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re: Rental properties. How to start
Posted on 6/16/22 at 4:16 pm to Shamoan
Posted on 6/16/22 at 4:16 pm to Shamoan
I do not know why people are buying now, but I am selling two properties (a duplex and a single family) I bought two years ago for 52% profit. I'm gonna hold cash for now. was also having a hard time finding tenants for one of the doors.
3
Posted on 6/16/22 at 4:27 pm to Motorboat
quote:
hard time finding tenants
Interesting. Most articles I’ve read said the housing market is cooling off as far as buyers go, but rentals have been increasing in demand from people looking to lease rather than buy.
Posted on 6/16/22 at 5:02 pm to Paul Allen
It's a 1 bed/1 bath in the hood. I should have said I have a hard time keeping good tenants.
Posted on 6/16/22 at 6:10 pm to Motorboat
i have investors contacting me EVERY DAY wanting to buy my properties. i always tell them if you give me three times what i paid and then if i can buy 3 instead of one i will sell!
so the answer is a big fat no. sure they have all appreciated greatly but not 3x and with prices rising i could not buy 3 so i just as soon keep my cash cows. no point in selling.
so the answer is a big fat no. sure they have all appreciated greatly but not 3x and with prices rising i could not buy 3 so i just as soon keep my cash cows. no point in selling.
Posted on 6/16/22 at 6:54 pm to Fat Bastard
You know anything about selling notes? Notes on property’s. How to value them, or maybe a commercial broker might know?
Posted on 6/16/22 at 8:03 pm to tigerfoot
quote:
For those that have rental properties, how did you start?
Gotta have some cash to really play. Some "house hack" and rent out rooms etc but I have a family.
I got 5 of them in the first quarter with 4% rates which I'm happy with and all are in premium locations/conditions. Hard to find.
quote:
Seems that a guy w some cash could take advantage of some buying if properties in the next year or so due to higher interest rates and properties being a touch more affordable.
The rate increases are more costly than any drop in price which I actually don't see happening (price drops.) It just won't appreciate 30-40% in a year like it has.
quote:
What advice would you give a newb looking at a handful of properties.
How much coin ya have to start?
Posted on 6/17/22 at 8:16 am to tigerfoot
TurboTenant
Posted on 6/17/22 at 8:20 am to Billy Blanks
A decent chunk. want to invest about 15 percent for real estate. Primarily for diversity and secondarily as an income stream. Just don’t want to lose. Would love 7-10 percent return
This post was edited on 6/17/22 at 9:00 am
Posted on 6/17/22 at 8:28 am to Thecoz
quote:
finding the right tenant is the most important aspect imo
This can't be said enough. Doesn't matter how sound your financial approach is if you get bad tenants. You can weed out most of the bad tenants with background, income and employment history checks. Have a lawyer draw up your lease. Understand it and make sure your tenants do as well.
This post was edited on 6/17/22 at 8:29 am
Posted on 6/17/22 at 11:47 am to tigerfoot
quote:
quote:
(4) Screen tenants thoroughly.
Again, I am ignorant here. How do you go about doing that without screams of discrimination.
Couple of things:
-when you list a property let all calls go to voicemail and make your voicemail greeting a description about the property. You can tell a lot about people just by their voice in the message they leave you. And you can reject all day long via text. When you get a few properties invest in a phone just for the properties or get a mirror number
-just because their credit is crap don't necessarily reject them, there's a reason they aren't in a house (credit is crap), if they have good rental history and your rent is <25% of their income welcome home
-see what their car looks like when they come to walk through the property - how they treat their car is how they will treat your property
-find them on facebook, etc and you can pretty much peg them for what type of renter they will be
-most counties post court/jail/etc records online, check all the adjoining counties
I could keep going but get on biggerpockets and do some studying, lots of screening tips on there
Posted on 6/18/22 at 4:06 pm to geauxnc0308
Just coming back into this thread.
The best way to protect yourself on future real estate investments:
1. Never be higher than 80% LTV. This is purchase price, closing costs, & repairs.
2. Your income (rent) should be 25% income over expenses (mortgage, insurance, taxes).
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
Hope this helps.
The best way to protect yourself on future real estate investments:
1. Never be higher than 80% LTV. This is purchase price, closing costs, & repairs.
2. Your income (rent) should be 25% income over expenses (mortgage, insurance, taxes).
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
Hope this helps.
This post was edited on 6/18/22 at 4:07 pm
Posted on 6/18/22 at 7:17 pm to LSUTigers00884
quote:
3. Find a local bank that will only require 10% down (MC Bank) and some others that require no money down (I can’t disclose, ha). This will help you keep cash on you for unexpected expenses.
if he buys right to start with he will have cash from the positive cash flow plus his reserves to begin with even with a normal DP. you have no idea if him putting too low a DP will kill the PCF or make it too little and not worth the deal. that means he has a HIGHER NOTE. THE MORE HE FINANCES. he has to run numbers. He also does not need to be over leveraged. i have to have a certain PCF based on certain price points. E.G. him buying a 100k property with only 100 a month PCF is beyond stupid.
once he gets to 5 properties or more traditional lenders want not just 20% but 25% down plus 6 months reserves.
I doubt your local banks finance nationwide where the best deals are. he has to go where the deals are.
This post was edited on 6/18/22 at 7:22 pm
Posted on 6/18/22 at 7:27 pm to Rust Cohle
quote:
You know anything about selling notes?
i dont mess with discount notes.
Posted on 6/18/22 at 7:37 pm to Fat Bastard
quote:
Fat Bastard
How many properties, (or doors), do you own and how long you been in the game?
Posted on 6/18/22 at 7:41 pm to tigerfoot
quote:
A decent chunk.
How much is this in dollars?
quote:
Would love 7-10 percent return
You'll get this, should be getting more.
I aim for a bit higher end rental property. I have zero interest in being a slum lord. It's weeds out most of the crap you hear about.
My cheapest rent is $1700. The others are $2500-$$3500
Posted on 6/18/22 at 7:57 pm to Fat Bastard
Need some advice...we have two potential deals on two properties that we would end up buying with $40/50k of equity right off the bat. Both need some rehabbing, but not a ton. Definitely can hit 1% on both.
We're a little cash poor now since we're paying cash for a house in Mexico. One of our properties has a mortgage of $330k and is worth $900 to 950k. We've tried doing a HELOC but they are a nightmare when it comes to investment properties. Cash out refi doesn't really make sense since our mortgage on this one is 2.85.
Another option would be for me and my business partner to take HELOCs on our primary residences.
We're a little cash poor now since we're paying cash for a house in Mexico. One of our properties has a mortgage of $330k and is worth $900 to 950k. We've tried doing a HELOC but they are a nightmare when it comes to investment properties. Cash out refi doesn't really make sense since our mortgage on this one is 2.85.
Another option would be for me and my business partner to take HELOCs on our primary residences.
Posted on 6/18/22 at 8:52 pm to TheOcean
quote:
We've tried doing a HELOC but they are a nightmare when it comes to investment properties.
I've used my heloc on 4 rentals.
Posted on 6/18/22 at 9:05 pm to Billy Blanks
Which company are you using?
Posted on 6/18/22 at 9:15 pm to TheOcean
First Horizon
Posted on 6/19/22 at 8:05 am to Motorboat
quote:
I am selling two properties (a duplex and a single family)
Can I email you for more information? I’m very interested
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