SF Buy & Hold investor from Katy, TX

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SF Buy & Hold investor from Katy, TX

Deidra Hubenak
SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes

H Everyone,

I have been listening to the Bigger Pockets podcasts for awhile now (they are awesome), and I decided it was finally time to join the forums. My husband and I are SF Buy & Hold investors from Katy, TX west of Houston. We would love to meet other investors in our area for networking and mentorship.

Our experience with real estate investing is somewhat limited. I inherited 3 rental properties in the late 90's, but I sold them quickly because they were very low income shacks that needed a ton of rehab. (The gross monthly rental income was $250 for a SF Home if that gives you an idea.)

My husband is currently a program manager and has experiencing rehabbing houses and completely converted a turn of the century duplex into a SF home when he was in his 20's. He completely replaced all plumbing, electricity, roof, etc.

About a year ago, I did a calculation of our retirement income, and it was sobering. Although my husband and I have very good jobs (I am a tax atty/CPA and he is a corporate executive), we have both been through divorces. We liked the idea of the passive income stream from rental properties. Our goal is to get 40 rental properties, and then possibly retire early! We bought our first two properties last year and we are about to close on our third property.

We welcome any and all advice that anyone has. I would rather learn from everyone else's mistakes than from making my own!

Thanks,

Deidra Hubenak

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Lyall Storandt
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
12y

@Deidra Hubenak They're actually having one tonight. Unfortunately, I'm on daddy duty (and tonight's the NFL draft) so I will not be in attendance... There is literally at least one investor networking event every single night of the week; usually more than one. Quest IRA does a ton of events out your way.

Although I attend significantly less frequently than I used to, the RICH Club offers educational workshops every Monday night and their general meeting is the first Saturday of each month. Jet Lending hosts a big meet-up at the Texans Grille in City Centre the third Wednesday of each month and there's another one hosted by Noble Mortgage and others that usually falls on the second Wednesday of each month. Then you've got the Wealth Club and Lifestyles Unlimited; the latter can get a bit pricey. There's another group that has changed their name multiple times now, but used to be Liberty Real Estate Academy who hosted great meet-up events.

In short, the meet-up groups aren't too hard to find...

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  • Tom Keith
    Investor · Longview, TX · Member since 2012 · 631 posts · 186 votes
    12y

    @Deidra Hubenak Welcome to BP!! And to all the REI that you assist in the coming years Yay! It is such a great place to learn and grow from. Looking forward to seeing you here. Tom & Roni.

    0Reply
  • Paul Hector
    Investor · Seattle, WA · Member since 2013 · 53 posts · 7 votes
    12y

    Hi Deidra,

    Wwelcome to BP! I've found it a great place to build my knowledge and people are quit willing to share their successes and mistakes and help each other. So you are in the right place! Best wishes, Paul

    0Reply
  • Denise Mayo-Walley
    Investor · Sugar Land, TX · Member since 2013 · 71 posts · 26 votes
    12y
    Welcome! I'm new here and in the Houston area as well. My husband and I have the same goals and you all - we haven't purchased our first property yet but we're ready to get started. Good luck and perhaps I'll meet you at a future REIA meeting. We're blessed to have BP as a resource. :-)
    0Reply
  • Dennis Rodriguez
    Wholesaler · Katy, TX · Member since 2013 · 213 posts · 109 votes
    12y

    @Deidra Hubenak welcome to the great BP forum. May I ask, where are you finding your properties? Do have a Realtor working with you or are you marketing to find the deals? Are you following any of the general "rental rules" to make your numbers work? You can PM me if you feel uncomfortable posting out in public.

    There's a lot to learn here at BP but you seem to be in the right track already.

    Happy investing.

    0Reply
  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    12y

    Welcome to Bigger Pockets @Deidra Hubenak

    You have already jumped the first hurdle that many never get past which is you are already investing in Real Estate. The people here on BP will be happy to assist, if you have any questions just ask you will get answers from EVERYWHERE!!! LOL!!

    Kind Regards

    Derrick

    0Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    WOW!!! What a welcome!

    I just replied to Denise on another post with a lot of the answers to your questions, but since I have NO idea how to link it, I will just repeat it here...lol.

