Home Buying & Real Estate Thread

LiLcHiCo4LiFe said:
Can't believe what a year 2016 has been. Aside from my buy and hold, cash flowing properties, I had been working on my only flip of the year. It was discouraging after the deal fell through 4 times. So happy to say I closed the deal earlier this week. Bought and sold within 11 months. Can't wait to see what 2017 has in store
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Wishing everyone a prosperous new year!
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Congrats Chico, was this property down in Florida? 
 
LiLcHiCo4LiFe said:
@solecali Thanks! Do you focus on rentals or flips?
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The first house I got for my folks. The second house was a place I got with my brother that we ended up living in. I got married this year so my wife wanted to move to a place with a better school district for our son. We're hoping to get into rental properties in a few years after we build back our savings from this recent purchase. I wish I had time to flip homes but it's just not in our schedules. Do you do this on the side or is this your full time gig?
 
capital sb capital sb That's great. It's nice to have a partner or 2 to be able to expand. My brother graduated from college earlier this year and is managing all of my rentals. I've asked him to partner up with me on any flips I intend on doing in the near future.

I'm liking commercial because of ways I can structure the deal. On this past flip, I structured it to where I still own the business. I sold just the land and building to an investor. Aside from selling the property, if I were to sell the business tomorrow, I'd make an additional $150k.
 
Couple of questions for those of you with biz partners....

What did each partner bring to the table? Is it an equal partnership money and time wise or is it more of an investor type partnership.

Is it a 50/50 split?

Do you have other biz partners where you have separate deals?
 
I'm looking at a few potential rental properties right now. I'll be getting into the flip game in the near future. I'm doing the education right now.
 
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Dam itz Lou said:
Has anyone in here had solar panels installed ? Is it worth it ?
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I got solar installed here in California, I got it through "HERO" program which allows you to put a loan on the property taxes (the loan will be tax deductible, cause property taxes are tax deductible), and you can pass on the loan if you sell the place. Solar works for me cause:
I got a Duplex and had energy bill 150$+ per unit

Ordered Tesla (pure electric car)

added 40k equity in my home so bring me up enough to get rid of PMI

I go green
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I got quoted for $45K before any tax deductions for a 10KW system that would knock off $200 a month from my electricity bill.
 
Pdino said:
added 40k equity in my home so bring me up enough to get rid of PMI
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what do you mean? Did the bank re-finance or re-appraise the property? how many PMI payments did you have left?

it sounds like you bought solar correct? I heard the system can be leased, but does that still give any tax benefits etc.?
 
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Check out Google's solar project too -- it's interesting and you can find the providers in your area.
 
Good morning ladies and gents,

are there any (lack of a better word or term) rules to abide by when considering buying a second home?

Im looking to buy a second home to rent out, like some have talked about on here for the investment/having a bit income/gaining of wealth by having someone pay the rent on the second home.

Im talking the rules like "not spending more than 33% of your income on housing," debt to income ratio, or rules of savings put away that need to be considered.

I know the bigger pockets site is often referenced, so i am going to dedicate some real time to reading up on it there (starting here, https://www.biggerpockets.com/real-estate-investing/) just curious if you guys have any stead fast rules yall believed should be followed?
 
jthagreat said:
Good morning ladies and gents,

are there any (lack of a better word or term) rules to abide by when considering buying a second home?

Im looking to buy a second home to rent out, like some have talked about on here for the investment/having a bit income/gaining of wealth by having someone pay the rent on the second home.

Im talking the rules like "not spending more than 33% of your income on housing," debt to income ratio, or rules of savings put away that need to be considered.

I know the bigger pockets site is often referenced, so i am going to dedicate some real time to reading up on it there (starting here, https://www.biggerpockets.com/real-estate-investing/) just curious if you guys have any stead fast rules yall believed should be followed?
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Here is a simple one:

The 1% rule.

The 1% rule says the monthly rent from a rental property should be 1% or more of the cost of a rental property.

