Why aren’t more people talking about short term rentals? They cash flow 4x more than my long terms. Real Estate |
- Why aren’t more people talking about short term rentals? They cash flow 4x more than my long terms.
- Selling Home - Buyer's offer includes me covering their real estate attorney fees.
- First time homebuying in LA but not sure which city. Looking for resources on finding crime rate, demographics, schools, hospitals, etc.
- Critique our plan - what we're going to do with $1MM
- Zillow Rental Application/tenant screening?
- Anyone using Wovax? Is it still active?
- Not low credit but no credit... Need help/advice
- Buying first property: am I making the right decision?
- Trying to sell a property that needs work, got an owner-fiananced offer
- In NY. I am buying an already built new construction. They have not been able to get the CO for 68 days since the on or about closing date. Is there any length of time that I can finally pull out? Or am I in limbo forever? I don’t think I have any contingencies specific to this situation.
- Professional is in the industry what are some media outlets/blogs you follow
- We are supposed to go live on MLS Thursday. City is closing our street Friday.
- Real Estate License and Moving out of California
- Signed 2 buyers agreement at the same time
- Problems after closing. Complaint about AC condition. Insight needed.
- (IL) First Time Home Buyer, saw a few Homes online, what should I ask the Realtor?
- Sacramento realestate market
- Thoughts on greatschools
- Mother-in-law passed and left a run-down home. Not worth fixing up?
- In NY. I am buying an already built new construction. They have not been able to get the CO for 68 days since the on or about closing date. Is there any length of time that I can finally pull out? Or am I in limbo forever? I don’t think I have any contingencies specific to this situation.
- Super huge disparity between Redfin and Zillow on home value. What gives?
- What's an appraisal affect? Mine wrongly lists an HOA fee
- I need a KW agent in St Louis for a FTHB. Any recommendations?
- Are these good terms? 3.625% interest rate
- Chances of buying a house with a lien on it under value?
| Why aren’t more people talking about short term rentals? They cash flow 4x more than my long terms. Posted: 06 Aug 2019 05:36 PM PDT I don't get why more people aren't talking about short term vacation rentals or AirBnb. People are happy when their long term rental units are cash flowing $500 a month. I've been averaging $2,000+ per unit doing VRBO and AirBnb. Plus all of the same appreciation and tax benefits. [link] [comments]  |
| Selling Home - Buyer's offer includes me covering their real estate attorney fees. Posted: 06 Aug 2019 01:39 PM PDT So before we got close to listing our house (hadn't even chatted with an agent) we had an offer to purchase our house. It's a good offer and we are going to move forward without any realtors. The buyer's attorney sent me an offer letter, which is pretty much standard aside from a request that I cover the buyers attorney fees (no estimate included, just open ended). I have several issues with this, obviously being open-ended, but also if I am paying a lawyer they're going to look out for my best interests always... Anyway, I don't think this is a reasonable, or even a smart thing to ask for, but I just wanted to sanity check it before I requested a change. I appreciate the feedback. [link] [comments]  |
| Posted: 07 Aug 2019 02:14 AM PDT I live in Orange county and it's quiet and chill here. A new job will bring me to LA near LAX. I'm thinking about buying in Inglewood or Hawthorne but I'm curious about the city. Is there a site that can help me with this? [link] [comments]  |
| Critique our plan - what we're going to do with $1MM Posted: 06 Aug 2019 04:55 AM PDT My partner and I did some 5 year planning. This is what we're looking to do! This isn't meant to be a brag session. And I know its just a plan but I figured people might enjoy getting a look at whats going on in my business right now. In 2017 we rolled our profits from our little old sweaty startup into a real estate development and we finished construction of a self storage facility in Ithaca NY. We spent $2.4M (75% financed by a local bank). We purchased an additional property in October of 2018 across the street for $400k. I own 40%. My partner owns 40%. Investors own 20%. Its nearing stabilization ($55k in revenue in July and $12.5k in expenses for $42k in EBITDA) or $12,500 for each Dan and I in cashflow and $15,500 each in income. It's a great asset and it's going to be hard to part with that monthly recurring revenue. But the plan is bigger than that so we have it listed for sale. We got an offer for $4.9MM a few months ago but we're aiming for the $5.2MM mark. We're getting a lot of interest and have had action lately. That sale would spit off about $880k each for my partner