Real Estate Investing: Interest rates |
- Interest rates
- Upgrading to a new home...Should I rent my old one or sell it? - Austin, TX
- What advice would you give to a college student who is thinking about pursuing a career in real estate?
- Buying a House with Termites?
- Questions about renting out a house room by room.
- Can I 1031 exchange a property and then eventually convert into primary residence?
- Questions about loans for young people
- First time buy home residence - is it worth it in this market?
- Refinancing from a owner occupied to investment mortgage
- ELI5 - How am I misanalyzing these numbers on a large multi-family and how does anyone make money on these deals?
- Questions to ask a real estate mogul
- Best site to look for mobile homes
- Cash out refinance on duplex rental
- Is a separate Personal Checking Account for first rental enough?
- Any loan recommendations?
- Refinance primary for investment property.
- I’m looking into buying a house in Florida. Thinking Tampa or Jacksonville, need advice from Florida real estate owners
- Convert my house to a rental?
- Land owned by corporation
- Is it possible to wholesale in Canada?
- Roth IRA Rollover for Downpayment?
- Problems during covid and for the future
| Posted: 21 Apr 2021 02:16 PM PDT I just met with a mortgage officer who helped me close on a non-owner occupied loan last week. With that loan we were able to get a 3.25% rate, which was pretty decent. In discussing the next loan, she mentioned that due to new Fanny/Freddy regulations on non-owner occupied homes, rates for these loans are now 4.5%-5% best case scenario right now...nationally. Is anyone else seeing this type of situation or are people still scoring low 3s? [link] [comments] |
| Upgrading to a new home...Should I rent my old one or sell it? - Austin, TX Posted: 21 Apr 2021 02:20 PM PDT Spreadsheet w/ calculations here - https://imgur.com/a/NDLwyDB First, I understand there are MANY assumptions here, but I did try to estimate on the conservative side. I factored for rent increases at 4.5% per year, property value increasing at 5.5% per year, and property tax increasing at 2.5% per year. Equity in my current house is $345k w/ a market value of $575k ($230k left on mortgage) New house is $600k and will put down 20% minimum ($120k). Liquid cash = $40k (+ 60k equities that can be quickly liquidated if needed) The original plan was to sell the old house and roll $140K into the new one and use the remainder to invest in equities. Now, given how hot the Austin housing market has been and the great location of our current property (5 minutes from downtown w/ private rooftop deck w/ downtown views) I am wondering if it might make sense to keep this house, pull out $120K via HELOC for the new home down payment, and rent this place out for another 8 years (to 2030). The house was built in 2018 so it would be 12 years old by that time and likely need HVAC replacement etc. before selling. Running the #'s for what I could rent this house for it would just barely break even in the first 3-years, and then from years 3 through 8 it would slowly build profitability, factoring for rent increase of 4.5% per year. I used an assumption of 5.5% property value growth year over year and estimated that my beginning equity in the house would be $220K (with the HELOC added onto the existing 230K mortgage) and by year 8 it would be roughly $600k. I am anticipating inflation running a bit hotter than usual for 2022 through 2025 (3% to 4% per year), especially if Biden's $4T infrastructure plan passes, hence why I am more enticed than usual to load up more heavily on debt. [link] [comments] |
| Posted: 22 Apr 2021 02:20 AM PDT I'm a freshman in college and I've been wondering what advice you guys would give me so I can get on the right path. I'm not sure if this is the right place, but I thought I'd just ask. How can I "learn" more about it, like the investment aspects? Also do you guys think real estate is still a career where you'll make a good living with since there is so much competition? Thanks for any help! [link] [comments] |
| Posted: 21 Apr 2021 09:47 PM PDT I am about to make a noncontingent offer on a 1.5 million duplex in the Bay Area. The disclosure states there were Subterranean termites at subarea wood members and Drywood Termites at the roof eaves and subarea wood members. The total estimated cost for repairs is $23,532. How bad is this and how much it can cost me if everything goes south? Many Thanks, [link] [comments] |
| Questions about renting out a house room by room. Posted: 21 Apr 2021 05:30 PM PDT Thinking of renting out one of my properties by rooms. Looking for ways to optimize my process when I do. What do you provide in terms of cleaning products? Do you provide toilet paper, paper and other paper consumables? Do you clean yourself? How does recycling work for the house? [link] [comments] |
