Real Estate Investing: [Follow Up] |
- [Follow Up]
- If we sold our home, we’d make a $200k profit. Then what?
- What's owning big multi family 5+ units vs small <3 multi family like?
- Cash purchase with LLC...Cash-out ReFi???
- ¿How does the rich make their millions/billions with reit-returns?
- I have a plan for buying a condo, but I'd like some input...
- Puchasing rental property alongside first home.
- Cadre and Roofstock
- FHA loan question for MARRIED COUPLE
- Opinions on the housing market near Atlanta?
- Tips to Rent out my former Primary Residence (or should I sell it?)
- Looking to better understand my options in buying a second property.
- Any Self Storage developers here?
- Adding ADU for additional rent a d refi
- Are granite countertops worth investing un
- Self Employed Jumping Through Hoops to Buy Home ----- Worth It????
- Seller financing loan servicers that report to the credit bureaus?
- How far into the future can I get my appraisal when switching a primary residence to a rental
- Cost of insurance?
- Is staging worth it in this seller’s market?
- Need 70k worth of advice
- This is gonna sound weird, because it’s a first world problem...
- 2023 build condo or house in Austin
| Posted: 03 May 2021 05:27 PM PDT This is an update to my original post Evicting Tenant of Property Under Contract TLDR - I got a house under contract and the guy's grandaughter was living there with no contract and stopped paying rent so he decided to sell it instead of dealing with her. A lot of people were telling me how stupid this was and how hard it will be to get the current tenant/squatter out of the property. Anyways buckle up, this is going to be a fun story. Prior to closing I had offered her cash for keys. I was willing to go up to $2,000 to get her out by the closing date, March 31st. She asked for $13,000. I politely told her I couldn't do that much and that I could do around $1,500. It was a cordial conversation that lasted 30 mins. Honestly we only talked about it for 5 mins or so. The rest of the time was just normal conversation about work, pets, kids, etc. I'm not even sure she was staying in the property much at that point because the water and electricity were both shut off. A few days before closing I get a text from her asking for $3,850. I told her I couldn't do that. I expected her to come back with a lower offer but she never said anything else. I would have went up to $1,000 but I wasn't really in the mood to negotiate on my end so I just let it go. I also kind of figured this was a ploy to get "paid" as her utilities were shut off and it would be hard to live there. The day I closed on the property I gave her a legal 30 day notice to vacate per Indiana law. I left two copies taped to her door and storm door since she wasn't at home. I recorded myself leaving it just in case we went to court. A week later, I left a notice of maintance as I wanted to patch a hole in the detached garage's roof. When my contractors began work, they noticed the backdoor had been open for two days straight. I went over there and knocked on the door, no answer. I went around back and saw the open door. I looked in one of the bed room windows and a random ass pitbull was staring back at me. The problem was she doesn't have a pitbull, she has three tiny white dogs. As we were out back somebody darts out the front door, hops in a car parked on the street, and speeds off. Screw that, I drive over to the police HQ and they tell me to head back to the property and they'll send a car. I get back to the property and three cars are there and they're clearing the house. It looks like someone just ran out as the tv was still on. They give me the ok to go in and I walk the property. All of the appliances are gone and all of her furniture is gone. The only thing left is her bed and a tv which was still on. I guess she got the power cut on with her stimulus check. Fast forward to last week. I talk to my lawyer about what to do on the day she is supposed to vacate. He's to just go over there and see if she answers and if not its best to file an eviction just to be safe. He says we can't file until Monday morning. The night before the final day, I get a call from a local number. I answer and its her mom. I talk to her mom for about 20 minutes and she asks me not to evict her and that she'll be out by Sunday evening. She asks me where her daughter should leave the key and I just told her to leave it in the mailbox and I'll come by and get it. She thanks me for trying hard to work with her daughter to find a win-win resolution and she's sorry it didn't work out but my 30 day notice lit a fire under her ass to get out. She also states they'll be in Tennesse for the weekend but her daughter will be here moving out. Sunday rolls around and I go over to the property to get the key around 6:30pm. There is somebody I don't know coming out of the house and getting into a car I've seen over there before. I circle the block and they leave. I knock on the door, no answer. I go around back and the door is wide