What do you do when you question your choices?

Austin, Texas
General Real Estate Investing
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What do you do when you question your choices?

Beatriz Casarez
Austin, TX · Member since 2022 · 12 posts · 4 votes

Hello,

I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate?

Any advice, would be appreciated.   

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Simon Ashbaugh
Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
3y
Quote from @Beatriz Casarez:

Hello,

I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate. Any advice, would be appreciated.   


Checkout Ohio! Columbus is the fastest growing metropolitan area in the midwest with decent cashflow, and appreciation 8% higher than the national average. Cleveland is incredible for cash flow, with around 60% of households occupied by renters. Happy to chat more in-depth on these markets if you shoot me a DM!

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  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    3y

    I prefer a duplex to a SFR. You can have one side vacant and some rent still covering expenses. Make sure of your underwriting knowlege that is a real confidence booster. All the best!

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Buy in Killeen Texas, there is cash flow and BRRRR property to be found. This is where I invest

    1Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y
    Quote from @Eliott Elias:

    Buy in Killeen Texas, there is cash flow and BRRRR property to be found. This is where I invest


     Hi Elliot,

    I also have my rental properties in Killeen. Thank you for responding!

    0Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y
    Quote from @Bjorn Ahlblad:

    I prefer a duplex to a SFR. You can have one side vacant and some rent still covering expenses. Make sure of your underwriting knowlege that is a real confidence booster. All the best!

    That is one if the reasons why I also wanted a duplex. The fact that you can still cover my cost, if you had led a vacancy is nice. Thank you for responding.
    0Reply
  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    3y

    @Beatriz Casarez have you looked at Columbus, OH at all yet or any other cities in the midwest? Personally I think a duplex is almost always better than a single family because if one side is vacant, you still have the other side taking care of most of the mortgage if not all of it until you fill the other side again. Whenever I question something I'm doing in real estate, I just look over the numbers and location to make sure it can or will make sense. 

    [email protected]614-698-1227
    Reafco - Columbus, OH
    WebsiteView Page
    0Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y
    Quote from @Beatriz Casarez:

    Hello,

    I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate. Any advice, would be appreciated.   


    Checkout Ohio! Columbus is the fastest growing metropolitan area in the midwest with decent cashflow, and appreciation 8% higher than the national average. Cleveland is incredible for cash flow, with around 60% of households occupied by renters. Happy to chat more in-depth on these markets if you shoot me a DM!

    2Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y
    Quote from @Simon Ashbaugh:
    Quote from @Beatriz Casarez:

    Hello,

    I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate. Any advice, would be appreciated.   


    Checkout Ohio! Columbus is the fastest growing metropolitan area in the midwest with decent cashflow, and appreciation 8% higher than the national average. Cleveland is incredible for cash flow, with around 60% of households occupied by renters. Happy to chat more in-depth on these markets if you shoot me a DM!


     Yes, I have looked at Ohio.  I just don't know much about specific areas that are good for investing.  Thank you for your response, I appreciate the information. 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y

    @Beatriz Casarez

    For your next investment, have a clear investment goals so that you can find the deal and negotiate accordingly.

    Work with an experienced local agent or investor and shorten your learning curve as they save you a lot of headaches as they tend to understand the market better.

    I am a real estate agent and investor in the Houston market.

    Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

    Rent growth and appreciation is steady.

    These cities tend to command quality tenants, and they have great schools.

    All the best!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    0Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    If you go out of state David Green’s book on Out of State investing, specifically his words on the “core 4” are a must have. Highly recommend the book and taking those things into account.




    2Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    @Beatriz Casarez

    I’m in the DFW area and hit up C class hoods for much better cash flow and lower turnovers with single family in the 200k range. Property taxes are high but market rent is high here so it evens out. Keep crunching numbers on properties until you find something that works for you.

    1Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y
    Quote from @Wale Lawal:

    @Beatriz Casarez

    For your next investment, have a clear investment goals so that you can find the deal and negotiate accordingly.

