Real Estate Investing: I found a fourplex in the Bay Area that cash flows $4,000 a month and I got the offer by lowballing! |
- I found a fourplex in the Bay Area that cash flows $4,000 a month and I got the offer by lowballing!
- First Rent Check
- Tenant recently moved out, found a heavy weed smell in the master bedroom. Any suggestions?
- How long do you need to wait before converting a financed second home into an investment property?
- Landlord Needs Advice
- Buying to sell a property?
- Creative financing
- Save up for home or use towards first rental?
- Are there really contractors like ‘FLIP OR FLOP?’
- Help - rider for a condo sale contract ... to avoid a nightmare ...
- Creative ways to structure MLS deals or conventional financing?
- BRRRR Case Study (with numbers)
- If Biden eliminates 1031 exchanges...
- Trying to get a hand in investing in apartments. Any tips?
- Looking for structured education for real estate investing
- Qualifying for a higher FHA loan
- Duplex Owner Occupied- first home purchase
- Propert Management Fees
- Good Deals Are Still Out There!
- First time buying from wholesaler. Kind of confused
- Renting a house which isn’t paid in full yet
- What to do with equity in rental property?
- WYO LLC (the anonymous type) with a registered agent
- Can I borrow cryptocurrency on the margin of my parents brokerage account as a down payment for a first time homebuyer on an FHA loan?
- Pool or Rental?
| I found a fourplex in the Bay Area that cash flows $4,000 a month and I got the offer by lowballing! Posted: |
| Posted: In the process of house hacking and my first two months rent from my first tenant just hit my bank account. I can see how this is addicting. That is all! [link] [comments] |
| Tenant recently moved out, found a heavy weed smell in the master bedroom. Any suggestions? Posted: I recently had a lease expire of paying tenants with no issues. For almost 2 years. They informed me they were moving out and I informed them that I would be showing the property over the next month. Each property showing I would show the master bedroom and everything would be fine. There was a 2 week gap between final showing and move out inspection. During the move out inspection the upstairs master bedroom was locked. And I already could smell it. Got the door unlocked and the smell was horrible. I have professional cleaner coming to clean carpets and walls, which I'm hoping will help. Some other issues that were handled: they installed pad locks on the closet and drilled straight into the trim. Broken outlet covers Pee stains in the carpet Never cleaned the stove Left broken TVs and a pile of boxes, trash, oil, etc. Anyway, they are moved out. But I'm trying to remove the smell. Any suggestions? I also have no gap in vacancies. Edit: listen this isn't a debate about how cool or whatever it is to smoke weed. I support your right to smoke. But this is an investment sub, it was stated in the lease this wasn't allowed and I just asked how to clean it. I have a new family with a 3 year old moving in this weekend. Also, for everyone saying just open a window. I did for 24hours. I scrubbed the walls window and ceilings. The smell remains. So I've now hired carpet cleaners to come in. [link] [comments] |
| How long do you need to wait before converting a financed second home into an investment property? Posted: We're buying a second home for vacation purposes financing it as a second home, but renting it out when we're not there. In the first year after purchase, we're planning to live there for 3 months, which will help us meet the second home occupancy requirements without a problem. A couple of questions we have: - Down the line (say after a year), can we convert it to a full time vacation rental? Would the lender have problems with that? I know that for a primary residence, you can convert it to a rental property after a year, but not sure what the rules are for second homes. Haven't been able to find any guidelines related to this. - Down the line, if we are able to convert this property to a full time vacation rental investment property, can we then buy another second home (with second home financing terms) in the same area? Second homes need to be at least 70 miles apart, but since technically, the original property will have become no longer our second home, would we then be allowed to finance another second home in the area? If anyone has experience with this type of situation would love to hear how this is handled by lenders. Depending on how it's viewed, we'd like to optimize our strategy for the kind of property we want to finance as investment vs second home. [link] [comments] |
| Posted: For the past 6 years, I have successfully marketed and managed the 2 rental properties I own. One is currently on the market and I am being pestered by an agent I know who wants to take over for me - list, vet applicants, manage - for a small monthly fee. I have politely declined more than once. It's not working and now the agent is telling me that "some agents" make it difficult for "landlords like you" on the platforms I use to list it. I don't specifically know what he/she means by this but I do know he/she is treading very close to violating the REALTOR Code of Ethics and Federal Fair Housing law. I'm feeling harassed and now I'm irritated. Should I file a complaint with the association and/or broker? [link] [comments] |
