Hello, Veeky Forums, first time posting on here and had a few questions about real estate:

quick post! get in real state is a solid investment it has a name and shit. crypto is good but real state is safest and better if you are smart enough for building wealth instead of E Z quick money.
PD: im also in real state

unless you are in vancouver/san fran/new york you can get a better return by putting the money in the stock market

way too many taxes, way too many hastles with repairs, way too many dumb tenants.

I own some real estate but only for diversification. Unless you are already rich there are much better options you should be pumping your money into first

Double check what the HOA is and if theres any additional expenses, people like to mislead with what those really are.

Also check property taxes, in my area property taxes are like 4x for propertys that are being rented out vs lived in by the owner.

>I do this. With an FHA loan my duplex cost me ~7k out of pocket.
H-how?
Is your credit perfect?
What city?
I have 18k USD to my name and still assume I can't get a place yet. I'm in ATL.

yeah thats true, man i feel so comfy i live in a shithole where you dont have to take care that much abput tenants. less expense more profit

Do you still think stocks are preferable to getting real estate even if it's to just simply live on first vs paying rent to somebody?

Alright op this is specialty. I have about 25 million usd value in property. I have bought new used fixer uppers and even built new building. DESU I don't like dealing with tenants they complain to much. That's why I have managers. I would not suggest you to live with your Tennant's not a good idea yo. Ask for where they used to live in the past and call their old land Lords ask if they paid on time where they noise and stuff like that.right now is a good time to buy as the rates can go up any time just closed a deal on 2.2 million with a 25% down payment with. A 4.5 rate. Kinda high but I took it cuz I got a low down payment good luck man!

If you are currently renting then absolutely real estate is a good investment so you don't need to pay rent anymore.

if its to be a landlord then it becomes more complicated

Kek

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loopnet.com, be ready to put 20% down, NOI, occupancy history, current census trends, is it near downtown? near a college? you should be wiling to relocate, im looking at tulsa and denver properties right now

He probably doesn't live in the middle of a major city

This is pretty bad-ass insight, and more or less what I was looking for. Especially about the tools. I figured that would be the most expensive part. I don't even own a power-saw lol. Are you planning on remodeling the other side as well? Would there be any benefit to doing so? How is having Mexican tenants? I bet they aren't too bad, am I right?

mexican tenants are some of the best

Have you any experience doing this?
appreciate the insight! would love to hear personal stories

what do you recommend for stocks, then? Something like an IRA or medium risk trust fund? Or specific stocks?

damn, ok, worth looking into, thanks
knew it! thanks
20%? My god, I could afford a plot of land at that rate I suppose

Yes I suspected in might be a mistake to live with my tenants. I wouldn't want to have to deal with their shit all day either. Thanks for the input! (also, background check idea is great)

I am really interested in this thread and will follow it

good, bumpin'

What a coincidence, OP. I'm about to dive into this.
This would be my first purchase, it's a 3 bedroom condo in a nice area. I'm going to live in it when my current roomates for at least a year.

But yeah, after a year or so, I'd like to rent the whole thing out for ~1,100 - 1400/month or something. Built recently, really nice inside.

How does this compare with what you're looking at?

Sweet larp. Thanks for inspiring me.

I'm going to live in it with* my current roommates for at least a year.

I know it's not a good idea. But we've been renting together for a while.

I actually haven't even started with specifics at all, but your post gives me ideas. That seems pretty damn cheap for a place. It's nice you say?

Where did you find this duplex deal?

I'm very interested in real estate, and If I can find a place that already has established renters I'd be all for it. Did you just search local real estate/ talk to a real estate agent?

It's in a nice area for sure, I'm in KY, 20 minutes from Cincinnati, Ohio. 1290sq. ft

I used to live in an apartment with the exact layout for 1300/month in a different area. It's apart of a bigger complex with like 5 other condos - apartment style i guess

This is why it's cheap, i think.

it's not a standalone property. BUT I think this makes it much more appealing to renters.

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>I'm thinking about buying a condo/duplex/townhouse

All options are shit. I would rather buy options desu. Not sure if these are popular in your area but look for TNT, ETH and Bitbean.

only good advice in the thread

Damn this place looks nicccceeee for the price! I think you should go for it user, no knowing if it's a good idea until the die have been cast. If you're even semi-responsible I bet you could make it work out easily
I'm not going in on a digital currency investment, lol

this is noted. best street I can find, most beat up house. seems like a good idea for someone that doesn't mind working to improve it, which I wouldn't

>unless you are in vancouver/san fran/new york you can get a better return by putting the money in the stock market
Someone who clearly doesn't know what they're talking about.
You just listed three of the lowest cash flow locations in the world based on cap rate or cash on cash returns.
OP, I work in commercial real estate in San Diego. People buy multifamily based on cap rate and cash on cash. Every other metric is bullshit. Learn these two metrics inside out and calculate everything at 50% expenses

Looking for property in CA? Commercial agent here.

