Newsflash: How to add a journal entry for seller concessions?

Recently acquired a couple rental properties and received $10k in seller concessions toward each property.I’m curious how these concessions will be handled in a journal entry. Are they considered income?Any advice is appreciated.

Read more at https://www.reddit.com/r/RealEstate/comments/b7taba/how_to_add_a_journal_entry_for_seller_concessions/?utm_source=ifttt

Newsflash: When is a house a tear down?

Have a house which was built in the mid-1950s, and last renovated probably in the mid eighties. About half the appliances are >20 years old. The heat is a baseboeard oil boiler from the 70s (AC is normal/newish). Windows might only be 20 years old, they seem like probably the nicest feature. Oh and it has a big basement black mold problem. The house is definitely on the small side for this area.It is on over two acres, which in this area has definite value itself, easily the land is worth more (probably at least double) what the house is worth.I go back and forth between the house being a distraction for land buyers, and then thinking maybe it is worth something to someone and it would be crazy to tear it down.So is this a tear down?

Read more at https://www.reddit.com/r/RealEstate/comments/b7tqte/when_is_a_house_a_tear_down/?utm_source=ifttt

New Story Just Out: How A Cosmic Collision Sparked A Native American Translator’s Labor Of Love

Yet another interesting headline in the world of health and well-being. How A Cosmic Collision Sparked A Native American Translator’s Labor Of Love
On April 1, astronomers will start two huge machines and continue hunting for ripples in space-time. One scientist gets his mom to translate news of each discovery into her native language, Blackfoot.

Read the full story here

Newsflash: Operating at $2k loss for 2 years. First-time landlord

Hey guys, can I get your help in thinking some things through with you about renting out my house to my friend and his family while I’m away in grad school for 2 years. I leave last week of May.Context: I’m 28 and a first time homeowner and soon-to-be landlord. Bought house in 2015 and still owe about $90k on the property, pay $4k in interest every year, $4k in property taxes, and my mortgage is $1000 sans interest, $1415 with interest. I won’t have any income while I’m in grad school for three years (didactic is 2 so I’ll be able to return the third year and do clinicals here). I’ll be taking out loans for at least $40k while in grad school to cover what savings and such won’t cover for tuition, rent, expenses, etc.Here’s my situation that I need objective eyes to help me decide whether I should look for another renter in the month and a half I have before grad school starts.1) friend moved up the move-in date by 1 month to end of April which will make life a frantic for me and my gf. I work full time and go to school, and I’ll need to add clearing, cleaning, and prepping the house faster than expected. I’ll also need to get a storage unit ($100) and stay at a hotel/Airbnb $1500 due to the earlier move in.2) He can’t do the original $1300 estimate for rent and he’s hoping for $1250. He pays $1400 for his rented home now cause he got a deal for a NICE house but the landlord now wants $2500 hence the move-out. My mortgage sans interest is $1000, $1415 with.3) he thinks his landlord will keep his deposit so he says he won’t be able to give me one.4) renting to him at $1250 puts me $2000 in the red every year…but that’s about as much as I’d lose if there was a 10% vacancy in my property anyway.5) part of the original (unsigned) negotiations was that I’d tear out the carpet and install vinyl planks..that’s $2000.. I was gonna use his deposit to cover the upfront costs…no deposit..I feel all the costs. So that’s $2000 floor, $2000/year rental loss, $1600 for early move-out inconvenience, and any random repairs that need to happen during the year.6) rental properties in El Paso likely will want 1st, last, security up front..that’s ~$3,600 PLUS the expense of moving, school, being unemployed for 3 years.I’m thinking of suggesting that he and his family live with his folks for the month of May so he can save up for a deposit and I’ll give him the remaining week in May free so he can move in then. I think he’ll be a good tenant. I’ve known him for 3 years. He used to live next door, is a clean freak, and is handy. I trust him. He agrees we should have a business first relationship.What should I do? Should I go through with this as-is? Should I ask for $1300? What if he says no? Should I take on his lease sans damage deposit and only first months rent?EDIT: bought house in 2015. House was built in 2011.

Read more at https://www.reddit.com/r/RealEstate/comments/b7se4g/operating_at_2k_loss_for_2_years_firsttime/?utm_source=ifttt

Newsflash: To ask listing agent for feedback?

