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    Real Estate Investing: If you had to start over with $20,000 what would you do first?

    Real Estate Investing: If you had to start over with $20,000 what would you do first?


    If you had to start over with $20,000 what would you do first?

    Posted: 06 Apr 2021 04:35 PM PDT

    Reading Rich Dad Poor Dad has me all fired up about assets currently. Obviously there's the stock market, but I'm wondering if 20k is enough to get my foot in the real estate world. I'm aware of the FHA loan I have not used, (I just recently turned 18 and am still in high school) I guess my question essentially is, if you had to start over with 20k what would you do?

    submitted by /u/johnturley
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    Rental properties in Texas?

    Posted: 06 Apr 2021 09:36 AM PDT

    Hi, I live in Central Texas and I've been thinking about buying my first rental property. As many of you might know, the housing market in Austin is pretty crazy right now and buyers are having to offer up to 20% more for houses to compete with other buyers. So, I don't want to pay more than the already overpriced condos/houses' worth in Austin. Does anyone have any other Texas city/neighborhood recommendations where the cash flow for a rental property is semi-decent? (I just don't want to lose money, which will certainly be the case in Austin)

    I'm looking at San Antonio and Dallas where home prices aren't as nuts and I found some 3 bed places for around $200k here and there. What should I consider or avoid before purchasing a place in these two cities? Or any other place in Texas. Appreciate all input.

    submitted by /u/donnomuch
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    Spreadsheet I use to check profitability on potential buys - need a formula check!

    Posted: 06 Apr 2021 08:28 PM PDT

    Hey ya'll, this is the spread sheet I use to input all the variables in and see what kind of ROI I'll be getting before I even look at a property. I was wondering if someone could check it out and tell me if the coding looks legit? I just added the columns for 5 year appreciation and 5 year equity, and it seems too good to be true.

    Obviously anyone who wants to use it can duplicate it and use it, it's relatively simple math. Thanks in advance!

    submitted by /u/ThunderClapTeaBag
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    Purchasing a rental with oil heat - Is this a concern? How do you effectively back pay this to tenants?

    Posted: 06 Apr 2021 03:01 PM PDT

    Under contract on a house currently and realizing that with this being oil heat, I will have to pay to have oil added.

    It still appears to be a good deal, but I was not factoring this into my expenses. What is the best way you have seen to bill this to tenants?

    I have seen a few comments staying ideally they fill it up when they leave, or just take it from a security deposit, but I wanted to ask if anyone came up with a fool proof method.

    submitted by /u/soyerom
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    Examples

    Posted: 07 Apr 2021 12:18 AM PDT

    Would anyone be willing to share an example of a property you bought, ideally recently. What did you pay, what do you actually put down, and what is the net cash flow it generated (net of everything). I'm trying to figure out if it's better to start small or to wait longer and start with something higher quality. I'm having a hard time finding a geo I like and am really confident I can generate positive cash flow in. I do like the idea of buying near a school

    submitted by /u/Narrow_Evening_5524
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    Strategic Move

    Posted: 06 Apr 2021 07:58 PM PDT

    Hi all,

    I live in a very expensive part of the country and have always believed I'll never be able to buy property here. The prices of property are along the lines of $600,000.00 for a 1 bedroom condo all the way up to $100,000,000.00 estates. I make a very middle class income and have just started investing in short term rentals out of state. As per my research I'm allowed to have a maximum of 10 financed properties. I currently have 2 and am saving for my 3rd. I'm actually starting to believe there might be a way for me to buy something in my town. As far as I understand the Fannie/Freddie rules, the first 4 properties are easy to get financed, but properties 5-10 are much harder requiring 25% down. My question is this... If my goal is to buy something in my town where I can utilize a primary residence loan with 5% down (which is all I could afford as the property would most likely be around $800,000) at which point in the sequence of purchasing my 10 properties should I purchase this primary residence considering the 5-10 property challenges. I'm thinking it should be property #4, unless, since it's a primary residence the 5-10 property challenge won't apply. Thanks for reading.

    submitted by /u/Fairymeat
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    Can I live in my rental and take a loss?

    Posted: 06 Apr 2021 05:44 PM PDT

    I am in process of selling my primary residence and will be moving into an investment property. Is it possible to take a loss in the rental? Mortgage will be around $600. LLC is already setup and currently have 1 property under it. If it possible to take a loss what can I write off? Can I also depreciate the home while showing a loss? Please let me know if any has tried this.

    submitted by /u/Investingislife247
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    Strong vs weak LLC states

    Posted: 06 Apr 2021 01:08 PM PDT

    Some states have weak asset protection laws(ie california) and other states are known for being pro- LLC(ie wyoming). I personally live in Louisiana, does anyone know if it's a state with strong asset protection laws? My second question is if you happen to live in a state with weak asset protection laws, would you consider establishing a holding LLC in Wyoming that holds individual property LLCs from other states. Or is this just too much work?

    submitted by /u/Tenesmus83
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    Crazy Equity in Short Amount of Time. Would Appreciate Advise

    Posted: 06 Apr 2021 05:14 PM PDT

    I bought several properties in a crazy appreciating area in April and September of last year. All in have over 300,000 in equity about (35% appreciation) in less than a year.

