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The most popular reviews in /r/realestateinvesting:
I live in St. Louis. Do. Not. Do. This. Most of the houses are in really bad areas in North St. Louis City, and the houses themselves are in serious state of disrepair. Most likely the houses have been thieved of all valuable materials, and the back of them may very well have been brick thieved. I would not trust Google Street View because you can't see the back side of the houses. People steal bricks in back and leave the front facade to fall over into the street.
If you have specific addresses you can PM me and I can tell you a bit more about them and the area they're in.
Give this documentary a watch to know what you'll be dealing with: https://www.amazon.com/Brick-Chance-Fortune-Bill-Streeter/dp/B01FV0NZBY
Get an Ozone generator from Amazon. Fill that unit with Ozone for 24 hours. Ventilate.
Ozone works great.
OdorStop Professional Grade Ozone Generator with UV (OS2500UV) https://www.amazon.com/dp/B00NHR6S22/ref=cm_sw_r_cp_api_i_7uWZDbFX72JN4
I did a flip with a clogged sewer line, house smelled like shit. This fixed it.
You're still super young, I would start off reading a book like Set for Life. I wish I had found a resource like this when I was in college. This is a little on the broad side, but it gets you thinking about the things you should be thinking about, especially in your situation where a "house hack" is incredibly feasible.
I'm also a big fan of the BRRRR method (yes, another BiggerPockets promotion, sorry but they're how I spring-boarded into real estate). I haven't read the book that was published on it, but I'm sure it provides a great crash course on that strategy employed by many.
Don't worry so much about EXACTLY how much your closing costs are going to be, you can easily get that info from a lender. Instead, focus on learning and estimating the cost of repairs, big capital expenditure items such as roof, furnace, water heater, flooring, cabinets, etc. so that you know how much money out of pocket you're actually going to need on upgrades.
People are saying you get to use it ten times or so. Go to https://temp-mail.org/en/ get an email address, sign up to bigger pockets, use calculator ten times rinse and repeat.
Not a tax expert, but I believe you can withdraw contributions tax/ penalty free at any point... just not earnings.
This book answers all your questions:
Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties
https://www.amazon.com/dp/0997584750/ref=cm_sw_r_cp_apa_i_gDcoFbEEC2104
Also listen to the podcast which promotes the book: https://www.biggerpockets.com/blog/biggerpockets-podcast-257-how-to-become-long-distance-real-estate-investor-david-greene
The guest on the below podcast (I am not the host or the guest or anything like that) got really good at spotting errors on the MLS, like the out of area listing agent that screwed up and listed a fourplex as a SFR because they didn't know the local MLS.
"What every real estate investor needs to know about cash flow... And 36 other key financial measures" - Frank Gallinelli
https://www.amazon.com/Estate-Investor-Financial-Measures-Updated/dp/1259586189
It's a heavy read and not something to just breeze through. But he uses more real numbers and more scenarios. Very math focused.
I'm still working through some others but seems like there are so many that are more surface level and not a deep dive. But the book above is good.
Not rich dad and poor dad.
​
Crushing It in Apartments and Commercial Real Estate: How a Small Investor Can Make It Big
Here’s a great book on the topic. It covers how to raise equity, how to structure your partnership, and will help you realize what resources you’re going to need. Good luck!
Raising Private Capital: Building Your Real Estate Empire Using Other People's Money https://www.amazon.com/dp/1947200984/ref=cm_sw_r_cp_api_j-QNBbF9WRXP2
It is probably the ignitor. Look up the one that goes with your stove. Not hard to replace.
It looks something like this:
Put up the model number of the stove.
Check out long distance real estate investing by David Greene. Same author as Buy, Rehab, Rent, Refinance, Repeat.
He breaks down the approach
Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties https://www.amazon.com/dp/0997584750/ref=cm_sw_r_cp_api_glt_fabc_61AFYVBV2FD90Y9Z5QY0
The Millionaire Real Estate Investor, https://www.amazon.ca/Millionaire-Real-Estate-Investor/dp/0071446370
If you are about the frugal life. You can find free pdf versions online
Software engineering, and you aren't too old provided you have enough free time to learn coding. I never knew these salaries were possible but many of my friends are also making them. The key is to get really good at solving algorithmic questions that can be found on leetcode.com
These guys have the latest data for cheap https://www.scrapehero.com/store/product/starbucks-store-locations-in-the-usa/. Download and run your own analysis using any mapping software ! We use metabase for free to overlay it with https://data.census.gov/cedsci/ data and do it for super cheap.
You sound well versed. You just need to find the right deals.
BRRRR strategy sounds ideal.
You could also target tax sales since you have the liquid cash and then use the hard money to force the equity completing the renovation and then refinance and rent it out. Learn here about tax lien/deed investing if not familiar. This is a great source! Book 3 of Real Estate Knowledge Series
Focus on cash flow and minimal flipping unless its to produce seed money for another BRRRR. Taxes are too high.
When you BRRRR correctly, you’ll still be using that same $100k 5 years from now but you’ll have much more cash flow and equity.
This book is a little bit older-school but it is my favorite one I ever read about real estate investing. It's more about why real estate can work so well for wealth building than a how-to, although you can definitely get some how-to ideas from reading it.
The only thing I disagree with is this guy is comfortable with really high debt levels. Other than that, I absolutely love this book and read it every couple years. Good luck!
I based much of this on techniques described in this book:
https://www.amazon.com/Estate-Investor-Financial-Measures-Updated/dp/1259586189
When I first learned about investing strategies was way back last year in June. I was very hesitant to move forward, due to the amount of risk involved. In September I read Think and Grow Rich, and in October I started reading to myself daily, a statement that I would make $100k by the the next year.
Shortly after that, in November I received an opportunity to work with an investment group as an acquisitions manager. I hopped on it right away, as I felt it would be a perfect opportunity. I could gather more experience, work with solid mentors, balance the work with my day job, not put myself at risk, and still get paid on a commission basis. However, I had put in many hours of work, and months went by without much progress. I kept moving forward regardless.
Today, I finally get paid $3000 for my efforts. I know it's not much, but I know that there is more to come. I would like to thank /u/GringoGrande and /u/varelse66 for taking time out of your busy schedules to teach me about different aspects of investment. Even though my style has diverged, I would not be where I am without your advice or encouragement.
I would also like to encourage anyone who is currently struggling to continue moving forward. There were times when I simply wanted to give up. I know the thread is about motivation, but what I think is even more important than motivation is discipline. If you feel stuck, I highly suggest reading and implementing the action items suggested in Think and Grow Rich. In addition, look for a local mentor that asks for your time, and not your money.
Depends what type of account you use. If you use a Roth IRA you can pull all the money you put in but none of the proceeds. see here.
Get on meetup.com and similar, there's one in my area that's super cool, chill, and free. Half the time they have guest speakers, half the time it's at a pizza/beer place. And of course there are also the bullshit tens of thousands of dollars ones.
No rush on the VA! It will always be there. If you want to get into investing, I’d recommend saving up for a downpayment on an out of state rental. I can help you w this: https://calendly.com/justin-nextgenwealth
Thanks for your service too !
This is actually very common no matter the brand. The lint assembly catches most of the lint, but when the panel is assembled, you’ll be astounded at how much lint, pet hair and general laundry debris is drifting loose within the cabinet.
https://lifehacker.com/5943074/make-your-dryer-safer-and-more-efficient-by-deep-cleaning-it
I’ve been in two fires in my life. We had a chimney fire when I was a kid that I slept through and a dryer fire as an adult that ended up a complete loss, though this was a multi-family unit with multiple issues. I’ve been fanatical about this since.
Once a year I unplug the dryer, drag it out from the wall, pop off the rear cover (literally a couple of screws hold it on) and run a shop vac over everything. Then I run a ramming brush through the duct until it’s clear though I reran this when I bought the place to keep the duct straight.
It’s a shock how much stuff you find the first time you do this.
I wouldn’t expect a tenant to handle this. This is more like an annual HVAC tune-up and would fall into the owner maintenance category.
from a study done last year; landlords spend on average 2-3 hours per month on a unit. (Not including if they're doing repairs themselves)
Yeah, it's really not that much work. https://www.semanticscholar.org/paper/Do-the-Poor-Pay-More-for-Housing-Exploitation%2C-and-Desmond-Wilmers/7bb043ed231bfaeac46f9933220fe9dde277cf24
If you're interested, our real estate investing association is having an interactive webinar tonight (Monday July 27) at 8 pm EST in which we discuss real estate investing. There will be an interactive webinar to give a guide for borrowers on finding true investor deals for funding by local private lenders.
If you'd like to learn how to get truly good deals that local lenders, mostly within CCREI, would have no trouble lending on, dial in with your phone tomorrow (Monday July 27) at 7:55 pm EST and be on your computer to see the visual part of the presentation:
For audio as well as interaction with each other:
Dial-in Number on your phone: 1-302-202-1104 Conference Code: 580966#
For visual, click the link below or copy and paste into your web browser on your compuiter:
While the topic will be on funding deals local to Columbia, SC, the basic principles apply anywhere in the country.
It’s the new people.
They’re just leaving something wide open.
Data is your answer .
Flume 2 Smart Home WiFi Water Monitor and Leak Detector: Detect Water Leaks Before They Cause Damage. Monitor Your Water Use in Real Time to Reduce Waste. Installs in Minutes, No Plumbing Required https://www.amazon.com/dp/B08DX6MP8X/ref=cm_sw_r_cp_api_glt_fabc_YYQAQP5MHP3SHM6DWS9Z
You can see real time when it has been on for an unreasonable amount of time, and stop over for an unannounced emergency visit .
I think they mean search the sub for posts already asking the same thing…because they’re are a lot of them.
With that being said, asking a question like, “Where do I find deals?” isn’t going to net you much.
Put some work in on your own. Research the industry before coming to the sub and asking for gimmies.
And keep this in mind, if it was as easy as asking one question and expecting everyone to give you their bread and butter techniques, uh, think again.
You might want to just buy REITs instead or you can start here.
read this book. Quick way to learn about conversations with other humans:
How to Win Friends & Influence People https://smile.amazon.com/dp/0671027034/
College will not teach you anything useful about real estate. You would be much better off learning carpentry, plumbing, electric, etc.
"Real Estate books" aren't bad. I would strongly suggest that the OP do as much reading as possible. Self-teaching is incredibly efficient. For example, here is a book from one of the BiggerPockets guys. Though yes, avoid classes and any books greater than like $50.
Thanks! Those all seem like great suggestions. And yea, I can see how it may be tough with the current market.. Regarding the book, I suppose you're referring to this?
Thanks again!
Highly recommend this:
The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing (BiggerPockets Rental Kit (2)) https://www.amazon.com/dp/099071179X/ref=cm_sw_r_cp_api_glc_fabc_wh0aGbYXAW3F0
I like to keep a copy of things both physically and digitally.
I recommend you start off with a file box, this is the one that I recommend and label it *P*roperty #1 and then proceed to throw everything that is related to this property in this box. All of my escrow docs, loan docs, property taxes, they all get thrown in and at the end of the year when I'm getting ready to review and prepare I organize and sift through everything.
Once done, I bind it all up in a folder with a rubber band and call that whatever year it is and never look at it again.
I use Quickbooks and Excel and view my balances in real-time so I've got a good grasp of the day-to-day, but I only really do accounting once a year.
Real estate investing is a long term commitment. If I'm being honest, it sounds like your making a bunch of assumptions and not telling us what the facts are.
That's alright, but you should really read this book. If you are going to take on a 25,000$ risk for 30yrs, then you should firsf buy a 12$ book and listen to all 18hrs (audiobook edition).
Lease options - Investing in Real Estate With Lease Options and "Subject-To" Deals : Powerful Strategies for Getting More When You Sell, and Paying Less When You Buy https://www.amazon.com/dp/047171836X/ref=cm_sw_r_cp_api_fabt1_oadVFbHJ0GV74
There are so many hurting landlords right now and ones that are tired of owning buildings because they are carrying the brunt of Newsome’s nonsense. Consider single family homes with a lot large enough to add an ADU or a convertible garage. It’s a bit more work but everyone is looking for the house hack 2-4. Take another angle.
Renovation has been a great resource for me, although it is focused on DIY homeowners.
For GC or builder work, one of the best resources I can think of is Matt Rinsinger’s YouTube channel. He has an emphasis on efficiency and cutting edge products, but he is great at pointing out bad practices.
There don’t seem to be any serious responses so far so I’ll take a stab at it. I’m certainly not any kind of authority but my wife and I own 5 rental properties across two states. As always the key is to buy it right going into it and research the hell out of your numbers. You should budget for repairs, capex, professional management, know your vacancy rate and how to budget for it, you should insure it expecting a hurricane and keep a lower deductible. If you can do that and the numbers still show a large enough profit then you might be successful.
I would avoid buying in 100% secondary markets (vacation only/tourism markets). Personally I would look at areas near the beach but also near a military base or larger city just to avoid a fall out. In a recession the secondary markets are the first to suffer. Also you need enough industry to support the rent.
I’m personally looking in Ft Walton beach. Close to Destin and Panama City but has two bases close so I can minimize off season vacancies. Ultimately I want to do a 2-4 unit property with less than 6 month leases and vacation rent it over the summer, at least with one of the units. That’s my plan anyway but it’s unproven.
I recommend BiggerPockets podcast, and all the books and for this situation I’d recommend this book.
Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties https://www.amazon.com/dp/0997584750/ref=cm_sw_r_cp_api_sYYLBbQPZR546
Hey Coles, what a wonderful introduction.
