Just became a landlord and tenant is already late on first payment Real Estate |
- Just became a landlord and tenant is already late on first payment
- $1M in Property in 66 Months. Bucking Some PF/RE Advice
- House will not sell. Great feedback about price and showings are positive. New marketing strategy ideas?
- Should I he concerned about the closing being delayed?
- Mortgage question
- in nyc, wanting to buy, but being patient
- Trying to buy delinquent mothers home
- Collecting Deposit After Contingencies are Closed
- Looking to rent
- Lead Generation tips?
- Not on market; received unsolicited letter from agent
- Does having gas increase value?
- Do I have any good options here?
- Hours of Upkeep for a New Home
- Offer Advice: Seller wants to keep tenants in place
- Planting crops instead of a lawn can I do it?
- To sell now or next year: currently leasing my condo until August
- VA home loan questions [Idaho]
- Buying a Home with a Solar Lease
- Sump pump inspection
- How can I finance the purchase and renovation of an old commercial building to live in?
- Capital Gain tax
- Real Estate Agents, which Home Energy Efficiency Certifications have you marketed?
- How to give feedback on real estate agent.
| Just became a landlord and tenant is already late on first payment Posted: 02 Apr 2019 04:01 PM PDT Posting here because frustrated + looking for advice on how to go forward dealing with them. My apartment is downtown, in a nice area, with average rent being about $2500 a month. Since my unit's a little smaller, I charged an even $2k and got an offer immediately. Guy is young, but he had the required $6k ready to go (first month's rent, last month's rent, security deposit). Building did a background check, everything was fine. Well, when I met him in person I could immediately tell he was the kind of jerk that really thought he was the center of the world - not just because of his attitude, but because he was a fricking hour late to our first meeting. We had another meeting a few weeks later just to check up on how he was doing and he was late to that one too. No other payments were due yet, so nothing to do/say. He kept asking about making changes to the apartment and we approved some and said "we'll see" to others. Well, rent was due a few weeks ago (middle of the month). At the time I was stressing about something else in life and I missed the fact that he didn't pay, so I let him know last week that he never made the rent payment and he needed to ASAP. Even told him that if he did it by Friday (the 29th) we wouldn't charge the late fee or anything like that. So far he's made excuses and it's Tuesday and there's still nothing in my bank account. Considering the business he's in and how easily he plunked down $6k I don't think he's exactly hurting for money but I don't know what the issue is. If he just forgot (hey, I forget stuff too!) I would think he would've just gone online and done it already since it's pretty easy to do at any time of day. In my last job I did wire transfers/ACHs every day, I know how quick it is to do. Throughout all of this I've been really nice and friendly, but after the excuse he gave me today I basically just told him to make sure the money was deposited and refused to be the nice little "oh that's ok, hope you get it resolved" that I would've normally done. Am I being an ass here? Is there a better way to communicate with this guy? I don't want to feel like I'm forcing the money out of him every month but I need it to pay the mortgage and HOA fees and he's an adult who should know when to pay his rent. I know I messed up by not noticing the rent was late when it was and I take responsibility for that, and have set up a system to make sure this doesn't happen again. [link] [comments]  |
| $1M in Property in 66 Months. Bucking Some PF/RE Advice Posted: 02 Apr 2019 08:09 PM PDT Hey folks, I'm writing this because I sometimes see troubling advice on PF/RE threads about a product we all need: Housing. I've seen advice that borders on so conservative, it's impossible to reach. I am also writing this because I wish I had learned the same concepts much longer ago. I've listed the key take-ways up top and the details with figures below so all can follow along.