    This market appreciation is insane, and I know lots of people like to refinance and keep buying properties but I'm worried about buying more during this crazy market.

    Anyone have any suggestions on what to do with the equity, if anything at all? Would really like to hear what you would do in my position.

    Thanks in advance.

    submitted by /u/laughingparakeet
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    Good options for exterior lead abatement?

    Posted: 06 Apr 2021 07:56 PM PDT

    I have a property that's worth a good chunk of change in a HCOL area. The entire exterior is peeling lead paint. I got a quote simply to ABATE the lead ~$25k - this doesn't include painting over the entire house.

    I was wondering if anyone had experience with good lead abatement options? Should I just cover the house in aluminum siding? Should I bite the bullet and do the abatement? What other options are there?

    submitted by /u/soycaca
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    Our agent/PM purchased the property I asked him about #2

    Posted: 05 Apr 2021 07:21 PM PDT

    [This is a follow-up to: https://www.reddit.com/r/realestateinvesting/comments/m2vklt/our_agentpm_purchased_the_property_i_asked_him/ ]

    So I've churned in my mind whether to write this because it's a little awkward - you'll understand why in a second - but the OP received so many comments that I feel like you deserve a follow-up. I will probably create a new account after this [edit: because this is Reddit after all, and I prefer to stay anonymous].

    A few days after the original post, I had a very interesting conversation, confronting our agent/PM about that property. He started the call by saying that they saw the post on Reddit and realized it was them and immediately gave us a notice of terminating our relationship, including property management. Awkward! Didn't expect that.

    He did not directly respond to my claims but instead pushed back and said they felt like we were not "spiritually aligned" anymore - because we did not trust them and because we had tried to negotiate our PM agreement. He also said that they have other, "easier clients", who just accept their terms. I'll let everyone decide for themselves what to make of it.

    I was nonetheless wrong about the exclusivity part. I misread the contract, and the exclusivity only applied to our first deal with them. Definitely my mistake and a word of caution to anyone else reading this.

    None of this changed my feeling and unease about being screened and learning they were bidding the property only after they had purchased it. I think that was in bad form and also dishonest, and it's for the better that we part ways. They're looking for passive investors who don't ask questions, and I'm looking to actively scale a business. We've since moved forward with another agent and closed on another property, so all for the best.

    I will say that the way he ended the relationship was professional: offered a few options to end the situation like reselling the property without a commission and recommended a couple of other PM companies in town, one of which we did go with, so I did respect that.

    [Edit: grammar]

    submitted by /u/shabbyscrub
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    My first (potential) commercial property, looking for some guidance.

    Posted: 06 Apr 2021 08:42 PM PDT

    Looking at a Commerical property. It's 9 small-ish warehouse units under one roof. Each unit has an overhead garage door and can be built out to suit the tenants needs. Here are some of the current tenants; plumber (he holds 3 units), a interior/cabinet painter, a car detailer, a refrigeration company and few other small business. This property is directly next door to a 4-unit apartment building I own and I have met the owner and he is looking to sell direct to me.

    Here are the stats -Purchase price $250,000 (firm he said) -Total rental income per month $2995 -Tenants pay all utilities -lawns and snow removal approx $1,600 -insurance $1250 -property taxes $6200 ( could go up some) -average yearly maintenance he stated was $600. - new roof last year woohoo!

    Average rent is $333, seems low (maybe?) I need to find other spaces equivalent in my area and see what the average sq/ft price is.

    I think this would be a good starter building for me into the commercial side. Looking for advise, experience and other advise from you all. And if anyone see any major red flags.

    submitted by /u/huntwithdad
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    Good books or sites to learn how to invest/house hack?

    Posted: 06 Apr 2021 06:25 PM PDT

    I'm a new investor making an average salary out of college. Do you guys have any good book or YouTube suggestions for learning how to do this efficiently and effectively?

    submitted by /u/austint1998
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    High End Section 8

    Posted: 06 Apr 2021 04:46 PM PDT

    So I bought my first rental in a class A neighborhood. We have put the house up for rent for $2K/month.

    Today we got someone that says they have a section 8 voucher and wants to rent our place.