Glad to see a couple of books I've read on that list. I've read RDPD and How to Win Friends. Think and Grow Rich is on my reading list; I will add all your suggestions to it.
That quote...is amazing. I need to write that down somewhere.
Of course it's feasible (you already have a deal under your belt) ... just maybe not the easiest.
I would take your $40k and invest with a professional investor with the caveat that they walk you through every deal they do. Depending on how hungry you are ... in 6 months you'll have the equivalent education of a 4yr degree.
In the meantime, read Think and Grow Rich over and over and over. Get your hands and ears on as much positive books, podcasts, etc. Fill your mind with dreams of what is possible and then go do it.
I've been learning and doing investing for the past 6 years or so now and I will say that you don't need to know much about repairs. I would get familiar with identifying and understanding repair costs and have a good contractor that you work with. A basic concept in investing that most people forget is having a good team in place is key to being successful in this business. Everyone has 24 hours in the day so use things to your advantage; it's not always about saving money up front.
A couple of books I would recommend would be: - Investing in Fixer-Uppers by Jay P DeCima - The One Minute Millionaire by Mark Hansen & Robert Allen - How To Be A Quick Turn Real Estate Millionaire by Ron LeGrand - The One Thing by Gary Keller - Think and Grow Rich by Napolean Hill - The 4 Hour Work Week by Tim Ferriss
These are great books that I have read countless times and offer good information and insight into what it takes in this industry. If you want to talk sidebar just shoot me a message and I'd be glad to send you my personal email. Hope this helps you with your decision.
I read loads of books before investing and found this one really useful and it explained things in a simple way. I am not sure if the location market overviews are still valid as the book was written a while ago but has the best explanation and examples of GRM that I found.
https://www.amazon.com/Investing-Duplexes-Triplexes-Quads-Paperback/dp/B00YDK0ZEY
Learn the values in a specific area so you know when something is well priced, over priced or priced to move. A book called FLIP is worth a read. There is a business of scamming people with paid classes to learn how to invest. So don’t pay too much for classes. I find those who can - do and those who can not - teach.
Stop your asinine "strategy"... you would be a millionaire if you just bought the S and P 500 index funds instead of "saving" your money every paycheck (and having it destroyed by inflation), which has gone up 2.58x in the past 7 years.
If the fact that you SHOULD have $1,032,000 instead of your $400k doesn't make it obvious how stupid saving your money is to you...I don't know what would. You just lost yourself $632k without doing anything. Long-term index funds are basically the same as savings accounts. Hell, with shit like Robinhood it's literally linked to a debit card...
https://robinhood.com/stocks/SPY
Forget real estate investing. You have less than no idea what you're doing currently. Go book an appointment with a financial advisor ASAP.
most seem to be on meetup.com
i travel a lot and often lookup to see if there's a local meetup when i'm in town
unfortunately wework bought meetup.com and hoping it doesn't get destroyed in the post wework mess
Promoting my Mobile app to create invoices and estimates using modern customisable templates and share it with clients or download as PDF
Might also be good to take a look at a book like this:
The pound went from being sound money to fiat currency in the early 1900s. The pound that was backed by precious metals is not the same pound that is backed by a promise to pay. Learn the difference between currency and money, this may help
Definitely save some money for your education and skills. Getting your realtors license is a pretty good way to make sure you have income coming in and learn the business.
Use a portion of that $300k to passively invest into real estate syndications. These investments generate 15-20% return on average and the excess tax losses we claim on these investments not only mean you delay paying taxes on your investment but also on a portion of your realtor income.
While you scale your realtor business you have your money working for you in a passive, superior return, low volatile real estate investment. I invest primarily in apartment complexes and single family home communities 75 units+ in the southeast like Texas, Georgia, etc.
So not only are you scaling an income producing business, you are scaling a passive income stream on the side.
This book is great for learning more about how these investments work
https://www.amazon.com/Hands-Off-Investor-Insiders-Investing-Syndications/dp/B08779W5QT
Feel free to ask more questions here or via DM. Happy to help young folk learn more about real estate!
You could check out Avery Carl's book short-term rentals, long-term wealth. Otherwise, BiggerPockets has a STR bootcamp (10-week online course) if you like a more structured approach to learning.
I'll be honest, I read this as if you're talking Military Veteran with plans to use the VA loan which is something I wish I knew more about before becoming a Realtor.
I would read The Millionaire Real Estate Investor by Gary Keller and Jay Papasan. Maybe start an L.L.C and start recording expenses, make your own property management company that grows with you rather than having to pay someone else. Then you could become the one others pay to manage their properties as well.
Great book. Auctions are fraught with super big risks so make sure to check and double check your due diligence. You also need cash working capital to buy from auctions. Not for the faint of heart. https://www.amazon.com/Bidding-Buy-Step-Step-Foreclosures/dp/B08GGD5933
I have been looking for an alternative to rentometer for a while.
I have ended up building my own.
I have built a free Android mobile app for estimating rents based on location, beds, baths, living area of your unit. It uses machine learning so it would get better if more features would be available, like property type (single family vs condo, etc), amenities, etc. I will work into making it more accurate if there is enough demand.
Let me know your thoughts
Thanks!
Read this book The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing (BiggerPockets Rental Kit, 2) https://www.amazon.com/dp/099071179X/ref=cm_sw_r_cp_api_glt_i_ER4CHTD5VXF1QZ12ZPFA
Also appreciation > cash flow in long run
This is a good one The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing (BiggerPockets Rental Kit, 2) https://www.amazon.com/dp/099071179X/ref=cm_sw_r_cp_api_glt_i_BKXCJ48PN1579FRDMZXC
You can use hard money lending IF you are careful with the numbers and don’t over leverage.
You can find on occasion seller financed deals. (One of our rentals was seller funded).
Join your local REIA
(amazon)
I DIY’d the valve as i was a very early adopter of the tech and am fairly technical.
problem with those sensors is you need wifi access (works well for me in an airbnb, but long term rentals you need something offnetwork (unless you wanna pay for your own internet for monitoring?)
now’a’days you can get cost effective zigbee/zwave/blue tooth devices to operate independently and off network.
theyll auto shut valve for you and beep at source of failure.
The nice people at /r/homeautomation will no much better than me now.
That looks like a electric one. I would think the kids would be the least concerned about how it looks.
What are they going to do with it. At very worse. They would climb on top and try to use all there strength to pull out the water lines or the electric line. Even then I dont think they could do that.
Of course they could take a screwdriver and open the service panel to get to electric wires. But they could do the same with every electric outlet in the house.
Even if you have the expense of building a closet. Never seen anyone have a locking closet door to water heater. So kids could still get in.
For looks only closet. Or some bifold door to make into partition/ room divider
also we add below
https://www.amazon.com/gp/product/B000JOK11K/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1
I don't think that it's immoral to be a landlord, but I do think you are being a little naive or irresponsible about a few points.
>Look, right now is the easiest time in history to get credit to buy a home. If you can't convince a bank that you can be trusted with the money, there's a very high likelihood that you aren't actually responsible enough to own and maintain a home.
This isn't always true. I recommend checking out the book Weapons of Math Destruction. The author explores how big data companies make judgements about us using flawed mathematical models. These assessments impact nearly every major part of our lives.. from your ability to go to school, get a credit card, a mortgage, etc etc. Such models often use hardly relevant data such as your friends group, your zip code, your brothers criminal history, etc to make judgements about whether you can be considered "trustworthy". It creates a nasty feedback loop/self fulfilling prophecy where poor people don't have access to the same loans, rates, schools, etc because they're poor and they stay poor because they don't have the same opportunities.. among other things. Anyways, it's a really interesting book and worth a read.
>There are tons and tons of affordable homes being sold every day.
Not sure where you are from but for most of the country, housing prices are at all time highs even adjusted for inflation (source). It's great that there is cheap housing in your area, but by in large, that's not the reality for most of the country. And telling everyone to move to the "sticks" isn't a reasonable solution either.
What OP is looking for is more an asset based loan rather than a margin loan.
The most popular product is the pledged asset line Schwab offers.
https://www.schwab.com/pledged-asset-line
If you have more than a couple million you can also move it to an investment bank and there are private banking loans there with rates as low as sub 1%.
You want to turn this into life-changing money? You could purchase a $1MM business with $140k and a SBA loan. This business would be expected to generate around $200k in annual profits. Grow sales and then sell the business. Rinse and repeat. My family has a couple of small businesses that I chose not to participate in, but now I look at them and their peers, and realize that the math is pretty undeniable.
Buy Then Build: https://www.amazon.com/dp/1544501137/ref=cm_sw_r_cp_api_glt_i_C5BC3RQAJHVEEVGM7851
I just got this book so I haven’t read it yet, but if you’re interested in doing a deep dive on the topic: The book on tax strategies for the savvy real estate investor.
The Book on Tax Strategies for the Savvy Real Estate Investor: Powerful techniques anyone can use to deduct more, invest smarter, and pay far less to the IRS! (Tax Strategies, 1) https://www.amazon.com/dp/0990711765/ref=cm_sw_r_cp_api_glt_i_PYDBP8F0MD3DATR6XTPM?_encoding=UTF8&psc=1
This book will tell you how it’s done. Good read even for those in the game: https://www.amazon.com/Millionaire-Real-Estate-Investor/dp/0071446370/ref=nodl_
Also I found a copy in my local library through the Libby app and read the ebook there. Too long to condense into a Reddit response. Don’t settle for Reddit quips.
Hey everyone!
Today on Producthunt I have found a new tool https://www.producthunt.com/posts/datamool-2. You can analyze and browse investment properties. What's your opinion based on the preview demo? Is it valid? Would you invest based on their prediction?
Sure thing. Yeah they probably haven't covered that area yet, you can request it from them. That's what I've done in the past.
I know the legal stuff is confusing . . . most cities will require that you're in a certain zone, register with the city, get a licence, or all of the above.
Here are 2 links that might help with legal issue, one from Nolo and one from Airbnb (search your city).
But if Airbnb doesn't look feasible, then I'm sure you'll find a good location. Have you found any potential areas?
Good luck!
In this topic, we need to know how important bookkeeping is
https://wordpress.com/post/clavebookkeepingservicces.wordpress.com/76
Hope this can help!
When I search my area there are 33 listings, but any other sites like Redfin show 0 foreclosures. So I am not sure how accurate the data is. Reviews are mixed.
.
https://www.trustpilot.com/review/foreclosure.com
For all those people saying a non leveraged Stock account is not an apples to apples comparison. Charles schwabb as I am sure not the best has rates in the 6.5% range to be able to leverage up to 50%. So that is in comparison to RE, a higher interest, for less borrowed capital. If I have 25K I can borrow 12.5K in a margin account and pay 6+% on the 12.5K. OR I could borrow 100K from a bank and pay 4.5% interest and have someone else pay it off in the form of rent, all while still earning 6% on my 25K. Everyone is right, this is not apples to apples, it is old rotten apples to beautiful Gogi berries.
https://www.schwab.com/public/schwab/investing/accounts_products/investment/margin_accounts
A guy I know uses Section 8 as an end-run around rent control in tenant-friendly Oakland CA. Sec8 is highly regional, you will want to check into how it plays out with your specific housing authority.
(I am not him, I'm not the podcast guy, I'm in no way connected to the podcast guy.)
I just was listening to an interview on bigger pockets podcast about these 203 loans. They could take a lot more time. Here's the episode it was episode 360. Episode 360 bigger pockets podcast.
Here's a link from the cast box app
what complicates things in slows things down is you need a HUD contractor to run the job. And the bank has to make sure everything's done for the funding. It's complicated and a lot of paperwork and time consuming.It's a great deal though for your first house or whatever because you get to roll the renovation costs into the loan.
I'd give a few more a call. It's a good tool to use. As long as the hud shows your cash to close. The only thing that cant be wrapped into the hud are things like origination points and bank fees associated with the loan itself.
I believe it's this podcast that goes into depth with it.
You'll be able to find user reviews on Trustpilot and product review here. Our team is also more than happy to answer any of your questions.
There's a handful of michigan real estate meetups around, check around on facebook. There's one that meets out here in Brighton, another that meets in the Troy area, and yet another that usually meets around Detroit proper IIRC. Search for michigan real estate groups, if you cant find them I can link you if you need. I think they also list meetings on meetup.com (at least a couple do). There's also one that charges for meetings(it's a bigger one, and it's not much I think).
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Fair disclosure: I've not attended any of these yet.
https://www.amazon.com/Buy-Rehab-Rent-Refinance-Repeat/dp/B07S4LQWQ2
If you are planning on attempting this strategy, you ought to read the book on it. There is a lot that can go wrong and frankly none of us are liable if we give you bad info. Just my two cents. I'd consider this due diligence before dipping your toe into BRRRR waters.
https://www.amazon.com/dp/B000PTSBKW/
This is how I fix blemishes to tubs and tub surrounds in rentals, should do the trick for you. Wear a mask, it's terrible to inhale.
Assuming your P/I is $1,249.21 on a 30 year loan, add $433.83/month for property taxes, insurance and HOA making your monthly outgoing cashflow minimum = $1683.04. Multiply that by 1.05 to account for keeping some money available for repairs = $1767.20 is what this unit is costing you per month with 73k already out of pocket, which I'm not even going to get into the CoF for, you can figure that part.
So I'd say if you're renting it for at least $2500/month you're doing just fine. Less than that and you'll be fighting just to break even but at least you'll enjoy the annual growth of value.
In the meantime, your costs are mostly fixed but rents will go up. If it's not $2500/month currently, keep raising it until it is. Eventually the rent will surpass that, reach $3k/month, but your mortgage will still be fixed. It's a beautiful thing.
I was recommended this work -
The Book on Estimating Rehab Costs: The Investor's Guide to Defining Your Renovation Plan, Building Your Budget, and Knowing Exactly How Much It All Costs (Fix-and-Flip, 2) https://www.amazon.com/dp/1947200127/ref=cm_sw_r_cp_api_glt_fabc_X3QTFDAP53B1511F46J4?_encoding=UTF8&psc=1
The title says (fix and flip, 2) so this could be what you are looking for.
I started looking into this for myself and I found a company called Tellus that has streamlined the different aspects of property management between renters and landlords. Using this app helps me to stay in touch with property managers, tenants and service providers in Tellus chat as well easily staying up to date with leases and rental payments.
If you are already a property owner, then you can borrow against your property and obtain a loan to buy another. As I'm sure you're probably already aware, your collateral and credit need to be in before a lender to consider giving you a loan. Even if you look like viable candidate to take fro your equity, you can expect a lengthy application process and a general pain in your neck. I came across the Tellus app, and while I'm looking for a loan, I found that their platform provides borrowers easy access to loans. The application process is digital and takes only a few moments and borrowers can expect to hear back within five days. Their interest rates are pretty standard depending on your loan to debt ratio on the house you're borrowing against.
You can use a property manager or management company but chances are they'll just piss off your tenants and cause you a ton of stress while you're deployed. I started using Tellus and it's made collecting rent and dealing with other issues much easier. And if anything goes wrong like you have a tenant that can't figure something out, the app is supported with a customer response staff to resolve any issues that might happen. Plus it's free.
I would take advantage of the entitlement granted in the VA loan. There is a sliding scale of loan potential based on the zip code of where the property is located. It sounds like you want to build up your portfolio and start stacking the residuals. Plus, you don't need to worry about a down payment in most cases, but saving up as you mentioned will help start making payments wherever you end up buying. Another thing to consider is helping your saving grow in the meantime. I'm interested in real estate investing but initially, I didn't have enough to buy anything worth while. I came across Tellus and invested some money into portions of mortgages and earned a lot more interest than if I just let it sit in the bank.
Hope that helps.
i used floorplanner.com to get close to what I wanted, then I hired an architect on upwork.com - saved $35k over what local architect firms wanted to charge me.
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I had to guide the architect much more than a full service local firm would have needed, which meant that I had to know code inside out.
Personally, I like the following shows, in no particular order:
- Wheelbarrow Profits Podcast
- Old Capital
- Best Real Estate Investing Advice Ever
- Real Estate News for Investors Podcast with Kathy Fettke
- RealWealth Show Podcast with Kathy Fettke
What I usually do, is load up a few of the podcasts into my preferred iOS app (Pocket Casts) and then scan the episode subject/description and decide if I want to listen to the show. I don't really follow the shows religiously, but rather look for interesting topics.
Oh, good to know that! Without the mortgage included, my expenses are only 26%. Over 5 years, the only thing I've had to do is replace a bathroom sink that cracked. I am expecting an appliance or two to go in the next 5 years.
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I guess without mortgage, that brings the cap up to 9.218% according to this omni calculator.
Do you base the property value on your "current" value or the purchase value? I went with purchase value to get the result.
Absolutely attend them, for the knowledge and mentoring and networking. You will DISCOVER how you can bring value to them. There are the biggerpockets meetings and I also found some regular ones I go to on meetup.com so use all of your resources. Be a regular face. Also the one thing you learn from the biggerpockets webinars is that if you just learn to analyze a deal well.. you can just find one and the money will be there, through partnerships and other strategies.. OPM 'Other Peoples' Money'. So dont worry about 'years away from being able to purchase' if you can bring someone a great deal then that is the value you bring.
https://www.amazon.com/Deals-wheels-finance-mobile-profits/dp/B0006S1ZJG
$389 used!
I actually have this book collecting dust on a shelf.
They are made cheaper now like appliances. Average lifespan is more like 12. Used to be double that. But everyone wants cheaper prices.
I say replace now or next year. Just because labor and supply prices are high right now.
But cheap insurance. A leaking tank can do a lot of damage. And you are past due. Also usually end up paying more to replace when an emergency.
Ways to limit damages or cost.
- 99% of the time a water heater gets a small leak that goes un noticed. Then the big damage occurs when it becomes a major leak. Make sure it has a drain pan under it. Does not even have to have the drain hooked up. Since will make it easier for anyone to notice water in it. Also can install a cheap 15.00 water alarm. See link below.
- But the cheapest one. More expensive ones have the same tank and elements. Do have a better drain valve. Brass vs Plastic, But rare that is any problem. And can put in your own brass valve. Just have more expensive electronic controls to go bad. And have like a extended warranty on the tank.
- Or if want to spend more at least get something better. Homey Depot online sells a Stainless water heater. Westinghouse brand. But just a label. Is a a HTP brand known for commercial WH. Stainless will last much longer and no anode rod that rots out. Just get the 6 year one. Again the others 9 year, lifetime etc.. are the same just comes with a extended warranty.
https://www.amazon.com/gp/product/B000JOK11K/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1
I like my canon MF220, I've had it like 8yrs, prints 100% with cheap aftermarket toner cartridges.
Problem is it only does black and white printing,
this one might work for you:
This will sound like a lame answer, but read a bunch of books on both finance and real estate before deploying capital. Just like you read a bunch of books on molecular biology before operating on a patient, knowledge is power. You also have to remember real estate works in cycles and right now I think a lot of people on this thread would say things are pretty fucking frothy in different sectors and markets. This may continue for a couple of years, but it won't be like this forever so do some homework (more homework?? FUCK YOU, JOEY!) before parting with your hard earned cash. Also my favorite book as of late is The Secret Life of Real Estate and Banking. History of credit and and how land values correlate.
I highly recommend "The Book on Flipping Houses" by J Scott. It is an excellent informative resource for someone starting out on the flipping journey.
The best time to buy real estate is always yesterday :) There are a couple of different avenues you could look into:
- House Hacking
- Buy a Single Family Home and rent out rooms
- Buy a Multi-Family Home, live in one unit and rent the other side
- Using this method, you can still do updates/renovations if you have a roommate that is willing to live in the flip with you AND, you can save on house payment
- BRRRR Method
- Buy, Rehab, Refinance, Rent, Repeat
- If the market does drop you can always rent out the property and hold onto it. This is a good one to pair with House Hacking as you can move out after a year and repeat the process on your next home.
- Check out this book all about the BRRRR method!
I always recommend checking out the BiggerPockets community - it is a WEALTH of knowledge about real estate investing!! Best of luck!
You don't need software. You can perform all of this analysis on a piece of paper, you just have to know the inputs. Here is a book for $15.99/Kindle edition that should be to help you, assuming you want to actually learn and not just copy/paste numbers from one source to another.
Check this book out from your library. Very good read for understanding value of investing and the models that other investors used before you so you don’t have to recreate the wheel. https://www.amazon.com/Millionaire-Real-Estate-Investor/dp/0071446370
The ultimate beginners guide to real estate investing here is also great and short read to get you started with ideas.
Maybe you need to think more introspectively on what type of job you would tolerate and enjoy. Maybe trialing out an business management job before you invest in an mba seems to be in order rather than hoping the passion will follow. I found this book helpful in figuring out how to draft out careers that work for you rather than hope the education will deliver that aligned interest and passion somehow magically. Seems like you have some more thinking to do. Your desire for low hours is not compatible with Mangement always as an example for starter. Good luck! Designing your life: https://www.amazon.com/dp/1101875321/ref=cm_sw_r_cp_awdb_imm_PCEPVKNFVH6CY5Q2FK4J?_encoding=UTF8&psc=1
Consult an Attorney. Ask yourself who is going to assume liability if things go wrong you, the others, a mix of both, or none. This will determine of you should have some type of partnership agreement, or LLC. If you chose an LLC I highly doubt a bank will give a loan to a newly formed LLC without tons of assets on the line because then you have no "Skin in the game". Of course their is an exception so here is a book I recommend you consult an Attorney, and I recommend you read this book or at the very least read the sample from page 14 even if you think you know it.
I use https://play.google.com/store/apps/details?id=com.financial.calculator&hl=en_US&gl=US
This app can project your mortgage payments based on interest rate, years am'd over and down payment.
It has multiple other related calculators but you can find out how much your new mortgage will be and estimated rent on the old place.
With these, it should be easy to figure out if it makes sense.
You can also plug the potential rental into bigger pockets rental calculator to include expenses and such to get a bigger picture of the rental property numbers. (There are other calculators if theirs can't be used for free anymore.. it's not that special..)
This app has a mortgage payment calculator. You can include the monthly taxes and insurance in the mortgage payment too. Download the app here: https://play.google.com/store/apps/details?id=com.zillow.android.zmm
Check out "Finding & Funding Great Deals: The Hands-On Guide to Acquiring Real Estate in Any Market" by Anson Young. It's by Bigger Pockets and on the exact topic you're looking for. https://www.amazon.com/Finding-Funding-Great-Deals-Hands/dp/1947200178/ref=sr_1_1?dchild=1&keywords=Finding+and+Funding+Great+Deals&qid=1620394053&sr=8-1