Home Buying & Real Estate Thread

[fontaine]

I would advise against owning homes just for rental purposes...

You can flourish with that money in ETFs and REITs

 

[fontaine]

I'm looking to do a small place no more than 1000 square feet. Small bachelor pad. Pops friend builds these small homes in 90 days.

Heres one I really like. It's only 400 sqft but as a Navy veteran I'm used to storing my worldly possessions in a space the size of a coffin.

Love them types of homes...

I don't think they have the same reale value aa your standard 3 bed room 2 bathroom place...

Dope thats probably a mansion for what you are used too. Thanks for your service

PM SENT.

 

[zapatohead408]

I would advise against owning homes just for rental purposes...

You can flourish with that money in ETFs and REITs

Can you please elaborate?

 

[fontaine]

Can you please elaborate?

well, homes are a consumption good...

They can be great investment tools, but at the end of the day, they're still very personalized and people could be turned off by the slightest thing...

Plus, you can't move them or sell them like a stock. Their very non liquid and require realtor's, listing, etc.

With ETFs and REITS you enjoy the returns, ebbs and flows of the housing market but its diversified over multiple properties, not just one.

Plus, in places that aren't named LA and NY, homes dont really appreciate on value as rapidly because they're not blocked geographically.

With la, you have mountains. With NY, its a damb island.

Houston, you just keep building north.

I just think of you're going to housing solely for investment, you can get the benefits of it through diverse vehicles like ETFs and REITs without the headaches of being a landlord.

There's a **** ton of stuff when it comes to being a property manager. **** ain't easy.

 

[utvol23]

Definitely not a primary means of investment better to view it as a perk of home ownership

 

[edshoecator]

Can you please elaborate?

Firsthand experience.

I have a house that rents to college kids and breaks down as $3200($800 a room, max 2, so $400 split if they choose) -2k mortgage (includes equity payment for remodeling) so I make $1200 a month off that property. 

I have an owner occupied duplex that rents for $1500-$1100 mortgage so I make $400.

$1600 a month. This last month though? 2k in repairs (plumbing/landscaping issues)

I dont pay a mortgage, but man, there are days where I want to break down and cry.

My tenants are ok, timely payments, no complaints, but these old *** houses in L.A. are money pits.  

Add to that, I'm always trying to improve my tenants experience so I don't go unrented, and sometimes I put too much on myself cause I'm hands on and don't want to be a slum lord who only cares about the money.

I can easily contract to Section 8, and not fix anything, and just get people in for that guaranteed check but I take pride in my homes and screen the hell out of tenants.

It's a headache that sometimes got me searching TX, ATL, SC on zillow 

 

[crcballer55]

Buying a home now for cash and seller wants to stay in possession for five days after closing so he can use the money from it to move. I told him not a chance. Supposedly this is not wildly uncommon, as you can draft up post-closing possession agreements, work with insurance providers, etc. but I'm not with it. Now it's becoming such a big deal that I might lose the house and it's not easily replaceable.


Thoughts?

Yes, rentbacks are pretty common. That should have been agreed upon when the initial offer was agreed upon. It shouldn't be too difficult for your Realtors to draft up a rentback agreement after closing though. Honestly, 5 days is nothing. If anything, you can get 5 days of your first month's mortgage paid for by them.

We went through the same thing earlier this year. We closed on the sale of our home and stayed there until our other home closed a week later. There were tenants in the new home too, so we were able to collect from them while paying the new owner of our old home. As long as the transaction hasn't gone sideways over something stupid, you should be pretty safe since the seller has already had a vested interest in their home. It's not like a typical tenant that doesn't care about the property.

 

[crcballer55]

 

Can you please elaborate?

Firsthand experience.

I have a house that rents to college kids and breaks down as $3200($800 a room, max 2, so $400 split if they choose) -2k mortgage (includes equity payment for remodeling) so I make $1200 a month off that property. 

I have an owner occupied duplex that rents for $1500-$1100 mortgage so I make $400.

