Tove Fox
Residential vs. Commercial Real Estate Investing?
5 January 2025 | 13 replies
@Tove Fox - Residential Real Estate InvestingPros:Lower Entry Costs: Easier to get started with less capital required.High Demand: People always need homes, making demand relatively stable.Easier Financing: Mortgages are generally easier to secure with favorable terms.Simplicity: Easier to understand and manage, especially for beginners.Flexibility: You can use it as a personal residence or rent it out.Cons:Tenant Turnover: More frequent turnover leads to vacancy and more management.Lower Cash Flow: Income potential can be modest compared to commercial properties.Emotional Buyers: Residential prices can be influenced by emotions, leading to price volatility.Maintenance Burden: Landlords often deal with repairs and maintenance, which can be time-consuming.Commercial Real Estate InvestingPros:Higher Income Potential: Stronger cash flow and higher returns are common.Long-Term Leases: Tenants often sign longer leases (3-10 years), reducing vacancy risk.Professional Tenants: Business tenants tend to take better care of the property.Valuation Based on Income: Prices are based on the income the property generates, not market emotions.Shared Costs: Tenants often cover property expenses like taxes, insurance, and maintenance (via triple-net leases).Cons:High Entry Costs: Requires more capital or partnerships to get started.Complex Management: More expertise is needed; you may need a professional property manager.Economic Sensitivity: Commercial properties are more sensitive to economic conditions.Challenging Financing: Securing financing can be harder, with stricter terms and higher interest rates.Zoning and Legalities: More complex regulations compared to residential properties.Key Differences:Risk: Residential tends to be lower risk, while commercial offers higher rewards but with greater risk.Management: Residential is easier for DIY investors, while commercial properties usually require a team.Scalability: Commercial properties are easier to scale, offering more potential for significant cash flow increases.
Brian Stinson
Insurance deductibles for SFR
6 January 2025 | 5 replies
One of the major driving factors for increased premiums is the carrier's requirement for higher replacement cost limits on file for buildings.
Mary Holland
Hey everyone! Has anyone here gone through the application process for DSCR loans?
30 January 2025 | 7 replies
There are still some docs required (ID, bank statements, copies of leases, copy of insurance, etc.), but it's WAY less document intensive than a conventional loan.
Martin Jones
Raising Capital When First Starting Out
16 January 2025 | 4 replies
If you are going into MF make sure you have a lot of cash sitting on the sidelines for maintenance and repairs.
Tenzapa Wakombe
"It is easy to doubt everything when you know nothing" Intro Post
24 January 2025 | 12 replies
Since this four-plex is in my region, I will be the one taking care of maintenance and management while the investor won't have to worry about anything but to receive the money haha.Let's confirm a few things before you get questions from a bunch of other folks on the forum.How much of your own cash/equity are you planning to contribute/invest to this deal?
Felicia Nitu
SB-9 Investment Opportunities in San Diego
30 January 2025 | 0 replies
A potential goldmine for those seeking to increase property value and generate rental income.However, navigating this opportunity requires strategic planning.
Rene Hosman
What do you consider a "good" cash flow for a property in 2024?
7 January 2025 | 22 replies
Your reserves should be part of the expense calculation: PITI, maintenance, capex, vacancy, property management, etc.
Sidney Duquette
Strategies for High Equity Growth Properties: Risk Mitigation, Value-Add, Cash Flow
20 January 2025 | 7 replies
You should have ample reserves and make sure the house is not a money pit from the maintenance perspective.
Lindsey Waltz
85% ltv DSCR
29 January 2025 | 7 replies
You'll have to meet higher ratio and FICO requirements.
Christopher Hu
First Rental Property listing questions
29 January 2025 | 5 replies
Yes, I require renters insurance.