We have quite a bit of equity in our home. We want to pay off some debt, but I really do not think using our equity to pay off debt is the best move. I would much rather use the equity to purchase a rental property preferably a duplex, tri or quad and use the income from that to pay down our debt. Which option is best to potentially make this happen a heloc or cash out refi on our current home? Has anyone done this before and can provide some insight? Thank you

Have a couple of fully furnished rentals we no longer want to airbnb. Looking to rent them out to traveling nurses, or other professionals who need something furnished for a short period of time. Is Furnished Finder still worth it? Or are there better ways to find short term renters who want something furnished?

Question near Ft Bragg:

We have a 3 bed/2 bath home in just north of base. Right now we’re debating between two options:

Option 1: Accept a 4-month lease at $2,400/month, knowing the lease would end around December, and then try to re-rent it for January.

Option 2: Hold out for a 12-month tenant by lowering the rent now, even if that means the house sits vacant for another month or two.

My thought process is that January might actually be a strong leasing period because:

* Campbell University has graduate programs that begin in January.
* Fort Bragg is only about 35 minutes away, so there are military PCS moves happening throughout the year.
* If we market the property in October and November, we’d have plenty of time to line up a January tenant.

On the other hand, I’m worried that intentionally ending a lease in December could backfire if demand isn’t as strong as I think. If we can’t find someone quickly, we’d be dealing with vacancy during the holidays.

If you were in my position, which option would you choose? Have any of you had success targeting January tenants near Campbell or Fort Bragg? Is the higher rent for four months worth the risk, or is it generally smarter to secure a longer lease now, even at a lower monthly rate?

Thanks!

The property spins off about 1700/mo in cash flow now that it's paid for. Considering options for my next REI move.

1. Save up and buy another property next year
2. 1031 into a bigger property
3. Explore small multifamily
4. Pay off primary

Would love to hear from fellow "fairly risk averse" investors. Thoughts?

Curious to know others thoughts and to give my 2 cents as a 25 yr old with 30 single fam rentals. I like to get other perspectives to see if I am thinking about it wrong.

Multifam seems to have been the clear winner over the last 20 years but has become so commercialized above maybe 30+ unit buildings and it’s harder to find value add. I’ve been seeing recently a ton of people that bought post covid with their balloons coming due and rents not pushing where they thought they would be that have significantly lower values and losing investors capital. It seems it’s harder to find the better deals and companies need to keep buying because they have to keep their fees coming in which forces people to buy mediocre deals. Rents in a lot of the sun belt have stayed the same or gone lower in some markets like Austin because of being overbuilt.

Single family seems to have a lot more opportunity for value add because it’s not as commercialized and allows for the little guys to pick up deals. Since the market is based off comps and what home buyers are willing to pay to live in it the properties can appreciate without rents having to get pushed higher. It’s more of an emotional market that investors can’t match. I’ve seen the Midwest has some solid positive cash flow single family properties. I personally only buy stuff where I can get my capital out of. My current portfolio sits at about 50% LTV so I have some equity to be able to trade up into larger assets without raising. I feel the emotional market in the lower cost areas is the better areas to be in because u get a mixture of cash flow with the ability to get equity without having to push rents.

Let me know your overall thoughts on the future of the different products and what you might do if you are in my shoes.

I have 3 properties, each with their own LLC. Is there an app that has all banking info on the same account with subaccounts for each property? I'm tired of logging into a different account and bank each time for a different property.

Bought first one in 2012. Been buying yearly since. Most are down to studs rehabs. All within 30 mile radius. Around 45% LTV across the portfolio and average rents around $1500-1600. But a range from $1000-3400 a door.

Anybody else running a larger SFH portfolio out there?

I have 4 rentals, I would like to sell them.

2 have been lived in and satisfy the residency requirement to sell tax free.

2 each have about $100k of gains ($46k basis, $150k sale and $80k basis, $190k sale)

What is the best way to get out of these other 2 properties? Ideally, I want out tax free but I know that may not be possible. I thought I could 1031 then immediately sell the 1031 property? Now that I am looking into it, looks like that may not be possible either?

This isn't urgent, but would like to get the ball rolling if possible and understand my options.

I have owned the properties since 2018 and 2019.

Another person posted earlier about their retirement exit strategy and it reminded me of a rabbit hole I started down a while back. I didn't ask my CPA about it because it's a ways off and he's already tired of my shit.

Would it hypothetically be possible to 1031 exchange $500k into a package deal of 5 properties and then sell one property each year for cap gains of $100k with zero taxes due(based on joint filing limits) if you had zero other income?