In 2013, my GF (now wife) and I wanted to buy my first property. I landed on a side by side duplex in a slowly gentrifying neighborhood/town. Why a duplex? Well the income can offset a good portion if not all of your mortgage. Also, banks will lend you more if you try to finance a multi-unit. For example if you make $60k, qualify for $180k on a single family, but you find a duplex where one side can pay you $1300 a month, the bank will add that to your income at 75%. Thats another $35.1k you may qualify for ($1,300 x 12 x .75 x 3). Back in 2013, it was still early in my career and I didn't have tens of thousands for a down payment. I qualified for an FHA loan and was able to put down 3.5% of $257k as a down payment. My GF and I were splitting it but guess what? I didn't even have my half in cash yet for housing. I borrowed against my 401k (which I always maxed out and more) for the downpayment. August 2013 we closed and moved in. Over time, I was able to fix up portions of my my side to make it more livable, the tenants side, and the outside. Tax law is much more generous for landlords than single homeowners. You need to redo landscaping well you can write off a portion of that. The roof needs replacing? Yes that too. You can even depreciate the cost of rented portion of the house over time even if the value of the property goes up. If you have any paper losses in a given year, you may even be able to count it against your normal 9-5 job income. With the other side rented, our out of pocket monthly mortgage went down to about $700 which was a big savings over the previous living situation. No where in our area can you rent 3 bedrooms for that much. So back to the $1M. How did I get there? Last year we decided to make another move on the property front. Housing in general has risen in most markets and taking a risk in a rougher neighborhood with a rougher house paid off. We decided to take a heloc to buy another property in a different town. An appraiser appraised the duplex and it worked out where we had $60k to work with. After some research, we purchased in a depressed town where rents are strong but housing values are not. This means that a lot of your ROI is coming from cash flow and not appreciation. Using the BRRR method ( Buy, Rehab, Rent, Refiance) we purchased a working heroin house, rehabbed a lot of it, rented it to great people, and refinanced it. Ideally, the refinance portion gets you all your money back you put into it but I went a bit overboard and under estimated costs. I will have recouped every dollar I put into it within 30 months. After this process, it leads me to the third property we just closed on. We needed more space as we had outgrown our first duplex. We ended buying a property just for my wife and I with the room we needed and had always dreamed of. The total value of all properties is equal to $1M and we pay out of pocket monthly about $300. If I had listened to some PF/RE advice, it may have taken my these 66 months in a rising rent environment to save up enough to put down 20% and to not have all these tax advantages. TLDR: A Multi-unit is a great starter home PF/RE wise. Leverage is risk but using it as a tool can help you. Tax law helps landlords immensely. [link] [comments]  |
| Posted: 02 Apr 2019 01:39 PM PDT Hi! So my husband and I have been trying to sell our house since the holidays. We interviewed a couple of prospective realtors in our area. All of the realtors stated that they thought our house would sell very quickly for 450,000 but stated that, because of comps, we should list at 475,000 and see what we could get. We listed in December. Tons of showings at first. Brokers open suggested that we lower our price 5,000. We did. We kept getting less and less showings, and by late February we were in a hurry and I asked the realtor to lower the asking price to 460,000. He did and we got two showings in the span of a month from the end of February to the end of March. All of the feedback we were getting stated that everything was great with our house (the showings and open houses). They said our price was perfect even at 470,000. Our marketing is on point. The house is pretty much brand new. The backyard is .25 acres, premium lot. The house gets great feedback overall. Yet we haven't gotten a single offer and the buyers are always "extremely interested" but end up making us their second choice. I'm so disheartened. It's been 100 days and i have no idea what to do from here. I am feeling like we are just unlucky but I don't want to sit and twiddle my thumbs until someone buys it. What more can we do? All of our comps have sold, some of which were way overpriced. I would be happy to show the listing if anyone cares to see the house. Just wondering if there is anyone with advice. 😬 We are currently sitting at 450,000 and have been for three last two weeks. We gotten two showings since then and have done one open house. We live in a very new area, great schools, it is a bit far out but not in the middle of no where. I am in the United States, Arizona. EDIT: For reference, we paid 422,000 for our home. Our comps have sold for 465,000-484,000. We bought three years ago. There is absolutely nothing wrong with our home that would need to be repaired. EDIT: so my husband just talked to our realtor. Apparently there was a couple at our open house on Saturday who stayed for 45 min and were planning their furniture in our home. Good news. But, just like everyone else, there's a possible problem because they are renting right now with the option to buy and out of ease of transition might stay at their rental. This is what keeps happening! One couple didn't like how far we are. The other wanted a master downstairs. There is always something out of our control that ends up happening. The realtor also stated that he has talked to colleagues and connections, as well as having a broker open, and that everyone is just as surprised as us that the house hasn't sold. No one can figure out a concrete reason why. Price doesn't seem to be a deterrent but there are always small things. [link] [comments]  |
