Real Estate Investing: Looking to buy first property (duplex) in Austin, TX. Am I crazy or is it impossible to get something to cash flow here? |
- Looking to buy first property (duplex) in Austin, TX. Am I crazy or is it impossible to get something to cash flow here?
- 1031 exchange to just avoid the capital gain tax?
- Which RE credentials have you benefited from?
- Any advice on becoming a real estate agent for investors?
- Does increasing rent increase rental property value?
- Profit isn't always about money
- Dirt Floor on Root Cellar, want to cover with a moisture barrier... suggestions?
- How's this deal look?
- I'm curious what do you do when you go on vacation
- Taking my first classes starting Saturday! Need tips/ ideas on what I need. What to expect?
- Will the Canadian Real Estate Housing Bubble Burst?
- How to scale up, live on rent and retire early?
- What would you do?
- Duplex in Milwaukee going to offer
- What's the best down payment/mortgage length for house-hacking?
- Looking for my next rental
- Housing Affordability for a young Canadian. Any advice appreciated
- Looking for opinions on a current, active deal please. I'd like for this to be approached as "what would you do" type of response.
- LLC Optimization
- Buying a cabin (HELOC and process)
- Opinions wanted on the next best way to invest in RE
- Tips on selling rural land?
- Question about BRRR method
- Limit on number of mobile home sales?
| Posted: 29 Apr 2021 04:50 PM PDT Hey y'all, Currently renting in Austin, TX and I've decided to take the plunge into RE and decided I want to 'house hack'. I'm already pre-approved for an FHA loan and am linked up with an agent, who house hacks as well. However, from what I'm seeing, most of the duplexes that are in the areas I would live in are all 400k-550k. I've put these properties through dealcheck.io and the cash flow is always negative. I realize the market is hot and has been hot for some time, bought I thought with some persistence I'd be able to find a deal at some point. The units in these duplexes I'm looking at do not seem to rent past $1300, so even with some updating (which the houses in the 400k range usually need) I still don't think I can make it work. I know there are other ways of making money from RE (appreciation, amortization, etc), but it seems like most people will not buy a property without positive cash flow. Am I better off just looking at single-family homes? I'm still very much in the information-gathering/learning phase, so your responses are appreciated. [link] [comments] |
| 1031 exchange to just avoid the capital gain tax? Posted: 29 Apr 2021 06:47 AM PDT If you want to avoid a capital gain tax on selling a rental property, they say 1031 exchange is a good choice. However, you don't get a cash out as much as compared to selling a house. Although, on 1031 you might grow your investment portfolio and extra cash flow from rent. Is it still better to do 1031 rather than selling to simply avoid the tax? What do you do in the end? You keep exchanging it until you die and give it to beneficiaries? [link] [comments] |
| Which RE credentials have you benefited from? Posted: 29 Apr 2021 11:49 AM PDT Which RE industry property management, maintenance, finance, sales, etc - certifications or credentials or educational programs have been personally beneficial or worth their weight in gold to you as an investor or hands on manager? [link] [comments] |
| Any advice on becoming a real estate agent for investors? Posted: 29 Apr 2021 07:34 PM PDT Hi everyone, It has been a long aspiration of mine to get involved with real estate particularly with investors but, I'm not sure where I can start my journey for knowledge with investors. I just finished my Florida real estate license course and Im disappointed I didn't learn anything on the practice of the profession of what I want to do. Please give me advice, book recommendations, YouTube channels, I'll take anything! I just finished my undergraduate in biomedical sciences so I have a lot of free time now. Thank you!! [link] [comments] |
| Does increasing rent increase rental property value? Posted: 29 Apr 2021 03:54 PM PDT Does increasing rent, increase your properties value. I have a quick question, not sure if this is how it works but I thought I would ask here. I bought a duplex in 2018 for ~180k following the 1% percent rule, combined rents should be roughly 1800? Fast forward to today, both of my tenants moved out, I did basic renovations (paint, carpet,etc), but instead of 900 for the smaller unit, I listed it for $1,150, and got an overwhelming amount of responses. The other unit is a lot larger, I think I could list for 1500 maybe even 1600. Hypothetically rental income could be 2750. If I where to list the property for sale, what could I expect as far as sale price, based off of rental income alone? 275000? [link] [comments] |