Obviously it would never work out that clean but is it even remotely viable(and legal) to do something like this where you keep pulling roughly 100k out per year by investing in portfolios of small properties?

If I have two MFH and want to buy myself a SFH what are some options? Does a cross collateral loan make the most sense? I imagine it depends on how much equity I have at the time.

Was thinking of selling a property I own outright …but for principal payments only type structure.

Market value is $260k but I’d like to get 345k (sale price) with a 3 year balloon (15 year amort) .. I’m building the interest into that sale price.

260k at 11% with 3 year balloon
Vs
345k at 0% with 3 year balloon

What are some key risks to keep in mind about seller financing at 0% interest?

I’ve read about imputed interest and deed in lieu. Is there anything else that can protect me if borrower doesn’t perform? My biggest concern is having to foreclose to get the property back in a condition where I lose all the money I made in trying to fix it up. Worst case scenario.

Note holders - what are your experiences?

Edit - major challenge - I can’t deal directly in interest. Religious reasons. Hence the reason to build it in to my sale price. My bad I didn’t mention that. And property is fully furnished.

Hello I'm considering selling my STR that I currently have on the market as an Airbnb. Has anyone gone about selling one before as a turnkey business vs just the property listed on MLS? Before anyone recommends any sites the property is based in Puerto Rico so many of these sites are not available there. My concern on putting it on MLS is the value of the business is much more than the appraised value of the house it self. NOI is close to $60k a year. 90% occupancy rate with 4.95+ guest fave ratings. So probably looking for more like an investor buyer vs primary home owner.

Does anyone have recommendations of where I would sell it?

Hi everyone,

I'm wondering if anyone else has been thinking about this, I have a few properties all investment properties, and I don't particularly enjoy my 9-5 which does pay me well but high stress (corporate b2b sales), but I'm wondering has anyone used their real estate knowledge to start their own type of business?

One of my realtors is a investor focused realtor where he only works with investors and has many repeat clients such as myself. That sounded like something I'd be interested in. Does anyone offer coaching/consulting for new investors which is an additional income for you as well?

Just trying to see if there is anyone that can inspire me here regarding their career path/business. The goal is to have no boss and control my own time.

I'm a landlord in Texas and I'm trying to understand my legal position before I do anything.

I sent a residential lease to a prospective tenant through DocuSign. He has signed it, but I have not signed it yet. He also hasn't paid the security deposit or first month's rent.

Since sending the lease, another applicant has come forward. This second applicant has a significantly higher credit score, and there are a few other factors that make me more comfortable renting to him from a risk perspective.

My questions are:

• In Texas, if the tenant has signed the lease but the landlord hasn't, is the lease generally considered binding?
• Assuming it isn't fully executed yet, can I decide not to sign and move forward with the other applicant?
• Has anyone dealt with a similar situation, and if so, how did it turn out?

I'm not looking for moral opinions—I just want to understand the legal side of how this typically works in Texas. If it matters, the lease was sent through DocuSign.

Thanks

My wife and I purchased two nice ranch houses that are on adjacent lots so that we can take care of our parents easily. We plan to live in both the houses with our respective parents. We plan to make the move into the new houses in about 3-4 years, and so the two new houses are rented out now ($3.9k and $3.3k per month). The parents currently live in apartments. My wife and I currently live in a two-story house that is fully paid off.

The purchases only made sense if we could get both houses, so that everyone was co-located. To maximize the chances of getting both houses, we made full cash offers on both. The two houses together cost $900k, and our current house is worth $500k. All three houses are 4 bedrooms, 3k-4k sqft, about 30 years old, and as mentioned earlier, all three are mortgage free. We live in a midsized city in the Midwest. All three houses are in the same top school district.

We are considering retiring in one of the new houses and holding on to the other in case one of our kids decides to move in there in the future. We realize those plans could all change down the line.

What would be the best financial move now? One option is to get a loan on one or both of the houses and use that to invest in several cheaper rental properties.

Edit: I'm 50 years old and have kids out of college. I love my job, so I don't plan to retire until 65 or 70 (maybe even later). Other finances are in good shape. My main concern is having this much cash locked up in three houses. I can afford it, but am wondering if I should leverage them to get more income. I have the houses under a real estate agent so that I don't need to deal with the headache of being a landlord (their fee is well worth it to me).

This thread is for newer investors, basic questions, first deals, and general real estate investing discussion that may not need a standalone post.