| Should I he concerned about the closing being delayed? Posted: 02 Apr 2019 06:13 AM PDT Hey all! We are closing on our first home on the 19th of this month. By that time, it would have been almost 40 days since we started this process with this home. We have pretty much done everything on time on our end, and we are awaiting the Appraisal to be done now. However, with only having a little over 2 weeks left and no appraisal should we be concerned about closing being delayed? Inspections was done and they fixed everything that needed to be fixed to pass FHA inspections/appraisal. However, they weren't quite done so they cancelled our appraisal and it should have been rescheduled but it hasn't. I don't want to feel like I am bugging our Lender or Realtor too much over this. Is 2 weeks enough time for the appraisal to be done on time? Only a bit concerned as the AC in our current place is broke and with a newborn, we wanted to move before it got too warm. We aren't concerned at the price as if anything it may be lower than most comps because the sellers just want to sell it lol thanks!! UPDATE: well, I ended up calling both Lender and Agent and even though the lender got upset I called them and bugged them, I got the answer. The appraisal is set up for the 4th with us getting an update per the vender by the 5th :) thank you all! Much more relaxed now haha [link] [comments]  |
| Posted: 03 Apr 2019 03:40 AM PDT Me and my wife are applying for our mortgage and going through the process but she is not a US citizen.. she's been in this country since she was 12 and she's a DACA recipient and we have had our paperwork in for her to become a citizen through our marriage for about a year and a half but that is seeming like it's got another 6 months to a year before we get it. I guess my question is, is there any consequences for me being citizen and her not if she's an outstanding citizen here legally and held a job since 18? We are both 24 [link] [comments]  |
| in nyc, wanting to buy, but being patient Posted: 03 Apr 2019 02:29 AM PDT hey all, looking for some advice. we live in manhattan, wanting to buy in manhattan, and currently renting. our lease is up for renewal (need to decide in a few days) and have the option of extending 1 or 2 years. they're about $40 apart with 1yr being more expensive. breaking a lease is pretty expensive (about 10k all in). as noted, we're wanting to buy but have been a bit trigger shy due to a big loss we took on our last home. been looking since last sept and not in a hurry (less of a hurry since we're about to renew). we're leaning towards doing a 1yr renewal to see how the market plays out but thinking that it'll be virtually impossible to time our purchase with lease termination so doing 2yrs would save us about 1k (not huge now that i'm saying it aloud). i guess part of it is not knowing where RE is headed in nyc -- trend seems to be down but are we just starting, in the middle, near the end? anyways, would love to hear some insights on where people see manhattan prices headed over the next 8-10mo. thanks. [link] [comments]  |
| Trying to buy delinquent mothers home Posted: 02 Apr 2019 10:21 PM PDT Let me start by saying that my mother and her husband have fallen on hard times. My step father was the only bread winner in the house and has recently suffered from a stroke, and is currently paralyzed on one half of his body. My mother isn't in the greatest health either and it's difficult for her to do any labor or go up and down the stairs of her own home. Send the son in for a rescue. My mom offer to sell her house to me less than what the house was worth using a gift of equity. This made sense for my wife and I as we wanted to move back to that area anyway. The loan process has been quick and easy up until the point where the lender asked for the mortgage statement from My mother. It turns out she was 100 day delinquent and behind nearly 14k. The lender has called me and stated that they want to withdraw the loan as the seller cannot bring the mortgage current. I am completely able to make this payment but they keep saying that this cannot happen and that the money can't come from me. What are my options? I've already terminated my lease here and have committed to buying the house and raising my daughter there. Please help! Thanks, any advice is welcome and appreciated. [link] [comments]  |