and I to reinvest. To differ the taxes into the future we'd do a 1031 exchange and find "like kind" assets to purchase with the income. IF we sell it here is our plan. -- We'd plan to bank $380k (less after taxes) each for a rainy day or a smoking opportunity in the future or just as an insurance policy. So we'd have $1MM between us to reinvest and grow our real estate holdings. We'd locate five or six poorly managed but high potential storage facilities at a total value of about $4MM. Leverage about $1MM in cash and borrow another $3MM on the assets. The facilities we'd target would be between 10,000-25,000 rentable sf each in secondary markets (20,000-100,000 population). Small enough properties and cities that the big dogs like Public Storage aren't in the market to buy them and drive the cap rates down to 5-6. We'd manage them remotely (without a full time manager in an office on site) and contract with a local cleaning company to do the onsite punch list weekly. Since we can manage them remotely while others have more overhead we could buy them at what would be an 8 or 9 cap for others but is a 11-12 cap for us. That means EBITDA would be about $460k a year. $156k a year would be interest payments and $84k would be principle ($3MM at 5.25% over 20 years). So that would be $220k a year in free cashflow and $304 in income on our $1MM investment. We'd get to claim $145k a year in depreciation reducing our taxable income to only $159k a year on that $304k in income. The assets would appreciate by about 5% a year which is $200k a year in equity we'd have on top of the cashflow. We think we can get it appreciating much faster with our management. So we're seeing about $504k in value and only paying taxes on $159k a year. That would start the snowball. About 3 years later after raising rents pretty aggressively and achieving $550k or so in EBITDA we'd sell the portfolio for a 7 cap on trailing 12 month cash flows. Sell for $7.8MM. That would turn our initial $1MM cash in investment into about $3.8 MM in 36 months. The best part is that we'd have the ability to do another 1031 exchange to differ all of the tax on that appreciation and then buy $15.2MM worth of storage facilities at a 10 cap which would generate $1.52MM a year in EBITDA. But we'll take it one step at a time. -- We also will have made a great return for our initial investors who bought in and owned 20% of our first facility so they would happily re-invest the proceeds ($1MM) into new developments with us. They bought in on a pro-rata basis. Meaning if they put in 5% of the project costs they got 5% ownership. They took a second position to the bank. We then financed our ownership through the bank and took the debt service on ourselves. So while we're going around buying and building our own profile we'd also build 2 more development projects in really great markets. We'd build them for about $2.5MM each, own them for 2 years during lease up, and according to our projections these buildings, similarly to Ithaca, would be worth about $5MM each. We'd sell these to realize the appreciation again and likely use the investor money to build more and our profits to buy cash-flowing assets like the plan above. Any feedback, positive or negative, is appreciated and thanks for reading! [link] [comments]  |
| Zillow Rental Application/tenant screening? Posted: 06 Aug 2019 04:31 PM PDT Anyone use this program before? I'm giving it a try, seeing if anyone has had good/bad experiences. https://www.zillow.com/marketing/rental-manager/tenant-screening/ [link] [comments]  |
| Anyone using Wovax? Is it still active? Posted: 06 Aug 2019 06:21 PM PDT We are looking at different IDX options for a website. Wovax looks like a great option, but the site seems dead (no blog posts, social posts, etc. since 2016). Are any of you currently using them? Do you recommend the company? [link] [comments]  |
| Not low credit but no credit... Need help/advice Posted: 06 Aug 2019 06:58 PM PDT My husband and I are ready to begin looking at houses and just spoke with a lender today. Going through the initial application, we were told that we cannot currently be approved. To sum this up..my husband is the only one working right now as I am currently a stay at home mom. I have excellent credit and my husband has no credit. We were told they cannot obtain a score for him as he only has one item (a small car loan he obtained years ago for this exact purpose). We are seeking to obtain a VA loan (hopefully VALOR) as my husband was honorably and medically discharged. Does anyone know anything about this? Was it only this lender that we will have this problem with or does my credit history really not help us right now? The part that is so frustrating is that my husband is who payed off most of my school loans (using his personal savings before marriage/joint savings). Also, my name is on most of everything because I'm the one who calls and sets things up usually. He is the one who handles car insurance, is of course part of rental leases and is on our electric bill. Is this enough? I'm calling more lenders tomorrow .. but just curious if anyone has any advice. Thank you! Edit - Also.. we have saved for a 20% down payment and currently have 0 debt [link] [comments]  |