Okay, since it's late but I can't fucking sleep, let me break this down for you.
Why do we buy apartment buildings? We want to leverage ourselves (get a loan) in order to receive a monthly income while simultaneously paying down the loan balance. So you may only be earning 6% of your initial investment annually but your also earning equity in the property. When you eventually sell (in 5 to 10 years if you're smart), you avoid capital gains tax by selling your current property (downleg) and exchanging into a more expensive "like-kind" property (upleg). You are suddenly receiving higher/more rents and a better cash flow.
Again, I'm a commercial real estate agent who specializes in apartment buildings. AMA

Noice. Why not just leverage yourself again after 5 to 10 years of building equity to get the additional property and also the more lucrative property? Just because of debt risk?

I know where you live... I'm from anderson area

Great question. If you have the capital for it, by all means go ahead. But most people don't. Investment properties aren't like homes. You're usually going to need at least 65% Loan to Value (or 35% down) in order to purchase a property. More if it's in a shit neighborhood.
Regarding refinancing and using that as your equity for the upleg, there are two issues. 1. The price you can sell it for is always a good margin higher than the price you could refinance it for. 2. Banks require you to have liquidity, usually at least 10% cold hard cash in the bank on top of your down payment. When combined, it usually makes more sense to just sell and buy a new upleg

lmao.
You're the second person that I've found on biz that's weirdly near me. I may not be able to sleep at night now. Also it's past your bedtime.

Ah, that makes sense. I guess this is kinda the part that people who compare real estate returns to stock market returns aren't aware of. That leverage pays off big over time assuming no catastrophes.

I'm pretty excited.

Buy ark instead

bumping this thread. I'm reading all your posts, keep em coming

stayin' bumped

Building something yourself is the most gratifying thing. Also, you save a lot.

Cincinnatinon here, lmao

OP do not buy a condo

I bought a condo in a 15 unit building in Los Angeles. The building location is excellent and overall building is nice.

However, the home owners association is a nightmare. What Ive learned, people who own condos are cheap. Every time we try to vote of preventative building maintenance, half of the board/home owners decline due to expense cost. Example: flushing building pipes for about $4k. Well we didnt flush the pipes, and first floor got flooded 3 months later. Our premium for building insurance skyrocketed. Our HOA bank account lost about quarter of a million dollars due to emergency repairs.

In conclusion, save for a home, Condos are the worst

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Holy shit. Ok, noted!! Well the thing that IS popular in Salt Lake City is a house divided into different units. So I might just be looking at doing that. It's a college town, in essence, especially in the area I'm thinking of, and there should be a plenty large enough population to draw from. Also, the Mormon thing could work in my favor, as most of them are already trained to keep things perfectly clean and not stay up late partying, drinking, etc. I hadn't thought about that before with a condo though, so thanks for sharing that.

fuck off

My credit score is high 700s and my income is just under 6 figures, but FHA loans are designed to help first time home buyers. You only need 3.5% down, or I think it was 3.75% for a duplex, interest rate is locked in low, and while there are extra charges on this type of loan, the low rate makes it still come out to lower or equal payments to a traditional mortgage. My property cost 225k, if you're in ATL you can definitely find places to turn into rentals. The general feel is that the housing market is coming down in price, but rates are really good atm (irrelevant if you're FHA).

Frankly, a scalable rental business means you have reliable contractors who you manage that do all the individual work. I do not expect to do repair work on all my properties, but I like tools. I have some friends I'm trying to boost up as well, they have construction experience, so when we have another property come up I have a small handful of people + sufficient tools to have my own team manage it all for me. Mexicans are the best, they fix their own shit most of the time and never complain. If they move out, I will remodel the other side and charge higher rent, but they're satisfied with it and they are dedicated tenants who have been here much longer than I have; for now, it's just one less thing for me to worry about.

Personally, as a millennial who has rented a lot of rooms, I look for places that would work for more people like me. Innacity, in an area where a ton of people want to be, and my particular block is a former ghetto that is started to have hipster businesses pop up. We gentrifyin' now. I might give Air B&B a shot, it would work around here. There are also benefits for me that I can't quite capture with money in home ownership: have a big space to work on my vehicles, keep bees, store construction supplies, etc.

I don't mind having roommates, always had roommates up till now so it's no different. I have high tolerance tho.

Going to look at the condo today [:
LOL. I see you from my window.

This is a pretty real thing to be aware of.

Have some more greentext
>be me, move to new city for work
>find apartment condo, listed for $190k
>seems like a good deal, but maybe I'll rent for a while
>rent same condo for about a year
>special assessment
>landlord has to pay another $50k
>move out
>place now listed for $180k
Wew

>special assessment
What is this? Did the state assessors day is property was more valuable or something?

Not if you set up a property manager

nice dodge
This idea of catering to hipsters and millennials, or even people traveling and using airbnb, is great. The general feeling I get where I live is that most young people just want to rent a nice place that's in the locale you just described. Thanks for your insight; yeah I bet it would be sweet to live somewhere with all that space, but I think I'd try to rent the whole place out to renters and not live there myself. Would be easier to maintain a professional relationship with tenants.

And all the evidence I've seen about mexicans leads to the same conclusion. That they are more often than not great tenants. It's good to hear another attitude in the affirmative!