$1600 a month. This last month though? 2k in repairs (plumbing/landscaping issues)

I dont pay a mortgage, but man, there are days where I want to break down and cry.

My tenants are ok, timely payments, no complaints, but these old *** houses in L.A. are money pits.  

Add to that, I'm always trying to improve my tenants experience so I don't go unrented, and sometimes I put too much on myself cause I'm hands on and don't want to be a slum lord who only cares about the money.

I can easily contract to Section 8, and not fix anything, and just get people in for that guaranteed check but I take pride in my homes and screen the hell out of tenants.

It's a headache that sometimes got me searching TX, ATL, SC on zillow 

You have rentals in L.A.?? RIP

You better pray you don't have to go through the eviction process on one of those. It's HELL trying to get a tenant out there. If they have kids or a disability? Cash for Keys will cost you almost $19,000 by city ordinance!

 

[edshoecator]

You have rentals in L.A.?? RIP

You better pray you don't have to go through the eviction process on one of those. It's HELL trying to get a tenant out there. If they have kids or a disability? Cash for Keys will cost you almost $19,000 by city ordinance!

I know. A big part of why I just want to let it be and cash out for a 300k-400k property here or 100-200k elsewhere and make the profit work for me the same way.

Luckily usc been good to me and the students are mostly international grad kids . Been lucky but tenants have you by the balls in l.a.

 

[zapatohead408]

You have rentals in L.A.?? RIP

You better pray you don't have to go through the eviction process on one of those. It's HELL trying to get a tenant out there. If they have kids or a disability? Cash for Keys will cost you almost $19,000 by city ordinance!

I know. A big part of why I just want to let it be and cash out for a 300k-400k property here or 100-200k elsewhere and make the profit work for me the same way.

Luckily usc been good to me and the students are mostly international grad kids . Been lucky but tenants have you by the balls in l.a.

Funny story an uncle of mine told me about. He owns a couple houses in San Jose and back in the 80's there was one man who refused to pay or move out. Dude was straight milking the system and was living there for months without paying rent. So one of my uncle's friends is in a local MC and found out about this so he went to pay the guy a visit. He threatened to put the guy in his car and light it on fire. Showed him his ID and info and told him to run to the police and rat, because one of his brother's would just finish the job. Dude was out within two hours.

 

[omariwestafari]

 

Can you please elaborate?

Firsthand experience.

I have a house that rents to college kids and breaks down as $3200($800 a room, max 2, so $400 split if they choose) -2k mortgage (includes equity payment for remodeling) so I make $1200 a month off that property. 

I have an owner occupied duplex that rents for $1500-$1100 mortgage so I make $400.

$1600 a month. This last month though? 2k in repairs (plumbing/landscaping issues)

I dont pay a mortgage, but man, there are days where I want to break down and cry.

My tenants are ok, timely payments, no complaints, but these old *** houses in L.A. are money pits.  

Add to that, I'm always trying to improve my tenants experience so I don't go unrented, and sometimes I put too much on myself cause I'm hands on and don't want to be a slum lord who only cares about the money.

I can easily contract to Section 8, and not fix anything, and just get people in for that guaranteed check but I take pride in my homes and screen the hell out of tenants.

It's a headache that sometimes got me searching TX, ATL, SC on zillow 

You have rentals in L.A.?? RIP

You better pray you don't have to go through the eviction process on one of those. It's HELL trying to get a tenant out there. If they have kids or a disability? Cash for Keys will cost you almost $19,000 by city ordinance!

la is a good place to make money investing in houses of your real sharp. about a year ago my dad was showig me some condos that got flipped in a couple months for like 2-3 hunna thousand

anyways my dad is trying to evict a bad tenant and he's in Los Angeles. any tips? crcballer55

 

[crcballer55]

 

 

 

Can you please elaborate?

Firsthand experience.

I have a house that rents to college kids and breaks down as $3200($800 a room, max 2, so $400 split if they choose) -2k mortgage (includes equity payment for remodeling) so I make $1200 a month off that property. 

I have an owner occupied duplex that rents for $1500-$1100 mortgage so I make $400.