    Our current properties -

    Like Denise said on the other post, I totally had analysis paralysis (I think it is the CPA in me.) I was looking for the perfect foreclosure that I could buy way below market, rehab, still have a ton of equity and then rent for a lot of money. The market changed here in West Houston while I spent months over analyzing everything and a lot of the opportunities disappeared.

    Finally, I got sick and tired of it and just bought two properties at close to market value that needed little rehab. The first was 96K and rents for $1250. The second was $111K and rents for $1345. Both of these net $550 per month. I have found that it is not difficult to meet the 1% rule and the 50% rule (not including P&I - just operating costs). The 2% rule would be VERY difficult to find in West Houston. Our third property is $132K and will rent for $1500. It should clear $450-$500 per month.

    Was this rash decision a good idea? The cash flow is great and both of the first two properties increased in value about $20K in less than a year.

    Where do I find my properties? I work full time as a tax attorney, but I am a control freak, so I got my realtor's license in December. I find them myself by looking on the MLS. Contrary to popular belief, I personally think that you can find great deals on the MLS.

    Thanks to everyone for the VERY warm welcome, and I look forward to any and all wisdom that you can share with me about what you think I am doing right and wrong!

    Deidra

    1Reply
  • Sonny Ngo
    Involved In Real Estate · Houston, TX · Member since 2014 · 78 posts · 22 votes
    12y

    Hi Deidra,

    Average cash flow. The only down fall right now is that you have all your money tie up in these holding properties. What if there is a great flip property on the market right now and has a 30k in profit? You wouldn't be able to get it because you have no money left.

    0Reply
  • Lyall Storandt
    Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
    12y

    @Deidra Hubenak Hey Deidra, welcome to Bigger Pockets! There's quite a few active members in the Houston area; let us know if there's ever anything we can do to help!

    0Reply
  • Sharon Tzib
    Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
    12y

    Hey Deidra! As I said on the other forum thread, great job on your rentals. Those numbers are fantastic!

    @Sonny Ngo your reasoning makes no sense. Have you considered that Deidra is not a flipper? Her likely model, like mine, is to buy long-term holds in good to great condition. I would not be the least bit concerned if I missed a $30K profit flip because that is not something I would want to do. Don't assume your niche and strategy is the same as others. Getting 20-30% COC is a dream for a lot of investors, me included. I find Deidra's example encouraging :)

    0Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    Sonny,

    Personally, I am not interested in flipping - that is a job, and I already have one of those. I am interested in generating a passive income stream that funds my retirement and allows me to retire early.

    What type of investing do you do?

    Lyall,

    Thanks for the welcome. I heard on the podcast that there are city groups that get together to network. Is there one set up for Houston? I haven't stalked the website long enough to find it yet.

    Deidra

    0Reply
  • Lyall Storandt
    Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
    12y

    @Deidra Hubenak They're actually having one tonight. Unfortunately, I'm on daddy duty (and tonight's the NFL draft) so I will not be in attendance... There is literally at least one investor networking event every single night of the week; usually more than one. Quest IRA does a ton of events out your way.

    Although I attend significantly less frequently than I used to, the RICH Club offers educational workshops every Monday night and their general meeting is the first Saturday of each month. Jet Lending hosts a big meet-up at the Texans Grille in City Centre the third Wednesday of each month and there's another one hosted by Noble Mortgage and others that usually falls on the second Wednesday of each month. Then you've got the Wealth Club and Lifestyles Unlimited; the latter can get a bit pricey. There's another group that has changed their name multiple times now, but used to be Liberty Real Estate Academy who hosted great meet-up events.

    In short, the meet-up groups aren't too hard to find...

    2Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    @Lyall Storandt Thanks for the info. I have been a member of Lifestyles for a little over a year, but I hesitated to mention it because it seems like I would be suspected of working there if I said anything good about them...lol. Seriously, I do like that group a lot, but I am just a basic member. I have attended the education events, but not many networking events. I have wanted to attend RICH Club events, but I haven't yet. I think I need to get out and network more.

    0Reply
  • Ben Hughes
    Investor · Cypress, TX · Member since 2013 · 403 posts · 59 votes
    12y
    Originally posted by @Deidra Hubenak:
    Thanks for the info. I have been a member of Lifestyles for a little over a year, but I hesitated to mention it because it seems like I would be suspected of working there if I said anything good about them...lol. Seriously, I do like that group a lot, but I am just a basic member. I have attended the education events, but not many networking events. I have wanted to attend RICH Club events, but I haven't yet. I think I need to get out and network more.