| Profit isn't always about money Posted: 29 Apr 2021 10:36 AM PDT There was a recent thread that got locked, my comment was about how the deal was structured win-win for all the parties. There was many who disagreed with my comment because the seller could've possibly netted $10k more on top of $385k (2.6%). This thread is mostly directed to new real estate investors as most seasoned investors will understand this. Story time - I bought a condo on December 28, 2020 and had been built in 1979 with no improvements done since then. Bathroom, kitchen, and laundry were original. So I renovated the condo in full. New kitchen, bath, appliances, laundry, and I added a bathroom. Plus flooring, paint, electric panel and fixtures. The construction was mostly complete by early April with cabinets scheduled for delivery for about the same time. Well it turns out (supposedly, not sure I believed them) my cabinets were in the Suez Canal when that ship thing happened and I was given a new date - July. I was ready to install cabinets, and granite counters about 3 weeks later. The counter people in our area need that 3 weeks to template and manufacture them, that's normal. My agent didn't want to put in MLS without the countertops installed. So instead of having the counters installed and pictures taken mid to late April, I was looking at late July. There goes holding costs up, up, and up. So I ordered different cabinets and went with a local cabinet, but all of this was going to significantly delay the project. Meanwhile, my agent took a single buyer through, it was not on the MLS. My market is crazy good/high right now. So they basically made me a very good offer and were willing to close 1 week after the counters were installed. They did this without the cabinets installed. I was confronted with a choice. Most likely a sale would take 6-8 weeks after the countertops are installed. However, putting it on the MLS may result in an even more insane number. My choice became:
I went with #1 because time is money. This project is off my plate, freeing up my time and capital to do another project. It also eliminates the risk that the market will turn less frothy/interest rates rise and my holding costs. I was also very happy with my profit. I mean of course we always want to make more, but I am not one to look a gift horse in the mouth. I could tell this story over and over again, but this is a lesson I hope the less experienced amongst us can learn from. [link] [comments] |
| Dirt Floor on Root Cellar, want to cover with a moisture barrier... suggestions? Posted: 29 Apr 2021 07:41 PM PDT Is there some kind of special dirt/sand/gravel or vapor barrier rolls for the floor of a dirt floor cellar, less than 250sf. It won't be used for walking around or anything, just need to cover it. The dirt gets some moisture, but only when it has a heavy rain day. [link] [comments] |
| Posted: 29 Apr 2021 09:09 PM PDT Purchase Price - 280k Repairs Needed - 5k Rental Income - $2400 (1200 x 2 units, 3 beds/1 bath each) Mortgage/Taxes/Insurance - $1540 Loan Rate - 2.75% This duplex has been recently renovated with new water heaters, furnaces, kitchens/baths, roof, and electrical. Originally built in 1910. I'd be doing owner occupant for a year until I'm able to move out in accordance with what my lender has told me. FHA so only putting 3.5% down. Goal is having a long term investment and this property will be at the top of comps in the area at this price, so short term won't make sense. [link] [comments] |
| I'm curious what do you do when you go on vacation Posted: 29 Apr 2021 07:28 PM PDT I currently only have one rental right now but every few years I usually do something with my family like going on a cruise. So I'm curious what do you do during those circumstances? Do you leave a friend in charge only off chance something could happen to your property? Usually I go on vacation in the summertime and the house is remodeled with pex so there shouldn't be any emergencies like that but I'm just curious how other people deal with these types of situations [link] [comments] |
| Taking my first classes starting Saturday! Need tips/ ideas on what I need. What to expect? Posted: 29 Apr 2021 07:05 PM PDT Taking my first classes starting Saturday! Need tips/ ideas on what I need. What to expect? Hi all, I'm a young man working construction and want to learn more about real estate and property. I'm starting the fundamentals 30 hour course Saturday then doing the 45 hour course in June to get licensed in PA. But this will be the first class I've taken since high school. What are some basic things I need. I got notebooks for taking notes, the textbooks for the class,(Principle and practices). But what should I expect here? Anything else i need? Thanks! [link] [comments] |
| Will the Canadian Real Estate Housing Bubble Burst? Posted: 30 Apr 2021 02:24 AM PDT or is there no bubble, and this is the norm now, prices will only rise? I was shocked to learn that prices have not just exploded up in major cities like Toronto. The small places around Toronto are also going up and up. You have to pay a premium to live in Windsor or Cambridge or Brantford, which is just crazy. is this sustainable? I see mixed view from the experts. Some say the bubble is bound to burst, while others say, get used to it, it will only get more expensive from here on in. A lot has to do with record low interest rates. And the number of immigrants coming to Canada. High demand and low supply. Not to mention Covid-19. People are working from home and spending less overall, meaning money to invest with. Plus the money the government is handing out as relief. It's become impossible for young adults to buy a home. Not unless they have a lavishly high paying job or a huge inheritance in their hands. That, or they are paying all their earnings towards the roof over their head, meaning a diminished quality of life overall. Can this real estate market be sustained? ... and what can or why won't the governments take action to relieve the situation. Is it in the best interest of the governments to keep the market hot? [link] [comments] |
| How to scale up, live on rent and retire early? Posted: 30 Apr 2021 02:21 AM PDT Stats: I want to retire from my corporate job at some point and am trying to build passive income. I have 2 properties under my name:
