All Forum Posts by: Account Closed

Hi @Aniekan Udoh, welcome!  There is a monthly meetup out near the Katy area where several of us have been meeting and discussing RE in the Houston area.  Would be great to meet you if you can make it.

@Ann Howell a friend of mine is a high end builder in the Heights, and has a demo company he uses to do tear downs.  PM and I'll give you the name and number of the demo company he uses.

It can be done, but just do your due diligence on the contractors, especially if you are managing out of town.  Many are booked solid and will be for the next few months.  I would be as concerned about supplies - lots of shipments coming in.

I like @Christine Kankowski's idea of a fix and flip.  But you need to get inside and see what it looks like.  Is the family out of state?  How motivated are they?  If you can get inside, confirm it only needs some minor repairs, paint, carpet, etc, and make them an as is cash offer, you might could get a good deal.  But leave plenty of cushion and be willing to walk away.  It never hurts to put in a low offer then walk.

Yes, flood insurance is separate.  If that is the only insurance you are getting, then you are going to be self-insuring against fire, lightning, smoke, wind, hail, etc.  If your house has an electrical fire and burns to the ground, you will be covering the loss.  My rentals have policies that have one premium for "Fire and Lightning" then another for "Sudden and accidental damage from smoke, windstorm, hurricane, hail, explosion aircraft and vehicles, riot and civil commotion." Then there are additional endorsements that you can add to those.  Depending on where you are in Houston, there can be hurricane force winds that can damage the roofs, and can then leak causing damage inside the home.  Hail can be destructive on roofs as well (I've replaced two roofs under hail claims).  So, up to you on what you are willing to self-insure for.  Most investors have flood plus the wind/storm/fire coverage I've mentioned above since Houston is storm prone, not to mention the risk of a fire causing a complete loss.

@Tony Castronovo yes!  I created an event for a Katy Happy Hour for this Friday, Sept 22nd.  Link HERE

@Tony Castronovo this is great, and the best way to learn!  good job.

@Shahriar Khan haha! always wise to capture the range of outcomes. 

I see 3 different questions in your post:  1. reputation of the builder you reference, 2. condition of the specific property, and 3. estimated repair costs.

1.  I don't know.  If this is a concern, go knock on the doors of the neighbors in that neighborhood, explain who you are and what you are looking purchase, and ask them if they would be willing to share their experiences.  I know if a prospective buyer in my neighborhood came to my door, I'd be happy to chat for a few minutes.  Might be an easy (free) way to get some real world opinions vs internet chatter.

2.  My suggestion would be if you are satisfied with #1 above, put a house under contract (with an option period of course), then get an inspection asap.  For the cost of the option and inspection, you will have all the information you'll need.

3.  Based on the report from #2, call some contractors and get repair estimates. 

The above 3 recommendations is a very very small cost compared to the purchase price of a home.  But then again, I get the sense, based on your question, that there may be other hesitations in buying a house?

Mark Balliet I totally understand the public accounting thing. I did that for 2 years with EY. Time writing, billable hours, etc. My experience was great, but I figured out I liked the industry / finance space more than the public / tax space. The resources here at BP are wonderful and it looks like you've already made a local connection 😄. Keep learning, asking questions and your path forward will become clearer. Meeting up with local like minded investors will be invaluable. All the best and hope to hear how this journey unfolds for you! Adam