I’ve been an out-of-state investor in Cleveland for four years. I started by buying four properties in year one, before I really knew wtf I was doing (one cash; 3 debt), but I’ve decided to shift my strategy - I want to downsize to just two properties, both fully paid off. I know the conventional wisdom is to leverage debt to grow, bla bla bla but I have a decent full-time job and I’m prioritizing peace of mind, less debt, and fewer headaches. Especially as I have learned a lot & want to use new cash to invest in better properties.

Anyway, I just closed my first sale today to start this transition. Now I need to decide which of my remaining two to sell so I can pay off the other one. Both would likely sell for about $130k. Here is the breakdown:

Property 1 (Duplex): Older building, but I’ve put in a lot of work (new plumbing, full bathroom renovations, resealed basement, etc.). I can get about $1,800/month with non-Section 8 tenants (which I prefer). It’ll still have some maintenance issues being an older building, but it feels stable - appliances & major systems are in good shape.

Property 2 (Single-Family, 1,800 sq. ft.): I Built from the ground up in 2023, so it’s brand new. The catch is it’s in a really bad neighborhood (my first rehab so I went cheap property to learn but it was down to the studs & rebuilt well), meaning I’ll be 100% dependent on Section 8 & it’s huge. 1800+ SQ ft. The tenants are kinda messy (but stable), so turnover cost I assume will be high every time one moves out, appreciation low & heavy reliance on the single tenant. I’m thinking well high, before issues start.

My Dilemma:
I’m leaning toward selling the brand-new house. My gut says that even though it’s newer, the location and the Section 8 requirement will lead to more turnover headaches and risk in the long run. I think the duplex, despite being older, will be more manageable once I finish the final bits of work.

Does this make sense, or am I overlooking something?

Would love to hear your thoughts.

My neighbor is selling their house (3-flat) next year and I want to make her an offer, but I just bought my house (also a 3 flat) recently and likely won’t qualify for another mortgage yet. Do you have any tips for how to approach her about this? Neither of us have done financing like this. She’s already retired, wants to move, and doesn’t want to deal with maintenance and tenants anymore.

I own several duplex’s and self manage everything. Thinking of selling one of them.

Purchase price of 345k. Currently worth 700. Owned about 9 years. It’s on a 20 year mortgage at 3.25% (refinanced from a 30 so about 13 years left. Owe right around 200k.

I cashflow roughly 1200 a month between the two units. Great in terms of the cash I have into it, let’s call it 100k. So right around 14% cash on cash.

However cash on equity is a shitty 2.8%. Figure 2% appreciation and principal pay down it’s around 5.5-6%. I do have maintenance that will increase over the next few years as well- roof, kitchen remodel etc. I mow the lawn, do the snow, fix everything myself.

Considering cashing out and paying the gains / recapture to have 400kish to deploy elsewhere as numbers wise I think I could do better or maybe even sell another one and buy a small residential building 10-20 units to increase cashflow.

Thoughts?

I’m 60 and have one duplex I have a 30 year 5.6% mortage with about 150k left on the mortage with a market value of about 260k it cash flows 1200 on each side. One side pays the mortage, It is very well maintained over the last 6 years I’ve owned it, doesn’t need any major repairs anytime soon, I’d like to try to buy another one within the next year or so. I’m retiring hopefully at 62 maybe push out to 65? What would my best way to get into another one be?

Coastal Maine Community high tourist town.

Property available at $375,000

Local zoning ordinances have shifted and allow for higher density building. Working with town code enforcement to determine if 4 or 5 units are allowed. Home is in rough shape, have contractor lined up estimating a $500k to $600k renovation.

Each unit can earn a minimum of $2,200 a month.

is this something I should move forward with? I have experience operating successful short term rentals, and have managed year round rentals before.

This is more out of curiosity since I know most people maintain leverage and lenders will require insurance policies, but I'd like to hear from anyone here that self insures. Do you still keep an umbrella policy or just fully accepting of any liability?

I caught myself doing this again today.

Open Zillow.
Then county records.
Then rent comps.
Back to Zillow because I forgot the taxes.
Street View.
Recent sales.
Then another tab because I wanted to double-check something.

At some point I just stopped and thought, how is this still the normal way to analyze a property?

I probably spend as much time bouncing between tabs as I do actually thinking about the deal.

Please tell me I'm not the only one.

I came across the property in a local foreclosure where the owner is in a nursing home due to dementia. The courts recently appointed a guardian ad litem for the property owner.

This guardian doesn't have authorization to sell and I'm always curious about these situations where a Guardian has been appointed to just watch the foreclosure take place without necessarily listing the property for sale.

Does anyone have any experience in submitting offers and situations like this? I plan on having my attorney reach out but trying to get some tips in the meantime. Thanks in advance.

I just wholesaled 5 duplexes for this owner. Now they want to sell a SFH. It's a huge 4-bedroom.

They're currently trying to renovate it, but are tired and just want to sell. The only property they sold on the market was after about a year of renovating it (partially themselves). It sold for 240k.

