All Forum Posts by: Account Closed

@TJ Watson

Thank you TJ! I appreciate your help and suggestions. I’ve been subscribed to a few different categories that better suit what I’m aiming for and realize I’m not at all in the right area to be asking these questions! Definitely not intended to start a whole discussion just needed one or two people to point me in the right direction. Thanks again and hope you’re successful in all your endeavors!

@Joshua Huston

Sounds like a good idea to me, just know that fitting septic tanks and putting in sewage takes a while and costs a lot. If I were you I wouldn’t plan on selling it anytime soon, the house I’m in went through the same thing, construction took well over a year (& $30k) for our neighborhood but they repaved the streets and put new sod down in the yards and it looks great. Definitely boosts the curbside appeal. Granted yours is a cul-de-sac so it would take less time and money but it’s a worthwhile investment; especially considering 3 bathrooms. I wouldn’t be surprised if you’ve had to change the septic tank a few times already. I think you and your neighbors are headed in the right direction!

@Julie McCoy

Thanks Julie! This would be a long-term rental property that I would self-manage. As I initially posted, this in no way is something I'm looking to invest in, rather I saw this price and researched comps expenses and monthly rental to see if there's an opportunity or not. Clearly this isn't a worthwhile investment, but I was looking more for guidance on how to structure the expenses. What percentage do you typically keep for reserves? Do you suggest any good virtual assistants such as Buildium or Appfolio? With a hefty down payment I would surmise a conventional loan would suffice but hearing more from people, an FHA loan seems to be a more feasible option. My main motive here is to have as much cash down as I can, albeit CoC returns won't be as appealing but I'd like to gain as much equity in my first investment to be able to find future investment rental properties. Appreciate your feedback!

@Matt M.

Hey Matt sorry it didn’t pass to your standard! It’s my second post on this forum and I’m just trying to understand the market and learn more about investing. I appreciate your knowledge on the subject and if you have any more advice on real estate investing it would be greatly appreciated!

@Terry Harris

The rate depends entirely on your situation. Given you haven’t provided any context ie credit score, 15 vs 30 yr, fixed or variable, it would be difficult to discern the rate.

I’ve heard large banks have been inundated with refi requests on their mortgages and have temporarily not engaged in lending, given their margin spread relative to the UST 10-yr is razor slim. Still, I think with lowering rates, anywhere near 3.10-3.25% could be attainable in the near-term. Your current rate could be reduced by 20-30 bps. Hope that helps!

thank you everyone for the advice! Much appreciated!

@Cliff H.

I've seen properties around here for $1,850-$1,950. I guess I could raise it a few hundred dollars. The HOA includes pool, security, etc. and I could get the insurance lower but it's just a very competitive market down here. I'm trying to find some wiggle room and I know there's opportunity everywhere

Im running into a problem of seeing how I could possibly make any profit margin on this property. I’m looking at a rental property to invest in, very good location, but how would I have any room to make money?

Condo: 2/2

Price: $150k

Potential rent (1% of property): $1,500

HOA fees: $360

Mortgage: $642

Property tax (in FL, pretty high): $253

Homeowners insurance: $240

Total costs: $1,495

Total Profit Margin: $5

Am I missing something? If there’s even one month vacancy, I’d be underwater... love to hear any ideas or if it’s just not an opportunity

@Craig Curelop

Thank you very much Craig for the response! Would you also suggest applying for an FHA loan?

Hey guys, first ever post on here. Let me start with my age: 25. Have a steady job and live with parents saving every dime. Haven’t had time to invest as grad school has taken most of my time (graduation in June). My target range is $180-$250k. I have a few questions as I would like to own multiple properties and generate passive income:

1. I have saved ~$35k for a down payment for a duplex/SFH which wouldn't be owner-occupied; should I put most my equity into it, thereby lowering monthly pmts or leave a little for possible renovations? Aware of the 203k loan but would rather be certain of renovation costs.

2. How do you guys deal with the legal aspect of setting up liability, llc or umbrella? My take is multiple properties warrants an llc but for only one, an umbrella would suffice.

3. I love excel and have created a cash flow model with sensitivities showing multiple properties and all financial metrics/ROE/IRRs and wouldn’t mind constructive criticism on it (DM me)

4. Market agnostic of public health concerns, I’m wondering what my leverage situation would be; should I allow first property to yield a few years of cash flows before putting all of that into another mortgage or save first few years as reserves. Just wondering how this waterfall of cash flow would look to boost other properties (all theoretical).

I know this is a lot but if anyone has an answer to at least one of these it’s greatly appreciated!