New Investor looking to get my first rental.

Member since 2024 · 9 posts · 7 votes

Hello everyone !,

My name is Nate McAuley and I am looking to buy my first rental property in the upcoming quarter or two.

I am narrowing down my decision to buying a duplex in College Station(where I will be going to back to school in the fall) and renting out one room then both once I graduate or a single family home in pearland, which I will house hack for a year than turn into a long term.

I plan to get a small rental portfolio then step up into the fixing and flipping while doing the occasional wholesale along the way.

If you live in the greater Houston area and would like to chat I would love to talk to anyone as I’m trying to gain as much wisdom as possible early on.

Thanks,

Nate.

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Sarah WilsonPro Member

Investor · College Station, TX · Member since 2019 · 12 posts · 7 votes

Hi Nate, there's a decent BP community here that meets monthly/ regularly. Our next meeting will be at my newest duplex in bryan on thurs. feb. 15. Several house hackers will be there, including myself who know the area. You're welcome to attend!

Podcast Guest on Show #242

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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
2y
Welcome to the BP community @Nate Mcauley ! It is a great place to meet new friends and learn about various aspects of real estate and more.

Read Beginner’s Guide to help you get started: http://www.biggerpockets.com/real-estate-investing

Good luck on everything!

0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y
@Nate Mcauley
It's great that you intend to go into real estate investment, and your plan to begin with a rental, progress to house hacking, and then consider mending and flipping is a sound one. Here are some ideas and pointers:

Purchasing a duplex close to your intended school is a wise decision. One way to reduce your living expenses and accumulate equity is to rent out one property while you're a student and both units once you graduate.

Another great option in Pearland is house hacking. One approach to save living expenses is to live in one section of the property and rent out the others. Make sure you've studied the market well in order to comprehend the demand for rentals and potential cash flow.

It's a wise decision that you want to establish a connection with regional investors in the Houston area. Participate in online forums, go to local real estate meetings, and think about contacting local real estate agents. Networking can offer insightful information and beneficial chances.

Collaborate with seasoned real estate experts, including contractors, inspectors, and real estate agents. Their knowledge may be quite helpful in navigating the complexity of real estate transactions and helping you make well-informed decisions.

If you have specific questions or need advice on certain aspects of your investment plan, feel free to ask. Best of luck with your real estate journey!
[email protected]832-776-9582 Podcast Guest on Show #469
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Brian Schroeder
Realtor · Houston, TX · Member since 2020 · 66 posts · 21 votes
2y
Hi @Nate Mcauley!
Gig' em Aggies! College station is a great market for rental properties, I have come across a few deals out there over the past 3 years. I'm curious to know, how are you finding the properties you're looking to purchase (On-market, FSBO, Off-market, etc.)
Renting by the room is a great concept in theory, but nonetheless, you need to understand where you are looking geographically (how close is the property to the university), and second to that, you should consider -- do you need to get a duplex to make the deal cashflow?
Given interest rates are high right now, many duplex properties do not cash flow, and I am under the impression that you might be able to get away with renting a SFH by the bedroom, for a lower all-in cost.
Summarized:
1. How much capital are you able to put into the deal at acquisition?
2. Are there any restrictions in the neighborhood on the number of non-relative persons can live in the property?
3. How close are you to the university?
4. What is the rental rate?
5. Do you have a reasonable pro forma drafted that you can use to analyze deals?
6. How are you finding deals?
I have a network in College Station who can help in terms of finding the right property. Reach out if you have any questions.
0 Reply
Juan Monge
Investor · Pearland, TX · Member since 2017 · 67 posts · 33 votes
2y
@Nate Mcauley welcome to BP!
I am based in Pearland, reach out if I can help in any way.
0 Reply
Nate Mcauley
OP
Member since 2024 · 9 posts · 7 votes
2y
Quote from @Wale Lawal:

@Nate Mcauley
It's great that you intend to go into real estate investment, and your plan to begin with a rental, progress to house hacking, and then consider mending and flipping is a sound one. Here are some ideas and pointers:

Purchasing a duplex close to your intended school is a wise decision. One way to reduce your living expenses and accumulate equity is to rent out one property while you're a student and both units once you graduate.

Another great option in Pearland is house hacking. One approach to save living expenses is to live in one section of the property and rent out the others. Make sure you've studied the market well in order to comprehend the demand for rentals and potential cash flow.

It's a wise decision that you want to establish a connection with regional investors in the Houston area. Participate in online forums, go to local real estate meetings, and think about contacting local real estate agents. Networking can offer insightful information and beneficial chances.

Collaborate with seasoned real estate experts, including contractors, inspectors, and real estate agents. Their knowledge may be quite helpful in navigating the complexity of real estate transactions and helping you make well-informed decisions.

If you have specific questions or need advice on certain aspects of your investment plan, feel free to ask. Best of luck with your real estate journey!