My day job pays ~0.5M/year and I have $1.2M liquid assets. I hope to have at least $5000/month passive income. Questions:
[link] [comments] |
| Posted: 29 Apr 2021 07:36 PM PDT Myself and a close family member are both interested in real estate. We share a goal of building long-term wealth and owning a portfolio of properties among other investments. I have available time and am fairly adept at running numbers and negotiating due to my line of work. He has disposable income and would probably bring up to $20k to the table for the first deal if I can put together something that makes sense. If the first deal works out, he'd be willing to do more. If we're able to successfully get a couple deals under our belts, we could probably attract other investors. He has a healthy network of friends/colleagues who are investment-minded and have substantial disposable incomes. They all work 60-70 hour weeks and would probably see a benefit in having deals vetted and brought to them. My credit is so-so due to credit card debt (high usage, no missed payments or anything). He has good credit. My income is so-so. His is substantial. We're in Michigan with markets like Lansing, Detroit, Grand Rapids, etc. So... While I realize we're very early in this process, and this is all hypothetical at this point, I'm doing research and trying to get an idea of what our options are. If we can't make anything work, then so be it. I don't want him to lose any money. But I'd like to know... In this scenario where you have a little bit of money to start and more available as a track record is established, and you have time and a willingness to run numbers and wait for the right deal... What would you do? Would you start interviewing agents? Trying to work with wholesalers? Looking for off-market deals yourself (and how)? Would you be looking for cash flow or appreciation? Type of neighborhoods? Would you set up an LLC? How would you approach financing? So many questions. I know some very smart people are reading this right now, and I'd be super grateful if you guys can help me flesh this out a little bit. Thanks for reading! [link] [comments] |
| Duplex in Milwaukee going to offer Posted: 29 Apr 2021 07:40 PM PDT Okay we are going to write for a 135k posted milwaukee duplex for owner occupancy. I would like your guy's opinion on if our current plan sounds solid. I want to offer 140k with a 2k+ appraisal contingency. I'm not sure if we should go a smidge higher. But we also have local financing and a really good agent who has connection. [link] [comments] |
| What's the best down payment/mortgage length for house-hacking? Posted: 29 Apr 2021 11:13 PM PDT I am looking into the possibility of house-hacking in the future and want to see what the financials would look like. For this scenario, the home price is $250,000, 5 bedrooms (rent 4, occupy 1). I have always been told to put as much as you can in your down payment to eliminate PMI and to have smaller mortgages and save interest. Is this also the case for house-hacking, where the roommates would pay my monthly payment, except for the down payment I placed? What is the best length, 15 years or 30 years? Thanks in advance. [link] [comments] |
| Posted: 29 Apr 2021 07:14 PM PDT I'm only looking to make a purchase that will cash flow, and I'm confident that I can find something that would work. However my husband and I are in a debate about whether or not it is better to buy something nicer/bigger/probably more expensive and focus on the appreciation factor. Or just focus on the cash flow and perhaps get more of a cookie cutter house in an ok neighborhood. Potentially end up with two. I sold my other rentals 2-3 years ago and have been sitting on the cash waiting for the right time personally while watching the market. Well we live between San Antonio and Austin and I've just been kicking myself for not investing it sooner. The time is right personally so I've started searching again. I'm interested in seeing what other people think. [link] [comments] |
| Housing Affordability for a young Canadian. Any advice appreciated Posted: 29 Apr 2021 10:25 PM PDT Im a young guy in his late 20's. Have some money saved up. Have excellent credit, Have a stable, semi decent job that pays well enough. Anyways to skip all the details I'm interested in getting a house, because I'm starting a family. Im a Canadian and the Province I live in (B.C.) is one of the most expensive places on the planet to live in. I was on Re/Max's site and I'm blown away by the listing prices and how much they all cost even for a smallish property or a run down one. Out of Province the price difference is very noticeable as well, we really do have it rough over here. I'm also very handy and was considering buying a cheap-o fixer upper type place adding value to the property and then re-listing it. Does anyone have any good resources? Ways to find good deals on properties. Possible bank foreclosures or dilapidated properties being listed as fire sales etc or tips for a new home buyer to look out for. I'm pretty new to all this so go easy on me. Any and all helpful comments are appreciated. [link] [comments] |