| Collecting Deposit After Contingencies are Closed Posted: 02 Apr 2019 09:41 PM PDT Fellow redditors, The buyers of my home closed all contingencies, and were not able to perform. We have sent multiple demand letters for them to release their deposit but they will not oblige. The escrow company will not release funds unless that release of deposit is mutually signed. The problem is we do not have any contact information for the buyers. No phone number, no email, no address, nothing. In all the contract paperwork, it is stated that escrow shall release the deposit after 10 days. If no action from the buyer, escrow shall release it. Escrow is not releasing their deposit. Any and all advise will be highly appreciated. [link] [comments]  |
| Posted: 02 Apr 2019 03:44 PM PDT Hey Reddit, I am moving to a different city for higher studies and am currently looking for a place to rent with some friends. We are going to some open houses, and I was wondering if it is abnormal to ask the landlords if they have references of previous tenants that can show that they have maintained a good relationship? Ergo that the landlord is fair, decent etc. Sorry for bad English, it is not my first language Edit: Live in Norway [link] [comments]  |
| Posted: 02 Apr 2019 09:32 PM PDT Hi, I'm a real estate agent in Arizona and I'm wondering what you guys have found helpful for lead generation? Calling works but I don't have the strength to get through it and I don't think door knocking works very well. Any secret weapons you guys have found in your market? [link] [comments]  |
| Not on market; received unsolicited letter from agent Posted: 02 Apr 2019 03:25 PM PDT My wife and I want to move to a bigger place, but our current townhouse hasn't really appreciated much in 4 years. We received a letter from a realtor saying they are working with a buyer who finds many of our home's features desirable. Does anyone have a strategy on how to handle this to our advantage? The place needs some minor cosmetic care and we had no plans to show it this year. The price would need to be pretty good, and we hadn't seriously thought about where to move. How do we handle this agent? [link] [comments]  |
| Does having gas increase value? Posted: 02 Apr 2019 08:43 PM PDT Location is in Florida, so gas lines are not as common as up north. My question is does having a gas line ran to a home increase value whatsoever, or at least diserability? [link] [comments]  |
| Do I have any good options here? Posted: 02 Apr 2019 08:42 PM PDT Tl;dr: Need to sell house to buy a bigger, not sure we can do so without taking a loss. Is there a good option that gets us in new house or do we need to stay and risk worse market? Now, the book: My wife and I currently live in our first home that we bought about 5 years ago. Love it, but we now have two babies and all the stuff that goes along with that and we need to move. We're in a financial situation where we can afford to move into a bigger home in a desirable school district. Problem is, we have to sell our current house. We refinanced in 2017 and the house appraised for $147,500. We currently owe right around $133k. We met with a realtor who told us that she would expect it to sell for around $120k considering comps. Now, I looked at her list and I have some issues with that. First of all, we bought it for $130 originally and immediately put $15k into a complete remodel of the kitchen. Now, I understand that value fluctuates, but the comps she was using were all homes that needed work. I'm sure it wouldn't sell today for $147,500, but I'd hope $135k isn't unreasonable. She suggested that we list it FSBO and see what interest we get. If we find someone that's interested, she said their agency can do all the paperwork and contracts, etc. for $2k. (She was highly recommended by some people we know that used her and she was super honest and nice, and is one of the best in the area which is why she didn't care about losing the commission on such a small sale). So that's out plan. The problem comes in if we get an offer that's lower than what we owe. We don't want to have to write a check. But, I have a pretty good feeling the economy is going to tank in the next year or so and the housing market around here, which is already bad, is going to get worse. I'm worried that if we try to hold this house and sell in a few years, the market won't be there either. Worst case, we're in the same situation in a few years and will still take a loss and the house we want will be gone. The house we want to buy is supposedly valued around $269k. The seller is currently asking $229k after it being on the market for a year, and he said he'll consider any offer. My first choice would be to agree to a price of $235k with a $15k buyers credit. That would give him $220k and the $15k would help cover any losses on our current home plus some cash to do some remodeling at the new house. First, I don't know if that's legal? I know you can do "home improvement credits," as we see those around here all the time, but I don't know the legality and requirements of that. I have to assume that if the house appraised for $270ishk, getting approved for a loan at $235k w/ $15k credit won't be a problem (doing a VA loan and have already been pre-approved and currently getting underwritten for $250k). If that option doesn't work, is it a smart thing to purchase a house in a down market worth more than I'm going to pay even if I have to take a loss on my current house and possibly take out a small loan to cover that? I understand that a home's value is really only what someone will pay for it but I'm planning to die in this new house. I'm not looking at it as an investment as much as I'm looking at it as a place for my family to grow into and have my kids grow up in. So many thoughts running through my head, I need people that know what they are talking about to give me some wisdom. I appreciate any wisdom you internet strangers can provide. If you read this far, I owe you a lot! [link] [comments]  |