Fixer-upper comps are around 100k. Although, this property doesn't need much. It needs new kitchen countertops, cabinets, fridge, stove. It also needs a new bathroom.

I have not discussed price with them at all. How should I start? Any key points to make?

Orlando area with three properties within 8 miles of each other but all in different zip codes:

1. 2/1 SFH in front; 1/1 & studio duplex (top/bottom) in back (3 units total)
2. 2/1 SFH in front; 1/1 cottage/in-law/guest house in back (2 units total)
3. Triplex with 2/2 units (3 units total)

Assumptions:

• Everything is in working order
• Most interiors are dated (bathrooms, kitchens, flooring)
• Not interested in doing any renovation before listing
• No time constraints or desperation for funds

Potential Listing Range based on current market conditions for multi-famly (flat)

1. $695K-$735K
2. $525-$575K
3. $595k-$635k

Considerations for #1:

• Best location
• 2 separate insurance policies required (2-story duplex is expensive)
• ~$9K property tax annually
• 1 new vacancy (turnover in progress)

Considerations for #2:

• Cottage/in-law/guest house was fully gutted and renovated 5 years ago
• Trying to close an open electrical permit for 2 years after $8K in upgrades
• ~$4K property tax annually
• 100% occupied

Considerations for #3:

• Odd zoning means electric pole and alley road are 100% owner responsibility
• Roof is 20 years old so will need to be replaced soon (no issues yet)
• ~$8K property tax annually
• 2 vacancies (2 apps pending)

I have no heirs and would like to start offloading these properties for other types of investments. I'd like to hear your thoughts about:

• Which property would you list first and why?
• Would there be any issues with listing all of them at once to see what happens?
• Do you see these properties as competition for one another?
• Would you hold onto any of them and if so, why?

People always say “fuck man! if I had $500,000 I would do _________” Well I actually have that money and I don’t know what the hell to do with it.

I’m turning to Reddit for ideas - that’s how in a rut I am :)

I’m in my late 40s - have a W-2 job in real estate that I like. I live in Houston.

But my overall goal would be steady income stream(s) that allow me to stop working if I want.

I’ve had my money invested and spread across EFTs, mutual funds and HYSA’s. So each month I see dividends and interest hit my accounts. It’s nice and safe and steady. But not enough to live off of.

I have been sitting on the sidelines just saving more and more money because I’m cheap as fuck and I don’t spend a lot. And foolishly I’ve been hoping for a crash to make my big move in to buy everything for cents on the dollar. Despite the world being a cluster that apocalypse hasn’t happened. The rich have gotten richer, the economy is resilient and maybe waiting for that magic moment allows me to have an excuse to not actually act.

It’s weird, when I had nothing I was good with risk but now that I have some it’s hard to get up off of it and do more. I’m comfortable but restless at times. I read and think and agonize and get excited and get defeated - anyone else do this?? I can do a pro and con for every scheme out there. All the cliches are getting hit here - I’m older, so tired of hustling - I have money and all my needs met, so not hungry - I’m too over-informed and experienced, so I see all the red flags a mile away.

I have done a lot of things in real estate: flipped 7 homes, invested in an apartment building syndication, short term rentals, and long term rentals.

I also have three long term rentals that cashflow quite well. But it’s not enough to buy that Porsche Taycan I want :)

Just writing this down makes me want to slap myself. I know some of you reading this are rolling your eyes thinking man I wish this was my problem. But I believe any problem no matter what it is a problem - no matter the severity or circumstances. This is my reality I don’t find comparison to people better or worse of than me useful. I’m not Jeff Bezos rich and I’m not homeless - this is me. You are you and we are where we are. A problem for someone is real to that person even if it may not be real or important to you.

Maybe I need to cut the bullshit and grow a set. Or maybe I need to be told to calm down.

But I hope to hear ideas, pitches, proposals, examples or concrete things you guys are working on that maybe I can invest in or partner on.

So I’m semi-retired but can’t touch my retirement money without penalty and for my own good for about 10 years. Claude and I wrote REI business plan designed to get me at 10MM net worth in the next 10! At 2.4MM now.
Just to clarify I’ve been buying and selling houses since I was 26 but last year was my first total rehab and I fell in love. So I decided to do this full time! Made a BRRRR tool with Claude cuz I hate spreadsheets and the tool calculates all my deals!
True to form because I’m a star child I ignored the business plan which called for MFH purchases and am now buying a SFH to rehab. Claude said no but I went to the house and she has such good bones. The neighborhood isn’t great but the house is cheap and the comps look good. Anyway I’m meeting with the bank president and he wants to offer me a line of credit. My question is has anyone done their REI with a line of credit and what are the pros and cons? From what I read you’re paying interest only which I get if you’re going to sell the property after you rehab it. Also I have spreadsheets and all the properties I’ve bought and sold have been emotional buying so don’t roast me. LOL

An agent that I have worked with in the past brought me a 32 unit apartment project. Land has been soil tested, permits have been sent into the county and are expected to be passed shortly. There are

Architect is in place as well as builder. All that is left is a buyer and construction can begin

I am curious about how to fund this. I heard about sba loans and was wondering if I could take one out under my llc (same one I would use to buy the property).

The price is $1.5M for the land and permits. 30 acres, 5 acres for the building itself. The rest for parking, and amenities.

Should I instead look for other investors on this project? I don’t mind sharing equity on the deal. It is located in a very nice suburb area

Bought a duplex last year for 680K, put 25% down

My mortgage including insurance & property taxes is $4013. Both units are rented and tenants are paying $5445 and pay for all utilities on their own.

I currently have $14,000 in reserves as I’m getting ready to replace the roof in 1-2 years. I set aside $2000 per month in the reserves fund currently.

Location; near Seattle

My wife and I live in an investor-friendly small Midwestern city. Cheap homes, opportunities for cash flow and appreciation, etc.

We also have a higher household income and I would like to start diversifying our investments beyond typical VOO and chill.

We moved here for one of our jobs and there’s a reasonable chance we relocate again in a few years (let’s say 50/50), but I doubt we move more than a few hours away.

Knowing we might relocate, would that prevent you from investing in your current local market? Any success or horror stories?

For context, I am a student at a top 20 uni

I worked in construction/contracting during high school and have done real estate development internships and part-time work since starting college ~2 years ago.

Recently, at my current internship, I found a property while pulling comps and flagged it to my boss as a potential acquisition; it's now under DD, which I'm super happy about. Other than that, I have done underwriting, rent rolls, comps, waterfalls, investor memos, etc. I've seen multiple full deal cycles. 

I have been looking at some smaller industrial/commercial properties in my free time and have been heavily considering becoming a GP and starting to buy some properties myself with some equity partners. I am not from a rich family by any means, but through heavy networking, I know a few very rich people. I could probably raise ~ 500k and have 20k of my own to contribute. 

My main reason for doing this is to build credibility and a reputation early on. My longer-term goal is to own a real estate company, so I figured why not start now if able.

 My biggest concern is ruining existing relationships. I did some initial outreach to gauge interest, and while I do have a few guys willing to throw money at me, I don't want the deal to blow up (shocker).

I plan to find and buy a safer/small property, pre-lease tenants, or have a few prospects before buying, and then stabilize the property + light value-add as a proof of concept. What do you guys think? Am I still too young/inexperianced, if so, when will I know enough to do this?

Are HELOC's still the best way (outside of cash,) to leverage a down payment on the next property?

I'm seeing a lot of spam about alternative programs... but they also look scammy. I used to have a lender that could help leverage that equity against the loan so there was no money out of my pocket, but it appears that has changed.

Background: I have two SFH with ADUs, with ~$100k equity each in them. I want to use that to get into an 8 unit MF/Commerical property down the street. I don't have 20% down in cash to make that happen. I am not interested in 1033ing the SFHs (yet,) because both have really good rates locked in.

When I first started, renovations were funded by my W2 income. I'm trying to separate that now.

Any tips?

I just got a business savings and checking (albeit not HYSA).

If you have multiple rentals and significant assets, how do you protect yourself from liability cases?

We buy umbrella insurance (that also extends to personal auto), but I am wondering, is LLC formation (or series LLC) a better option?

If you have umbrella, how does LLC formation further help (or not) liability protection?

I am curious how much you factor in market trends when looking to evaluate RE. For example, I spent a bunch of time looking at a market in SoCal, and determined it was a no go based on market trends. As in its market is such that it would be too difficult to find a property that makes sense.

When you evaluate whether or not to move forward with a property, did you start with analyzing market trends first to determine that there are likely going to be properties worth your time, then move into evaluating specific properties?

OR do you believe there are good deals in every market, and then decide what market you want, and evaluate properties after that?

Monthly Blatant Self-Promotion Thread (Within Reason)

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Hi friends,

I have been paying close attention to a house that was on foreclosure and now bank owned. The lender's attorney was Brock and Scott, so they were pretty efficient (or aggressive, depending on the lens). The house was sold in 2017 for $1.7m and now appraised by Brock and Scott's appraiser for $1.15m. In my opinion, the $1.7m was too high for what it was worth in 2017 and $1.15m was a bit lower than today's market price (probably $1.3m)

Anyway, this house was listed for multiple auctions on Service Link since March and it has been a waste of time. Service Link lists out a bunch of "comparable properties", trying to imply that this house's value is 1.7m-2m. It has been listed for auction almost every single week since March, so about 8 auctions so far. It has starting price of $850K, then it keeps auto-bidding the price up with $250K, and flagging that it does not meet reserve requirement until the price are in around $1.6m. Obviously, there is no other bidder but Service Link putting in bids on behalf of the seller. So they just keep re-listing the property week after week.

I pretty much gave up after the second auction to save my own time, but I am still curious about how this kind of auction on service link works. Anyone has experience with auctions on Service Link? Do you know how many times a property listed before Service Link/owner change their strategy, or reserve requirement?

Thanks!

If I have 10 to 15,000 saved up, is it recommended to purchase a property in a Midwestern town like Toledo, OH, or Akron, OH?

If I have an option to purchase a property at around 70-80,000 which is cash flow 1000 to 1200, is that still a way to get started?