$1600 a month. This last month though? 2k in repairs (plumbing/landscaping issues)

I dont pay a mortgage, but man, there are days where I want to break down and cry.

My tenants are ok, timely payments, no complaints, but these old *** houses in L.A. are money pits.  

Add to that, I'm always trying to improve my tenants experience so I don't go unrented, and sometimes I put too much on myself cause I'm hands on and don't want to be a slum lord who only cares about the money.

I can easily contract to Section 8, and not fix anything, and just get people in for that guaranteed check but I take pride in my homes and screen the hell out of tenants.

It's a headache that sometimes got me searching TX, ATL, SC on zillow 

You have rentals in L.A.?? RIP

You better pray you don't have to go through the eviction process on one of those. It's HELL trying to get a tenant out there. If they have kids or a disability? Cash for Keys will cost you almost $19,000 by city ordinance!

la is a good place to make money investing in houses of your real sharp. about a year ago my dad was showig me some condos that got flipped in a couple months for like 2-3 hunna thousand

anyways my dad is trying to evict a bad tenant and he's in Los Angeles. any tips? @crcballer55

Pay the $9000 or $18,000 to get them out? Honestly though, I would consult with a Real Estate attorney on that one. L.A. is a dicey place to perform an eviction. The only place worse in the state is Oakland from my experience.

When I was in evictions, we often joked about moving to L.A. and just squatting because we could live for free, then get $9000 just to leave.

 

[fontaine]

Wait what?

You get $9k to get evicted?

 

[thenewjs23]

My pops has properties in Cali mostly the ventura county and thousand Oaks area. He rents to military officers. No problems to be had, gives a discount to lower ranking guys that are in construction and they tend to the problems of the other properties. His deposits equal one months rent and 1st and last so you need damn near 6k just move in but he gets quality tenants. He puts their deposits in interest earning accounts and they stay there till they move and they get that and the interest earned back. He pays cash so there is no mortgage he lives off off the cali rents and stacks his 400k salary from his business. He just renovated 5 brownstones in Brooklyn and has 20 properties in Houston. He pays cash for everthing.

 

[crcballer55]

Wait what?

You get $9k to get evicted?

Not necessarily, but it takes so long, that it's often worth it for the landlord to give the tenant $9000 (or $18000 if there's a child, elderly, or disabled person living there). Keep in mind, $9000 is often 4 months of rent, and the eviction process in California can easily take up to a year to complete, and that's if there's no litigation brought forward by the tenant.

 

[thenewjs23]

Wait what?


You get $9k to get evicted?

Not necessarily, but it takes so long, that it's often worth it for the landlord to give the tenant $9000 (or $18000 if there's a child, elderly, or disabled person living there). Keep in mind, $9000 is often 4 months of rent, and the eviction process in California can easily take up to a year to complete, and that's if there's no litigation brought forward by the tenant.

Get you some military tenants. One call to their command and they will be out before you hang up the phone. It usually never comes to that.

 

[fontaine]

My pops has properties in Cali mostly the ventura county and thousand Oaks area. He rents to military officers. No problems to be had, gives a discount to lower ranking guys that are in construction and they tend to the problems of the other properties. His deposits equal one months rent and 1st and last so you need damn near 6k just move in but he gets quality tenants. He puts their deposits in interest earning accounts and they stay there till they move and they get that and the interest earned back. He pays cash so there is no mortgage he lives off off the cali rents and stacks his 400k salary from his business. He just renovated 5 brownstones in Brooklyn and has 20 properties in Houston. He pays cash for everthing.

dad's doing it.

Sounds like he got in relatively early in the game though...

 

[slicknick951]

My pops has properties in Cali mostly the ventura county and thousand Oaks area. He rents to military officers. No problems to be had, gives a discount to lower ranking guys that are in construction and they tend to the problems of the other properties. His deposits equal one months rent and 1st and last so you need damn near 6k just move in but he gets quality tenants. He puts their deposits in interest earning accounts and they stay there till they move and they get that and the interest earned back. He pays cash so there is no mortgage he lives off off the cali rents and stacks his 400k salary from his business. He just renovated 5 brownstones in Brooklyn and has 20 properties in Houston. He pays cash for everthing.

dad's doing it.

