Home Buying & Real Estate Thread

turbospartan said:
What numbers / formula did you use to determine if it was worth it? How much are you cash flowing?
Click to expand...

For me it was different because I am currently house hacking. I live in one unit and rent out the second unit. After calculating all expenses, The rental pays for more than half the monthly mortgage. I know there are a lot of different formulas out there (1%, 2%, etc), but that varies a lot based on location and whether you find a great deal. I live in nyc which is a HCL area, so I might not be able to get 2% return. For me, I would calculate the mortgage amount with everything included, and then compare it to the rental comps in the area to see what kind of cash flow you can net per month. If you aren’t able to net more than a few hundred a month, I wouldn’t do it.
 
crazy caballo said:
The house was put for sale in 2008 for 199k it sold in 2009 for 170k it defaulted in 2019 and it has been shortsale for 44 days. It is going in foreclosure next week.
Click to expand...
Bank probably isn't going to give you much of a counter with the property only being on the market for that long. Also, why are you paying a realtor $5k? At least here in MD, the bank covers realtor fees. That's already built in to whatever the bank is trying to net.

Is the ARV of the property around $200k?
 
chino905 said:
For me it was different because I am currently house hacking. I live in one unit and rent out the second unit. After calculating all expenses, The rental pays for more than half the monthly mortgage. I know there are a lot of different formulas out there (1%, 2%, etc), but that varies a lot based on location and whether you find a great deal. I live in nyc which is a HCL area, so I might not be able to get 2% return. For me, I would calculate the mortgage amount with everything included, and then compare it to the rental comps in the area to see what kind of cash flow you can net per month. If you aren’t able to net more than a few hundred a month, I wouldn’t do it.
Click to expand...

Yea, thats what I'm trying to determine, and gain any insight into how I could go about it.

This building I found, would "cost" me roughly $2k per month (mortgage, taxes, vacancy, insurance, maintenance, etc..) and the possible gross rent is $2800/mo (2 2-bedrooms that rent for $800 each, 2 1-bedrooms that rent for $600 each). Still getting more info about it, but seems like it would be cash flow positive at a minimum.

As far as the other side of it, I was thinking of partially funding with a cash out refi on my current house - as I want to refi to drop PMI anyway
 
Newsday’s paired testers visit real estate agents across Long Island to see if they will be treated the same....

Be careful who you're doing business with and ALWAYS do your own research!!!

projects.newsday.com

Watch: Testing the Divide

We sent people undercover to house hunt. They thought agents treated them well. Then we showed them the hidden camera footage and listings.
projects.newsday.com projects.newsday.com
 
Present said:
Newsday’s paired testers visit real estate agents across Long Island to see if they will be treated the same....

Be careful who you're doing business with and ALWAYS do your own research!!!

projects.newsday.com

Watch: Testing the Divide

We sent people undercover to house hunt. They thought agents treated them well. Then we showed them the hidden camera footage and listings.
projects.newsday.com projects.newsday.com
Click to expand...
Watched the whole video, It's a shame that in this day and age we're steered into neighborhoods we have no interest in. Like the lady said " I have money, I should be able to live wherever I choose to.
 
Present said:
Newsday’s paired testers visit real estate agents across Long Island to see if they will be treated the same....

Be careful who you're doing business with and ALWAYS do your own research!!!

projects.newsday.com

Watch: Testing the Divide

We sent people undercover to house hunt. They thought agents treated them well. Then we showed them the hidden camera footage and listings.
projects.newsday.com projects.newsday.com
Click to expand...
I mean we don't need the news to know this has been happening forever right? That's why my Wife and I took it into our own hands figuring where we wanted to live. It is unfortunate and definitely choose the right people to work with. Sadly this is how it works.

All I can say is spend your money in your neighborhood. We chose the neighborhood with more minorities, because we are minorities and we don't let that type of stuff scare us. We would rather our money and property taxes go to schools that really need it, and businesses that are for us. Be advocates in your neighborhood too. Tell them you don't want the liquor stores you want the same things these "white" neighborhoods get. /rant haha...
 
Selling our TH has been hell. Buyer asked for a new deck and new roof. That’s 40k at least. Smh
 
turbospartan said:
Yea, thats what I'm trying to determine, and gain any insight into how I could go about it.

This building I found, would "cost" me roughly $2k per month (mortgage, taxes, vacancy, insurance, maintenance, etc..) and the possible gross rent is $2800/mo (2 2-bedrooms that rent for $800 each, 2 1-bedrooms that rent for $600 each). Still getting more info about it, but seems like it would be cash flow positive at a minimum.

As far as the other side of it, I was thinking of partially funding with a cash out refi on my current house - as I want to refi to drop PMI anyway
Click to expand...

