Author Topic: The Real Estate Investing Thread  (Read 14217 times)

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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #125 on: December 06, 2021, 05:36:09 PM »
Now take that 70k and put a down payment on a cashflowing small multifamily (2-4 units). Depending on location, a 10% ROI on the down payment isn't out of the question, thus giving you a $7k raise.
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Offline catastrophe

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Re: The Real Estate Investing Thread
« Reply #126 on: December 06, 2021, 05:38:46 PM »
My only advice is to crunch the numbers right quick on how long it would take you to recoup the closing costs based on conservative market gains (I’d say 5-6% to err on the safe side).

So long as you don’t think there’s a good chance of selling your house before then, ink that deal.

Offline yoga-like_abana

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Re: The Real Estate Investing Thread
« Reply #127 on: December 06, 2021, 06:27:21 PM »
Yeah that was my biggest concern. Through rocket mortgage it’s was going to be close to $5k(eff that). Talked to local bank and I think it will be $1000 loan origination fee and then just the normal title stuff (dumb) and appraisal


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Offline yoga-like_abana

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Re: The Real Estate Investing Thread
« Reply #128 on: December 06, 2021, 06:28:48 PM »
Any tax ramifications on a cash out refi that I’m not aware of? Feel like Uncle Sam has a way


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Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #129 on: December 06, 2021, 06:42:01 PM »
Any tax ramifications on a cash out refi that I’m not aware of? Feel like Uncle Sam has a way


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Offline catastrophe

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Re: The Real Estate Investing Thread
« Reply #130 on: December 06, 2021, 06:46:04 PM »
Yeah actually if you’re piling on debt against your house it can be a net tax positive because of the mortgage interest deduction.

Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #131 on: December 06, 2021, 06:51:08 PM »
Yeah actually if you’re piling on debt against your house it can be a net tax positive because of the mortgage interest deduction.
I think heloc interest deductions are possible, but not automatic.
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Offline catastrophe

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Re: The Real Estate Investing Thread
« Reply #132 on: December 06, 2021, 06:59:08 PM »
I think we’re talking cash out refi, not HELOC.

Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #133 on: December 06, 2021, 07:17:36 PM »
BTW, if anyone here thinks inflation might be a thing going forward, a low 30 year fixed loan against an income producing asset that will ride the inflation train is something to think about.

High inflation favors the debtor.
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #134 on: January 06, 2022, 09:20:35 AM »
Cliff's Notes: Price increases are slowing, but not stopping. I found it interesting the 3 worst top 50 metros "only" saw 5.4%, 6.9%, and 7.9% rent growths for the year. That's basically like saying you only got 5.4% raise this year and being one of the worst around the nation.

https://www.stessa.com/blog/the-2022-winter-housing-market-heating-up/

https://www.zillow.com/research/november-2021-market-report-30427/

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Offline steve dave

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Re: The Real Estate Investing Thread
« Reply #135 on: January 06, 2022, 09:46:17 AM »
Home values far surpassed rent growth?

Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #136 on: January 06, 2022, 10:15:18 AM »
@KITNfury do you do any air bnb’s with your rentals?
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #137 on: January 06, 2022, 10:55:30 AM »
@KITNfury do you do any air bnb’s with your rentals?
I haven't yet, but probably inevitable that I give it a try at some point. Maybe soon. Have a house my partner and I were going to flip but I think we're going to keep it via BRRRR strategy. Might make it a short term rental, but not sure yet. Also want to do it with my own house. I'll be traveling the lower 48 basically fulltime for around 1 year (at least that's the plan). Not selling my house either way, but considering STR so if I decide to come home early, it's not tied up in a long term lease.