| Buying first property: am I making the right decision? Posted: 06 Aug 2019 06:31 PM PDT Hi all, I'm a 27yo single woman living in Fort Lauderdale, FL. My monthly payment after taxes, 401k, insurance is ~$4,300. I'm in the process of buying a condo for $220,000 that's next to downtown. The reason I looked into buying is because renting prices are similar in this area, and this would be going towards my own property rather than to someone else. Though I may not stay in this area forever, I figured I could always rent it so the mortgage pays itself and it's a property I'll have paid in full in the future. This all made sense in my head, and it's a rational way of looking at it, but now that the seller accepted my offer, I'm starting to get cold feet. My mortgage lender has offered me the following deal: 3.75% interest, financing for 209k (I'm doing 5% down) on a conventional 30-year loan. Between taxes, PMI, insurance, HOA (paid separately to the building association), fees, and mortgage, I was told that my estimated payment would be around $1,700. First, do you think that's a good deal? Do you think that it has rental potential? Second, based on the info, is this a right financial move/decision? (I realize that perhaps this question belongs to the personal finance sub). Lastly? Is it normal to have cold feet? We still need to go through the appraisal and the inspection. Any tips? I'm worried that perhaps I should've waited to have a higher down payment, or perhaps waited for the recession to hit. But I'd love to hear your feedback and and suggestions. Thank you !! (Edited calculation) [link] [comments]  |
| Trying to sell a property that needs work, got an owner-fiananced offer Posted: 06 Aug 2019 02:01 PM PDT I own a property that needs fairly extensive work and was going to sell as-is because the work is outisde the scope of what I can handle. I was approached by a gentleman who is interested in purchasing the property but requires me to finance it. I can support but who do I ask to write a contract (property manager, lawyer, real estate agent)? The property isn't worth much but it's worth it to protect myself I think. Any hang ups I'm not anticipating? [link] [comments]  |
| Posted: 06 Aug 2019 09:13 PM PDT |
| Professional is in the industry what are some media outlets/blogs you follow Posted: 06 Aug 2019 06:40 PM PDT New to the industry and I'm curious what are the best places to get news and information about markets, tech and other trends. Blogs, news sites, anything. Looking to do some research and see what's out there. [link] [comments]  |
| We are supposed to go live on MLS Thursday. City is closing our street Friday. Posted: 06 Aug 2019 06:16 PM PDT After work today I found notification that our street is getting new asphalt on Friday taped to the front door. It will be closed for 24 hours. We can't park in the neighborhood or do any yard work. We have an open house scheduled for Sunday. We are expecting at least two clients on Thursday. I guess anyone that wanted to come on Friday could park the next neighborhood over and walk through the yard. 😭 Thanks for listening. [link] [comments]  |
| Real Estate License and Moving out of California Posted: 06 Aug 2019 11:49 PM PDT Hey friends. I am looking at getting into real estate. The problem is, I am looking to leave California at some point in time. I'm inquiring what is the best course of action. Since California has no reciprocity with other states, I thought it might be worth it to take classes for a state that offers reciprocity so I can take the exam in that state, and when I move to my new home state, all I have to do is re-take & pass the exam. Was thinking of Colorado, Delaware, South Dakota, or Alabama. [link] [comments]  |
| Signed 2 buyers agreement at the same time Posted: 06 Aug 2019 08:01 PM PDT Big newb mistake. Signed a buyers agreement with a agent 2 months ago when we put in an offer for a house, it expired on 7/31/19. The offer fell apart with a low appraisal. Our agent was difficult to work with and didn't return our earnest money for 5 weeks after multiple requests. We decided to use a different agent from a different brokerage. We signed a new buyer agreement on 7/29 with the new agent on another offer for a home we didn't get. The first agreement has expired but are we still liable if we get buy a home with the 2nd agent since we signed the buyer agreement while the other was still valid? I realize this was a bone headed mistake and we should have been more detail oriented. We never asked to break the agreement with the first agent or that we wanted to use a different brokerage. [link] [comments]  |