Example: If the property costs $50,000, monthly rent should be at least $500 or more.

Now if the property costs $50,000 and you're able to get $1000 in rent, that follows the 2% rule which is even better.
 
LiLcHiCo4LiFe said:
jthagreat said:
Good morning ladies and gents,

are there any (lack of a better word or term) rules to abide by when considering buying a second home?

Im looking to buy a second home to rent out, like some have talked about on here for the investment/having a bit income/gaining of wealth by having someone pay the rent on the second home.

Im talking the rules like "not spending more than 33% of your income on housing," debt to income ratio, or rules of savings put away that need to be considered.

I know the bigger pockets site is often referenced, so i am going to dedicate some real time to reading up on it there (starting here, https://www.biggerpockets.com/real-estate-investing/) just curious if you guys have any stead fast rules yall believed should be followed?
Click to expand...

Here is a simple one:

The 1% rule.

The 1% rule says the monthly rent from a rental property should be 1% or more of the cost of a rental property.

Example: If the property costs $50,000, monthly rent should be at least $500 or more.

Now if the property costs $50,000 and you're able to get $1000 in rent, that follows the 2% rule which is even better.
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There's no way that can be true :lol:
 
Stork said:
what do you mean? Did the bank re-finance or re-appraise the property? how many PMI payments did you have left?

it sounds like you bought solar correct? I heard the system can be leased, but does that still give any tax benefits etc.?
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​Yes, I had the bank refinance/re-appraise my property so I could get out of my PMI payments. I did an FHA 3.5% loan, that I used to purchase my place Sept 2015, I'm not sure how many PMI payments I had left, but I had 3.5% down, and needed to hit 20%, so, several years worth of them. (they were about 300$/mo)

Yes, I bought solar. If I leased it, it doesn't add equity to my home, it's not MINE, I'm borrowing it. By purchasing it, I added the cost of solar panels (probably less) to the cost of my home. By leasing it, It still gives the tax benefit, but usually goes to the company you're leasing to, which isn't worth it imo. The tax benefit is huge, 30% tax CREDIT back to you. So, I purchased for 40k, I'm expecting 10k+ back on my tax return this year cause of my solar purchase,which I'll use to invest.
Dam itz Lou said:
I got quoted for $45K before any tax deductions for a 10KW system that would knock off $200 a month from my electricity bill.
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​I would get some other quotes, try energysage.com for several providers.
 
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a55a5in11 a55a5in11 Please explain why it can't be. All of my units are 1.25% or better.


Also, if it does fail to meet the 1% rule, buy only if it has room to appreciate.
 
LiLcHiCo4LiFe said:
a55a5in11 a55a5in11 Please explain why it can't be. All of my units are 1.25% or better.


Also, if it does fail to meet the 1% rule, buy only if it has room to appreciate.
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I don't know a single home valued at 300k renting for 3k a month. Maybe 2k. If that was so easily possible you could pay off your 30 yeah loan in 10 years.
Maybe in a certain minority of areas but in most of the world that ain't realistic
 
a55a5in11 said:
I don't know a single home valued at 300k renting for 3k a month. Maybe 2k. If that was so easily possible you could pay off your 30 yeah loan in 10 years.
Maybe in a certain minority of areas but in most of the world that ain't realistic
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shoot my house was 250k I wish someone would move in and pay me 3k a month that joint would be paid off asap. maybe 10 years like you said.
 
JayzOnMyToes said:
a55a5in11 said:
I don't know a single home valued at 300k renting for 3k a month. Maybe 2k. If that was so easily possible you could pay off your 30 yeah loan in 10 years.
Maybe in a certain minority of areas but in most of the world that ain't realistic
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shoot my house was 250k I wish someone would move in and pay me 3k a month that joint would be paid off asap. maybe 10 years like you said.
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If it was true I would cop 3 200k homes right now and rent em for 2k a piece. Shoot that's easily 3k a month profit. That's at the minimum 1% as well.
 
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