| Can I 1031 exchange a property and then eventually convert into primary residence? Posted: 21 Apr 2021 05:01 AM PDT I am in a bit of a dilemma. I have about 5 SFH rentals all in the same city, one is a townhouse that was my first purchase and was not purchased as an investment property. Due to working out of state for many years I rented the townhouse (primary residence) property for the majority of the time and depreciated it on my tax returns. However, due to marriage / kids I am thinking about relocating back to my original State to build a family home I will permanently live in. Since I already have a primary residence loan (under the townhouse), I would have to do an investment property loan for my new construction real primary residence. To forgo that, I want to sell my Townhouse and then get a new construction loan as my primary residence. My question is this, can I sell my townhouse, do a 1031 exchange to avoid the depreciation recapture / gains tax, use that for my new construction personal home? Remember my townhouse was NOT originally purchased as an investment property but was used as one for many years. However I do not want to start depreciating the new primary residence home and treating it as an investment. I am wondering if it converts to a personal primary residence at that point? [link] [comments] |
| Questions about loans for young people Posted: 21 Apr 2021 10:13 PM PDT I am most definitely a amateur in this arena you call Real Estate Investing, i have some questions i have been pondering for a while. For starters I am a Senior in High school, College cost around 200 Thousand dollars after student loans and what not. My questions is what if instead of taking out loans to cover the cost of school I use that money to buy a duplex and then proceed to rent out that property for passive income and live there rent free as well. To take out loan of around 200-300 Thousand at 20 years old what qualification would i need? I have also heard of other types of loans where for example on a 200 Thousand dollar property you put down 15 Thousand and then pay the rest off like a mortgage, what type of loan is that called? Any comments or information is greatly appreciated! [link] [comments] |
| First time buy home residence - is it worth it in this market? Posted: 21 Apr 2021 10:03 PM PDT Starting off, 2 bedroom 1 bath rent is roughly $1,500 for 1,100 sqft no garage or anything often kind of mediocre but alright places. 3 bedroom and additional bath can be over 1,700-2,000+ depending on the finishes and location. Every year it can go up 2-10% or more. Closing on a rental is a lot but not as much as trying to buy. Buying cost down payment plus closing which is thousands but has equity if you can afford it. you lose some selling but if you stay you will lose less than rent because the only benefit of rent is roof and maintenance but it comes at a price. $240k house with 3 beds and 2 baths and a garage and a good yard would be like 1400-1600 after PITI on FHA. Min down. not much different but way more space and building equity over the years. I guess the reality is you can get twice as much space for the same price per month buying but have more expense fixing and keeping everything good. More expense up front. If you had the money now to qualify and close say FHA but plenty to do so with some competition would you pay slightly more for the low interest deals now even up to 10-30k more on 200-250k home depending on the overall cost to secure that rate or would you wait for it to dip and potentially see a much higher rate but with way more availability and lower overall cost.? every situation is different bit this is a general first investment primary home question. [link] [comments] |
| Refinancing from a owner occupied to investment mortgage Posted: 21 Apr 2021 06:11 PM PDT I bought a townhouse in 2016 and put 10% down and got a 3.6% rate. Lived in the house til 2018 and have been renting it out ever since. I currently owe 110 and I got an appraisal for 180 recently. I want to cash out refi to buy another property within the next year. My question is what do I have to worry about when I'm refinancing? I'm assuming I have to switch to an investment mortgage rather than owner occupied. I've seen people getting investment 30 year fixed around 3.5 so I'd love to lock that in and get like 25k cash out I have moved out of state since then, not sure if that matters. Do I find a bank local to the property? [link] [comments] |
| Posted: 21 Apr 2021 07:10 AM PDT ELI5 - How am I misanalyzing these numbers on a large multi-family and how does anyone make money on these deals? I've been a self-managing landlord for nearly 20 years; I've done both commercial and residential, but never residential larger than a quadplex. My goal is to scale up so I can step back. In my area I've seen a number of deals for entry-level apartment complexes come and go, and every time I'm baffled how anyone makes the numbers work. This is an example based on an actual property: Listed Price: $1,450,000 Units: 25, all 2-bedrooms Actual Average Rent: $710/mo (=$17,750 before vacancies) Utilities by Landlord: $1000/mo for water only Pre-Sale Taxes: $30,000/yr Post-Sale Taxes: $60,000/yr PITI: $14,355 Grade: Class C in a LCOL city, fairly decent area, good-enough schools, buildings and interiors appear kept up. The only obvious immediate maintenance is a parking lot reseal. My spreadsheet: https://imgur.com/LT3Oc6K (* Maintenance includes lawn and snow) When I run these numbers, I get a cap rate of 3.9%, but actual losses of ~$3000/mo and a COC of negative 12%. I keep seeing property after property with these upside-down numbers. Even raising the rent 20%, which is about top of asking for this quality/location, only brings the property to barely breakeven. Can someone who's done deals this size explain either 1) how I'm thinking about the numbers wrong or 2) how any buyers are making a profit? [link] [comments] |