    You exactly right Deidra, people will call you a spy saying you are only a Lifestyles member. There are a bunch of events you can go to in Houston. I am a Lifestyles member as well and attend both LU and RICH Club events. I like them both. Don't hesitate to ask any of us questions. Good luck to you and your husband.

    0Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    @Ben Hughes Thanks Ben. How do I find out about the Bigger Pockets meetup groups? Do you just have to search for posts or do you follow the leader of the group?

    1Reply
  • Sharon Tzib
    Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
    12y

    @Deidra Hubenak set up a keyword alert for Houston Meetup. You can do that here: http://www.biggerpockets.com/alerts or when you click on "Forum", upper right side of page takes you to keyword alerts as well.

    1Reply
  • Lyall Storandt
    Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
    12y

    @Deidra Hubenak Probably easiest to set a keyword alert for "Houston" and you'll be notified every time someone posts about it. My guess is that's how most of us found you!

    2Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    @Sharon Tzib

    @Sharon Tzib

    Thank you both!

    1Reply
  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @Deidra Hubenak welcome to BP!

    BiggerPockets
    0Reply
  • Brian Bishop
    Real Estate Investor · Missouri City, TX · Member since 2014 · 14 posts · 0 votes
    12y
    Deidra, you mentioned mention houston real estate meeting groups in another forum, I wanted to inbox you this question, but your private. What, such groups exist and which one do you attend?
    0Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    @Brian Bishop Hi Brian, I checked my privacy settings, and I don't think anything is set to private...strange. I have attended several Lifestyles education meetings and one or two of the case studies which are the networking events. I like that group a lot, but I am just a basic member. At this time, I do not see any value for us to go to a higher (and significantly more expensive) level of membership. I have been to one Liberty meeting, but wasn't too impressed. However, I don't think you can accurately judge a group by one meeting, so I would get others opinions on that group before you rule it out. I wanted to go to the BP meetup last night, but I have a cold :( I have heard good things about the RICH Club too. Several vendors have good meetings I have heard - Quest IRA, Noble Mortgage, etc. Personally, I wish that I could find another group on the west side of town.

    0Reply
  • Dennis Rodriguez
    Wholesaler · Katy, TX · Member since 2013 · 213 posts · 109 votes
    12y

    @Brian Bishop and @Deidra Hubenak next week Noble is holding a meet-up at a Midtown bar/café (I'm not sure what type of venue it is). Get in touch with @Erica Villarreal and she might be able to send you the invitation.

    I'm a member of RICH club and I like it very much. If you engage with people you will get the best benefits of any groups. Many people just show up, listen to what its being said and leave. Real Estate is about relationships and networking.

    0Reply
  • Erica Villarreal
    Lender · Houston, TX · Member since 2013 · 125 posts · 45 votes
    12y

    Hi @Deidra Hubenak

    Welcome to BP.

    Thanks for the shout out, @Dennis Rodriguez

    There is another networking event on Wednesday, May 14th 5:30-8:30 at Nouveau Antique Art Bar in the midtown area. If you'd like more information, please feel free to email me at [email protected]

    We look forward to seeing everyone there!

    0Reply
  • Natalie Pilkinton
    Investor · Houston, TX · Member since 2009 · 40 posts · 9 votes
    12y

    @Brian Bishop we have a case study coming up Tuesday May 13th. We hope to see you there. We focus on buying and holding real estate both in the single family and multi family realm. If you get a chance to make it out please say hello to me. I love helping people. @Erica

    @Erica Villarreal she is a great contact to have in your investing roladex!

    0Reply
  • Deidra Hubenak
    OP
    SFR Investor · Katy, TX · Member since 2014 · 23 posts · 18 votes
    12y

    @Dennis Rodriguez Excellent point. I totally agree that you need to follow up on connections you make at the networking meetings and go to lunch with people or meet for a cup of coffee to build a personal relationship. This is a mistake that I see people make in my law practice, so it's not just with real estate networking.

    @Erica Villarreal Thanks Erica. I will pm you to get on your invite list. I have heard great things about Noble through Lifestlyes.

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    12y

    Welcome to BP community @Deidra Hubenak It is a great place to meet new friends and learn about various aspects of real estate and more.

    Wishing you the best!

    0Reply
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