| Posted: Hi y'all, genuine question because I cannot find anything on the internet and could use some help. I live in FL and I am curious as I have come across a few properties I saw that I could have easily bought and resold for good profit... Is it legal if I wanted to buy a house to relist? Whether sell by owner or list on mls (my brother is a real estate agent)? And whether I bought it with my cash or take a loan out with my bank that I have a great standing with that has no prepayment penalty. And I plan on being as transparent with them as I could for my plan if I were to go the bank option for a purchase. Thank you all in advance.. [link] [comments] |
| Posted: I'm looking to build my portfolio and have found that banks can be rough. I have plenty of cash and good credit but I'm self employed so banks go through additional levels of underwriting that is time consuming and at times fruitless. I've realized that creative financing is a great option for me to scale. How do people get good at making offers with creative financing? I'm a hot market I understand this will be difficult. But I've started to look at foreclosures, homes that have been on the market for long periods of time, etc, and analyzing them for creative financing options that would make cash flow and use less capital. Has anyone had success with that? Do you just have an attorney available that you send the deal structure to and they write it up? Help me understand how I start making offers! [link] [comments] |
| Save up for home or use towards first rental? Posted: Hear a lot of conflicting info. Currently living in a condo I rent out. Hear folks say it's better to save and put it as a down payment for a primary residence. Others say continue renting and use that money to buy a rental. What do you all think? [link] [comments] |
| Are there really contractors like ‘FLIP OR FLOP?’ Posted: Before I start, let me say I know the show isn't real and that it's almost entirely scripted. I flip houses and end up having to do too much of the work myself and going in after my contractors and fixing their fuck ups. On the show 'FLIP OR FLOP,' a contractor seemingly takes care of the entire job. I have my GC license just for my own work and would LOVE to find a contractor so I could get rid of my GC license (and it's bills) and not have to do so much work myself. Are there really contractors out there who will over see an entire job, do good work, and still leave room for profit? Because that seems like the most unrealistic part of the show is that they've found a quality and consistent contractor. In real life, most contractors capable of handling entire flips become flippers/builders themselves. [link] [comments] |
| Help - rider for a condo sale contract ... to avoid a nightmare ... Posted: I have a buyer for a condo in NYC (~$800k) that is bargaining to the extreme ... and that's OK .. he explained that's respectable and part of his culture India ... BUT I am very concerned that he/his party ... might do another low cheap trick at pre-closing for example by saying that the floor/walls/ceiling/windows/ appliances / etc ... they didn't know about a problem and need to be replaced, or to give his another discount for say $20,000 :/ (any they do need some renovation - it's 15 years old) He knows I have a mortgagee + maintenance ... it's costing me about $3200 a month so I'd rather give him another $$$ discount vs having it stalled for a month or two or six or 12 ... so I need to have a very strong rider to avoid such a nightmare my lawyer will try to do one - but you know how the saying goes:
please advise
there are horror stores - where a closing could be stalled indefinitely - pending a resolution (but in the mean time I need to pay a mortgagee) Rider I made on my own so far:
pleas advise ... thank you so much ... [link] [comments] |
| Creative ways to structure MLS deals or conventional financing? Posted: Made an offer on a property the other day slightly over asking with 5% seller assist to have higher mortgage but less cost to close Quickly found out that seller can only do 2% assist on investment loans So I am going to have to go back and restructure my offer some way... my lender mentioned to just offer less and 2% assist, but it got me wondering, does anyone know any tips or tricks to come to the closing table with less money? I was thinking about asking if the seller would cover some extra repairs or something. Or maybe provide the 3% difference towards paint or something. Or maybe carry the 3% in some way. I honestly don't know. Would love to hear all ways you have found ways to come to the table with less cash to close. Even if it isn't relative to my situation curious what you got [link] [comments] |