open. I bang on the window to see if the dog is in there but get no response so I go back to my car to grab my maglite and knife. I enter the back door and start clearing the rooms as I turn to the bed room I see her bed and the pitbull just sitting on it. I slowly back out of the house, shut and lock the back door. I then lock the front door. When I get home I call her mom, but its a landline they're in Tennesse and I'm thinking I'm fucked. The next morning I go to the property and that car is back. I check the mailbox and still no key. So I do a reverse phone search on her mom's number since it was a landline. I go to the first property and knock on the door for a few minutes. Finally a man in his boxers answers and he has no idea who these people are. I apologize to him and leave. I look at the address for the next property listed and its only four house down the street. I drive down and I see the "tenant's" car parked there. I knock on the door for a few minutes and she finally answers. I ask her if she has moved out and she says yes. I sk for the key and have her sign a statement saying she vacated the property and anything left can be disposed of. I ask her if she knows who is at the property right now and describe the car and dog. She says its her cuousin and she will call her and tell her to leave. I tell her I'm heading there now to change the locks. I get to the property, knock on the door and the cousin answers. I tell her she has to vacate immediately. She says "We have the weekend to move out." I give her a stone cold look and in an exteremly stern voice tell her "Its monday, the weekend is over and as of right now you're tresspassing." She looks confused and says "Oh... well I need to get my stuff and its going to be a while to get someone here to help." I tell her she has an hour and she asks me to help her move her 60in tv. I help her move all of her stuff out onto the porch in the rain. I tell her she can come back and get anything she wants from the porch but she can no longer enter the premises. The whole process was an awkard 20 minutes and she was gone. I changed the locks, secured the windows, and setup an alarm system. Now the rehab begins. I've never smelled a worse property in my life. In all, it cost me about $12, 3hrs, and a 30 day wait. Yes it could have been way worse, but it wasn't. Purchase Price: $35k with $2.5k credit for taxes Rehab Estimate: $30k ARV: $130k Down Payment: about $4k Looks like a win so far. [link] [comments] |
| If we sold our home, we’d make a $200k profit. Then what? Posted: 03 May 2021 06:22 AM PDT My partner and I (32 years old with one child) were really lucky to purchase a home in an "up and coming" area a few years ago. We've been paying on it pretty aggressively and its value has increased significantly. If we sold right now, we would likely be making a $200k profit on it. The way we see it, we have three options: Option A: Take the $200k and use it as our down payment on a more expensive home in our dream area. Property values have been steadily increasing in this area, but at a much more modest rate than our current area. Option B: Take the $200k and combine it with some of our savings to pay cash on a $250k condo in a nice area (not our dream spot, but also not terrible), allowing us to invest/save the majority of our income. Property values in the condos have been pretty flat over the last ten years. *** With this option, we could either sell the condo down the road or rent it out and purchase a second home for ourselves. Option C: Hang on to our home and see what happens. We'd continue to build equity and our house could very well continue to appreciate in value. At the same time, we'd run the risk of missing our home's peak sale price. What would you recommend? Is there another option we're missing? I really appreciate any insight, thoughts, or perspectives you might have! [link] [comments] |
| What's owning big multi family 5+ units vs small <3 multi family like? Posted: 03 May 2021 05:51 PM PDT So I'm questioning selling my triplex and buying my first big property 5+ units under 10 units. I'm just nervous before starting that journey, is it much different? If I have a pm in place will my life change much? Does more units mean more cash flow? What kind of ratios do you look at when evaluating bigger buildings? Do you regret it, do you wish you had stuck with smaller plexs? Idea is sell my triplex come out with 240k use as down-payment on a 1m+ property, with 5+ units so I get a commercial mortgage and it's not limited to my personal income. [link] [comments] |
| Cash purchase with LLC...Cash-out ReFi??? Posted: 03 May 2021 07:03 PM PDT Hey all, I'm looking to buy a multi-family (3 to 6 units) here shortly. Cash seems like the best way to secure a property in the current market. However, I know ROI wise it doesn't make the most sense to purchase 100% cash. To compound this, I do like the protection LLCs provide, but I don't believe I can recover some of that cash via a cash-out ReFi if the property is under an LLC. Would it be better to buy the property under my name with an umbrella insurance policy so I can cash out ReFi? or purchase the property under an LLC, all cash, for the legal protection? What do you guys recommend? [link] [comments] |