Thanks ! , I have joined a REIA and have been networking with as many investors, agents and lenders I can which has been instrumental in the development of my plan. I will be sure to reach out if I have any questions.
0 Reply
Nate Mcauley
OP
Member since 2024 · 9 posts · 7 votes
2y
Quote from @Brian Schroeder:

Hi @Nate Mcauley!
Gig' em Aggies! College station is a great market for rental properties, I have come across a few deals out there over the past 3 years. I'm curious to know, how are you finding the properties you're looking to purchase (On-market, FSBO, Off-market, etc.)
Renting by the room is a great concept in theory, but nonetheless, you need to understand where you are looking geographically (how close is the property to the university), and second to that, you should consider -- do you need to get a duplex to make the deal cashflow?
Given interest rates are high right now, many duplex properties do not cash flow, and I am under the impression that you might be able to get away with renting a SFH by the bedroom, for a lower all-in cost.
Summarized:
1. How much capital are you able to put into the deal at acquisition?
2. Are there any restrictions in the neighborhood on the number of non-relative persons can live in the property?
3. How close are you to the university?
4. What is the rental rate?
5. Do you have a reasonable pro forma drafted that you can use to analyze deals?
6. How are you finding deals?
I have a network in College Station who can help in terms of finding the right property. Reach out if you have any questions.

I appreciate the breakdown of the situation. I did not even think about getting a SFH and renting by the room but that is something I will take into consideration before executing my decision. I will also reach out if I have any questions.
1 Reply
Nate Mcauley
OP
Member since 2024 · 9 posts · 7 votes
2y
Quote from @Juan Monge:

@Nate Mcauley welcome to BP!
I am based in Pearland, reach out if I can help in any way.

Will Do!
0 Reply
Sarah WilsonPro Member
Investor · College Station, TX · Member since 2019 · 12 posts · 7 votes
2y
Hi Nate, there's a decent BP community here that meets monthly/ regularly. Our next meeting will be at my newest duplex in bryan on thurs. feb. 15. Several house hackers will be there, including myself who know the area. You're welcome to attend!
Podcast Guest on Show #242
1 Reply
Nate Mcauley
OP
Member since 2024 · 9 posts · 7 votes
2y
Quote from @Sarah Wilson:

Hi Nate, there's a decent BP community here that meets monthly/ regularly. Our next meeting will be at my newest duplex in bryan on thurs. feb. 15. Several house hackers will be there, including myself who know the area. You're welcome to attend!

@Sarah Wilson I messaged you

1 Reply
Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
2y
@Brian Schroeder you make some very good points. I have seen that the 3 bedroom 3 bath duplexes provide a solid house hack option particularly if someone is willing to rent out the extra rooms in the side they live in.
Very Rough Math:
Purchase: $400k PITI: $3200 FHA Loan: $14k down
Rent: Side A $1800 Side B $1200 (you occupy one bedroom in side B)
Total Income: $3,000
Live for free (nearly), enjoy 4% appreciation ($16,000) each year and principal paydown!
Year one appreciation > downpayment!
[email protected]443-812-0357
Schwartz Realty Group5117 Reviews
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y
@Nate Mcauley

It sounds like you have a well-thought-out plan for your real estate journey. Both College Station and Pearland are interesting markets, each with its own dynamics and potential. House hacking is a great way to get started in real estate investing, and it seems like you've considered some solid strategies.

Since you're looking to connect with individuals in the greater Houston area, here are a few suggestions to expand your network:

Local Real Estate meetings: Participate in seminars, networking events, and local real estate meetings. These events offer a great chance to network with seasoned investors, exchange ideas, and gain knowledge from one another's experiences.

Online Forums and Groups: Get involved in social media and online forums devoted to Houston area real estate investment. There are local forums on BiggerPockets, and real estate investment groups are frequently found on Facebook and Meetup.

Real Estate Investment Associations (REIAs): Search the Houston region for regional REIAs. You may meet others who share your interests by attending the events, workshops, and networking opportunities that these groups frequently organize.

Make Connections with Real Estate Agents: Establish connections with agents that focus on investment properties in the real estate market. They can offer insightful information on prospective prospects and trends in the local market.

Check Out Your Local Real Estate Investment Clubs: Real estate investment clubs are available in many cities and have frequent meetings. Come to these events to network with experienced investors, learn from special guests, and broaden your horizons.

Make Use of Social Media: Participate in the real estate community on sites such as Instagram, Twitter, and LinkedIn. Engage in conversations, follow regional investors, and make contact.

Note that establishing a solid network is essential to real estate investment, and interacting with nearby investors may offer helpful advice and assistance. Please don't hesitate to get in touch with experts, go to events, and take part in conversations to further your knowledge of the Houston real estate market.

Good luck!
[email protected]832-776-9582 Podcast Guest on Show #469
NETWORTH BUILDERS5236 Reviews
Website View Page
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