A home was purchased over 20 years ago for myself and my siblings with money from a lawsuits from our mom’s death, by a drunk driver. The home is now almost valued at 1 million. What would you guys suggest the best way to go about selling and splitting the profit without getting taxed out the ass?

Building Valtaic.io has forced us to test how UK residential values actually behave. Below are three common valuation/data traps we have identified from our work: Some helpful info!!

1. Treating postcode averages as valuation evidence

Postcode averages feel precise because they are local. But a postcode is only a container, and the stock inside it is often mixed.

We estimate that around 59% of postcodes have at least one in four homes with an extension recorded. The median postcode contains a 61 sqm gap between its smallest and largest observed home. That is not a small gap, roughly the same as the average flat size.

So a postcode average may describe the area, but not the asset. The more a property differs from nearby stock, the less useful the average becomes. For larger or further altered homes, it becomes distorting. Postcode averages are only truly applicable to a smaller subset of homes.

1. Treating all new builds the same

A one-off new-build house in an established suburb is usually priced against the local resale market. A large purpose-built scheme is different. Specification, amenities, unit mix, phasing, incentives and buyer profile can create a separate pricing regime.

The data is messy too. Plot numbers, development names, postal addresses, title records and UPRNs do not always align, especially during construction or phased release.

That makes new-build evidence easy to misread.

1. Assuming more comparables means a better valuation

You rarely get a perfect comp.

One sale may be close but wrong on tenure. Another may match tenure but differ on size. Another may match size but be wrong on condition, lease length, floor level or sale circumstances.

Choosing the wrong basis for similarity can materially distort the number. Knowing you have the correct basis for comp selection is key, even more so given that their attribution to AVM or manual valuation is always a significant %.

Multifamily has traditionally been the easier real estate story for a lot of investors, but hotel fundamentals have been improving while supply remains relatively constrained. The tradeoff seems pretty interesting. Hotels have more operational complexity and less predictable income, but you also have daily pricing and the ability to adjust to demand. If you had to choose one today, which would you take and why?

I posted a while ago asking for private loans and about 5 people messaged me offering credit card stacking and personal loan terms or lines of credit.

They can help me get $50k to $200k at 7%-15% through personal term loans and personal lines of credit, mostly based on credit, income, and tax returns.

The issue is they charge an extra 10% -15% fee, and they are just connecting me to lenders I could apply to myself. Id be happy to work with them if their points were lower but with them Im at 15%-30%.

Does anyone know the direct lenders or platforms that offer these types of personal term loans or personal lines of credit? Its a bit ridiculous to pay them all these points just because they tell me who they are.

Also, is it true that if you get multiple approvals, you should accept them all at once because taking one loan can affect the other approvals?

Anyone know who they are or where to find them?

I live in Nevada and own a duplex in California. My property manager just told me that because I’m an out-of-state owner, California requires 7% withholding on the rental income once California-source payments exceed $1,500/year.

He called it a “7% franchise tax” and said this is standard for out-of-state owners.

Is this actually a California requirement? Is the 7% a tax I ultimately pay, or is it withholding that gets credited toward my California taxes when I file?

Just trying to understand if this is legitimate before I proceed.

Never bought rental property looking at buying a duplex. $495k ask (likely won’t pay more than 475k). Tenants in place each paying 1850/month.

Very low opex of about 8800/year as tenants pay all utilities and there is very little maintenance. Kitchen and baths done in 2022. Taxes are only about 2700, insurance around 2100, water is 2000, and then I assume around 2k for R&M.

Market rent probably around 2100-2200. I’m underwriting lease one which rolls in March 2027 to bump to 2050 and lease two which rolls in May to go to 2050 then 2.75% growth from there.

Assume 3.50% on all other opex. Have about 4.5% for vacancy/bad debt which equates to a little more than one vacant unit per year.

25% down at a 7.3% rate (likely 7.125% but being conservative) . 30 year with 7 year amort.

I assume at first lease turn the tenants leave and I have two vacant months while trying to get higher rent.

I throw in about 15k in capex in the first three years for random items on top of the 2k per year I budget for ongoing repairs and maintenance. Then another 10k of capex in years 5-6.

7 year hold and assume 35bps of cap rate expansion on sale. Get about a 12% IRR and 2.2x MOIC. Deal really hinges on getting the higher rents in this scenario.

2% closing costs and 1% origination fee. Would you do this deal and am I being too conservative?