| Hours of Upkeep for a New Home Posted: 02 Apr 2019 07:27 PM PDT I'm an incoming medical student so I will be short on time. I plan on buying a brand new house with a very limited yard (only some grass in the front and back), as well as a seemingly low maintenance such as fiber cement siding and a TPO flat roof. Given that all the appliances are brand new, how much time do you think will be required to maintain this home? What maintenance will be required in a given year and how much time do you think each task will roughly take. I'm short on time given the demands of medical school so I would rather rent if buying even a new house requires a lot of my time. Thank you for your help! [link] [comments]  |
| Offer Advice: Seller wants to keep tenants in place Posted: 02 Apr 2019 06:42 PM PDT Hi r/RealEstate ! Making a first time home purchase on house currently with tenants in place. The seller in a situation where they will not accept an offer with terms of vacancy at close of escrow. Essentially the rental income is keeping foreclosure at bay and they are concerned that if they start eviction and then the buyer walks on a contingency they will be out tenants and potentially lose the house. It's a really exciting investment opportunity for my partner and I since it also includes an ADU that has rental history as well so we would like to try to make this happen. HOWEVER we do not want to buy the house and then be stuck unable to remove the current tenants. Details: Location: California, El Dorado County Loan: Finance with at least 20% downpayment Timing: Open to closing quickly (30days), would not need to move in for 60days from offer (June 1st -ish) which could allow tenants more time. Current Lease: Month-Month, started April 15, 2018 Condition: Reviewed inspection from previous offers, comfortable with condition/issues. Would like to get sewer inspection because of some trees near the house. Questions: Do you have any recommendations on how to structure the offer to reduce risk for the seller but also make sure that we don't get stuck owning a house with squatters. Current Thoughts: -Offer contingent on lease being changed to 30 day at will tenancy (CA otherwise requires 60days after tenants have been there for a year). Close escrow in 30days, give termination notice to the tenants, ideally move in by June 1. -Offer contingent on vacancy but offer 2-3 months rent non-contingent to inspection or financing. This way if we walk, the seller gets a few months of rent. Downside, if we find some major issues we can't get that money back Appreciate your suggestions. We're really excited about this opportunity and hoping it can work [link] [comments]  |
| Planting crops instead of a lawn can I do it? Posted: 02 Apr 2019 02:47 PM PDT If the neighborhood has no specific clause banning the growth of crops over a lawn, can I just not plant grass, and instead plant a bunch of fruits and vegetables so I'm self sufficient for produce? [link] [comments]  |
| To sell now or next year: currently leasing my condo until August Posted: 02 Apr 2019 06:25 PM PDT [Cincinnati, OH...downtown area] need to sell my condo as I've moved cities and I need to sell my condo to buy a new place to live in my new city. The current tenant's lease ends in August and I've offered 2 month's free rent as an incentive to have the tenant end his lease early...the tenant wishes to live out the lease. The tenant is willing to sign an extended lease until 2020, ~April. Would you recommend selling the condo in the fall, or have him resign the lease until next spring? [link] [comments]  |
| VA home loan questions [Idaho] Posted: 02 Apr 2019 05:08 PM PDT I'm recently separated from the AF and have moved back home and am currently staying with family. My wife and I are trying to decide on a permanent living situation and noticed a decent little starter home in our area which made me think 1. If I am not employed yet but my wife is can we still get a va loan or would i need too/should I wait until we are both employed? 2. The home we are looking at is 98k so about 105k after taxes etc, me being only 23 with not much of a credit history could I even qualify for that much? 3. I have my separation orders but am still waiting to receive my dd 214 Also is there anything I should watch out for / know about ahead of trying? Sorry for being so ignorant about the topic but thank you for your help & advice! [link] [comments]  |
