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The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
This could be a thread specifically to talk about real estate ideas for those interested in home ownership ( building equity that way ) OR discussions of rental properties you hold.
I'll see if there is any interest.
I feel overwhelmed sometimes thinking about what to do " next " .
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I bought and flipped houses after college and stripping. Did pretty well, until the market crashed and I got stuck with a house. Thankfully, BF and I liked the place, so we lived in it for ten years. Finally made enough on it in 2018 to sell and get something nicer. The moral if there is one, is timing is everything on flipping houses. I don't really recommend flipping. But, if you do, make sure each flip is worth living in if you get stuck with it.
For rentals, the BRRR method seems to work. Buy, rehab/repair, rent, refinance. The thing with BRRR is, you have to keep churning through more and more properties. I would add, get a property manager sooner rather than later. I don't think you will save any money with a property manager, but it will save headaches. To do this, you need excellent credit to start with and a good main job too. The bank will essentially look at your paycheck and determine if you can afford a loan. They won't really look at the rental prospects until you have made the final step and have a new tenant in with a twelve month lease and a few timely lease payments in the bank.
HTH
Z
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
^ My first purchase was about 14 years ago and I just held the damn thing.
It was somewhat out of laziness ( just didn't want the effort of meeting with an agent , setting up to sell ever , ect. ) !
Ha. I got my real estate license in part so that if I *did* want to finally do something with this thing ( it 100% needs paint / carpet after 13 years of renters ) I can represent myself when selling it and getting something nicer. That is my main project. Where it stands it can easily pay for half of a nicer one if I want to take that step. Actually living there is a challenging prospect to face because I don't love the town it's in AND it doesn't have the nice touches more modern places do . My tastes have also gone up in the last 5-7 years. :/
It's also just preforming really well as a rental though so I am thinking of holding ( still ! ) and trying for a 2nd one. I somewhat suspect I'll hold until fully paid off and it's hopefully still standing lol.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
100% .
The same could even be said about holding a long term rental.
Now my rental is probably the most affordable option to live alone BY FAR should I ever need it .
The mortgage has stayed the same but rents have gone up.
Quote:
Originally Posted by
Zofia
But, if you do, make sure each flip is worth living in if you get stuck with it.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Anyone who describes this as " passive " is 100% trying to sell you something or benefit in some way !
You need to be prepared for some work with either a short term or long term rental.
I would describe them more as " passive at times and stressful at times ".
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Zofia : I have something similar to what you did in mind for a *possibility* next one. I was thinking it could just be somewhere to live a couple days a week *while* improving with new flooring and paint ( these two things are always the things that date places ) or possible even a little large scale update ( like refinishing on bathroom ..... no pulling anything but simple surface refinishing work ). I felt like it *could* be possible to make something like 25k on a project like that due to being able to represent myself in the sale and the fact that my timing is just so flexible. I could just camp on it for a long time if needed and just reject any low offers.
Simply having the " for sale " sign out and up could also give me access to a buyer to represent even if they didn't end up wanting *mine*. I could offer to help assist them finding other things to look at.
Knowing me I'd probably throw a room mate or two in also month to month ha.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I feel like the most awkward time as a landlord is the last 2-3 weeks when someone is in the home.
Right now for example ..... I *hope* that my renters who gave their 30 days notice for Jan 15 ( they did it on Dec 15 ) are not going to assume they can use any of the deposit for the two weeks. That is not really what the deposit is for but this is something common the people will try to do .
I don't want to fight / try to claw out 1-2 weeks of rent either if they don't pony it up.
I'd just *prefer* they come forward with a two week check which I don't think they have yet.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I could see it working with even one property too ( just doing a longer term hold after refinance ).
Hopefully at that time ( when refinance lowered mortgage ) you'd be getting a profit each month.
I never have refinanced my first purchase. I actually probably should consider it.
I've held off for two reasons:
I don't really want to extend the length of the loan ( goal is pay off entirely ).
I am worried about getting financed for property 2 if a refinance was recent .
Quote:
Originally Posted by
Zofia
For rentals, the BRRR method seems to work. Buy, rehab/repair, rent, refinance.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
When I was in college, I got burned by a landlord who didn't want to give me my damage deposit back. I had to sue him in small claims court for the money. Took several months, which is what he was banking on. It also took a lot of time. But, I showed up for the hearing and the appeal and I had my photos of how I left the apartment so I finally won. It cost me some time. Of course, I reported the landlord to the Real Estate Commission and the Health Department. I heard that the Health Department cited him for a bunch of violations and I know the Real Estate Commission put the pressure on him to pay me for the days I had to spend in court too, but it took almost a year before I saw that money. Way too much work for a $500 damage deposit. I can be a bitch sometimes.
XOXO
Z
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
^ That is AWESOME ! I don't " hold " it at all. If they go and leave it clean they get it back quick ( in full ).
It's a rental so I'm not exactly going to examine the walls for dings and scratches either ! Leave it reasonable and you are good !
I can not believe that shadiness. That's awesome though and probably taught him a lesson. ^
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
For the property I hold ...... I don't think I could be happy living there ongoing ( if things don't work our with my partner ). I would need something a little nicer ( and not in my hometown ).
I have to do some plans in " two " angles lately. :/
What I have to work with is about 210k . I have 93k left on the mortgage and it's worth about 340-350.
I'm not sure what I *want* to do is possible without getting a tax ding. What I would *like* to do potentially is sell it and put 110 down ( on something around 390-400 ) and use the other amount ( the 100k that is left ) to just make as many payments as possible . Now I am realizing that I don't think I can " pull " anything out without paying capitol gains . It has to be " rolled " into another property to avoid a gains tax ( 15% ).
** ^ DON'T QUOTE THAT SECTION PLEASE , I'LL EDIT WITH PERCENTAGES SOON INSTEAD. **
I don't think I would put this plan in motion at all for 5-6 months anyway.
Idea 2 is back to my land and tiny house idea ! Ha. It's something I have wanted to do for a long time but I don't think I can " live " tiny. It would be more of a passion project ( rented out on AirBnB and staying myself more to just check on it a few days a month ). I have my eye out if someone is selling the land + tiny combo ( such as being ready to get out of that project ). I just need to have an AirBnB license for it. That can be restrictive depending on what city boundary it falls in.
^ I assume I'll only be able to get financing for one ( currently ) of these so I would need to decide. :)
I actually wouldn't even mind doing BOTH eventually if I could pull it off.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Try to remember the 3 most important things in real estate : Location , Location and LOCATION . Especially now. States like N.Y. , N.J. , Illinois and California have net outflow of people who can afford to buy a house. Florida and Texas are among those with positive inflow. Some markets are red hot and you can flip a house with no problem but , But , BUT for how long ? All bubbles burst . Sooner or later. And to flip these days you have to pay cash. In fact in the hottest markets like Boise, Idaho the sellers pretty much insist.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Quote:
Originally Posted by
Eric Stoner
... And to flip these days you have to pay cash. In fact in the hottest markets like Boise, Idaho the sellers pretty much insist.
Having been singed by the house flipping business, I don't do that anymore. However, my lawyer friend does do some rentals and she has a good real estate practice. She confirms that flippers here, Durham, NC, definitely need cash to close deals immediately. Otherwise, sellers simply more on to the next available buyer. She says that Zillow has been burned severely by trying to flip in this market without good value numbers. Thus, there are a number of homes on the market for which Zillow overpaid. That has lead everyone to raise their prices. We are all watching for Zillow to decide they have to fire sale their properties which will cause our bubble to burst. Thus, everyone is demanding and getting very close to top dollar and demanding a very short closing window.
HTH,
Z
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
in my area CA folks are buying homes for 50% of what the would pay at home. :)
I expect to see many CA clients here.
Quote:
Originally Posted by
Eric Stoner
Try to remember the 3 most important things in real estate : Location , Location and LOCATION . Especially now. States like N.Y. , N.J. , Illinois and California have net outflow of people who can afford to buy a house. Florida and Texas are among those with positive inflow. Some markets are red hot and you can flip a house with no problem but , But , BUT for how long ? All bubbles burst . Sooner or later. And to flip these days you have to pay cash. In fact in the hottest markets like Boise, Idaho the sellers pretty much insist.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
In my opinion short term flips are not viable currently in MOST cases . The market is HIGH right now so the risk is high that you will lose a little on value in 1-3 years. I would personally look at any investment property as a 5-6 year MINIMUM commitment ( given the current conditions ).
^ The only exception I'd make to the above it if you could do fixes that are "light" and hope those repairs add enough value. I'd only hold for 5 years minimum.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
seems some of you had the right idea. I have had a few dancers want to get into investing (even helped one transition out of dancing into selling) and we used to do a weekly meet up. Most that I helped did a buy and hold, which is ideal if you have the funds and know how to screen
I started coming here years ago when I was doing makeup btw, I was never a dancer lol
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
^ If you have the funds you can buy a rental at a " low " and then just rent rent rent until the market climbs. It is a great way to do this. I feel like it minimizes risk ( being willing to be a landlord ) because there will always be folks to need to rent. Any investment carries *some* risk . I feel the risk is tolerable.
I am kind of in a spot of waiting " for the right one " for the next project .
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Absolutely! I do a bi-monthly meeting where I talk about the market, warnings, pros, cons and pitfalls, etc It’s been quite fun during introducing ourselves how some of these ladies shout each other out and whatnot, I'm just sitting there not knowing what places they talk about lmaooooo, but it's cool how we all connect and learn
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Too bad you can't hire a manager just to SHOW your property ha.
I'll begin a five hour road trip tomorrow to show mine.
I just refuse to give someone 10% ( $170 a month ) for a year to " manage " this.
The rental market is nuts. Someone will probably take it within 3-6 hours of the first showings.
I wish I didn't have to go but oh well. I'm trying to maximize the profit. :/
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Quote:
Originally Posted by
carmen_b
Too bad you can't hire a manager just to SHOW your property ha.
I'll begin a five hour road trip tomorrow to show mine.
I just refuse to give someone 10% ( $170 a month ) for a year to " manage " this.
The rental market is nuts. Someone will probably take it within 3-6 hours of the first showings.
I wish I didn't have to go but oh well. I'm trying to maximize the profit. :/
awww....good luck! Reach out to me and ask me anything if you want
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
Well the market is softening where I am instead of being an epic shit show ha.
Does anyone have plans coming up in the next 5-6 months?
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I regularly do AirBnB trades with a couple other owners which helps offset some little staycations .
It makes staycations options be more frequent !
My fave right now is trading my desert one for the Mountains ( which reminds me I seriously need another mountain escape soon ).
I have a goal to do an out of state trade for 5-7 nights.
So far I've only traded within my state ( helps for little road trips and such ).
I realize the " trade " option scares some people so I now phrase it more like " We could each offer each other a 50% off stay " .
This way it lets us both run the transaction through AirBnB ( still getting insurance coverage ) and it " Auto " updates the calendar for each owner. It also protects the first person who stays ( they get a little cash committed ). If the 2nd person staying lingers on booking dates that is ok as the offer can just sit there until they are ready.
I found a lady in Austin who wanted to do this. It's near a lake but on a map I couldn't figure out if everything was walkable Or if I needed a car. I need to look at it again.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I have a lot of gratitude ( my parents pushed each sibling to buy in their 20's ready or not ).
I have a sense of peace with housing where many others don't and I'm super grateful .
Regardless of what my partner does my housing is pretty well covered and that provides a lot of peaceful energy.
I have no plans to move out or anything . I just never want a time in my life where I am not covered. I always want a PLAN for myself even if a relationship took a nose dive. Ptsd from prior partner abandonment will do that to you ha. You can not argue though with the logic of having a plan !
If I moved back to my townhome I wouldn't consider it luxe by any means but it is a STEP towards being able to get to something nicer for sure.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
I'm bumping this thread because I'm targeting tourists using rental arbitrage. My idea is to rent units by the year, incur any damages, and with the permission of the owner, sublease by renting them out on platforms daily and monthly as well as having my own site. It blows my mind that you can rent $500 furnished/unfurnished apartments, flip/spruce them up, and mark them up $1,000k pm or $55-$125 daily. I know peeps already do this but I figure if I can tap Europe I can hit before too many catch on.
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Re: The REAL ESTATE thread ( home owning or rental property owning ) or just GOALS !
^ In the AirBnB business we can it " rental arbitrage " ! Yes , you can sometimes get owners on board for this for sure!
They KNOW the units are well taken care of when someone literally has their ass on the line if they don't rent ( upkeep keeps them rented ).
The digital nomad thing is getting bigger and the week to week and month to month market is definitely there .
You need to know your city obviously ( which I'm sure you've done the research on ).
I'd love to hear an update when you get the first one ready. :)
^ For the USA my platforms for the short term rentals that I do are both VRBO and AirBnB.
Vrbo is a flat $500 rate and a tiny percentage. AirBnB is a larger percentage.
^ Those are the "basics " of the differences .
Get GREAT photos done !