Yeah you seem like you are good to go there.

New California laws for anyone looking to buy in CA and rent
 
dcallamerican said:
mplsdunk mplsdunk

Click to expand...


that video is 100% facts. if your house is on the market longer than the weekend something is seriously wrong.

what’s wild to me is all the new condos going up and it’s still not enough. I feel like they are just too expensive though because some stay with vacancies.

that dude was high though when he said Minneapolis has the best public transit, it for sure doesn’t and it’s not even close to Chicago’s or dc’s or the bay area’s.

I had to leave Minneapolis and move to St. Paul. I don’t regret it one bit. I got more bang for my buck and Minneapolis has HORRIBLE traffic now.

Personally I feel you still need a car here, that dude lives in a bougie hipster neighborhood, all the stores that were close to him are real expensive and small. For him to go to target he’d have to bike a half hour and even longer by bus.

Minneapolis isn’t bad though, it’s a cool place to live if you can deal with the winters. Jobs pay well, i’d say check out at Paul though if you’re thinking of moving here first. It’s a lot more affordable and way less congested and just a few minutes away. I’m glad it’s blowing up now, it used to feel real “small town” to me as a kid. It doesn’t anymore. Plus it’s good for my job being in the trades.
 
Last edited:
If you're looking to buy to flip/rent would it be smart to do the 3-5% down payment instead of the default 20%? Dont want to put 20% down on anything I wont live in. Paying the couple hundred dollars for PMI is better than a 150k down payment.

Most NYC laws dont allow you to rent the basement if you buy a house. Not sure if I want a stranger in my basement anyway.
 
ballinsam23 said:
If you're looking to buy to flip/rent would it be smart to do the 3-5% down payment instead of the default 20%? Dont want to put 20% down on anything I wont live in. Paying the couple hundred dollars for PMI is better than a 150k down payment.

Most NYC laws dont allow you to rent the basement if you buy a house. Not sure if I want a stranger in my basement anyway.
Click to expand...
15-20% needed for down payment in properties you don't live in I thought
 
has anybody rented out a unit that is in another state than where they live? I'm looking to hire a property mgmt company to rent out and see if it is worth it. any advice how I should go about this?
 
shookonez said:
has anybody rented out a unit that is in another state than where they live? I'm looking to hire a property mgmt company to rent out and see if it is worth it. any advice how I should go about this?
Click to expand...

All my out of state properties are managed by property managers. Standard is they take 10% of your total rents. Interview them as they'll be working with you. Ask them whatever questions are relevant to your situation(from bigger pockets):
- How many units do they manage by Class A, B, C?
- What is the smallest and largest property they manage?
- Do they specialize in a certain class, size, etc type of property?
- Do they know the subject property you’re looking at?
- Ask them how they think they are different than their competitors.
- Do they have their own construction crew?
- If you have them manage rehab project, how much do they charge?
-How many employees do they have?- - Ask them for a sample report they provide with their monthly reporting.
- Ask then for a sample management agreement.
- Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
-Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
-Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
-Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
- Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
-Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
 
pdino said:
All my out of state properties are managed by property managers. Standard is they take 10% of your total rents. Interview them as they'll be working with you. Ask them whatever questions are relevant to your situation(from bigger pockets):
- How many units do they manage by Class A, B, C?
- What is the smallest and largest property they manage?
- Do they specialize in a certain class, size, etc type of property?
- Do they know the subject property you’re looking at?
- Ask them how they think they are different than their competitors.
- Do they have their own construction crew?
- If you have them manage rehab project, how much do they charge?
-How many employees do they have?- - Ask them for a sample report they provide with their monthly reporting.
- Ask then for a sample management agreement.
- Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
-Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
-Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
-Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
- Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
-Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
Click to expand...
appreciate the advice!

a mgmt company i'm looking at charges flat rate of 10% of rent, no additional fees. however, they do charge 1 month's rent for finding, vetting, and placing a tennant. they have solid reviews on google. they have a network of contractors for maintenance issues. I'm considering using them once i figure out what the cashflows will be like.

from your experience, how often do pumbing, electrical, or HVAC issues arise with your properties? and how do you deal with them through the property mgmt co.? i'm concerned of getting bad tenants who will be reckless with my property as far as wear and tear and damage they might cause.
 
You must log in or register to reply here.

Thread Gallery

View Full Gallery

The ultimate sneaker enthusiast community.

NikeTalk was created as a way of giving back to both the sneaker enthusiast community and to the greater global community of which we are all a part.

NikeTalk is NOT affiliated with Nike Inc. in any way, shape, or form. All opinions expressed herein do not necessarily reflect those of Nike, Inc.

© 1999-2024 NikeTalk.com

Share this page

Back
Top Bottom