| Buying a Home with a Solar Lease Posted: 02 Apr 2019 01:06 PM PDT I'm interested in buying a home with leased solar panels in NY State. We like the house as it's not too large and has tremendous curb appeal. However, it comes with a Sunrun lease deal that makes 0 economic sense. Here are the details. - Sunrun Lease agreement that is 2.5 years into a 20 year lease. The original owner put $0 down, but SunRun obtained all tax credits. Lease can be assigned to us, the buyer. If we take it it's 17.5\12*$115 = $24,000 over the life of the lease.* - $115/month to lease the panels. electric bill runs around $12/month for the current owners. - $150/month for electric in general without panels. - There's a prepayment option that is roughly $16,500 to pay out the rest of the lease term. We can easily afford the $115/month, but I don't want to be stuck with a lease agreement for the Solar Panels that we don't own. Also, as it's under 5 years, purchasing is not really an option as SunRun already has sold the tax credits to investors and would require the lessee to repay the remaining value of the credits. The purchase price for the solar would likely be well over $20,000. Interested in other's thoughts. My wife and I have countered with the following: The seller pre-pay the remainder of the lease payments. I'm willing to negotiate, but having leased solar seems like a horrid idea and not worth it to save less than $500/year in utilities. What are other's thoughts on purchasing a home with leased solar? Update: Seller didn't budge. Killed the deal. Not worth it for me as who wants to assume a 17.5 lease along with a home purchase. On to the next one. [link] [comments]  |
| Posted: 02 Apr 2019 04:16 PM PDT I'm in the process of buying my first house. When we first walked through we noted a sump pump in a corner of the basement with furniture around it, making it a little more difficult to locate. We had the general inspection yesterday and when I got the full report it stated there's no sump pump in the house. However I know what I saw and it's stated on the home disclosure so I asked the inspector and he said "it must have been hidden." I'm a bit lost as to what to do now. Is a sump pump normally inspected? Even if there's some furniture around it but still accessible? I shouldn't have to pay more to have this inspected if it should have been included to begin with right? Not sure how to approach that with the inspector. [link] [comments]  |
| How can I finance the purchase and renovation of an old commercial building to live in? Posted: 02 Apr 2019 12:18 PM PDT I want to purchase an old commercial building in a declined urban center, and live full-time in half of it. I'm in Texas. It is an old two-story building in a commercial area that hasn't been occupied in about 30 years or so. It used to be a law office, bank & offices. There is already a kitchen and bathroom upstairs. ~2000ft on each floor for a total square footage of ~4000sqft. There is no parking or land. The line for the parcel is the building. From what I gather, it's zoned as "Commercial". I can get the property for around 75,000 and I plan on a budget of 25-30k to renovate it. Barring any unforeseen circumstances, I'd like to budget 125-150 for the whole project, with a loan of around 150 and a downpayment of 20%. I have experience developing commercial properties, so I have my subs and can craft the plans no problem. My issue is the money. In my research, you can't use a home loan for a mixed-use property, and it might be difficult to gain a loan for the renovation aspect of the property. I know people do things like this all the time, but they probably just have the money or funding... the one component I lack. I can qualify for a home loan easily. What types of funding can I use and what am I eligible for? [link] [comments]  |
| Posted: 02 Apr 2019 03:49 PM PDT I rented the first home I bought and I stayed at an another rented property closer to work. After two years, I decide to sell my rented property to buy property closer to the work where I can live. How much capital gain tax do I have to pay? I bought it for $450,000 and I can sell it for $500,000. But I spent over $10,000 on replacing windows, over $10,000 on taxes, over $12,000 on fixing the home and going to have to pay $20,000 on real-estate agents. If you take all this into account, I get no money out of this investment. The only reason I want to do it is that I want to buy a home closer to work ☹ [link] [comments]  |
| Real Estate Agents, which Home Energy Efficiency Certifications have you marketed? Posted: 02 Apr 2019 02:48 PM PDT Doing energy efficiency improvements on my older home in San Diego and would like to know which energy efficiency certifications are the "easiest" to market or provide most value when selling a home or if it even matters at all. (Considering Pearl Certification and GreenPoint so far - not able to qualify for any of the heavy hitting ones like LEED, etc.) [link] [comments]  |
| How to give feedback on real estate agent. Posted: 02 Apr 2019 01:45 PM PDT Selling after cross-country move, and has to use the real estate agent referred by relocation company. In short, a grossly irresponsible, whiny, annoying human being who should not be in real estate. She's horrible, absolutely horrible in every aspect. She whine to my husband that it's too confusing that we have different last names (???) She whined about being at the house for repairs after inspection (yes, after we relocated), she miscommunicated the repairs, repeatedly. I want to keep someone else from having this extremely painful experience. What do I do? [link] [comments]  |
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