| BRRRR Case Study (with numbers) Posted: I made a post recently asking for advice on posting more content on social media showing some of the behind the scenes on our flips, rentals, BRRRs, etc. Thank you everyone for the advice! I had a few ask to share some of the info here, so here's the extended version! Pics and TLDR: https://imgur.com/a/V8HBEjK This is how we used the BRRRR strategy to acquire 3 of our rental properties which generate $1,970/mo in cashflow (before repairs, vacancy, mgmt.) and over $110,000 in equity. At the end we were able to get all of our cash back out in a roundabout way. I'm sure there are tons of people on here much farther along in their journey, but I figured it may be valuable to share our experience. Property 1: SFH; 2/1; ~800sf; B- neighborhood (rural-ish). Bought in OCT 2018 at a local parish auction. Starting bid was 50% of appraised value ($75,000). Somehow we were the only ones who bid on this place (there's a longer story here if anyone is interested). Picked it up for $37,500 with 10% down payment out of pocket and closed with a hard money loan ~30 days later for the full purchase price plus renovations (got my cash back). It needed some (very) minor repairs and a fresh coat of paint (~$5,000 total). Found a tenant in a few weeks and it rents for $950 (tenant still in place today). Property 2: Duplex; each side is 2/2 and ~1,000sf; C+ neighborhood. Bought May 2019. Found on MLS turn-key and priced right. Called the local lender we use for flips and asked a question that I thought he would laugh at: "Could I use the equity from property 1 to purchase property 2 and wrap them into 1 loan?" He responded: "yep, that's a portfolio loan, we can do that". So that's what we did. I bought the duplex for $130,000 and had the seller pay $6,000 toward closing costs. between the seller's concessions and the equity used from Property 1, I only had to bring $5,800 to the closing table (but since I'm a Realtor, I got a check for ~$3,000 at the same time). Current rents were $650 and $750/mo. Left side stayed and now pays $800/mo, but ended up having to evict right side and now charge $875/mo. Paid off the hard money loan, and just had 1 commercial loan (20 year am) for both properties. Cashflow was decent, but not great with the 20yr am. Also, flood insurance on this property KILLS me (like $2,200/yr). Fast forward to the end of 2020: interest rates dropped, so we decide to refinance everything we own. We just started investing in 2016, so it didn't set us back too far and dropped $1,000 off my monthly mortgage payments. Both properties above were refinanced into 30 year loans at 3.25% and I was able to pull out $20,000 in a cash-out. Property 3: Found an off-market duplex in a historic neighborhood (A) that I've always wanted to invest in, but never could because it was too expensive/ too much demand. It was a 1200sf (total) double with 1/1 on each side. Bought it for $79,900 bond for deed with a $9,000 down payment. It needed A TON of work- $15,000 in foundation repairs alone. My electrician's description of the wiring under the house was "a complete disaster". Total renovation will end up around $45,000 (we're finishing it up now). I used the $20K from the cash-out refi plus a line of credit on my personal residence for the DP and rehab. Worked with the same bank as P1&P2 to do a weird post-renovation reno loan for 80% of purchase and most of the rehab costs. The property appraised for $165,000 (although people would be beating down the door to buy for closer to $200K). Just closed today on the purchase/ refi to close out the bond for deed and walked away with a $43,000 check to recoup most of the cash invested. I'll be leaving ~$10,000 in the property, but all of that money came from the cash-out refi anyway. Once complete, hopefully in the next 2-3 weeks, we'll be renting one side out for $850 and the other for $950. Current Equity: P1: $23,000 P2:$41,000 P3:$47,000 Current Cashflow (before repairs, vacancy, prop mgmt): P1: $458 P2:$665 P3:$850 (with 20yr AM; will be $1000+ with 30yr) [link] [comments] |
| If Biden eliminates 1031 exchanges... Posted: I've seen and heard reports that President Biden is considering eliminating 1031 exchanges. If that happens, does a future president have the option to bring it back? Recent article: https://www.forbes.com/sites/forbesfinancecouncil/2021/03/31/how-bidens-tax-proposals-could-impact-real-estate-investors/amp/ [link] [comments] |
| Trying to get a hand in investing in apartments. Any tips? Posted: Hey there guys, Been wanting to dip my hand into real estate and build a portfolio. Would love any initial investment tips. [link] [comments] |
| Looking for structured education for real estate investing Posted: Can anyone reccomend a structured education on real estate investing? Such as an online course series? Going at this 1 article at a time has me feeling really overwhelmed. In my specific scenario, I'm pursuing multifamily real-estate investments that I can owner occupy & BRRR. Thanks Reddit! :) [link] [comments] |
| Qualifying for a higher FHA loan Posted: My wife and I want to get a 2 unit multi-family in CA. The market we're looking at we can find some for $400-600k. Currently I can qualify for a $300k FHA loan. Is there ways I can get that higher other than the obvious reducing debt or getting a higher paying job? I have great credit, my parents do as well and would be interested in helping. Could they co-sign or co-borrow? Would that bring us up to the $500-600k mark? Also, I was looking to by a multi family when I lived in Illinois and I had to have 6 months mortgage just sitting in the bank (I forgot the name that they called this money) in order to get the loan. Is that the same case for California multi family homes? [link] [comments] |
| Duplex Owner Occupied- first home purchase Posted: Buying a duplex were I would still be paying 400-500 after mortgage/ taxes/ insurance and rental income. Is this a good investment or should I wait for something better to come along? Price seems inflated due to the market but it already has 2 offers on it. Sold for 120,000 in 2009 and is now listed 215,000- will probably have to pay over listing. This market is crazy I don't know what I'm doing help. I've seen better situations but this home is newer and more updated then others I've looked at=no big repairs (hopefully). Other homes were built around 1900, this one was build 1960s. Location is decent but rental income seems to be maxed out for the area... Once I move out (3-5 years) the duplex would only cash flow about 500 a month, probably more if rent goes up at all haha. [link] [comments] |
| Posted: Live in Richmond, VA and am buying rental property - have one which I manage myself but may have a property manager for subsequent houses. I have a quote from a property manager for 10% per month in management fees plus 75% of my first month's rent. Additionally there is a $295 dollar lease renewal fee or 25% of first months rent for renewed lease. I'm speaking with some other property managers to get quotes, but I like the guy from the first one. Does this seem like a lot? How customizable are things typically .. e.g. what if I ask for a 2 year lease (to avoid lease renewals)? [link] [comments] |
| Good Deals Are Still Out There! Posted: I've been trying to buy my next rental property for the past few months and it's been really frustrating. I've been outbid, lost bids to people waiving inspection, and lost to out of state buyers before the seller even shows it to anybody. I honestly don't understand how people pay some of these prices and make money. But today I finally managed to get under contract with a great price on a duplex in a great location. There are still positive cash flow deals out there! If you're experiencing what I did then don't give up! I probably should have waited until after closing to post this, but it feels good. [link] [comments] |
| First time buying from wholesaler. Kind of confused Posted: Hey all! We just won the bid for a property, and we have been given a purchase agreement. I'm pretty confused as to how this works when a wholesaler is involved. The person on the purchase agreement is neither the wholesaler duo we have talked to, nor are they the person on the deed according to county records. I've inquired about who this person is, but I'm just curious if maybe the person on the purchase agreement might be the "owner" of the wholesaling business? Who usually is the "Seller" in a wholesaling agreement? [link] [comments] |
| Renting a house which isn’t paid in full yet Posted: I own a house where I have been living for past 4+ years. It's time for us to move into a bigger house and thus comes the question of whether we should sell or rent the existing house. Technically I can afford to buy the next house (20% down payment) keeping this one (assuming the monthly mortgage gets cancelled by the rent) but..is it a sound investment? I mean will I end up paying a lot more in interests on my next house vs what will appreciate in this property My current house still has about 40% of what I borrowed outstanding. My research shows I'll get around 400-500$ more in rent than my current monthly payment (which includes principle+interest+insurance+tax) if that helps. Thanks for any advice! [link] [comments] |
| What to do with equity in rental property? Posted: I have a rental property with tenants in it. The house is worth about 240k. I owe ~99k on it. The home has a 30 year mortgage with 20 years left. The interest rate on the loan is 4.75. Questions l about what to do. Which of these options makes the most sense. The end goal here is what's the best way to utilize the equity in this property? Options:
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| WYO LLC (the anonymous type) with a registered agent Posted: Newbie here! As I've far as I have researched, it seems like a wise move before purchasing a first investment and renting it out. Does anyone have any experience of feedback about this type of thing? A lot of pros but are there any cons? Thanks in advance. [link] [comments] |
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| Posted: Live in TX so max CO is 80%. I have about $105k in equity to grab. Wife wants me to turn the back yard into an oasis and I want some mailbox money. Cash out with current rates would keep my payment roughly the same on a 240month mortgage. The issue with purchasing rentals right now is they are going for absurd amounts of money and would be barely break even on rents after mortgage. What to do?!?!? Thought about selling and renting until a crash then buying at a discount during the clearance sell, not sure how long that's going to be. I'm thinking we will see an increase in defaults and evictions when the law is lifted, I think they moved it to June. [link] [comments] |
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