| Questions to ask a real estate mogul Posted: 21 Apr 2021 12:36 PM PDT TLDR at the bottom. A little bit about myself and the situation at hand. I am a university student studying computer science who will be graduating in a year or so. I will be graduating debt-free and it is very likely I will land a high-paying job once I graduate (I did good in school, have good internships, etc...). I am very interested in real estate but since I am still a student very little of my time has gone towards furthering my knowledge on the subject. I'd like to say I know the barebones basic idea of making money from residential real estate (I know this is a VERY high-level overview... please do not tear me apart just yet):
Now, In the coming weeks, a colleague will be introducing me to a very successful relative who has made millions off real estate. He has agreed to meet with me and answers my questions about real estate, which I am very grateful for. I need your help coming up with good and thorough questions to ask him. Since I don't have experience, I don't know what to ask but I certainly do not want to waste his time with silly questions like "How do I get into real estate". I do not usually have access to these types of individuals, so I'd like to make the most out of this interaction. Thanks for your help! TLDR: I am meeting a very successful businessman with lots of real estate experience in a few weeks. I am interested in real estate but now little to nothing about it. How can I make the most out of this interaction? [link] [comments] |
| Best site to look for mobile homes Posted: 21 Apr 2021 02:37 PM PDT I am looking to get into mobile home flipping and wondering what is the best site for finding such listings. I have come across very few listings on craigslist or Facebook marketplace and wondering is there a site that is dedicated just for mobile home listings. I am specifically looking for those listed under 5k and where I fix them up and sell for profit [link] [comments] |
| Cash out refinance on duplex rental Posted: 21 Apr 2021 09:00 PM PDT Currently have a duplex that cash flows $600/mo, owe $240k and 27 years left on a 30yr/4.25%. I could do a cash out refi for $115k, cash flow would decrease to $200/mo, but I'd have $115k ready for the next opportunity. I wouldn't consider this if I was 50 or older, but at 35, still have some time to ride out any down turns. Just feel like now is the time to take advantage of an inflated market with low rates to bolster the cash position &/or buy a solid property for a long term investment if something comes up and ride out any downturn. Thoughts? [link] [comments] |
| Is a separate Personal Checking Account for first rental enough? Posted: 21 Apr 2021 04:39 PM PDT I've seen lots of posts/comments about the pros and cons of LLC and all that. It seems the majority is of the view that for a couple of properties an LLC is not necessary. I'm bringing up LLC because that's how I would get a business bank account (please correct me if I'm wrong). I'm on my first rental and have opened up a separate personal checking account for all cash in/out for the rental. Is this enough? My situation (if it matters as far as needing an LLC goes): Assets:
Both properties are insured (landlord insurance on the rental). I'm looking into umbrella policies to increase overall liability coverage. [link] [comments] |
| Posted: 21 Apr 2021 07:46 PM PDT Hey folks, I'm looking for the type of loan with 1) low down payment (5%), 2) NO PMI, 3) able to qualify up to 4 units. The closest one I found so far is from Navy Federal Credit Union but they only allow up to 2 units. Any help will be appreciated it. Thanks! [link] [comments] |
| Refinance primary for investment property. Posted: 21 Apr 2021 07:17 PM PDT I am potentially looking to tackle two issues with one stone. I was looking to finance my current primary single family home just to lower monthly payment. I am also in the middle of purchasing a investment property in another state. Primary loan remaining: 279k Current rate: 3.5% Original terms: 30 years, with 25 years left on loan. Investment Property Purchase price: 175k Down payment: 25% = $43,750 Potential loan: 30 years Rate: TBD, maybe around 3.5-4% or higher A lender mentioned that maybe I should refinance my primary home which I could refinance my primary residence and cash out to pay all cash for the investment property If the rate on the investment property is 3.875% OR higher, the lender could potentially run something like: 540k primary home value 432k loan (80% financing) 3.375% rate $1,910 payment (primary + investment properties) That would cover the 279k primary mortgage, closing cost on the primary property, and 140k in cash for the investment property. What do you think? Does this make sense? Should I go ahead with the refinance, if the investment property rate is 3.875 or higher? [link] [comments] |