    The questions I have are:

    • how do I verify if this is legit? I thought section 8 was low income housing but this could just be my own ignorance.
    • if this is legit, what kinds of verification should I do for this potential tenant?
    submitted by /u/computerjunkie7410
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    Advice on a property I have an offer on (Illinois)

    Posted: 06 Apr 2021 01:28 PM PDT

    Looking to purchase a 3 unit building in the Chicago Suburbs and live in one of the units.

    The building is great, the location is amazing, but the seller brought one issue to our attention that I'm not sure how to navigate.

    2 of the tenants are ideal tenants, families with good jobs that pay on time, no issues.

    The third tenant (the unit I'd ideally move into) is on a month-to-month lease, has been delinquent in payments, and has been refusing to move out and claiming he can't be forced to because of Covid.

    The seller is offering 6-months rent to make up for what the seller might not pay but I'm looking to close and be moved in by the end of June/July.

    Is there anything I can do once the I own the building to legally have the tenant removed? Idk the legalities of it but if it's a month-to-month lease I feel like that makes a difference?

    submitted by /u/Puma711
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    A little imaginary bird told me that there could be a real estate market crash this year, post pandemic. What are everyone's thought about this?

    Posted: 06 Apr 2021 11:28 PM PDT

    I'll have cash ready, when this happens. You?

    submitted by /u/kpchicken1
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    At what point does it make sense to invest with someone else vs DIY?

    Posted: 06 Apr 2021 02:24 PM PDT

    I'm in my early 20's and working on building a small business. It takes up almost all of my time, and most weeks I work 10-12 hours 6 days a week. I take 1 day off per week to just recharge so I don't burn out completely.

    I have 50k-70k I'm willing to invest right now, but I really don't have the time to be dealing with property hunting, tenant screening, etc. I'm not just saying I don't have time, I really don't.

    For the past year I've been loaning money to a friend who does flips and he gives me a decent return (~10%), but I feel like I'd be better off with a long term buy and hold strategy.

    How do I decide if it's worth devoting time to real estate VS my business?

    I really don't want to hit the brakes on my business, but I also understand opportunity costs and I see the value in real estate investing. I'm not an accredited investor and I don't know anyone who invests in buy and holds do I'm not really sure what to do.

    (Side note, I also have around 40k in the stock market and 10k in crypto, I just feel more comfortable investing in tangible assets which is why I want more real estate exposure)

    submitted by /u/RippleDelete
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    advice

    Posted: 06 Apr 2021 06:47 PM PDT

    Can someone with experience tell me why buying this house would be a bad idea. It's a 1 bed/1 bath home. would be all cash deal. i'm a 20 yo part time college student. I make about 40k a year currently https://www.zillow.com/homedetails/506-S-Union-St-Coffeyville-KS-67337/2073362621_zpid/?

    submitted by /u/slicedbread16
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    Disagreement with my co-borrower.

    Posted: 06 Apr 2021 10:32 PM PDT

    I (27f) am currently trying to buy in Ventura County, Santa Paula specifically. We were told right off the bat that houses were going for 30k above asking. I got an offer accepted for the appraised value, which I think is great considering other sellers laughed at our offers and some wanted 25k above appraisal. However, my co-borrower(52f) purchased in 2011 in Los Angeles for half the current price and is set on the idea that prices will drop within the next few years. We're approaching the last day to terminate with our deposit intact and we cannot come to an agreement. What should I do?

    submitted by /u/nuggarooni
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    (TX) Selling 1 (of 3) SFH, How best to handle proceeds

    Posted: 06 Apr 2021 09:27 AM PDT

    I have searched through various posts but haven't seen a directly related situation discussed. I also am not sure if this is better placed in r/Tax (apologies if so! and I will move it)

    I own THREE SFH's. I want to sell one and find creative options for the proceeds, or at minimum the best way to minimize my tax burden on proceeds. Ideally I would keep half in cash (put into market) and put half (or some amount) of the proceeds into another SFH I own .....but, based on my accountant, sounds like that wouldn't help w the tax burden. Again, main goal is to pay the least taxes possible AND learn how to make the best real estate and/or financial decision.

    SFH1 (the one I will sell) - Lived in it 2 of last 5 years. Rental now. Cash flows 300 (and decreasing bc of taxes/insurance.) Owe 150K - sell for at least 300K, maybe 320K. Lets say I walk away with 125K

    SFH2 - Rental. I haven't lived in it for 8 years - I owe 80K - valued at 250K. cash flows 600/month

    SFH3 - current primary residence will become rental within 2 months (before I sell SFH1) owe 230K, valued at 310K BUT it will only cash flow about 200/month as is. Need to address this but bc of zip its VERY worth holding onto.