Sounds like he got in relatively early in the game though...

Trying to get my life on that path

 

[l smokecity l]

Some pics of the home I am considering. 7 bed 6.5 bath

I can get a 3.99% fixed doctors loan which is very tempting vs waiting and saving up the 20% down

Nice home.

Yea will be putting something down somwhere around 5-10%. Cant do a 100% loan because the mortgage would be over 650k. I will probably just wait and build up the full 20%.

If that's the case and with the mortgage amount being so high it would be better to just save up until you have the 20%. Have you already been in contact with a loan officer?

 

[l smokecity l]

Do you have a home warranty on your investment property?

Firsthand experience.

I have a house that rents to college kids and breaks down as $3200($800 a room, max 2, so $400 split if they choose) -2k mortgage (includes equity payment for remodeling) so I make $1200 a month off that property. 

I have an owner occupied duplex that rents for $1500-$1100 mortgage so I make $400.

$1600 a month. This last month though? 2k in repairs (plumbing/landscaping issues)

I dont pay a mortgage, but man, there are days where I want to break down and cry.

My tenants are ok, timely payments, no complaints, but these old *** houses in L.A. are money pits.  

Add to that, I'm always trying to improve my tenants experience so I don't go unrented, and sometimes I put too much on myself cause I'm hands on and don't want to be a slum lord who only cares about the money.

I can easily contract to Section 8, and not fix anything, and just get people in for that guaranteed check but I take pride in my homes and screen the hell out of tenants.

It's a headache that sometimes got me searching TX, ATL, SC on zillow 

 

[Mark Antony]

I'm looking to do a small place no more than 1000 square feet. Small bachelor pad. Pops friend builds these small homes in 90 days.

Heres one I really like. It's only 400 sqft but as a Navy veteran I'm used to storing my worldly possessions in a space the size of a coffin.

Nice! probably will be a tough resell though when it's time to expand.

 

[l smokecity l]

Buying a home now for cash and seller wants to stay in possession for five days after closing so he can use the money from it to move. I told him not a chance. Supposedly this is not wildly uncommon, as you can draft up post-closing possession agreements, work with insurance providers, etc. but I'm not with it. Now it's becoming such a big deal that I might lose the house and it's not easily replaceable.


Thoughts?

Yes, rentbacks are pretty common. That should have been agreed upon when the initial offer was agreed upon. It shouldn't be too difficult for your Realtors to draft up a rentback agreement after closing though. Honestly, 5 days is nothing. If anything, you can get 5 days of your first month's mortgage paid for by them.

We went through the same thing earlier this year. We closed on the sale of our home and stayed there until our other home closed a week later. There were tenants in the new home too, so we were able to collect from them while paying the new owner of our old home. As long as the transaction hasn't gone sideways over something stupid, you should be pretty safe since the seller has already had a vested interest in their home. It's not like a typical tenant that doesn't care about the property.

@crcballer55 is correct. Rent backs are not uncommon in today's market and the seller in possession after closing contract should of been written up prior to opening escrow. It's much easier to write up the seller in possession after closing contract in the beginning so that the seller understands how much of a deposit (if any), the prorated payment of your monthly mortgage payment they are paying along with the day and time they will need to vacate the property. Not sure how far you are in the transaction but talk to your agent and see if you can come to an agreement with the seller paying for the days in the property after closing. Good luck.

 

[omariwestafari]

crcballer55 the guy is a disabled veteran so its gunna b a pain.

 

[HEATHEN]

Probably one of the most valuable, useful threads on NT.

 

[tvobach]

This thread is incredible...so much great info.

Has me a little stressed about buying my first home in about 13 months...so much to remember and do....

Wife and I are planned to have approx. 15K Saved up In 13 months....that enough for a 2 bedroom home? Nothing too fancy obviously, living in Lincoln, NE so living is cheap...we will be 24 by then, anything else really important to know/remember?