| ¿How does the rich make their millions/billions with reit-returns? Posted: 03 May 2021 12:39 PM PDT I don't if its the same to invest in a reit or in real- real state, but it seems kind of difficult to me that so many people make their money with real state taking into account that reit returns are less than 10%, at least the ones that I have saw, so I don't know if I'm missing something, but what's the secret with real state and how so many people have made fortunes with it, if for the general public doesn't seem that lucrative. [link] [comments] |
| I have a plan for buying a condo, but I'd like some input... Posted: 04 May 2021 12:56 AM PDT Hello reddit folk, I'm thinking of purchasing a 1 or 2 BR condo. The max I want to buy it for is $175K (preferably closer to $150K, basically anywhere in the country where I can get a minimum-$15/hour job in its vicinity). I've got around 155K in liquid savings in my checking account right now. Here's my preliminary plan: I'll put $100K down on it and take out a 30-year mortgage. I wonder what all my monthly expenses would be (a couple hundred for the mortgage, then utilities, food, property tax, and HOA fees). Anything else I'm missing? Is it reasonable to conclude that the monthly condo expenses should average between $700 and $1000? This is what I've been seeing on Zillow's calculator. If this is true, I can likely manage my monthly expenses if I get a $15/hour full-time job. Does this sound right, or am I dreaming? If these calculations are actually reasonable and correct, then I'm going to quit trying to go for higher education, buy a condo, and then work at a job nearby that pays at least $15 an hour full-time. I can drop everything and move in the blink of an eye. A permanent secure residence or dwelling that I own is of utmost importance to me. [link] [comments] |
| Puchasing rental property alongside first home. Posted: 03 May 2021 06:40 PM PDT Hello, this is my first post here and I'm not super knowledgeable about real estate so apologies if this is dumb or not a good post. Im graduating college this spring and I'll be working a summer job while i search for a full time position in my field. I have no student loans, a paid off car and a few grand saved up. Id like to purchase a small home with my girlfriend in a couple years and i was wondering about the viability of purchasing a rental property alongside it. For example, theres a 4 bedroom, 2 bath duplex for sale near me for around $350k, if it were fully rented out it'd give around $2000 a month in rental income, but it looks like i could get mortgage payments in the $1700-$2000 a month range on the property and effectively be at a net nothing with it. Meanwhile my girlfriend and i are looking to spend around $150 - $200k on our home, and it looks like we'll be making roughly $1600 monthy payments on that, which we'll be able to cover. It just seems too good to be true to me, are there any downsides or barriers of entry here that I'm not considering? How realistic is it to purchase both at once? [link] [comments] |
| Posted: 03 May 2021 10:40 PM PDT For those you who use that platform, how do you find it? Also, how well does the secondary market work? Thanks! [link] [comments] |
| FHA loan question for MARRIED COUPLE Posted: 03 May 2021 06:40 PM PDT Hello all. I have been scouring the internet for info on this question and was wondering if you could help! My wife and I are pre-approved for an FHA loan together. I am trying to figure out if each of us can carry an FHA loan in our own name, so that we can, in combination, have 2 FHA loans. I know you have to live in the property you purchase for one year after buying it and I know that even if I myself just had an FHA loan they will look at my wife's debt/credit and whatnot which is fine. We both qualify on our own and both are debt free. The plan would be for myself to buy a property via FHA, live it in for one year, then she buy one via FHA, and we move into that one and live in it for a year. The only evidence I could find about someone doing this was a guy on the bigger pockets blog saying he and his wife definitively did this. There isn't anything on any website explicitly saying this isn't possible. I am aware that one person could get another FHA loan should certain criteria be met (expanding family, job relocation, etc. and have 25% equity). This is NOT the situation I am asking about. I am trying to figure out if both my wife and I can carry one individually but at the same time (having met the 1 year occupancy requirements). I asked my broker about this months ago and he said it wasn't a thing; but I've discovered that not everyone knows everything! After a ton of research, I found out on my own that one can put 10% down on an FHA loan and then MIP will drop off after 11 years of payments. I asked my broker about this as well and he said it wasn't a thing, until I found the literature on the FHA website and showed him, and ended up teaching him something! What I've learned is that I have to dig as deep as I can and maybe new options will emerge, like the 10% down thing I learned. This question is rather situationally specific so there isn't a direct answer to it on any websites. I've learned so much from this sub and am so thankful for any info you all can share ! [link] [comments] |