My house went on the market 7 days ago. I had 7 showings the day after listing, full price offer, in contract until the buyer couldn’t get financing, back on the market. So, it’s only been 4 days active but 12 showings including a surprise showing while I was home (awkward). Is it reasonable to ask my agent for feedback or is it typical that they reach out if they hear anything? I don’t want to be the pesky seller but no news about anything just makes me worry.

Read more at https://www.reddit.com/r/RealEstate/comments/b7sgoi/to_ask_listing_agent_for_feedback/?utm_source=ifttt

Newsflash: Potential dual agency scenario

We found a place on Zillow that fit our search criteria and were a bit surprised to find that the listing agent was our buyer’s agent. We let them know we were going to view the place and that we’d like to discuss how making an offer would work. Our agent suggested dual agency and the benefits of that, or having another agent from the same bokerage write the offer and how that wouldn’t be much different. We haven’t signed a contract with our agent. They did not suggest finding a new buyer’s agent from an unrelated brokerage or that they could negotiate their dual agency fee. If we are considering putting in an offer in the next 24 hours (hot market), how should we proceed? Is this a situation we should walk away from? Thanks in advance for your help.

Read more at https://www.reddit.com/r/RealEstate/comments/b7r0g8/potential_dual_agency_scenario/?utm_source=ifttt

Newsflash: Mortgage calculator vs what I know I can afford?

We are in the beginning stages of looking to buy a house. We plan on talking to a mortgage broker in the next week or so. Question is when just looking around online and playing with mortgage calculators on websites trying to see what we can afford is showing a very low amount , nothing decent in our area for that price. It tells me what I can afford is x amount when I know we can afford more monthly since we are paying that currently in rent and doing fine. Any idea how accurate those online tools are? And do banks take in to consideration what you can afford based off what you are already paying in rent?

Read more at https://www.reddit.com/r/RealEstate/comments/b7pqkg/mortgage_calculator_vs_what_i_know_i_can_afford/?utm_source=ifttt

Newsflash: Changing lenders after low appraisal? [seeking advice]

After submitting a couple of offers, one was finally accepted and I’m under contract for a home. The house was listed at 200K, my offer of 200K was accepted, and the house has now unfortunately appraised at about 190K. I don’t have cash to make up that difference. We have challenged the appraisal and all that jazz, but I’m not holding out hope it will change.Everyone (realtor, lender, seller) feels that the appraisal was low. The seller (who is also a broker/realtor) has suggested that we get a second appraisal – the caveat is that we would also have to choose a new lender. Here’s where it gets interesting: the seller has suggested that we go through her preferred lender (APR would be the same). The seller says that they never usually have a problem with their appraisals. The seller feels that if we move to her preferred lender, we can move along with the new loan approval/appraisal quickly (avoiding the considerable amount of time it would take for us to seek our own new lender/appraisal). Obviously the home could appraise for lower, the same, or higher than our first appraisal.My initial thought when I heard this idea was: hell no, this is shady shady, run far away. It seemed like a scam to me and just a ploy to a) drum up business and more of an advantage for the seller and her preferred lender; b) get a new shady appraisal which magically meets the 200K value…only to be stuck with a potential financial loss in the long run.However, I’m also trying to be more neutral and see the benefits of trying this route. Apparently the assigned appraisers are random, so it’s not possible for there to be collusion between appraiser and lender. And sometimes a second opinion can be very helpful.So…am I correct in that this is potentially a shady approach? Do I need to keep an open mind and see the other side and potential benefits of this scenario? My realtor and current lender have also suggested this approach and don’t feel that it’s shady or that working with her lender will be harmful. Seeking advice to make the best (and most reasonable/rational) decision. I think everyone agrees that we want to get the deal done with the best possible financial compromise for all parties. Thank you for any thoughts or advice!​

Read more at https://www.reddit.com/r/RealEstate/comments/b7ps3z/changing_lenders_after_low_appraisal_seeking/?utm_source=ifttt

Newsflash: Have a real estate license but never used it. Should I activate to sell/buy my own home?

I have my real estate license in Florida (parents motivated me to get the license because they saw opportunity in being a real estate agent – I never pursued the career path)So here I am ready to sell my home and buy a new one, would it be worth it to make my license active and sell/buy being my own agent? I’ve kept up with the licensing requirements and there is a local flat fee brokerage that takes $300 per transaction so the numbers make sense… But experience might tell me differently. Any advice would be appreciated!

Read more at https://www.reddit.com/r/RealEstate/comments/b7qlbt/have_a_real_estate_license_but_never_used_it/?utm_source=ifttt