One interesting thing about STRs is that there are people literally getting rich by air bnb arbitrage. They essentially rent apartments (and let the landlord know the plan so they are on board), and then list those apartments for short term rentals and collecting the difference between rent and STR income. You just need to come up with the deposit, rent, and furnishings. Not necessarily "cheap", but less money typically than buying at 20% down. Like anything else, need to run the numbers right.
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Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #138 on: January 06, 2022, 10:57:14 AM »
Yea I have a buddy that’s jumping into real estate and going to give the air bnb thing a go.   I imagine it comes with more headaches but the ROI looks phenomenal.
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #139 on: January 06, 2022, 11:13:59 AM »
Yea I have a buddy that’s jumping into real estate and going to give the air bnb thing a go.   I imagine it comes with more headaches but the ROI looks phenomenal.
I personally would not consider self managing them, but yea the numbers can be very good. More hands on, but more returns assuming the right location and dwelling. I wouldn't buy one unless it would still at least sort of work for a traditional rental. If the numbers only work as an STR, you do run the risk of the local jurisdiction shutting down STRs. Some places, like Hawaii, have very limited (legal) STRs.
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Offline puniraptor

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Re: The Real Estate Investing Thread
« Reply #140 on: January 06, 2022, 11:02:39 PM »
apparently since i dont live in my house and it is rented out, nobody will touch me with a refi :(

except as investment property and then the rate isnt tastie enough.

Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #141 on: January 07, 2022, 01:17:43 PM »
apparently since i dont live in my house and it is rented out, nobody will touch me with a refi :(

except as investment property and then the rate isnt tastie enough.
What rate were you quoted?
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #142 on: January 08, 2022, 12:42:42 PM »
Yea I have a buddy that’s jumping into real estate and going to give the air bnb thing a go.   I imagine it comes with more headaches but the ROI looks phenomenal.
Talked with a short term rental manager the other day and what he said was promising. Based on that convo, it might produce $500-1000 per month in profit after all expenses. That's crazy.

If it actually works out that way, I'll definitely start picking up some others.
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Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #143 on: January 08, 2022, 01:06:29 PM »
Yea I have a buddy that’s jumping into real estate and going to give the air bnb thing a go.   I imagine it comes with more headaches but the ROI looks phenomenal.
Talked with a short term rental manager the other day and what he said was promising. Based on that convo, it might produce $500-1000 per month in profit after all expenses. That's crazy.

If it actually works out that way, I'll definitely start picking up some others.

Who’s the regulatory agency that would play party spoiler on STR regulation?  It’s the only thing that makes me a bit nervous.
When the bullets are flying, that's when I'm at my best

Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #144 on: January 08, 2022, 01:22:23 PM »
Yea I have a buddy that’s jumping into real estate and going to give the air bnb thing a go.   I imagine it comes with more headaches but the ROI looks phenomenal.
Talked with a short term rental manager the other day and what he said was promising. Based on that convo, it might produce $500-1000 per month in profit after all expenses. That's crazy.

If it actually works out that way, I'll definitely start picking up some others.

Who’s the regulatory agency that would play party spoiler on STR regulation?  It’s the only thing that makes me a bit nervous.
Probably the biggest threat would simply be the city or potentially an HOA from what I understand. For instance I think Kansas City has some sort of regulation on what percentage of units in a multifamily can be STR. So no turning a 12 unit into a small hotel. They could probably decide to "outlaw" it altogether if they wanted. I wouldn't think too many cities want to do that, though.
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #145 on: January 17, 2022, 12:20:01 PM »
I might be the only person here that is interested in this thread lol, but nonetheless I'll share this. Episode 553 of the biggerpockets podcast is worth a listen. Some thoughts on what is happening right now and what will happen. Always form your own opinions of course.
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #146 on: June 18, 2022, 04:09:06 PM »
Is it my turn to take it in the shorts or will I just continue pity my stock/crypto buds? Stay tuned!!
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Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #147 on: June 18, 2022, 05:54:31 PM »
Has it become harder for you to find new investment properties since all the SFH are being snatched up by investment banks?
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Offline KITNfury

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Re: The Real Estate Investing Thread
« Reply #148 on: June 18, 2022, 06:03:39 PM »
Has it become harder for you to find new investment properties since all the SFH are being snatched up by investment banks?
Most people I've spoken to on this topic over estimate the percentage of housing being bought up by these big firms.

But I don't really do much with SFH, so it's not something that directly affects me. No personal experience going up against them.
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Offline wetwillie

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Re: The Real Estate Investing Thread
« Reply #149 on: June 18, 2022, 06:08:34 PM »
Swooping in on them apartment buildings huh fam
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