| Opinions on the housing market near Atlanta? Posted: 03 May 2021 10:06 PM PDT What do you guys think? Definitely one of the nicest cities you can live in while making under 50 grand. Lots of land, big houses, booming city. Any interesting takes? [link] [comments] |
| Tips to Rent out my former Primary Residence (or should I sell it?) Posted: 03 May 2021 09:44 PM PDT I bought a home 7 years ago and am ready to upgrade to a nicer house. I reached an agreement with a seller today so barring something odd, I will be moving on to a new house in the next 30 or so days. While I could sell it, my mortgage approval is not contingent on me doing so, and I have always wanted to invest in real estate. My home is located in Atascadero, CA (San Luis Obispo County) and is a 3 bedroom, 2.5 bath single family residence. It is about 1500 square feet on about 0.25 acres. The house also has an inground pool. I currently owe $373,000 (plus another $20,000 for solar panels) and the house is probably worth about $575,000. My mortgage is $1450 per month with another $400 or so for taxes and insurance for a total of about $1850 per month. I have no clue what rent goes for here, but I'm guessing I can get about $2500 per month for rent. This house badly needs a new roof and if I rent it, I plan on doing that right away and the quotes I got (in February) were around $10,000 from a licensed roofer. To start, is it worth renting or is this profit margin to small to be worth it? If I rent, there are several areas that I need help with. Should I get a property manager? I am almost convinced I would, but if everyone here says it's not needed, then maybe I would reconsider. I'm assuming that will cost about 8% (or $200) per month. I currently have owned solar. How do I go about charging for electricity based on that? The PGE bill is $10 per month but the solar bill can be all over the place and has a true up period once per year. I also have an in ground pool. I am presently paying ~$150 per month to have a pool company clean. it. Pools can be difficult to maintain, but I would rather not pay this myself as that eats badly into my profit margin. How do landlords typically address this? The house has some pretty awful carpet upstairs along with random 1970s tile and damaged linoleum. Would it be best to replace this? If so, should I go for the cheapest option, or spend more for something nice? Do I need an LLC or anything like that? Any other tips for a first time landlord? [link] [comments] |
| Looking to better understand my options in buying a second property. Posted: 03 May 2021 09:18 AM PDT My wife and I bought our first home towards the end of 2019, a 2 family home that we occupy 1/2 of and collect rent on the other unit using an FHA loan. We are interested in purchasing a 2nd property purely as an investment but we do not make enough currently to put a lot of cash together. Ideally we want to be able to make this happen within a year or so, we do not want to move into the new property but would consider it if it made a lot of sense financially. Just looking for some ideas and thoughts on what options are available to us or what you all think might be the best way to go about making this happen with as little down payment or hit to current expenses as possible. [link] [comments] |
| Any Self Storage developers here? Posted: 03 May 2021 09:17 AM PDT |
| Adding ADU for additional rent a d refi Posted: 03 May 2021 09:09 PM PDT My former home is now a rental. i want to build and attached unit like a mother-in-law, to get some increase in rent and potentially live in after retiring while renting the main house out. What us the advisability of moving in, to refi as a primary and construct the mother-in-law ? The investment property rates are terrible. [link] [comments] |
| Are granite countertops worth investing un Posted: 03 May 2021 08:59 PM PDT Does having granite countertops increase rent value any? [link] [comments] |
| Self Employed Jumping Through Hoops to Buy Home ----- Worth It???? Posted: 03 May 2021 08:55 PM PDT So as the total suggests I am self employed and I am trying to buy a home. It's super difficult as I need three years if business tax returns and I have to be reporting a high income even with business expenses and write offs. Buying a 4bedroom/2bathroom home for 120k (very motivated sellers) and will do about 10k of work to update. Closing is 9 days.
Lender says I have to put down 20% and pay off my $13000 loan (because the debt ratio) on my car to get a mortgage loan. Total is 38k (WHAT!?)
