Sorry about the above.

Income = ~60k.
Mort Int = 19.2k
Other Expenses = ~5k.

Profit = 35.8k

Tax = £9,432.

20% of mort int rebate = £3,840.

Tax = £5592.

So I would be paying out roughly something like 30k per year with the two properties and getting 60k back in rent.

As it stands, I get maybe 22k after tax and expenses from the current property.

For those with out of state properties - how do you manage finding them/renovating/etc? Do you just take a smaller margin and hire out someone to GC that you can really trust?

Looking to buy a house early next year, know nothing about real estate.

What’s my best learning material? Want to learn about what makes a good buy, markets, everything else.

Thanks!

Well I recommend that you check out the Bigger Pockets Web page. A few of the original posters, started here and moved to BP.
J Scott wrote a few books too. Get an account and start reading threads..
if you are here and are going to ask a poker question, 99% of the time the question has been asked and there is a thread or 2 on it.
Same goes for BP and Real Estate Questions.

I'm closing on a 6plex tomorrow and my agent wants to do it at her office but the lender is refusing and messaging me asking me why she wants to do it at her office like I have any idea. I feel like just backing out of this. Why would she care where we close unless she's up to something shady?

What city is your 6plex in? I also want to know what is up with your agent? They work for you and should be happy to travel to get things done.

My agent is fine, it's the lender refusing to come to my agents office. She agreed to send the paperwork over with the title company so problem solved I guess. Maybe there's a personal history between them.

Maybe slightly off-topic, but what would the price difference be to build a house out of brick versus using brick veneer? Just rough estimate for like a 2000 sq ft bungalow. I'll admit that the veneer looks very convincing, but just knowing that it's a veneer turns me off. I don't know if anyone even builds with laid brick anymore; maybe it's a code thing or insulation thing.

Assuming your talking about thin brick when you say veneer? I can't speak to actual price, but thin brick would definitely be a cost savings, but maybe not a huge one. Traditional full depth brick is still very much the standard and is a much better product from a longevity standpoint, especially in climates with freeze/thaw cycles.

Congrats to J Scott .. Guest host of the BP podcast Nov 2021.
Keep at it Bro.

You are the customer here. Tell them what you want. There is such a thing as a remote close, there is no reason to go to any office whatsoever. Just inform the title company how the close is going to happen and they will make it so. You don't need anything from the agent at closing. You don't need anything from the lender either. It can all be done electronically and they can send a mobile notary to your office or home.

Homewyse.com

I mean, you should always use a GC regardless of whether you're local or not. If your margin can't support hiring competent people then re-evaluate the investment.

As to your question, I've had good success just putting the project on Yelp for bids. They'll come after you like gang busters. Have a lockbox installed on the unit and have them go in and write up bids. Narrow it down, check references and decide from there.

I don't think there is a hard and fast rule here. It's something that you'd consider in context both your goals and overall portfolio relative to those goals. Personally I don't do interest only because:

1. the payment difference is generally insubstantial
2. less risk over time
3. refi options after about 10 years tend to be more palatable with more equity
4. I see pay down as "profit", albeit deferred profit

But again, there is no rule here. It depends.

Hello everyone. I live in NYC and my wife and I are looking are airnbnb'ing a property to get started as RE investors. We have been looking at the Delaware river area, places like Lake Ariel and Stroudsberg. I have been in touch with local property managers, real estate agents and we have gotten pre approved by a MLO .

Anyone here have experience with short term rentals in this area? Would you guys recommend any other areas within 2.5 hours drive of NYC? As a general rule of thumb, do you prefer turnkey investments or fixer uppers(for a first time purchaser)?

very interested in hearing about what you learn re: airbnbing a remote property as this is something i'll likely be forced into doing myself

ie do you hire a management company to do all the legwork for you? how do you find them? how difficult is it given tenants will have odd hours of arrival and random unforseen issues that may need to be resolved at odd hours/holidays. do you pay in flat rates or a percentage?

I have been given quotes of 20% of total nightly rent from some property management companies. They do all the cleaning, snow removal etc. Odd hours of arrival shouldn't be a problem. I would just go with electronic lock for keys with a passcode that can be provided once payment is made thru the airbnb website. Can change the passcodes remotely and regularly.

My main issue is going to be with the local councils. In that area, they are now clamping down hard on short term rentals. Some towns are even banning them which would be a potential nightmare to deal with. Best of luck

I assume for 20% they're not doing the actual Airbnb part where you have to take reservations, deal with emails and calls from guests in the middle of the night, etc.? 20% would be ridiculously low if they were. Also the value of 20% is incredibly variable based on whether you're allowing nightly rentals, weekend rentals, or just weekly rentals.

If you're renting for $200 for 1 night and they get $40 they'll go broke. If you only allow weekly rentals for $1400 and they get $280 to come in and clean once then you're overpaying. How are things like snow removal going to work if you don't have any rentals for a month due to blizzards or covid or whatever? Are they still going to come shovel the snow even if there's no revenue for them?

I ran 3 airbnbs last year. Owned, managed, dealt with guests, everything. Under no circumstances would I use a management company that didn't also handle 100% of the guest interaction, using their Airbnb account. If I were going to start a management company that handled the guest interaction using my Airbnb account I'd need 50% of revenue. If I tried to do it for 20% I'd go broke.


The way I hear of it most commonly being done ( there was even a Bigger Pockets podcast about doing this within the last 6mos) is you lease the property to an airbnb pro for a flat monthly rate and let them run their business. Anyone who rents your property to run an airbnb business will be the best tenant you ever have since the place will be cleaned constantly, and well maintained or else they'll go out of business in a hurry.

Great info from someone who has experience! Thank you

Do you have any experience with real estate syndications? I've recently just learned about them a month ago when looking for passive real estate opportunities. Any thoughts on the matter?

Best primer on this topic is the book "Investing in Real Estate Private Equity: An Insider’s Guide to Real Estate Partnerships, Funds, Joint Ventures & Crowdfunding". There's unfortunately not a lot of information on this topic -- not nearly what there should be. I haven't personally put together or invested in a syndicate other than partnerships with family and a small opportunity zone fund with a few family investors. However, I'm putting together my first fund now for 3rd party (ie non-relative) investors, so learning a lot more about the process. I personally can't advise you much on this topic.

Does Gross Rent Multiplier take into account taxes on the purchase of a property?

I looked on the internet and saw many things generally saying that it does not take into account of taxes on rent received, but I wanted to know about taxes on the purchase of a property.

Thanks.

No it's just gross rents that are included without consideration of any expenses of any kind.

Hey spex x, thanks so much for keeping this thread alive. It’s one of the most informative threads in 2p2 history so great job.

My friend and I are looking at a potential investment property and I’d like advice on determining fair market value.

The property has 12 units in a nice suburb next to a city of 200,000. Our issue is the town is almost exclusively single family homes. Is there an opportunity to use comparable sales from the city? This town where the property is located has much better schools.

Thanks again man

Nope, you can't use SFH as a comp. Google around for current market cap rates and use cap rate for similar class properties to determine value. Cap rates for comparable class properties is how this is done. Also be aware that this you'll need a commercial loan for this deal. Which is incidentally easier to get than a SFH mortgage. But look for a broker that specializes in commercial loans or call around to local banks to shop your deal. Remember too, given that we're going into a down cycle, if your mortgage interest rate is higher than your cap rate, then you can't get positive cash flow. Good luck with your deal!