 4.5%. From IBERIABANK Credit score 785. I have another investment property that is paid off. Worth $150. Could I Heloc that? Or try's small bank or credit union? Any advice is appreciated. Link to new rules: https://themortgagereports.com/75059/new-investment-property-mortgage-fees-fannie-freddie Thanks friends, Justin [link] [comments] |
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