    Work with an experienced local agent or investor and shorten your learning curve as they save you a lot of headaches as they tend to understand the market better.

    I am a real estate agent and investor in the Houston market.

    Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

    Rent growth and appreciation is steady.

    These cities tend to command quality tenants, and they have great schools.

    All the best!

    Hello Wale,

    I was considering Conroe but then thought out of state might be a better option, because of the property taxes in Texas. Thank you for your response. 
    0Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y
    Quote from @Nate Sanow:

    If you go out of state David Green’s book on Out of State investing, specifically his words on the “core 4” are a must have. Highly recommend the book and taking those things into account.





     I am reading that now, thank you!

    1Reply
  • Jeffery Wireman
    Member since 2022 · 19 posts · 9 votes
    3y

    hello BP community I'm new at this and eager to purchase my first property. I live in Texas and looking for off market value homes/Condo's if there is a website that offers that please let me know I have been driving around looking that's my current method. I would appreciate any helpful tips. thank you  

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Beatriz Casarez:
    Quote from @Simon Ashbaugh:
    Quote from @Beatriz Casarez:

    Hello,

    I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate. Any advice, would be appreciated.   


    Checkout Ohio! Columbus is the fastest growing metropolitan area in the midwest with decent cashflow, and appreciation 8% higher than the national average. Cleveland is incredible for cash flow, with around 60% of households occupied by renters. Happy to chat more in-depth on these markets if you shoot me a DM!


     Yes, I have looked at Ohio.  I just don't know much about specific areas that are good for investing.  Thank you for your response, I appreciate the information. 




    I recommend the major cities in Ohio and here's why:

    Columbus is great for appreciation, pp is a bit higher around $220k for multifamily https://learn.roofstock.com/bl...

    Cincinnati has a mix of cash flow and appreciation, average multifamily around $180k. https://www.noradarealestate.c...

    Cleveland, has alot of cashflow potential, average multifamily is around $140k. https://learn.roofstock.com/bl...

    If you need help finding a good neighborhood to start on, let's connect and discuss how I can help you out.
    1Reply
  • Jack Mawer
    Lender · Member since 2022 · 338 posts · 374 votes
    3y

    I feel like there are some places in Texas such as Killeen where the taxes aren't too high - it is definitely a personal choice of how comfortable you are with investing out of state - I would make sure you have trustworthy people who are local to where you will invest to help you out and check on things! 

    0Reply
  • Beatriz Casarez
    OP
    Austin, TX · Member since 2022 · 12 posts · 4 votes
    3y

    Hi Steven,

    Thank you for sending me this information.  I appreciate you responding!

    0Reply
  • Nick Shri
    Rental Property Investor · VA · Member since 2020 · 218 posts · 133 votes
    3y

    Why is high RE tax a concern? I personally don't see that as a reason to go OOS. You make your money in RE in purchase, buy low at good price. TX I feel is a more steady market over OH anyday (my opinion), you won't see crazy high appreciation in OH and nor in TX, doubling of property values period ended in summer 2022 nationwide. TX will still see higher appreciation overall.

    Talk to a CPA to understand the numbers better. Again, high RE taxes shouldn't be a reason to invest OO TX.

    0Reply
  • Jeffery Wireman
    Member since 2022 · 19 posts · 9 votes
    3y

    Thank you for this great advice. I do have a great CPA on my team

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y
    Quote from @Beatriz Casarez:
    Quote from @Wale Lawal:

    @Beatriz Casarez

    For your next investment, have a clear investment goals so that you can find the deal and negotiate accordingly.

    Work with an experienced local agent or investor and shorten your learning curve as they save you a lot of headaches as they tend to understand the market better.

    I am a real estate agent and investor in the Houston market.

    Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

    Rent growth and appreciation is steady.

    These cities tend to command quality tenants, and they have great schools.

    All the best!