House payment would be $690 and I'd owe 96k @ 3.49% loan on a 130k house but I would have just paid out 24k for the house. I would have also just paid off my car (13k). This would be a home to live in for a year then rent. It could cash flow $600-$800. Is this insane or is it a solid move? [link] [comments] |
| Seller financing loan servicers that report to the credit bureaus? Posted: 03 May 2021 05:50 PM PDT Hi Folks, I have the opportunity to buy a home using private seller financing. I am looking for a loan servicer who also reports to the credit bureaus. Any suggestions for companies you use and would recommend? Thanks! [link] [comments] |
| How far into the future can I get my appraisal when switching a primary residence to a rental Posted: 03 May 2021 04:29 PM PDT Canadian resident, own a condo, bought and moved into a house last week, rented condo out last week. For tax purposes related to the capital gains when I sell the condo eventually, can I get an appraisal anytime this year or is it supposed to be as soon as possible? I got an appraisal a few months ago but since then sale prices in my building have gone up 10%, I would like to capitalize on this with another appraisal as I just moved out, but I'm wondering if I can push it out further in hopes of more appreciation? Or perhaps I've already waited too long? [link] [comments] |
| Posted: 03 May 2021 04:24 PM PDT I was quoted by state farm today for the four-plex I'm buying in Minneapolis. They explained it as if I'm basically getting four different policies, one for each unit. It will cost about $600 per month. This is more than I anticipated, and send high. Am I wrong? If this more-or-less normal? [link] [comments] |
| Is staging worth it in this seller’s market? Posted: 03 May 2021 07:52 PM PDT Do you think it's worth staging a home in this environment? [link] [comments] |
| Posted: 03 May 2021 04:04 PM PDT Hello fellow investors! I am in the HELOC process and will be approved for around 70k. I'm so torn on what to do. I've been really enjoying researching Roofstock and thought I'd buy some SFR's through there. That gives me the option to invest in cheaper markets and buy multiple SFR. But, recently I thought about buying a multi family that could use a little TLC that's around my location and I'd do the updating and rehab, then rent t it out. So my questions lies with: do I buy multiple SFR's through Roofstock, a well established and reviewed real estate investment platform; or do I try to find something around me and essentially BRRR it? I should note that this is my first investment property voyage and any insight or recommendations are greatly appreciated!! Many thanks in advance! -C [link] [comments] |
| This is gonna sound weird, because it’s a first world problem... Posted: 03 May 2021 03:39 PM PDT I'm just gonna get straight to the point. I live in NJ and I already have a two family investment that is netting me very good profit every month. The house was purchased 6 years ago, and I am now back on the market for a second property. So what's the issue? I have 75k saved up and I am looking to get another property, however, am not sure if I should wait to see house prices going down. I've been looking since Jan and I believe that supply is starting to rack up, but it feels like the mentality for agents to push buyers above asking price is making my 75k look like Monopoly money. Multi-family houses are no less than 420k in my area, and I am hoping that come the summer prices start to correct. What advice would any of you give me with the amount I have saved up? I just feel like a PMI is not the way to go and I am definitely not going to bid above asking price. [link] [comments] |
| 2023 build condo or house in Austin Posted: 03 May 2021 09:33 AM PDT Hey everyone, first time posting here so let me know if I'm out of place. Backstory: I'm almost 25, moved to Austin 2 years ago and watching these prices go up makes me anxious to get on the ride before it's too late. I got on a waitlist for a condo being built in a rapidly growing area just outside of Downtown, but was shocked when I saw that a 660sq/ft studio is $275k and a 1100sq/ft 2 bedroom in the building would be a minimum $440k. I've been approved for $475k and because it will be my personal residence I'll only have to put down 10k until spring 2023. HOA $180/$200 This would give me the needed time for the down payment. After seeing these numbers I'm wondering what You all would do in my situation. Should I lock-in this condo in this up and coming area, or would i get more value on a safer play like building a 1700sq/ft house in south Austin for $420k and house hacking when it's finished around the same time in 2023 I only have a roughly 60k salary and $20k in cash on hand so this would be a bigger risk for me than most real estate investors. I'd also consider selling the condo right before or at move in to avoid the monthly fees and cash in on appreciation/inflation. Any advice is super appreciated:
Or should I just stay out of this mess until i'm older and have more liquidity? [link] [comments] |
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