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    Monday, May 10, 2021

    Real Estate Investing: How to Incentivize Renters to Move out before lease expires?

    Real Estate Investing: How to Incentivize Renters to Move out before lease expires?


    How to Incentivize Renters to Move out before lease expires?

    Posted: 09 May 2021 01:43 PM PDT

    Hello, I am a 23M who just purchased a multi unit property (my first) that is set to close June 1. I am doing an owner occupant house hacking thing, but the owners unit is currently under lease until mid August. Ideally, I want to move in before then, so I am looking at ideas for incentivizing the current tenants to move out.

    So far, I have thought about: - cash incentive - pro rating rent if lease broken (gives them flexibility to move out whenever.)

    Am I missing anything? I would appreciate the help!

    Thanks, Pete

    submitted by /u/imwashed
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    Best books on commercial property development and where to start

    Posted: 09 May 2021 05:04 PM PDT

    I have an idea for a commercial property and a few areas in mind that would be very good for the project but I'm not really sure where to start. Do I hire an architect to do mockups before buying land? Do I buy properly zoned land first then hope the plans get approved by the city/community or is there a way to get a project approved before dumping money into land?

    Can anyone recommend good books on the subject?

    submitted by /u/kincaidDev
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    Where do you find investors?

    Posted: 09 May 2021 06:31 AM PDT

    I don't have a network of friends with deep enough pockets for investing. I don't have enough equity in my home to refinance and take out cash for investing. And so far have not had any luck finding an investor to assist. The area where I'm located is booming in rental cabins/homes for vacationers. Drawing 10 million visitors per year. Rentals go from $100-$500 per night based on size/bedrooms available. The demand is here and growing. I'm looking to take advantage of the demand for rentals. Any suggestions on where to pitch my ideas and plans? I have architectural drawings building plans, take offs for materials needed. And costs to build. I know what the costs will be and what the return on investments will be. Where's the investors at?

    submitted by /u/Michaelsc_1970
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    Increasing Property Taxes Affecting Sales

    Posted: 09 May 2021 10:36 AM PDT

    My parents own a house in Northern Virginia and over the past 12 months, have seen their house price spike similar to the rest of the country. They are not planning on selling; however, their property taxes are spiking too. All this means to them is thousands of dollars in higher property taxes with no new income to pay for it.

    My question is: if very high inflation takes shape in the next couple of years, and house prices continue to rise, do you think we will see homeowners sell their properties out of desperation, unable to pay the taxes on them?

    submitted by /u/Historical-Session66
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    Cash out refi or line of credit on investment property

    Posted: 10 May 2021 12:16 AM PDT

    Hi! I had been keeping an eye interest rates on Aim Loans for a cash out refinance on our investment property (3 flat), and now when I query the same info it that doesn't bring up any offers available on their website. Our local credit unions interest rate on a cash out refi was much higher than Aim Loans was when they had that option available a couple of weeks ago.

    Are there any other websites or companies other investors here use with good rates on investment property cash out refinances or lines of credit?

    Appreciate any help. Thanks!

    submitted by /u/Flutterbybyby
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    Biden Tax Tips

    Posted: 09 May 2021 10:55 PM PDT

    President Biden has proposed taxing all those who make over $400K per year, and as it stands I am under the threshold, however, I will be inheriting 16-20 units that will absolutely put me over the limit. What are some ways that I can defer that tax burden? The units are part of a trust and not formed as an LLC. Would an S Corp formation and making me an "officer" or "shareholder" on salary be the right way to go? This would be a state where the potential combined tax would be slightly greater than 50%

    Thank you in advance!

    submitted by /u/throwaway102020822
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    Flip or Rental

    Posted: 09 May 2021 09:38 PM PDT

    I have about 60k in cash saved up. Should I buy a multifamily home and rent it out with positive cash flow? Or should I start flipping homes to generate a quicker and higher income?

    submitted by /u/Bongwodder
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    Just a little rant and looking for some advice.

    Posted: 09 May 2021 05:41 AM PDT

    My tenant ended his lease early due to his fiancé buying a house, I said no problem. I find out he was smoking in there and he basically admitted it. Tenant said "I'll return the keys once I get my security deposit back." I'm going to change the locks anyways so jokes on him.

    Is there anything I should have him legally sign to agree that the lease has ended or should I just send a written text/email/letter with the agreed upon terms etc.

    After I change the locks, I will be informing him that due to the smoke damage, I will not be returning his security deposit as he broke the lease and now I have to do excessive cleaning as well as a more in depth paint job.

    Any advice appreciated.

    submitted by /u/tgtmatt
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    If you were me, how would you use $50k today?

    Posted: 09 May 2021 07:43 AM PDT

    Hi everyone, I recently started reading more about real estate investing, since I'm looking to buy my first property. The current market conditions are sending me mixed signals (low interest rates, high housing costs). I'm also trying to expand my thinking, which is why I'm posing this question to you:

    If you were in my shoes today, how would you use $50k towards your first real estate investment? And what would your long-term strategy be?

    Background info on me:

    • 30 year old, single, no kids.
    • Stable job, stable housing, comfortable living situation.
    • Have a 401k and have my own brokerage account.
    • Looking to diversify into real estate.
    • Have about $1,000/month in my budget set aside for savings and/or investment. Currently this is going into my brokerage account but I'm open to using part/all of this in my real estate investment strategy.
    • Since I have a full time job, I'm looking for mostly hands-off approaches.
    • Currently live in South Florida. Have been looking at more affordable/smaller markets ie. Atlanta, Charlotte, Greenville SC, which are all places I have lived before and am familiar with.