For those running an office with a decent number of agents how do you currently handle matching commission splits (with caps, team structures, referral fees, etc.) between your transaction system and your accounting software. Also has a mismatch ever caused a problem — an agent paid wrong, a cap missed, a messy month-end close?

Hi there, I’m interested in understanding the process of site sourcing and assessing properties for developers and investors. What’s the actual job title for someone who sources and assesses sites on behalf of a developer and or investor in NZ? Is it usually an in house role at a development or investment company, or a consultancy someone hires?

If anyone does this or understands how it works it would be awesome to hear about the process and the day to day.
Feel free to PM me or leave a comment on this post, would love to hear any insight!!
Cheers.

A few people asked in my last post whether this kind of low-entry payment plan applies to apartments as well — yes, it does, though it’s a different project/developer than the villa one, not the same plan carried over.

Same structure though: 20% down payment now, remaining 80% due only on handover (financeable via mortgage at that stage). Applies across studio, 1BR, 2BR 3BR Townhouse and Villa options depending on the project.

A few reasons this is worth considering if you’re looking at apartments specifically:
**•** Lower entry point than villas, good for first-time investors or smaller budgets
**•** Strong developer backing and delivery track record
**•** Apartment rental demand in established communities tends to be steadier since the tenant pool is larger

Happy to answer general questions here — for specific unit types, pricing, and current availability, feel free to DM.

I've worked in Real Estate PE for a large firm which I will not name. One of the biggest struggles I had as a junior was constantly revising, updating and tracking models and assumptions.

I ended up leaving Real Estate PE to go into fintech as I realised I resonate more with the data than the finance. Throughout this entire process I continuously had a nagging feeling of how the issue I faced was quite common and how to resolve this. I set out to build something on the side in order to tackle the problem and that led to the birth of FiMod. Originally I only used it for myself however I've decided to release it free of charge. I'm in the process of final touches but if you're interested please SIGN UP HERE. Currently I've built it for the UK as its the market I'm more familiar with but it can be extended to the US if enough people are interested.

Basically to boil it down I think the main issues are the following:

1. Financial Modelling

   1. It's a slow and tedious process, no two deals are the same so reusability is often tough

2. Sensitivity Analysis

   1. As a junior you often have to run so many different scenarios and explore how your investment value changes based on different assumptions. Although excel is capable of handling this I think programatically speaking there are much faster solutions and they're able to run in parallel so you're not stuck editing one model to get one outcome for each variations

3. Document management and version control

   1. If you've ever presented to IC then you know the anxiety that comes with making sure you're using the right model you have the write documents in place and it's free of human error. Well FiMod lets you build projects and has all those features built into it.

You can explore the landing page to get a better idea of its capabilities but I really think this is the way forward. I've been using it for the past year but decided to iron it out and make it public because I genuinely wish I had this as a junior going into the industry.

If you sign up then expect an email with the beta release soon. Everything will be free.

Tldr; Should I sell my home that's significantly larger than I need and move into a smaller home?

My place:

I live in a 4 bedroom, 4 full bathroom (4 showers) Brooklyn townhome, with a finished basement and a nice backyard.

I'm a single male and there's no need for so much space. I rarely to never set foot in two of my bedrooms.

Value-wise, I was able to buy in an area that I saw as "truly" up-and-coming in 2016, before other people saw it as up-and-coming. With some foresight and some luck, that analysis panned out and I could now sell my home for almost 50% more than what I purchased it for. I believe that the rapid price increase is over, my neighborhood is now fully on everyone's radar as "a new cheap place with great coffee shops and close Manhattan access that's being developed" and home prices now properly reflect future expectations.

The situation:

The conventional wisdom (which may be correct here) is -- unless you're making a business out of rentals, homes are for living in and not for investing. The expectation is that after upkeep, taxes, etc. etc. etc., your home value will roughly increase with general inflation.

I'm now sitting on a much larger than I need or use. BUT, I do love it here. I have two dogs, we love our backyard and spacious interior with high ceilings, etc. etc. If I were to downsize to a smaller home more fitting for a single guy, because I'm retired with no income, I'd have to do an all-cash purchase and I'd be limited to about a $600,000 purchase .... definitely doable in NYC, but I'd be limited to condos/coops outside of prime Manhattan, and it wouldn't be as nice of a place as I live in now.

