Bexar is the San Antonio and surrounding areas.
Hi Y'all thanks for taking time for reading this. Here's my situation. I have purchased my first property and am rehabbing it right now (what a PIA (saw this acronym in a post I read earlier and love it!)). I used my own $ before I learned NOT to do that and use a hard-money lender so my funds are strapped. I have just finally gotten a hard-money loan for rehab funds (hate the fact that I have to wait on draws).
Here's the question-I will have probably 40% equity in the property. Should I hold it as a rental or try to sell it? My thought is that if I keep it as a rental property eventually I will make a lot more money in the long run. At some point int will become positive cash flow.
What do you savvy REI typically do?
Hey Rosie, can you give us a few more numbers to work with?
- Purchase price
- Rehab costs
- ARV (After repair value)
- Mortgage cost (after you refi out of the hard money loan into a conventional loan)
- Market rents after repair
The more detail you provide the better answer you will receive!
Hi Will, I will :-)
Rehab costs probably around 25,000-30,000 depending on how much I can reign my brother in who loves remodeling...
Hi @Rosie Vidales , and welcome!
I don't have an answer to your question, but I know someone else here will!
I'm sure you're right!! Thanks
What would it rent for? I would think a 45000 dollar mtg. On a 73000 property in SA would most always cash flow. If you sold it, would you net 28,000 minus realtor fees etc? What was your initial exit strategy? What area of town? I like buy and hold myself but would consider a flip for cash.
It can rent from $900-$1000 It's on the south side of SA. I advertised on Postlets for $925 just out of curiosity to see if I'd get any nibbles and I got easily 12 responses. I also have a person with a Section 8 voucher for $1000 who is interested.
So I've come to realize that renting it quickly will be no problem.
Thanks Will----Are you in Helotes also? If so I put on a comedy show every last Saturday of the month at Bandera Rd Cafe.....
Hey Rosie, always nice to hear from new people in the area. What are you investing goals? what were your plans when you bought the house?
Things to consider would be:
Make sure you can do a cash out refi. (if you want to rent it out)
Are you ok with breaking even every month (not saying you would, need more info to estimate)
Are you comfortable with the area and types of tenants that would be there?
Can you find more deals like this? If so, if you flipped it you would have twice as much cash to do it again, you could buy one all cash (with the same numbers) or you could do multiple using hard money. (are you ready for the work of doing multiple)?
It really all depends on what you would like to see happen, but it looks like your getting a good stat, Congratulations.
Hi Maverick, all of the above, lol. I would flip it only to someone that wants to purchase it as a primary residence because they're the only ones that will pay market value in most cases. I would love to have several rental properties even if I break even now. In the future as I get older I should have positive cash flow which is what matters most to me.
Yes a retail buyer would be your best bet if you were going to flip it. If its cash flow your after, this property sounds like it would be cash flow positive, assuming all the numbers are correct. Figure out what all your numbers would be and enter them into the bigger pockets investment calculator found here. Let us know what you find out, and what you decide to do. Don't hesitate to ask if you need any help finding some numbers.
Nice to see all these people from Texas on here. I think you should keep it as it seems like you have a good cash flow on this property.
How did you find this deal at $20k? I'm struggling to find a flip with those numbers (or that ratio) through 2 wholesalers and an investor-friendly agent in SA. Maybe saving money with the brother's labor rather than paying a contractor? Thanks.
Jeff - Helotes native that lives in Lakehills and works in SA
Yes, I do live in Helotes (closer to grey forest). I will have to come see your comedy show. PM me the specifics please. Also, let us know what you decide to do with the house.
Welcome to BP Rosie.
I would hold the property as it sounds like it'll cash flow. Then again I am not real comfortable with flipping yet. If I were you I would simply evaluate what my end goal is. If you need the capital flip it, if you like the cash flow. Hold it.
@Rosie Vidales Hi. It appears you have pulled the SA area REI out with your post. Sounds like a good one. Plug in ALL YOUR NUMBERS. And see what best use of property is. The really cool thing about REI is you can have multiple outs, be ready to use them. Good Luck. Make sure and use all the resources of BP. Tom
Hi Tom, don't have all the numbers yet since we're still remodeling. My brother is thinkiing around $30,000.
Hi Jeff, a friend of mine won it in a divorce settlement and didn't want to keep it.
But I'm hoping I'll fine more properties at this price!!
Hey Will, sorry it's every last Saturday of the month at Bandera Rd Cafe on Bandera Rd-brilliant namem huh? So inventive, lol...
Ryan, I agree.
Thanks guys for the feedback. Sorry so late in responding but I have trouble responding from my phone so I have to wait til I can get on my laptop which isn't daily
Welcome to BP! Way to move forward!!
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