    Again, I thought I could put proceeds towards other liens and remove tax burden OR that there is a 250K grace on proceeds before taxes kick in. I guess I was WRONG so I'll take any advice! Very much appreciate the knowledge here! Thanks!

    submitted by /u/Txsnapcall
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    Renting Out Townhouse in Los Angeles (SGV Area) - What to Expect?

    Posted: 06 Apr 2021 07:55 PM PDT

    My brother is a new to the landlord scene and is interested in renting out his townhouse in the San Gabriel Valley in Los Angeles.

    He would like to hire a property manager to handle it as he prefers the convenience and does not mind the extra cost.

    In addition to having a reliable property manager, handyman and real estate lawyer, what other connections should he keep in touch with?

    Also, what other things should he be aware of when renting out the property for the first time, and especially during this Covid period?

    About the townhouse:

    2 room, 1000 sq ft

    Safe neighborhood and great schools (8/10 school score on Zillow)

    Price : $470k

    Zillow/Redfin rental income estimate: ~$2200/month <- Based on your expereience are the Redfin/Zillow estimates a good number to go by?

    The location has always been a hot market with short housing supply. It's demographic is mainly Asian, and has many highly ranked schools.

    How hard do you think it would be to find a good tenant, and in general how long would it take?

    Any input would be much appreciated , thank you so much for your help!

    submitted by /u/mrwhooper
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    Cigarette smoke in apartment... Can we do anything legally?

    Posted: 06 Apr 2021 07:39 PM PDT

    Hi all,

    I know this is not really in terms of investing, I am more so just hoping for some general insight. I am in Houston, TX.

    Basically, my boyfriend and I move out of our old place due to smoking inside and the smell of cigarette smoke. My boyfriend has had a family member die due to lung cancer because of smoking so we can't stand the smell.

    We searched for EXCLUSIVELY smoke-free apartments and found the one we are in now. We are in LOVE with it- Great place, Great rent. BUT within the first couple days of us moving in, out bedroom REEKS of smoke. It's only in the bedroom so we have been sleeping on the couch in living room. Our place is only 700 sq/ft, so taking out the bedroom is a pretty big amount of space gone. We have contact with the couple who lived in our unit prior to us and they also said it was smoky for a vast majority of the time. They also complained and put in work orders but said the most they ever did was put a flyer on everyones door to remind them that it is a smoke-free residence. We have put in a couple work orders and complains and so far nothing. We have only lived here for 2 weeks and only slept in the bedroom 3 days. We want to break out of our lease and it will cost us around $2,500 if we do.

    Any advice??

    submitted by /u/GlitteringGlass
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    Bought and HOA says no rentals allowed

    Posted: 06 Apr 2021 06:24 PM PDT

    I purchased a home to rent and HOA says it has to be owner occupied for 9 months and only allows rentals if 15% of the neighborhood or less is rentals.

    Guess I'll just sale... thoughts?

    submitted by /u/JustMeAndThatGuy
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    Assignment of Lease: What do I need signed from the existing Tenant?

    Posted: 06 Apr 2021 06:19 PM PDT

    Last week I purchased a property that comes with tenants. Tenants are on holdover from a long since expired 1 year lease. I like the lease, and have a signed Estoppel from the tenants, and a lease assignment from the previous land lord. The tenants are already paying me, and I spoke to them in person with the previous land lord, who told them that I was the "new boss". No one has a misunderstanding of the situation. I sent the tenants a document that states that we are the new landlords, where they need to pay, and general "new management" stuff. However, I don't have anything signed from them about this transition, and I want to make sure I'm covered.

    My question is: what do I need from the Tenants regarding the transition? Do I:

    1. Create an addendum to the lease that includes the assignment, and have the tenants sign some clause stating they acknowledge the lease has been assigned to us?
    2. Give a copy of the assignment to the tenants and get them to sign a document that acknowledges receipt of the assignment?
    3. Get them to sign a document that acknowledges receipt of the document I sent a few weeks ago explaining that we are the new landlords? Is this good enough?
    submitted by /u/dev_bro
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    Feds proposing prohibiting foreclosures til 2022, future of RE investing

    Posted: 05 Apr 2021 08:05 PM PDT

    Just saw this article on thehill.com.

    I never thought I'd say this, but I'm very worried about the future of property rights and rental investing in the US.

    Between the never-ending eviction moratoriums, the anti-landlord voting tendencies of what seems to be a majority (and growing) of the pop., and now this - I'm concerned for the future of buy-and-hold rental investments and REI in general. This is what I had planned for my retirement, and it seems like the ability to become financially independent this route is quickly evaporating.

    IMO once these doors are opened, there's always going to be an "emergency situation" that will "require" these infringements on property rights.

    What say you guys and gals, am I overreacting?

    submitted by /u/deltavictory
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