Investment Info:
Single-family residence buy & hold investment.
Purchase price: $132,000
Cash invested: $13,000
I bought this single family home in 2019 in Waxahachie, TX as a primary residence. Deal was on MLS. Purchased for $102k, on a construction loan with a 30k budget to remodel, for a total of $132k. Put 10% down. Finished the remodel, and it appraised for $170k. I refinanced with the same bank, and was able to pull back out my full down payment. Lived there for 3 years, and moved on to another live-in BRRRR type deal I'm in. This house rents now for $2,000/month, and is valued above $250k.
Hi guys. I'm looking to break into my local market of Central Maine. While I'm on the lookout for my first deal I've been building a small network. It sounds like there's a bit of a vacuum in reliable local property managers.
I was originally thinking of setting up a property management company to take care of the properties that my partner and I purchase. However, now I wonder if it might be a good idea to set up the property management company first to take on local clients and propel us into the space faster. Thoughts?
Discussing under-the-radar real estate investment strategies can provide unique insights into the market. I am looking for other "lesser known" real estate investments that you have experience with. Below is a short list of ten strategies, please add on......
Micro-Flipping: Unlike traditional flipping, micro-flipping involves buying properties at a market rate and selling them quickly with minimal or no renovations. The key here is to find undervalued properties in high-demand areas and leverage technology for rapid transactions.
Live-In Flip: This strategy involves purchasing a property, living in it while renovating it, and then selling it for a profit. Living in the property can potentially qualify you for certain tax exemptions on capital gains.
House Hacking: This involves buying a multi-unit property, living in one unit, and renting out the others. The rental income can cover the mortgage and operating expenses, potentially allowing you to live for free or at a reduced cost.
Vacation Rentals in Emerging Locations: Instead of investing in popular tourist destinations, some investors focus on emerging locations. These areas often have lower property prices but potential for significant tourism growth.
Rent-to-Own Investments: Offering a rent-to-own option can be attractive in markets where many people cannot secure traditional financing. It allows you to secure a higher rent and potentially sell the property at a premium.
Investing in Niche Properties: This can include unique property types like tiny homes, mixed-use buildings, or historic properties. These niches often have less competition and can offer higher returns if managed well.
Land Banking: Purchasing undeveloped land in the path of future growth and holding it until its value increases can be a long-term but potentially lucrative strategy.
Tax Lien Investments: Buying tax lien certificates offers a way to earn interest or potentially acquire property at a fraction of its value. However, this strategy requires a thorough understanding of local laws and risks.
Opportunity Zone Investments: Investing in designated opportunity zones can offer tax benefits. These areas are identified by the government as needing economic investment.
Real Estate Crowdfunding: This allows investors to pool their money to invest in larger projects than they could afford individually. It's a way to diversify real estate investments with potentially lower capital requirements.
Looking forward to your insights!
KC
I came across this dupelx that the seller preferes owner financing. The property is going to need work in the 1st unit and some exterior aswell. for example on the interior it will need (from what i can see on MLS) is Drywall celing, new stove and a new door and the miscellaneous. As for the out side it will need some chimney work, aslo looks like a crack in the foundation and some paint.
How would these repairs go with seller financing? Who would pay? If there are any books you could recomend or any advice would be great, thanks!
I am contracting with a seller and am trying to understand my options on the close for my first land deal. I am considering a buy and hold or a flip. If I buy and hold it would be considerably less than if I flip it. I am looking to buy more land in the area so am concerned if I purchase much lower than if I flip it, that I would be shooting myself in the foot for other purchases in the area. I'm not trying to drive the market down for myself on other potential flips. Am I viewing this correctly or is there a way to do this that I might be missing?
Hello Everyone,
I hope everyone is well this morning. I'm taking an online class and the subject today is Owner financing. I have a question in regards to carrying back a second mortgage when owner financing. The material gave an example of when the buyer down the road defaults on the senior mortgage, would the seller be able to foreclose. The instructor states you should not foreclose because of the time involved but instead buy back the property just for the LTV of their bank loan, 80%, and you should resell it to a new buyer. The buyer could only get approved for 80% LTV of the property and the seller agrees to finance the remaining 20%. From my understanding there is the Due on Sale Clause so which means the senior mortgage would have been already paid off, so how would the buyer be behind on the senior mortgage in the first place? I hope I worded this question so that it makes sense. Please any information would be appreciated. I'm just now taking the steps to become an educated investor.
Hey everyone, looking to purchase our first investment property and would appreciate some guidance. We are located in the midwest and looking at Kansas City and Chicago as we are familiar with both cities and have spent significant time in both. We would love to house hack and use a fha loan but, are open to all investing options. We are young (24 and 26) Any advice on either of these markets and options to invest in.
Thank you, Appreciate any information and advice given.
KC
Hello everyone, I am stationed here in Florida near Daytona Beach. My wife and I live in our first house (used VA loan) here and we are looking for additional ways to create cash flow with our home. We have considered buying an RV to live in or eventually rent out, buying another property, etc. We are gladly open to any advice or recommendations. Thanks!
Hi David,
Thank you for your service. I agree with @Sean Hudgins regarding an RV being a depreciating asset. However, the cost of entry may be easier than purchasing another property near-term.
It's great to hear that you're exploring options to create additional cash flow using your property in Daytona Beach. Here are a few ideas that you might consider:
Short-Term Rentals: Given Daytona Beach's popularity as a tourist destination, you could explore renting out a portion of your house (like a room or a guest suite) on platforms like Airbnb or VRBO. This could provide a steady stream of income, especially during peak tourist seasons.
Long-Term Rentals: If you're open to buying an RV or another property, you could consider renting these out on a long-term basis. This could provide a more consistent and predictable income compared to short-term rentals.
Renting Your RV on a Short-Term Basis: If you decide to buy an RV, you could also rent it out for short-term stays or road trips when you're not using it. There are platforms specifically for RV rentals, like Outdoorsy or RVshare. RV Rentals are HUGE for the Daytona Speedway, especially around the Daytona 500/Speedweek.
Home Improvement for Resale Value: Investing in home improvements that increase the value of your property could be another way to generate cash flow, especially if you plan to sell in the future. Focus on renovations that offer a good return on investment, like kitchen or bathroom updates.
All the best!
KC
Question. A friend asked me.
So if lets say I have a lender that his minimum loan is 75k (has to be 75% of ARV), and I find a house for 85k that is valued at 100k and higher, could I offer the seller 100k with 15k credit back? So like at closing I get 15k back to my pocket? Or is that considered shady of some sort. Curious to hear your opinion.
I'm doing a deal another state and I don't have any of my team there at the moment so I was looking to see if there was a place where I can hire someone to sit and talk to the other party in my place. Can anybody help?
The BiggerPockets community will have several ideas but will need a more specific location to jump in on the conversation. Do you have a location in mind, or do you just need ideas on where to find consultants when you nail down the city?