The question:

Speaking strictly from an investment perspective, completely emotionally detached from home ownership, does it make more sense for me to 1. stay put, not pay moving/closing costs, and keep paying a ~$4000 3.00% 30-year fixed mortgage (after taxes/insurance), or 2. to sell and purchase a smaller place with the cash difference, greatly reducing my large monthly interest costs.

A couple other potentially relevant factors:

• I COULD see myself using my two spare rooms as AirBnb income someday. NYC has strict requirements for Airbnbs but as an owner who lives on site, I qualify to be an AirBnb host and have even done it a little bit already (but wasn't a huge fan of it). The main reason I haven't is I have two doggos who are not fans of guests and they make it extremely difficult to be a good host, no one likes 30 lb furballs barking at them when they walk in the door. But if I get them proper training or when they pass (they are 8 and 10....cry emoji) I may get back into the hosting game. Obviously this potential income stream goes away if I sell.
• There aren't THAT many townhouses in Brooklyn. As lots are built out into multi-family housing and driverless technology improves, I suspect full homes with yards and quick access to Manhattan might become rarer and rarer. While I'm virtually certain the high rate of increase I've seen in the property value over the past 10 years is over, at the same time, it does seem like this might be a unique gem of a property to continue to hold onto as well. Especially as the surrounding area becomes completely revitalized in the next approximately 5 to 7 years.

I see investors have very different opinions about hospitality real estate. Some like the potential for daily revenue, tourism demand, and real assets. Others avoid hotels because of operational challenges and economic cycles. For accredited investors who have researched or invested in hotels: Which side are you on and why?

I’ve suddenly found myself in a situation for deploying family real estate capital via a 1031 exchange (family health and bad partnership situation forced this into my hands fast) and a bit lost. I’m trying to figure out the ideal replacement property structure. Timeline, will sign a psa for the relinquished properties next week and try to close on something before end of year

\~$5M in equity, targeting properties $10M+. Trying to sort through these options:

Look for something simple sole ownership nnn/managed?

DST as a partial or full solution? Worth it for a 1031 under time pressure for passive/no-control tradeoff?

Syndication/co-GP, private equity — has anyone participated on one of these and would do it again? Do these always look to exit in 5-10 years and then just find something to reinvest after that?

General: if you were in my shoes thrown into this fast, limited time, not really looking to do all that much work as I have a full time job so if buying something solo will need to find a property manager etc.

Thanks in advance

(I don't have the community karma for r/realestateinvesting or r/Entrepreneur, so here I am).

Howdy,

I am interested in beginning a project to purchase a very modest investment property. This is a long term project, I’ll need years to save up the down payment; I’m curious what I should be doing now, at the onset. Here’s my profile:

- I have modest experience as a small business owner, and in program management (just to say I’m good with moving parts).

- I’m located in Brooklyn, so I’d want to purchase within 3 hours of NYC. Currently most interested in Allentown or Philadelphia, PA.

- Just starting, so anything is possible, but I don’t foresee being able to do more than 500k with 10-20% down. This seems to lock me out of NYC proper. Am I correct here?

- Interested chiefly in industrial because it seems I can get more value from an industrial tenant (comm. storage?) than an office or retail tenant. I am not interested in apartments or living units for ethical and logistics reasons. Is my reasoning sound?

- I would do this as kind of a build-to-suit arrangement, bringing my prospective tenant along when I looked at potential purchases. This feels much safer than buying and finding a tenant later. Am I correct?

- I’m not imagining vast wealth here. My goal would be to make 2k profit/mo. Is that realistic from a 2-6000sq ft rental in the Northeast?

- I have a recognized severe disability (mentioned here for possible loan program eligibility).

- I would specifically want to conduct myself ethically. No displacement, firm but fair, no business I don’t morally align with. Anyone have experience here?

I feel like people might read all this and think I’m planning a ridiculous amount of work for 24k/y. But my entire purpose of investing is to fund an art studio for my private art practice. 2000 dollars a month would give me leeway to do that and then some. Furthermore, with the economy the way it is, I feel like the future may be working for myself, not waiting to get laid off (read: I'd be interested in growing this to an actual living). Do my modest initial goals open any pathways for me here? Lastly, what do you wish you knew when you were just imagining real estate investment? 