    Hello Wale,

    I was considering Conroe but then thought out of state might be a better option, because of the property taxes in Texas. Thank you for your response. 

    You'll need good contacts in the area to make your investment plan successful. That doesn't only mean a real estate agent. You may need a property manager, a maintenance worker, and a contractor before long.

    The secret to many out-of-state investors' success is finding and hiring an excellent property management company. It will be their job to fill vacancies, collect rent, make repairs and handle emergencies.

    If you lived in the area, you might choose to manage the property yourself. If you live far away, professional property management is an extra expense you simply must incur to safeguard your investment.

    Experienced builder and property manager Rusty Meador notes, "No matter how good of a real estate deal you find, it is only as good as its ability to be managed well."
    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    1Reply
  • Marc Stevenson
    Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 116 posts · 69 votes
    3y
    Quote from @Eliott Elias:

    Buy in Killeen Texas, there is cash flow and BRRRR property to be found. This is where I invest


     Agreed.  Great area.

    0Reply
  • Marc Stevenson
    Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 116 posts · 69 votes
    3y
    Quote from @Beatriz Casarez:

    Hello,

    I have 2 long term rental properties in central Texas.  I would like to buy another property in Texas, but property taxes are so expensive. So, I have been looking in St Louis but still question my target market. My initial thoughts were to buy a duplex and get a good cash back return, but since I am still questioning the area, I start to think a single family would be best to start with.  But, that could just be my fear kicking in.  What are things you do when you question your choices in real estate. Any advice, would be appreciated.   

     @Beatriz Casarez  There are still some great areas in Texas.  I agree with Killeen.  We also do a lot in Wichita Falls.  

    Definitely a little harder to find in this market but they're there.  

    P.S. I currently only have SFH but am looking to locate a duplex soon.


    Happy Investing! 

    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Hey @Beatriz Casarez - are you questioning the entire area of St. Louis or just specific neighborhoods that fall within your budget requirements? One thing that helped me get a good feel of an area was to actually drive through it to gauge where it felt on the alphabet ranking. Additionally, it would also depend on what your goals are. Do you want to focus on cashflow, or appreciation, or etc.? Typically for me, once I've answered those initial questions I can use that as a rubric to gauge properties that I look through. 

    0Reply
  • Matt Guignon
    Real Estate Agent · St. Louis, MO · Member since 2017 · 74 posts · 20 votes
    3y

    @Beatriz Casarez I am a local investor in St. Louis and would love to be a resource if you have any specific questions. We work with a lot of out of state investors and have the boots on the ground to help find, rehab, and mange deals. St. Louis is a great market for cash flow and has a robust stock of small multifamily properties. I look forward to connecting and providing more insight to the market! 

    0Reply
  • Marc Stevenson
    Real Estate Agent · Dallas-Fort Worth, TX · Member since 2021 · 116 posts · 69 votes
    3y

    @Beatriz Casarez Hi Beatriz. I responded earlier but thought I'd add that along with managing 850 properties we also locate investment properties for investors. They're more challenging to find in this market but they're there. Many times, a property we manage will pop up as an investor opportunity and we'll shoot it to our investor list. I would say join some of the local investor REI groups and get on a few investor lists. You typically have to move quickly to get them but occasionally you'll get a really good property.

    Best of Luck and happy investing!

    0Reply
  • Estefania Navas
    Member since 2022 · 25 posts · 8 votes
    3y
    Quote from @Wale Lawal:

    @Beatriz Casarez

    For your next investment, have a clear investment goals so that you can find the deal and negotiate accordingly.

    Work with an experienced local agent or investor and shorten your learning curve as they save you a lot of headaches as they tend to understand the market better.

    I am a real estate agent and investor in the Houston market.

    Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

    Rent growth and appreciation is steady.

    These cities tend to command quality tenants, and they have great schools.

    All the best!


    Hi Wale, Can you please specify what part of Houston? 

    0Reply
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