    Questions that I am working through:

    • What should my long term strategy be: single family, multi-family, duplex, townhouses.
    • What other strategies should I consider? Other than buying a property, holding long-term until mortgage is paid, and eventually receiving the rent as an additional source of income.
    • Should I buy now in this market? Hold off until housing prices settle down?
    • Does it make sense to buy in a different state (taxes, logistics)?
    • Should I just keep investing my money into my Brokerage Account?

    Thank you in advance for any helpful info or personal experience that can help!

    submitted by /u/LaClerque
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    Realtors/investors wholesaling in CA

    Posted: 09 May 2021 05:12 PM PDT

    what contracts are you using? is it true realtors can only use the RPA form? also I want to start bringing the contract to my initial meetings with sellers, whats an effective way to get them to sign?

    submitted by /u/KLDKLASSICK
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    I think I’m getting jacked around...

    Posted: 09 May 2021 03:10 PM PDT

    We found a great property, right within our budget and I have the amount needed to put the appropriate 20% down payment. It was listed as New and on the market at the time which was only 8 days ago. We immediately contacted our agent and she was told "the listing agent said it's already in pending status and he's gonna be updating the listing in MLS today." This was ONE WEEK ago and the listing does not say pending or under contract.

    Can the listing agent lie and prevent others from seeing the property because he's being a greedy you know what or is it really possible that the property is under contract/pending even though the realtor sites don't say it? Legit annoyed atm if we are being prevented from looking at it because I'm ready for this.

    submitted by /u/RojoDiablo723
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    Trying to make a list of desirable multiunit in my area

    Posted: 09 May 2021 12:42 PM PDT

    Does anyone know of a free website I can use to locate and monitor multiunit properties in my area? Currently working on my real estate license so I should have access to the mls soon but I didn't know if there was a different easy way to sort out this kind of info. Thanks!

    submitted by /u/ForeverHusker
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    Expensive but high CoC deal near national park

    Posted: 09 May 2021 12:08 PM PDT

    About to close on a deal around a national park on an existing STR that has a year's worth of history pulling in $20k-$30k/monthly. Last 12 months totals $260k but only throughout 200 days with Covid ongoing. 2200sqft, 3.2 acres, 3bd/3bath - all in all amazing house. Winning bid is $300k over asking ending at $1.19m. Crazy.

    Appraisal is big concern considering the offer is for 20% down, meaning I'd have to find a family investor who'd have to help out with a large cash portion if appraisal comes in at listing price (expected based on comps). All in all cash needed around $500k. I have around $105k.

    Pending the terms of the family investor (who's not in in for the money but needs to be paid back), does this still make sense as a deal considering the numbers it pulls in?

    submitted by /u/BorisLtd
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    how to BRRR out of state

    Posted: 09 May 2021 08:05 AM PDT

    im in california and looking for my first brrrr property for longterm passive income, i figured i can get more for my money out of state. I am looking in nevada, arizona, iowa, and texas. I dont have any boots on the ground in these states so i would definitely need a property manager. Any tips and info is appreciated.

    submitted by /u/KLDKLASSICK
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    Any books or website in Chinese about basics like step up basis, etc?

    Posted: 09 May 2021 11:37 AM PDT

    Trying to explain some things like step up basis and depreciation to someone who speaks mainly Chinese as a first language. Is there any resources? Willing to pay for a book, etc.

    submitted by /u/soyeahiknow
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    Me (Canadian) wants to do renovation work to an investment property/vacation home I would own in Hawaii...do I need a US work permit?

    Posted: 09 May 2021 09:02 AM PDT

    What if my father (not on title) joins me and swings a hammer for a couple of weeks and does't get paid...is he required to have a US work permit? I appreciate this is a specific US work permit question, but I can't find any info online that speaks to this type of a situation. I thought there might be other Canadians on this sub who have knowledge or experience around renovating their US property. Thanks.

    submitted by /u/CasaGallina
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    First Rental Property - How do I best prepare myself for the next purchase?

    Posted: 09 May 2021 05:33 AM PDT

    I'm in the process of purchasing my first rental property and I'm curious about what I should do with the income. It's a duplex and I'm purchasing it for $130k. Rent is roughly $1800 between the two sides; I'm expecting my cash flow to be between $600-$800 after all expenses including vacancy and capital expenditure reserves. It's already rented on both sides and each tenant has recently signed a 2-year lease. They have also both expressed interest in staying even longer. One tenant has been there for 6 years and the other has been there for 2 years. I actually lived in one side of this property a few years back and the long-term tenants were my neighbors. Good people, just rowdy little kids and some dogs but nothing too bad.

    I put 25% down which comes to around $32,000 and closing costs of around $4,000. Total initial investment is $36,000. I'm expecting between $7,200 - $9,600 cash flow per year so I should recoup my initial investment in under 5 years not counting any equity gained. My goal is to open a HELOC and use that towards a down payment on my second property as soon as it makes sense and use the income to pay off that HELOC as soon as possible. This seems to be somewhat in line with the BRRRR method.

    Should I use the cash flow to pay the property off sooner and build more equity, or should I invest the cash flow in the market let it grow that way? I was thinking to put $100 a month of the cash flow towards a "cash reserves" account for repairs and unexpected costs. Other suggestions, thoughts, ideas, constructive criticism?

    Edit: deleted irrelevant personal info

    submitted by /u/whoodabuddha
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