| Posted: 21 Apr 2021 06:28 PM PDT I'm really serious abt getting into real estate early on (24 yr old married with one child) but around my are there's really nothing exciting I live in nyc and everything all around me is so expensive. My budget is $80k so a house btwn 200k and 400k is best for me. Wondering if anyone could gimme some info on Tampa Florida it's supposed to be one of the fastest growing areas in FL, and houses are pretty cheap and decent. Jacksonville looks like same idea (although they not close dunno myself why I chose these two cities), so does anyone have experience in these neighborhoods (looking into Duval county in Jacksonville and Hilsborough county in Tampa) how hard is it to get a tenant? Do ppl mostly own or rent in these neighborhoods? If the house are so cheap why would someone even rent? So then I'm thinking it's more logical to get a multifamily house with a few tenants and cheaper rent so less chance of vacancy! I really don't know but I want to get into it. Please give me honest advice on the general Florida real estat market and these neighborhoods in particular and everything in btwn. I'm sure I'm not the only one so good advice would be really appreciated! Thank You 🙏 [link] [comments] |
| Posted: 21 Apr 2021 03:33 PM PDT hello all! i have a few questions, i hope this is the right place to ask them. there are a lot of variables here, just looking to get some general thoughts. so, i own a house, my primary residence, but i am trying to consider the possibility of converting it to a rental if and when i decide to leave the city, which may be in the next year or two - no concrete plans yet. it's a three bedroom house, and currently i rent out two of the rooms (for a bit under market price), which covers the mortgage ($1,300). i pay for utilities, repairs, etc., but it still has been a good financial situation month-to-month. i bought the house 3 years about for 270K, it has appreciated to approximately 330K, in that ballpark at least. the amount remaining on the mortgage is about 190K. interest rate is 4.625%. so, here's the question. if i were to move, should i hold onto the house as a rental? it's in a market which has good growth at the moment and is projected to maintain good growth. if i rented the basement out (where i live now), that would probably add another $600 to my monthly rent from the house. obviously, the complication would be owning a rental in a city i no longer live in, so a property manager would be required. the other detail here is that i could afford to pay off the 190K on the house right now if i decided to (selling stocks). that would leave just repairs, insurance, and property taxes, which are low where i live. this is the first house i've owned, so there is certainly a sentimental attachment to it. i'm not sure if it's the property i would buy if i had just been looking for a rental. that being, said, i suspect that the neighborhood it's in is going to have a big increase in value soon.sorry to throw so much in one post, it's just a complicated situation that i'm starting to think about. i'm in my early 30s, and trying to become more aware of real estate options. there's no reason i couldn't sell the house, invest that money in mutual funds, and wait for a housing down-turn to buy rental property, though. any and all thoughts are appreciated, thanks! [link] [comments] |
| Posted: 21 Apr 2021 10:54 AM PDT If land is owned by a corporation in California how can I find it who the owners are so I can make them an offer? Is there an online registry? Edit: I've done an extensive googling but no luck. Edit: the property is international. The company is registered in California. Santa Monica. [link] [comments] |
| Is it possible to wholesale in Canada? Posted: 21 Apr 2021 02:26 PM PDT Is it possible to wholesale real estate in Canada with the right contract? Have you done it or know someone who's done it? How'd it go? I'm near Vancouver [link] [comments] |
| Roth IRA Rollover for Downpayment? Posted: 21 Apr 2021 07:26 AM PDT I am trying to purchase a property (first time!) and I have been investing a lot of my cash into my Roth IRA over the years. Are there any tax issues with taking contributions (not gains) out of a Roth IRA for the down payment and paying all OR some of it back within 60 days in the form of a rollover? I have not done any rollovers in the past 12 months, but I'm also just shy of having my Roth IRA for 5 years to pull some money out for a down payment penalty-free. I'm trying to avoid having to take out of my Roth IRA, however, I thought this may be a nice workaround for my situation. Thanks in advance for all advice/feedback. TLDR - okay to do a 60-day rollover from Roth IRA for a down payment on an investment property? [link] [comments] |
| Problems during covid and for the future Posted: 21 Apr 2021 11:22 AM PDT The title sums up what I'm asking. How has Covid affected the real estate market in general? I'm much aware that this is forum is for investors but I'd like to think someone has a few key points connected to this. All I've heard from this scene is about Airbnb's cancellation of an IPO, and that's it. [link] [comments] |
| You are subscribed to email updates from Real Estate Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment