/biz/ - Business & Finance

>>19564997
i would buy a house but the banks want to dive in my asshole to find out where i stash my money. fuck those niggers

>I only make $56,000 a year in passive rental income

I want to tongue Belle’s anus

>>19565033
post one single piece of tangible evidence you arent broke as absolute fuck (you wont)

>>19564997
Been thinking about doing this a lot lately. I live in a condo unit that I plan to turn into a rental once I move. There is neighboring unit that just went up for sale that I'm tempted to buy but don't know if I should go for it. I'll have to pull out an equity loan to do it.

>>19565042

>>19565042
lol OP is salty as fuck
stay broke bitch

>>19564997
Bros I really want Belle to peg my asshole and call me her little bitch so bad bros

>>19565033
>only $6000

>>19564997
passive income lmao it builds equity
you need to have more than one place to make income and it wouldn't be that much

>>19565451
only impoverished minorities use "salty" unironically

I'd bet one of my rentals your net worth is under $3,000 lmao

>>19564997
Too much of a headache. You keep that, hope you have great renters because if you don't your better off paying off your primary residence and buying FANG stocks with the rest of the money.

>>19564997
>eating a bathbomb

>>19564997
oh word read at bottom you have 5 sorry for doubting senpai thought phaggot larper for a second

What about opportunity cost of investing in the stock market? How leveraged are you?

>>19564997
Being a landlord fuckin sucks. Why would I trust somebody to take good care of my investment and come up with rent every month? Renting out a home isn't a passive income, it's a liability.

if you just dumped in SPY, would you make more/less? plus, more risk with housing (home values, acts of god, etc.) If you put your own time into handling the house, what's the cost of that? Consider the coronavirus situation, I imagine many evictions were put on hold, forcing landlords to house non-paying tenants.

I much prefer just accumulating $ in the market. Pay for rent that way. If there's ever some (local) disaster (i.e., certain peoples bringing property values down), your assets are protected.

its probably mostly subhuman that are renting. fuck I can't imagine dealing with them and trying to extract rent from them every month

>>19564997
Congrats on your 4% ROI, really. Can't find those kind of returns anywhere in the market.

>>19564997
>I have 5 rentals right now, you do the math.

How much does your mortgage payments add up to?

>>19566108
initial investment on each property was between $7,000 and $10,000, which includes down payment, closing costs, and all other fees

so try 30-40%, brainlet

I await you REEEEE'ing about the down payment

next time shut your dick blower and research before you slap that dunce cap on and enter my threads

>>19566219
You realize your math makes no sense, right? Who do you think you're fooling.

>>19566263
initial investment was $10,000
annual returns of $3,000

>math is hard

i thought u said renting out a homie. like what even is that lol

>>19564997
are there more images of her wearing those types of shorts?

>>19566475
That's a lot of conflicting numbers and damage control.

>>19564997
You should get into commercial real estate, that’s where the money is. Yeah, you can make decent money renting apartments to poorfags and millennials, but you’re only going to make so much (they’re renting after all kek). Commercial RE has lower turnover, competitive cap rates, and the ability to 1031 exchange to defer capital gains. I have some industrial units that have averaged 95%+ occupancy over 10 years. Have rent bumps every other year, and I’m dealing with businesses not shitty renters. These tenants are here to run a business and turn a profit, they aren’t constantly calling you when the paint is chipping or the tile breaks. Most do their own repairs to stay operating. But you’re underlying statement about RE being the best source of passive income is true, allowed me to retire at 32.

>>19565955
>no really guys, i'm definitely not a massive narcissist!

>>19566509
>a lot of numbers
pftthahaha these threads are always full of absolutely retarded rentcucking brainlets

>>19566219
Damn with those down payments you are a true slumlord lmao. If you’re going to do residential you’re technically doing it right though, maximize returns through short term cash flow as opposed to long term appreciation

>>19566637
yeah man, total slumlord

>>19565088
Don’t do condos/apartments unless you’re in a highly sought after area. I’m talking like nyc or San Diego, not some nice part of a shit city. Condos typically are the slowest to appreciate.

>>19566655
So how are you obtaining 95% LTV rates? Are you using private equity? Can’t use FHA on a rental so that rules that out. Wondering how you can get down payment and closing costs above 95% LTV, please elaborate

>>19564997
God i hate that woman. Even the way she takes a bite of that is incredibly annoying

>>19566685
Condos are terrible investment properties. You guys have a lot to learn. HOA fees and special assessments will eat into your IRR. No real investor rents condos, only people who have an additional one they don’t use regularly. They are shit investments for the most part.

>>19566569
I have $80k right now at age 26. Saved all my cash I came from nothing. I have one question, what resource would you suggest has had the best impact on your intelligence in RE?
I have some experience and read some books, I’m just looking for a good informal site or book that isn’t trying to sell me shit.

>>19566569
Commercial buildings are fucking expensive though unless they're in some shithole where you'll never find a tenant anyway.
>>19566655
That's depressingly cheap.

>>19566685
>>19566701
The value of my unit has almost doubled over three years.

>>19566739
That’s not cheap for Texas.

>>19566758
3%/month appreciation is rare as fuck. I’d sell and get a house at least. Or do commercial like this anon

>>19566729
I have a formal education, masters degree in real estate finance. If you’re serious about self teaching yourself, lurk on BiggerPockets and get active once you have somewhat of an understanding. Get a job part time as a leasing agent for a landlord (in most states if landlord owns more than 50% of properties under management, employees don’t need a license to lease said landlords units). Just getting active and talking with people involved will help a lot. DO NOT, I repeat, DO NOT jump into a deal without having full knowledge on how the process works. Real estate is capital intensive. Form LLCs for each property, sign non recourse loans, and never cross collateralize. Basically just educate the shit out of yourself before doing a deal or you’ll likely get burned.

>>19566686
>FHA loan
>live in home for 1 year
>refinance (boo hoo, $3000 down the drain)
>FHA loan
>live in home for 1 year
>refinance (boo hoo, $3000 down the drain)
rinse and repeat

>>19566758
If your unit is in Weslaco like you said you are very likely larping. It’s possible, don’t get me wrong, but I just checked ESRI and housing appreciated no where near that rate in the region. Verified with CoStar right after and even did it on a 100 mile radius from Weslaco. Nothing even close to those rates. Either you have a rental with some insane mineral rights beneath you or you’re larping. Sorry friend, I’m on your side as a landlord too but no sense in larping.

>>19566555

>>19566555

>>19566555

>>19566824

Roughly 500 points since 2000, so not nearly your 3x

>>19566824
I'm in Colorado not Texas. Not sure where you go the idea that I said that.

>>19566842
I mixed you up with the other anon who posted the Zillow listing, my fault

>>19566822
$75k properties? I hope you have a property manager anon kek

>>19566780
I cannot thank you enough for this well articulated response. I’m looking into buying auctions for cash, Put some work into them, then remortgaging them to get my money back, then renting them out. Is this a bad general plan?
Commercial real estate will take too long to acquire so I’d like to start with houses

>>19566842
>Not sure where you go the idea that I said that.
wha-what the fuck from the picture of the house you posted up thirty minutes ago faggot. 1 Las Vistas Ln in Weslaco, TX. why would you post a pic of a house in texas when you're in Colorado?

I'm not the same guy who posted >>19566824

>>19566842
>>19566863
Oh my bad too, damn. soz OP, looks like it's past my beddy bye time
>fuck that guy who posted the zillow pic zillow isn't accurate anyways

>>19566917
I didn't post that retard. Learn to check ID's.

>>19566892
I think the easiest plan would be to start with a duplex or triplex. If you’re eligible, you can still get an FHA loan on these. FHA means you only have to put 5% down, meaning if you buy a $300k triplex you’d pay roughly $15k in down payment. Live in one of the units, preferably the shittiest one. Lease the other two out and use their rent payments to start paying your mortgage down. Live in the 3rd unit (occupying the unit is a requirement to obtain an FHA loan) and while you live in it, make improvements. In RE we call this “adding value”. Maybe renovate the bathroom, replace the kitchen and put stainless stew appliances, maybe paint or add new flooring somewhere, etc. When one of your tenants moves out, move into their unit and lease the freshly renovated unit at a heightened rate because you just improved it. Repeat the cycle, live in unit two whole renovating, move into third unit and lease second unit. At the end of year 5, you’ll hopefully have a fully leased and fully renovated rental that’s producing monthly cash flow and appreciating year over year.

>>19566940
sorry about that, Senpai. I don't have my specs and my sleeping pill perscriptions is the same shit that Heath Ledger OD'd on. I'll go shitpost on fit for fun instead for now since this seems like it's not a larp after all

>>19566879
strong math

degrees are so worthless pftthahaha

>>19566998
>FHA means you only have to put 5% down

k, now its pretty obvious you are LARPing

masters in "real estate" but doesn't know the terms of one of the most common loans.

degree or not, you're really stupid

>>19566998
Amazing. That’s a totally different form of doing it, but I guess multifamilies do produce highest rent rate per sqfoot. Do banks allow you to factor income from another rental? I have a home with a 25% equity position, but we plan to move to a higher pop area next year after Id have saved around 150k. I’m thinking relocating could really impact my qualification for a FHA, unfortunately.

>>19567138
I don’t work residential, sorry if it’s a wrong figure. I told you I work commercial, can’t get an FHA in commercial. And my degree is in regards to financial forecasting, you know, DCF statements and partitioning IRR’s. I’m sorry that I forgot a minute percentile rate from a sector of an industry I am not involved with.

>>19567116
Helped me retire at 32 I dont know what to tell you. I was never poor enough to need an FHA loan, sorry I didn’t have to exact rates memorized. Like I said, stick to commercial and maybe you’ll retire before 40.

>>19567175
k so how about you piss off then instead of shitting up this RESIDENTIAL thread with misinfo?

>>19566998
For a 300k triplex what’s your target for monthly rent rate in today’s climate? I’d assume 5k/mo totally rented but I could be way off. Your support will actually help, btw. You are not wasting your time on a tire kicker. Thank you again.

>>19567191
post one single shread of tangible evidence you're not living in a trash can outside of McDonald's, posting using their free wifi.

>>19567203
That’s a fair statement, just letting others if you want the best return you go commercial but now ya know. Good luck to ya and stay safe during these crazy times

>>19567217
get niggerAIDS, faggot

>>19567208
Your rent is going to be determined by the property location. I can’t give you a specific answer because there isn’t a single answer, each property’s returns are really determined by location. This is where the old saying, “buy the worst house on the best block, not the best house on the worst block” came from. Research what a capitalization rate (cap rate) is. The “benchmark” (expected rate of return” for each property will be determined by its location, meaning, a 5% cap rate might be good in your neighborhood, but in my neighborhood, most properties command 7%+ rates. In other words, if you’re planning to manage the property yourself, it will need to be close by. Start by analyzing local rents in the area. Then perform a “one year income statement”. If the property meets your regions benchmark, it could be a good deal and will likely need more underwriting before pursuing though.

>>19567247
Stay poor my friend

damn. So obviously the hardest part of all of this is buying the right property. Time and patience. Are you able to keep financing while not working? Banks satisfied with your income, even though you technically owe more than you own? (Assuming, ofc)

>>19567277
I plan to be self employed when I move states, but I should be netting double my current income with flipping a certain physical good. I’ll be licensed but I know banks don’t trust short term self employment. I don’t wanna wait 2 years to qualify. I’ll prob have to ask for manual override and prove I’m real. This is probably going to hurt me in the long run, as I always had the mindset of cash is king.

>>19567366
Banks love to lend money to those with good credit. Banks are going to be concerned with something called debt coverage service ratio (DSCR). This is a simple ratio between how much the property takes in, compared to how much goes out (loan to bank). Banks like anything above 1.25, meaning cash flow covers 100% of the debt service, plus an additional 25%. At today’s historically low rates, if you I've good credit and can prove to the bank the property will attain a desired DSCR, you should be able to get financing.

>>19567478
once again, talking out your ass

a 620 credit credit score will get you an FHA loan @ 2.875% interest, fixed

all of this info is available online, you have no reason to be this stupid

>>19566219
Ok, please leave the thread. You are apparently a minor

>>19565641
this but unironically

>>19564997
>I have 5 rentals right now
imagine being so poor

>>19566693
Why would you hate her? Issnt she doing this cause people pay her?

>>19567247
Telling this to an anon who's been doing this 25 years longer than you, by the looks of your maturity level. Like watching the Jews try and shout Jesus down as he teaches the people

>>19564997
You're implying that anyone here has a decently paid job. Real estate has big potential for gains but in 10 15 years and only if you're working in the meanwhile. People with money in crypto have no way to enter it and are better off just staking.
Also, wait for the crash in the price of real estate in metropolitan areas if you wanna make money. With "smart working" and unis closed a lot of people will stay in their small towns with their parents for a while and the market will crash.

>>19566569
Does dealing with businesses makes you more accountable for stuff? Do you think you work more renting out to businesses rather than students who don't give a shit if the house is falling apart?

>>19564997
anything that involves high x leveraging is gambling

>>19564997
>t. real estate bagholder seeing the market dump and hoping for a last bump to get rid of his overpriced properties

>>19566494
Prostitution

>>19567203
fuck off, any info is good info. people like you trying to keep people down

>>19564997
The word passive seems like a misnomer though.

A lot of time goes into making this passive income into existence.

When Rona hit and I lost my jobs you know what that meant? Walking away from the apartment and sacking g the LL with a $1300 hole in the books.

I'm not the only one. Smart, institutional investors are dumping their bags in real estate. Landlords ultimately hold an extraordinary amount of liabilities during crisis. Green line always go up? Tell that to the schmuck that bought the top in detroit or Tokyo or hong kong.

>>19570496
Depends on the landlord, the areas he bought in, the tenants he accepts, and how leveraged he is. Just like in 2008, if you were buying in hot real estate markets, using 90% leverage and relying on appreciation, you were probably crashing into a brick wall at 90. If you were buying in low price action areas, for 60% or lower leverage, and relying on cash flow, it was little more than a speed bump. For example: All of my buildings have been around since before the great depression, in an area that has always been white, and I'm only 45% leveraged. How much do you think all the bullshit over the last 3 months has effected me? Haven't missed a single rent check, and only have one(1) tenant on a minor rate reduction. Make your apartments extremely nice for the price, then be a cunt about accepting tenants (I accept 1 tenant per 100-150 inquiries)

>>19564997
>tfw rental condo brings only $1.2k in profit and $6k in equity per year
>but the value is up $150k in one fucking year
The Toronto condo market is still fucked bros even with the corona virus but im not complaining

Duh OP
Duh!

the trick is getting to have a property in urban area to rent.


The whole
>their rent pays for my mortgage
meme is flimsy and not a surefire earning.

>>19566655
>Time on Zillow: 23 days
>Price cut of more than 10% in the past month
>Guys my rental property is totally profitable!!!
That's a pretty bag you're holdin' there son

>>19566892
Ah yes, the BRRRR (buy, renovate, rent, refinance, repeat) method. This is an excellent strategy to build your portfolio fast. It's what I want to do except I don't have nearly as much cash as you do. Working on it though. . .

>>19571518
>the trick is getting to have a property in urban area to rent

pffttthahahaha whatever you say pal

>>19571731
>renting and buying are the same
JFC why are rentcucks so god damn stupid?

>>19570496
>"I'm not the only one"

>works a disposable job
>went to to live back with mommy

hahahahahahahhahahahahahahahahhahahahhahaha

Where is that invisible adams hand that suppose to calibrate market ? I see people become millionaires building homes or renting homes.
I understand doctors being rich but these faggots..., can someone explain what the fuck ?

>>19572535
sure, I'll spoon feed you since its obvious you're too dumb to do the math

10 rentals
10 years
$1,300 rent
on a $900 mortgage (includes all taxes/interest)

for the sake of retarded rentcucks sperging the fuck out about repairs and "no tennants" lets just say every bit of the profit goes *poof* to cover repairs and months w/o tennants

tennants also pay your mortgage.

>see pic

$718(portion paid toward principle each month) x 10 (houses) x 12 (months in a year) x 10 (# of years) = $861,000

that is NOT including appreciation of the house and NOT including the increase in $ going towards to principal as the loan amount decreases.

>>19572500
Whoever owns the house is trying to sell it as quickly as possible because the overall cash flow from renting it out is negative. That means they are losing money, anon.
Do try to keep up

>>19572748
>implying that house is being rented out
take your pills this morning, anon?

I await for your sperg reply directing me to the post where *I* posted that picture in reply to a comment that $170,000 houses are garbage

you retards are the ones who used their very small brain to imply that house is mine, when it is not

>>19569747
lol wrong

something goes wrong with the house?
call a repair man

wow, so hard

>>19566052
Landlords don't understand returns or opportunity cost

>>19567028
Why does Azu-nyan not have a caption? Who is she in this dynamic?

>>19573367
and /biz/ rentcucks are too stupid to realize there are other ways to make money other than memecoins and the stock market

>>19572813

>>19564997
>Relocate for work
>"Nah I don't want to sell my house, I'll rent it out"
>Find a good tenant, stays for 2 years, pays on time, is great, keeps it all clean, then leaves
>Find a new tenant, had great references, good work history, all is well for just 2 fucking months, then they apparently formed a meth habit, invited 3 other people to live in the house, kicked in doors, chipped walls, smoked cigarettes AND meth inside, stole furniture and electronics, tried to crowbar open an empty safe which I assume they thought was full, stopped paying rent, took 3 months to evict, because meth was smoked in the house it needed to be tested for toxicity, failed test, $10k to clean meth, have to strip carpets & curtains and replace them.
There ya go OP - 3 years of profit wiped away in 6 months

>>19565957

Correct. Better off, just hold Bitcoin. It will be the best performing asset for the entire decade, unless maybe an altcoin like Ether overtakes it performance-wise.

>>19573668
sorry you were too retarded to get decent home insurance

>>19566052

Historically, the stock market has beaten the real estate market. Of course, if you've held real estate on the coasts, in booming cities, or in other high-demand areas, you'll have beaten the S&P -- but that's also kinda like saying if you were holding Amazon from early on you've outperformed almost everything else: that's an individual pick vs. a broad market, not really applicable.

So yeah, in general, stonks whip real estate. But a smart investor in either field can theoretically beat the overall market.

>>19564997

>>19573668

Wow that sucks, I'm sorry. I'm relocating for work and deciding whether to rent out my house or sell it. I'm leaning towards sell because I don't want that story to be my story, rentals seem to sit vacant for a long time in my area, and I'd need to pay dearly for a property manager to pimp my house out, sucking up the profits.

>>19574482
>implying i still wouldnt

>>19564997
God I want her to bully my 7" dicklet

>>19575164
7x5.5 here, feels bad man

even though we are in the top 50% there is a better chance than not that any decent looking girl has been dicked down by a 9x6

once girls experience being stretched out all the way up to their cervix, anything less is unfulfilling. its why so many white girls are into black guys and why so few black women are into white guys.

"once you go black, you wont go back" is NOT a meme.

I just feel terrible for the sub-6 inchers

>>19566655
what did you google "ugliest house in texas" or what

>>19575247
>and why so few black women are into white guys.

Ehhhh na I don't think so. I'm white and out of all the races - black women have hit on me the most. Also scientifically black women have the tightest vagin's - it has to do their proportions. Interestingly penis size has nothing to do with exterior proportions.

>>19575667
massive anecdotal cope

do you not have social media?

>>19575667
which women scientifically have the most shallow vaginas

>>19575597

>>19572535

It's real simple anon. Boomers and retards have huge mortgages. They are overleveraged up to the eyeballs in bad debt. If the housing market would even drop a mere 10%, you'd see another 2008 type cascade of defaults like you wouldn't believe. You would see the banks fail. The government knows this, so they print money. The whole corona hoax was about one thing and one thing alone, printing enough money to keep the debt bubble from popping.

So you might think houses look good because prices keep going up, but that's only because they HAVE to go up. If the price of houses drops 50% like it did in 2008, all these idiots are going to be out of money since they tend to not pay off their debts but rather get even more overleveraged. Case in point, look at the Airbnb collapse.

>>19565042
>imagine needing to prove yourself on the internet
>IMAGINE requesting someone to prove themselves on the internet
what a betacuck subhuman faggot

>>19575891
>spends free time on the internet
>unironically experiences negative emotions while there
hahahahhahaha ngmi

>>19575247
I had a woman leave her boyfriend with a 9" cock for me then I dumped her 3 months later. She was sick of his cock. Although he was a turboautist who fucked himself with dragon dildos and was into adult babyminding.

>>19576177
I still fuck her on and off but I would say his cock reached her brain and turned it to mush, a total bimbo.

4 of his previous girlfriends had cheated on him to get away from him.

how much to put my head in the vagene of that girl

>>19576177
>>19576403
damn this dude is still living rent free in your head lmao.

subconsciously he fucked you as well

>>19564997
I'm a zoomer and I rent out my property I bought with imaginary internet money gains to older gens and I fucking laugh at them

>>19577154
post one single shred of evidence you even have an income

>>19577093
if you aren't a solid 8/10, 6'1 180, 10% bf, you dont stand a chance

sorry bud. start lifting

>>19564997
Is the USA and maybe some other shithole countries the only viable places to do this in?
In my nordic country there are so many regulations and laws how much you are allowed to take in rent and what not it doesn't even seem feasible to go full landlord mode here. or maybe I'm just fucking retarded and didn't check around enough
any nord anons aware me?

>>19566219
>initial investment on each property was between $7,000 and $10,000, which includes down payment, closing costs, and all other fees
Imagine LARPing as a slum lord. Holy shit, the absolute state of /biz/

>>19576403
sir if you need gape a biche you have arm, is very popular in my village,, invest fist, you pump, she moon. do the needful

>>19577187
I don't need to prove shit to you except I'm a gen Zer that owns property and rents it out to degenerate older gens, envy more faggot

>>19577319
>slum
kek, enjoy your riots (literal) nigger

>>19577395
>lmfao thats your proof that your not a LARP? Are you 12 years old?

>>19577376
that's impossible because your mother lives in one of my rentals and everytime I do my rounds making sure that dumb whore isnt trashing the place I hear you downstairs screaming (also, clean your room kid it smells like actual shit)

>>19577429
no, thats my proof $10,000 up front doesnt just buy you a slum you illiterate brainlet

lmao @ your total lack of ability to follow a conversation. you smoke a lot of weed, I can just tell

>>19577430
yikes, I can sense your seething, absolute cringe

>>19577500
>keeps coming back to my thread checking if I've responded
kek, cognitive dissonance

>>19577359
Texas is worse than your village sirs