| Problems after closing. Complaint about AC condition. Insight needed. Posted: 06 Aug 2019 04:06 PM PDT I recently closed on selling my house. We disclosed the age of all the appliances (including AC unit). We moved out by the original requested date. Then the closing date got pushed back. We left the house vacant for the month until the new closing date. Right before the new close date we went and turned off the AC unit so the electric bill that we were still paying wouldn't be so expensive. Another week or so later we get notice that the buyer wanted to do a final inspection. I notified our realtor that we can go turn the AC back on (smart thermostat, easy to do) but wouldn't be able to before the buyers final walk through. The buyer still performed the walk and then the next week we closed. All paper work was signed by both parties ; including the one that says the buyer accepted all current conditions of the home. Well, a short time later, we get notified that the buyer is complaining that the AC unit is messed up and that the fan isn't blowing. Apparently they never turned the AC back on during the final walk. Even if they would have, it would have worked. My question is, what if anything could I be liable for? We discussed the age of all remaining appliances and equipment. They had an inspection done that notated no issue with the unit. They did a final walk though and didn't mention any issue. And, most importantly, the unit was perfectly fine the last day we were at the house and the day we turned off the unit. They also signed the fancy legal paperwork accepting current conditions of everything and satisfaction with walk though. Unfortunately I know things aren't always black and white, so any thoughts would be appreciated. *Also posted on r/legaladvice [link] [comments]  |
| (IL) First Time Home Buyer, saw a few Homes online, what should I ask the Realtor? Posted: 06 Aug 2019 05:04 PM PDT Hi everyone, So I've never bought a home before and all of my credentials (Credit Score (780), Down Payment available (~20%), debt (~0)) are great. What things should I know before closing? For example, are there any "discounts" or "incentives" available from either the state or the government for a First-Time homebuyer I should know about? And what's currently a "great rate" that I should be haggling to get? Thanks! [link] [comments]  |
| Posted: 06 Aug 2019 06:47 PM PDT I currently rent a room from a lady that owns her house. I have made a decision that within 6 months I would like to be living by myself. I have come here to ask what is the best long term economical way to go about this is and below I have posted relevant facts about myself. I make enough money to where even in this market I can afford to buy a house and make all payments involved with it. The only issue is the more I pay the less I would have for fun money. I have over enough money saved to put down a 20 percent down payment. I work for the state of California so my job is fairly stable and I have two more 5 percent raises before I am maxed out in my pay. I have some ideas of what I can do to accomplish this but I'm not sure which one would be best. My end goal is to end up in a house (not condo) to live in until I retire in 20 years at which point I can decide what to do. For these next questions, I'm asking in the context of the Sacramento area. Should I rent an apartment and see what the market is like in a year? Should I buy a condo since they are less money than a house and sell when the market is better for a house or would the HOA fees and cost of selling not make it worth it? Should I buy a cheaper house that isn't ideal, wait for the market to drop (hopefully it will) then sell that one and buy a better one? Should I just aim to buy a house that I really want to stay in the until I'm retired? Obviously this would mean I'm going to spend more money because it will be in the neighborhood I want to live in and will have the nice features I want. At the same time I save selling expenses, moving expenses since I'm only buying once. Or is there some other advise that is more economically sound that will result in me having my own place? [link] [comments]  |
| Posted: 06 Aug 2019 08:36 AM PDT I just landed in a new area that I hope to reside in for a few years, so I finally started digging deep into prospective areas to find deals. Simultaneously I also need to find a house for myself. I've been relying on the greatscools score to help me judge neighborhoods as I pretty much know nothing about the area. I dug a bit deeper today and discovered that greatshools rating isn't all that great. They have a concept called 'equity', which I can understand the intent of it (reflects if the school helps poor people do better), it greatly distorts the ratings. I found out a the top school in the region is given a 6/10, however it's a 10/10 for college readiness, but 1/10 for equity. For my purposes, this makes greatschools a worthless tool to evaluate schools. Questions:
[link] [comments]  |
| Mother-in-law passed and left a run-down home. Not worth fixing up? Posted: 06 Aug 2019 08:54 AM PDT My mother-in-law passed away and her estate is in probate. She left a 3/2 1600sqft home in an old neighborhood, and the place is a bit of a disaster. It needs new flooring, wall repairs, paint, windows, appliances, fixtures - its in pretty bad shape. The home was bought with cash so there is no mortgage against the property. Maybe it's from naivete or watching too many house flipping shows, but my instinct was after probate we should take a loan out on the home to get it in livable condition, expecting to increase the return from its sale. The probate office connected us with a real estate agent who advised us that it would not be worth fixing up. He claims we would lose money on the effort. The zillow value estimate was $310K based on its size and location, and the agent is advising we list it for $179K. Without having spoken to him at all, my suspicion is he wants a quick and easy check. If it's not worth fixing up, then who would possibly buy it? My wife just wants to be done and over with the process and is currently handling all the communication, but I wanted to see you believe I have any justification in getting more details from the realtor on his advice. I don't want to get myself involved and further stress our my wife if my instinct truly is simply naivete and there is reasonable justification for not getting the home in livable condition before putting it on the market. Any help would be appreciated! [link] [comments]  |
| Posted: 06 Aug 2019 09:06 PM PDT |
| Super huge disparity between Redfin and Zillow on home value. What gives? Posted: 06 Aug 2019 08:50 PM PDT I know these are sloppy estimating tools, but I've got such a large disparity that I'm seriously curious how these sites are getting their numbers. Bought my home nearly a year ago. Rates have dropped enough to make me consider refinancing. Before shelling the $500 or so to get the home formally appraised, I wanted to use online as a base line range. Too bad Redfin and Zillow are so far off I am questioning everything now. Redfin says my home is worth nearly 200k over what we paid a year ago. Ridiculous. Zillow says it is estimated to be worth 3k less than what we paid. Also ridiculous. Our appraised value at purchase was actually 33k over what we paid. So either we have gained a shit load of equity or we have lost some. What is it. We've put nearly 60k of improvements in (new roof, ac, electrical, plumbing) as well as internal paint, a bathroom remodel, and a kitchen refresh. I dont expect a 1 for 1 $ exchange for equity building, but both options (Redfin and Zillow) seem to be picked at random. How are these sites getting their numbers? Should I just disregard them entirely and pay for an appraisal? [link] [comments]  |
| What's an appraisal affect? Mine wrongly lists an HOA fee Posted: 06 Aug 2019 08:28 PM PDT I'm buying a house. It's just for the bank right? Anything in the future will get a new appraisal right? So it doesn't matter? I don't want to amend it and go back to underwriting. [link] [comments]  |
| I need a KW agent in St Louis for a FTHB. Any recommendations? Posted: 06 Aug 2019 08:24 PM PDT Would love to connect with an experienced buyer's agent who will handle every step personally and not pass my buyer off to a team member. Any recommendations? [link] [comments]  |
| Are these good terms? 3.625% interest rate Posted: 06 Aug 2019 04:28 PM PDT 30 year mortgage, 5% down. 3.625% interest rate. $408,000 financed Combined income is $130k. We both have credit scores around 800 Good financing I should take right? What should I be on the lookout for? [link] [comments]  |
| Chances of buying a house with a lien on it under value? Posted: 06 Aug 2019 06:05 PM PDT A bit of a complicated situation but I will try to summarize. Sorry for my ignorance to the subject. Dads ex wife goes to prison and is ordered to pay 1.3 million dollars in restitution. Department of justice puts a lien on the house she owns currently valued at 310k-320k. Dad becomes power of attorney and moves into house. Dad continues to pay mortgage with now 100k in equity in house but will stop and move out September 2019. Ex wife decides when she gets out of prison she will not return to house and will let it go to foreclosure. Is there a way I can buy the house by just offering the bank/government 250k-270k versus letting the house go to foreclosure and auction? I'm not really sure of the process when it comes to liens etc. or what (if any) my options would be? [link] [comments]  |
| You are subscribed to email updates from HomeOwners & Investors. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment