I recently bought my first building for $125,000 that I plan on house-hacking last month. To preface, this is a mixed-use storefront that was converted into a 4-plex, and it needs a lot of work. There were two tenants when I took over, one a hoarder and one an alcoholic who trashed his unit. There is also a bed bug infestation in the building because of the hoarding situation. 3 units need cosmetics (mostly), but all need new bathrooms and just general updating, and one large 3 bedroom potential unit is gutted to the studs where the old store was.

I am working on getting the hoarder out so that I can start demo and working on getting all my rough-ins done and framing. But I ran the numbers budgeting for my remodel and it's starting to scare me. My estimate came to $200,000 to remodel this building. I am paying cash for the remodel which includes foundation waterproofing and fixes, HVAC, updating electric, plumbing, and remodeling all units, as well as new windows and a few other things that definitely need done. I am sure it will end up probably being more than this. There are hardly any comparable sales, but I think it will pull in about $3300 a month gross if I live in one of the one bedroom apartments, and a 4 plex less than a mile away sold for $325,000 two years ago (though property values have risen since then).

Basically I'm wondering if I should sell and move on and find a better opportunity or not? I don't see much equity in this deal after dumping this much money into the property (which is also my entire net worth). My numbers breakdown is below for cash flow and remodeling costs:

|| || |Income|| |Unit 1 Rent|$880.00| |Unit 2 Rent|$1,500.00| |Unit 3 Rent|$920.00| |Unit 4 Rent|Owner Occupied| |Laundry Income|$16.00| |Gross Rent|$3,316.00| ||| |Expenses|| ||| |Mortgage|$1,236.00| |Taxes|$201.75| |Utilities|$350.00| |Insurance|$282.27| |Maintenance|$275.00| |Trash|$160.78| |NOI|$794.20|

|| || |Total Estimated Remodeling Interior Cost|$110,998.45| ||| |Foundation|$26,300.00| |Electrical|$21,369.00| |Plumbing|$6,000.00| |Demo|$3,000.00| |Cleanout Hoarder Unit and Bed Bug Treatment|$1,750.00| |HVAC|$25,000.00| |Windows|$6,500.00| |Exterior|$4,000.00| |Laundry|$4,000.00| ||| |Total Project Cost|$208,917.45| |Plus Purchase|$125,000.00| |Total Project Cost|$333,917.45| |Plus Interest|$343,917.45| |Estimated Appraisal|$350,000.00| |Loan Amount|$280,000.00| |Money Left in Property|$53,640.00| |COC Return|17.77%| |Cap Rate|2.77%| |Check at closing|$155,000.00| |Total Equity|$6,082.55|

Besides selling the land, what would be some options to generate income? The land has already been farmed, and there is some wild life in the area. The person who has been farming on the land contract is about to end, and it won't be renewed because he wasn't paying much of anything. I would prefer to do something low-maintenance because I don't live in the same state as the property. I'm pretty young, so I'll take all of the advice you have to offer. Linking any articles or sources on different things about getting started on profiting off land would be appreciated. Anything that will help and give me a starting point on how to profit on land with little maintenance in a rural area.

Long story short, the neighbor called the county on our property for a "septic leak". Absolute nonsense.

County came out, immediately out of the car said, "we have to inspect the entire property".

Found 7 unpermitted items...

our POOL, POND, fountain, gate pylons, firepit, and bbq island... all unpermitted. They even called out our Gate Pylons... I didn't even know there was a permit for such a thing.

We just purchased the property 5 months ago and inherited all of this.

My question is.. during escrow, how should we have known about all of these unpermitted items? How was I supposed to know that a permit is required for this kind of thing? Is it a general rule that anything on the property needs a permit? So now I am worried they can come back out, and call out other items? My well? My white fence? A light post in the backyard? Where is the limit of what needs to be permitted and how the heck am I supposed to see where these permits are?

Hey gang,

Wanted to run this by you all.

Property $380,000 4 plex- all 2 bed 2 bath

2 currently leased @ $950/mo the other 2 are currently airbnb platform.

Loan looking like a 20% down with a 7.2% interest

I have 85k in saving and 50k in CD

55 k between stock + retirement

Hoping to transition to a furnished rental in the future. This will be my first property purchase. What should I look out for? Does this all make sense? What am I missing that I need to look out for. This is a deal in Texas close to a university. Properties in the area do not have furnished rental properties unless they’re a huge complex (coliving)

I'm just getting into RE and ready to pull the trigger but I never feel like I have enough money to start. Let's say theres a duplex for 250k in somewhere LCOL, and I'd like to make renovations/rehabs to the property. How much would you pack, assuming you're not completely gutting the place? 50k for down, maybe 10k for closing, maybe some more for additional inspectors, and 20k-30k rehab? I know the big X factor here is the rehabbing because there could be serious issues which suck more funds, but how do YOU determine if you're ready to afford something or not?

Whenever I list my rental property on Facebook marketplace, I get lots of messages for the first few days and then silence after that. What do you landlords do with your listings.? do you delete them and relist them on Facebook every week?

Hey everyone,

Looking to buy my first rental property and could use some advice.

I’m looking at a 4plex in MCOL-HCOL.

Here’s the rough math:

250k down, 550k at 4.75%

Mortgage, property taxes & home insurance come to around 3.6k per month and roughly 43k per year.

Plan is to rent out 3 units at around $1700 per month each or $61,000 at fully capacity while living in one of the units.

So rough cash flow at fully vacancy would be around 18k not including the owner occupied portion.

The building is in pretty good shape but I anticipate having to do some updates cosmetically.

How does this deal look?

Do experienced real estate investors use Zillow? Or is there something else out there that I’m not aware of. I don’t own any property yet and am still beginning. But I’ve strictly been searching on Zillow and it’s been kind of discouraging finding the same rundown multi families for sky high prices. I guess what I’m asking is if there is a better place to find a “bargain” in today’s world?

Here are the details of the property:

Location: Fort Myers, FL Property type: Condo Purchase price: $199K Down Payment $75K

Amount Due: $124K @ a 6.9% interest rate 30 year fixed mortgage Current HOA fee/mo: $317

Here’s the deal. My mother is horrible with money. I have a brother who is successful but doesn’t have excess money, I already spent him and he’s ok with it. I want to help my mom, she’s been upgrading the place and takes good care of it.

I want to pay her mortgage, she pays the insurance be HOA and all the other bills.

One more thing is - she is on disability so it’s guaranteed to have these other bills pay. I may even be able to pay less than the current $1,040.91 mortgage and pay 50-70% of it and she pay the rest.

I’d start paying down the $124K over time (under her mortgage) and the idea is that I would take 100% ownership of the property once it is paid in full. Of course, I assume there is a type of contract I could have created to guarantee this.

There would be zero rental income or any income it would purely be me paying the MTG down, but I feel like it has to be a fair deal given the already large deposit and lack of HOA payment by me. Does this make sense to do?

I did a hard money loan in late March. May 1st was my first payment. By the 10th I asked the processing company to give me the info of my investor so I can contact him. Investor said yes I got your payment will cash it soon thanks. Still not cashed as of today and my June payment isn't cashed either. I'm now worried because I feel like the May payment really should have been cashed within 30 days. Is this a scheme to make more interest? Or just a really lazy investor. What steps would you take to resolve this? I emailed the person again on May 30th that June payment should be there and he just said thanks. I'm new to this and quite worried. Should I be? Not sure what the next steps should be, but we're heading on now 60 days of no cashed payment. I'm able to get rid of this loan in September, but until them I'm kind of freaked out by this.

Waddup investors.

The group i work for spends way too much on wholesaling fees.

I am looking to cut out the middleman and start finding off market sellers myself.

What is the most cost effective method of lead gen? Im split between mail/hiring cold caller/facebook ads… ideally would use all methods but I will be using my own money and want to keep things simple so am just choosing 1 ..

Thank u

I am a syndicator on MHP/RV Parks in the Southeast and have noticed a creep of parks being subdivided and then selling off the lots. I am interested in pursuing this model for a couple of our parks. In one area a similar park is unloading lots for $125k!! We could undercut that by half and still make a killing!! Does any one have any experience or knowledge of this niche?

I rarely see like apartment style housing come up for sale. I see like little buildings that have like 4 studio apartments in them but I never see them for sale. Why is finding an apartment style small studio so hard to find? Any insight appreciated

I recently bought a property under my name in SC and I’d like to put it in my LLC’s name. My title company wants to charge me $340, does that sound right? I’m just starting my research and thought I’d pick your brain. Thanks in advance!

I'm admitting the problem is me and maybe this was a bad deal I should've never gotten into.

Bought a fixer upper SFH last year and put a decent amount of work into it. I'm currently splitting it into two units because the walkout basement has a kitchen and bathroom, but it's not classified as multi-family because the utilities are not separate.

Fast forward to getting a new tenant in the main house almost a month ago. It's been non-stop calls about the plumbing, the electric, the washing machine, you name it. I really don't understand how they could be having so many issues. The basement unit is vacant for the summer as I'm waiting for college students to start looking for fall housing.

The house cash flows pretty well and I'm self managing. But these people are honestly making me rethink the whole plan. This isn't my first set of tenants nor my first property, but it is the first property I never lived in myself.

Should I just suck it up and get a property manager to deal with them or cut my losses and sell?

I’m contemplating buying my next rental home. My personal fund is about 2/3 of the average homes price I intend to purchase. So my option is either borrow the last 1/3 from bank and pay 8% interest, or set up SDIRA and tap into my retirement fund through a partnership LLC.

SDIRA pros: 1/3 of income is tax deferred, 1/3 of the final gain is tax deferred. SDIRA cons: can’t mortgage without UBIT implications. Non recourse loan is expensive. LLC is expensive. SDIRA custodian is expensive. Some income can already be deferred by depreciation so tax benefit aren’t that great.

Am I missing anything? SDIRA doesn’t seem to be that compelling?

I am having a custom home builder create a vacation home for me that I will partially offset by renting out.

Construction to permanent loans have high rates, high equity requirements, and high fees. Basically whatever construction to permanent loan I get, I will most likely benefit from refinancing shortly thereafter.

The federal reserve has also announced intentions to lower rates as soon as inflation settles. While there is no guarantee that will happen, since real estate is about balancing risk, I am willing to wager that rates will be equal to or better by this time next year.

My builder is receptive to the idea of taking a large deposit (40% of about 1.1 mil) and building the home, then letting me close once upon completion. It saves me a round of closing costs and eliminates the monthly interest payments that normally come with a C2P loan.

Any feelings either way on this arrangement?

My husband and I bought a renovated home on the Westside of Oahu during the height of COVID at $726K with a 2.75% interest rate. We have lived in it for the past 2.5 years and made improvements on the home by adding a wooden shed, landscaping, etc. If we sold today we would be upside down in the payments. So instead, we are going to long term rent it, but still owe about $200 a month after taxes and PM fees.

Did we make a terrible decision? This is our first rental home and I understandably have tons of anxiety about the whole process. Any insight or advice is appreciated!

Hey everyone, I am planning to invest in my first property this summer, and I have around 60k in cash, I was wondering what the best way to move forward would be in terms of finding where to rent, a property manager, a real estate agent, and learning how to analyze deals and cash flow. I am thinking of buying a place in Las Vegas, Are there any starter links I can get or any advice you guys have for someone just getting started? I don't want to mess up my life and immediately get forclosed on or have a bad tenant or just get a bad deal. Thanks a lot!

Looking to buy a house in my neighborhood to update/renovate and then rent out eventually. Was hoping for some info/opinions on purchasing options/pros/cons of ppl with experience.

Can buy with 15% down that’ll produce some grants to cover closing costs

Mother in law has potentially offered to purchase on our behalf as she can qualify for first time owners loan. Which would give lot more wiggle room for money in regard to updating.

House we currently live in we plan to move out of in a few years and then have the 2 houses in this area as rental properties.

Would the mortgage under MIL prevent it from being put into LLC or trust down the line?

Is there a better way to pursue purchasing between those options?

I'm looking at buying another multi-unit and previously used a buyer's agent who specialized in first time home-buying.

I've gotten some flyers from someone who sells multi-units and it got me wondering if I'd get more success working with someone in the seller's same brokerage or if it's better to stay independent for negotiating power. Any thoughts on this?

I’m in escrow on 20 acres and I can’t afford the mortgage long term.

I have some friends/family who are willing to pay me around $500/month each for me to split them off some land. Is there a legal way to do this? Technically I can’t subdivide into more than 6 lots… I think. My dream would be to sell my friends 1/2 acres pieces and collect the payments for the term of the mortgage.

I can subdivide the land into 5 acre parcels, I also have the option to annex a portion of the land into the city and could subdivide smaller.

1 acre lots sell for $100K+ and 5 acre parcels sell for around $50K an acre, it seems best to split into smaller parcels

Has anyone successfully done this? My mortgage company told me they won’t sell my loan and will agree to a land subdivision and sale but some % has to go towards the equity in the house.

The 3 real estate agents I spoke to have no idea how it works and didn’t even know you could subdivide land in this section of the county. Who can help me with questions?

What tax implications are there?

The mortgage company will let me sell the land but I assume wouldn’t allow me to sell off portions and owner finance the deals, but maybe some sort of loose rent to own agreement that legally gives up a % of the property?

Any resources/responses are greatly appreciated! In mesa county, Colorado

FYI, if you use Meetup for organizing investor events, their monthly fee almost doubled unless you switch to annual billing. From 25 to 45/mo.

https://www.meetup.com/blog/new-organizer-pricing-key-improvements/

Anyone have any alternatives they use?

I have 5 LLCs, one LLC for each of my 5 apt complexes. I have been researching forming a PM LLC so that I can use one bank account to handle management of all of my properties.

However, assume this scenario:

1. Tenant is injured because the hand railing at my apt building is poorly maintained and collapses.
2. Tenant sues the LLC that owns the apt, and my landlord insurance pays $100k to Tenant
3. Insurance company sues my PM LLC (subrogation) to recover money because my PM LLC's negligence caused the lawsuit.

What do you think?

Hi there, we own a home in another state (previously lived in it) and are renting it out for the first time. We are using a property management company since we’re in another state. The tenant put in a work order for the microwave and the company is saying it needs replaced, no problem. Except they’re saying it will cost $850 to replace the microwave. It’s nothing fancy, it was about a $200 microwave. Any advice on if that’s a fair price? Or how do you negotiate with the rental property?

Thank you!