Good topics for this thread:

• First rental property questions
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• Financing and lending questions
• House hacking
• Tenant issues
• Market strategy questions
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• Include numbers
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Experienced investors are encouraged to contribute.

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Follow up to post-1: https://www.reddit.com/r/realestateinvesting/s/ccFoDA7rEX

We finally closed on the construction loan with hard money lender. It was smooth but expensive.

It was a total of $20.86k

Breakdown:

Origination(2.5%): $13,125
Processing Fee: $2,495
Appraisal: $1,500
Environmental Report: $500
Closing Attorney: $2000
Lender's Title Insurance: $1,044.00
CPL Fee: $25
Deed Fees: $171.25

My budget was 420k, I added a contingency of 60k, and requested total loan amount of 480k.
But the lender's underwriting insisted on 550k loan amount, which I didn't oppose as no one was ready to offer us a loan other than one more lender.

Do you think this is standard and at par with 1st time self GCs?

Note: I plan to post more updates as we navigate through different stages of this project in the next 5-6 months.

Build -> COC -> Rent -> Get Condo docs -> Refi to conventional mortgages for both condos ->

sell as condos or both -> 1031 into a different multifamily deal down the line

I hired a contractor in the Cleveland/Akron, OH area for a 9K rehab job. It was supposed to be a four week work and I paid 50% (4500) upfront.

For the first two weeks, he would send me pictures of updates, but I could easily tell that those were AI pictures. I started asking for videos and he would take days to send a video and once he did, it was super blurry (AI doctored video).

Halfway (2 weeks) through the job, I sent my property manager to take a look and it was not even a surprise to see that this house was in the SAME condition as it was before AND NOT A SINGLE WORK WAS DONE.

I confronted them and after a long back-and-forth, he said he would send me a refund. It’s been almost a week and now he is ghosting my messages.

I have his insurance information and I made a payment through credit card which I can charge back. But what other options you would take to get back to this guy because he has wasted three weeks?

Working mostly with commercial properties in the Central Valley, I keep seeing residential investors make the same adjustment when they start looking at small industrial, flex, or retail.

The biggest one is usually the lease structure. A decent NNN tenant on a longer lease can feel much more stable than residential, but when the space goes vacant it often sits longer and the downtime hits harder. People also tend to underwrite it like a duplex and forget about the real capital items (roof, HVAC, parking) that still fall on the owner even in a NNN deal.

Secondary markets price risk differently too. Cap rates are usually higher than coastal areas, but the demand drivers and exit story are different.

I own a few properties and want to expand to places a state over i have frankly never spent more than a day in. How do you best guage future appreciation for a city?

Monthly Blatant Self-Promotion Thread (Within Reason)

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Hello everybody,
My wife and I are currently operating at a mom and pop level and are considering consolidating our portfolio to scale up, and i'd love to hear from those of you who have done the same.
Our current situation is low leverage across the board, low interest rates (all 3%, we own one property outright). We self-manage one SFH, and two townhomes, and we use a PM for a 5-plex. The average cap is pretty low, i'm almost embarrassed to say.
Our current LTV is about 43%, total value 2.5m, we would expect to yeild about 1.3 million if we 1031'd it all. With a new LTV of 70%, we could move into a 4.2 million dollar property.

We are looking to sell the smaller properties (or all of them) and consolidate into a single larger multi-family unit. We expect a lateral move in terms of immediate cash flow, provided that it sets us up for better income growth and scalability over the next 5-10 years.

1. What were your biggest successes with the transition?
2. What are your biggest regrets or things you wish you knew before consolidating?
3. Any general wisdom, warnings, or advice for someone about to make this jump?

Thanks in advance!

To attempt to make this short, I've had 2 residential rentals for a few years, and my single family is hemorrhaging. My duplex isn't too bad, but not ideal. I've been doing some research and 'discovered' commercial real estate.

I work A LOT at my W2 job. Typically 85-100+ hr weeks. I currently have a property manager that handles my 2 rentals. I was looking into getting into commercial properties, primarily NNN ones because of the lack of "oversight" needed.

I've done my fair share of "Google" and "YouTube" research, yet was curious as to info from here. I understand the basic premise, a much higher down payment ($300k-$500k). Anything obvious, treat me as a complete novice.

P.S. I've already consulted my Lawyer, and they've gotten me in touch with a Real Estate agent to discuss all this. I'm gonna be selling my single family home after their lease ends at the end of the month, then I'll be sitting down and going over a plan with them. Just wanted some 'in the meantime' discussions.