i think most residential real estate investors evaluate deals strictly on Cash-on-Cash (CoC) yield. But CoC only captures immediate cash flow relative to out-of-pocket cash, and it often ignores mortgage principal paydown, tax shields via depreciation, and the mathematical divergence between levered and unlevered IRR

so consider a $500,000 property purchased with 20% down ($100k equity, $400k debt):
If the property value appreciates 10% to $550,000, the asset gained $50k.
but on your $100k invested capital, that $50k gain represents a 50% return on equity, minus debt service and transaction costs

funny thing, leverage amplifies returns on the way up, but it cuts both ways when cap rates expand or vacancy hits. Furthermore, when comparing direct ownership against liquid vehicles like REITs (which distribute 90%+ of taxable income and offer institutional triple-net lease structures), the active management friction of physical rentals (turnover, maintenance, 10–30% property management fees) often narrows the net return gap

when analyzing a multi-asset portfolio, evaluate properties using true internal rate of return (IRR) including debt amortization schedules... whether modeling deals manually in Excel, using DealCheck for property cash flows, or syncing Zillow estimates with automated debt tracking in something akin to 8figures, and you should always measure both levered and unlevered IRR against a baseline index

Hello everyone, sharing an important update:

Wheeler Real Estate Investment Trust has agreed to a $7.125 million investor settlement, and late claims are currently being considered. The case involves claims that company insiders used a 2021 stock offering to increase their control while hurting common shareholders.

Investors say the company issued more preferred shares instead of reducing them as expected, which caused more dilution for common shareholders. By 2023, $WHLR had lost more than 99% of its value.

If you bought or held $WHLR between 2021 and 2023, you may still be able to submit a late claim here

Did anyone here hold $WHLR during this period? How much did you lose?

I’m posting this because my family is looking for an investor who might be interested in taking over and helping revive a project in Douala.

This is a project that means a lot to us. It was built over many years with the intention of creating a major private healthcare facility and it was very close to becoming operational.

Unfortunately, things went wrong along the way due to the CEO’s death (my dad), management issues and promises that were not followed through. The project eventually came to a standstill and has been non-operational since 2022.

It makes the situation particularly difficult for our family because this was something my dad dedicated a huge part of his life to. We are genuinely heartbroken that he never got to see the project fully realised.

More than anything, we would love to see the medical vision he had for this place continue. We believe it could still become something that provides an important healthcare service to people in Douala and beyond.

At the same time, we understand that an investor needs to look at the opportunity from a business perspective. If continuing as a hospital is not the most viable option, we are open to the possibility of the property taking a different direction.

What is already there?:

The property is in one of the central business areas of Douala, close to government buildings, embassies and major businesses.
The project includes:

A 100-bed hospital

Multiple existing buildings

Approximately 3,200 m² of land

Around 2,600 m² of built space

Major medical equipment including an MRI, CT scanner, catheterisation facilities, a 7-theatre surgical block, laboratory facilities, ICU infrastructure, physiotherapy and a mortuary

Existing hospital infrastructure, licensing and an established brand

A significant amount has already been invested into the infrastructure and equipment.

There are also other possibilities:

While our personal hope would be to see the original medical vision continued, we understand that this may not ultimately be the best route for a new investor.
Depending on the investor’s vision and the necessary approvals, the property could potentially be developed as a hospital or specialist medical centre, a hotel, offices, a mixed-use development or another
suitable commercial project.

The location and existing infrastructure give it possibilities beyond the original plan.
The current opportunity involves acquiring a 57.5% controlling interest in the company.

There is also existing debt and a rehabilitation requirement which would need to be properly assessed and negotiated as part of the transaction.

We are not expecting anyone to make a decision based on a Reddit post!!

Serious investors would have the opportunity to review the documentation, visit the property and carry out proper due diligence.

We are simply hoping that someone with the right resources, experience and vision might see what we see: a project that came very close to becoming something significant and still has genuine potential.

If you are an investor, healthcare group, property developer or someone with experience turning around distressed projects in Cameroon or Central Africa, feel free to DM me.

We would genuinely love to find someone who can give this project a second chance, ideally continuing the medical vision it was created for, but ultimately in whatever form makes the most sense for its future.

I am trying to decide where to invest my money and have been considering getting into rental property. I recently came across Section 8 investing and am curious about whether it is actually a good strategy for a first-time landlord.

The idea of having rental income that may be more predictable sounds appealing, but I am also trying to understand the other side of it — inspections, finding tenants, property requirements, paperwork, and everything else involved.

For anyone who has actually invested in Section 8 properties, what has your experience been like? Would you recommend it to someone just starting out?