| Posted: 29 Apr 2021 06:15 PM PDT I (finally) got an offer accepted for a 3br/2.5ba townhouse in Palm Beach County Florida. List price $262k, offer accepted at $270k. My wife and I will live here for a year or so then rent it out for a conservative $2k, HOA fees $343. 20% down conventional 2.875% financing. Inspection came back with a handful of minor items and one major item. I'm anticipating the minor items that I'll fix now will cost about $1,000. The major item is the AC. The seller installed it 7 years ago and never serviced it or changed the filters resulting in rusted and filthy coils. Inspection showed temperature differentials were within range. I can get it cleaned for $350 but I'm afraid of the worst case scenario where I'll need to replace the handler. I requested a full-service maintenance and cleaning, along with some sort of bill of health, $2,500 in credits (over estimating knowing they'll possibly negotiate) and one repair for a sink leak. The seller's agent replied that they will provide zero credits nor repairs and that there is a backup offer for $275k with zero requests for credits and appraisal gap coverage. Something I'm also concerned with is that recent appraisals are coming up short. An appraiser told us they are trying to keep sales prices contained in my area. Knowing the seller will not budge one bit, I'll have to either come up with cash or pay PMI in the case of a shortfall. In the same development (units are all less than 20 years old) a 3/2 townhome smaller by about 200 sq ft, sold for $262k. Other similar homes in the area sold for something similar so I'm anticipating if there is a shortfall, it'll be ~$5k maximum. What would you all do? Walk or move forward? I'm only $325 in from the cost of the inspection. [link] [comments] |
| Posted: 29 Apr 2021 04:01 PM PDT I've been saving for the past few years of my work life and I think I'm ready to do my first few real estate investments. I hope to continue investing in real estate long term so I would like to figure out how to structure it correctly from the start. I live in NYC and the properties I'm looking at are in TX, PA and AL. All 3 are around $100K and I would like to take loans for them (I have just enough cash to cover the 20% and the closing fees). Reading through the information available online it seems that creating an LLC is recommended long term (even though it might be an unnecessary hassle for the first few properties) for my own protection. My strategy would be to get loans for the properties with personal guarantees at first to establish credit and, in a few years (3-4), buy more properties with loans based on this LLCs credit history. I would like to create this now to get it out of the way but I'm unsure if I should create a single LLC (in Delaware? per every recommendation I've seen) and register as a foreign agent in each of these states or simply create one LLC per state or something else. It seems that requirements for registering as a foreign agent are similar (or even more complex) to creating a new LLC. Creating an LLC per state has its own drawbacks though: * multiple credit lines that need to be established. * lots of complexity with multiple accounts. * lots of tiny fees that will add up (registering LLCs, registered agents, etc.) and eat into the already slim margins. After writing all this I sincerely hope that I've missed some exception for real estate investing LLCs since most information I found was about LLCs in general. [link] [comments] |
| Buying a cabin (HELOC and process) Posted: 29 Apr 2021 12:12 PM PDT Hey all, I'm looking at a vacation property and want to understand the financing portion. It's a cash-only purchase, so my assumption is I should take a HELOC on my primary residence as I have more than the property cost in equity.
Generally I need to better understand the interplay and trade-offs between different financing options, and how these type of non-mortgage deals are made. Edit: Location is WA, USA [link] [comments] |
| Opinions wanted on the next best way to invest in RE Posted: 29 Apr 2021 08:41 AM PDT I have enough properties and have no big desire to own more as I self manage and Im trying to wind down as I move into retirement. But I have some money to invest and I want to keep it in real estate. Not a fan of the stock market. My goal is to make 7% or more but not have too much risk or too much more work on my plate. The options I am considering:
What would you do? What would be your best option? Im in Canada btw, although I do own one US property. [link] [comments] |
| Posted: 29 Apr 2021 03:25 PM PDT My uncle owns about 7 acres of undeveloped land in rural California. Not much around, not developed. What are the best ways to sell land in remote areas? [link] [comments] |
| Posted: 29 Apr 2021 08:43 AM PDT So I am a new investor, looking to get into my first deal. It looks like the market is hot in my area and there aren't a lot of Multi Unit Properties on the market and even the ones that are on the market are overpriced. Needless to say good deals are few and far between. That said, I am also toying with the idea of BRRR. I listen to bigger pockets podcasts and it seems BRRR is a highly profitable route to go w/ real estate investing but it is also considered "advanced". So just wanted to throw this question out there:
Any and all advice is welcome! Thanks! [link] [comments] |
| Limit on number of mobile home sales? Posted: 29 Apr 2021 04:19 AM PDT I'm thinking of doing mobile fixer upper deals and I heard that there is a limit on the number of mobile homes sales a person can do per state usually 1-3 per year. I'm thinking of doing it through LLC in the US and been told that won't make a difference in terms of the limit. Those who are doing this full time how do you get around selling making it worth doing full time? [link] [comments] |
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