All Forum Posts by: Wale Lawal

It depends on the risk you are willing to take. For some people, their property comes first, and allowing pets might cause damage to the property.

In real estate, understanding the market can be tricky and overwhelming, especially when you are searching for a home to settle in or looking for the right investment property to make passive income. Today I will share three easy ways to know if you are buying in the right market.

1. THE BIGGER PICTURE:

People are the ones who determine the market. Real estate prices rise over time due to population growth, jobs, and income. Today we are seeing many people and companies from California moving into Texas. This is due to Texas having lower house costs and lower tax rates. In Addition, if you look at the major metropolitan areas, you will see that The Woodlands and Sugar Land placed at number 5 as the fastest-growing cities. Its growth results in a positive net migration pattern in these areas, where more people are coming in than out.

Job growth is a leading factor in the growth of a city. Next time, pay attention to the direction people are driving to work in the morning, and you'll see the level of interest for that area.

2. SURROUNDING AREAS:

After looking at the net migration pattern from state to state, you will want to focus on the cities within that state. Look at the crime rates, as it may determine the type of tenets or buyers you may attract. Schools are another way to help narrow down a targeted area. The better the school, the more likely you could fill its vacancy with no hassle. Niche.com is a great resource.

Lastly is the cost of living. If you are in an area where the cost of living is above average, you will probably struggle when finding tenants. Keep in mind the average household income in your city.

3. THE NEIGHBORHOOD:

Once you found a state with a positive migration rate, in a city with decent schools and low crime rates. It is time to look at the neighborhood in which you are trying to invest. So understanding what homes will sell and rent for is key. Comparable helps buyers make an informative decision on their potential property or investment. It is a system used by realtors to compare similar homes in the area to value the property. If you don't have a realtor, you can use rentometer.com as a guide.

I hoped this helped anyone find the right market to invest in.

If you have any further questions, don't hesitate to connect with me here on BP. I'd be happy to do anything I can to help you on your journey.

Goodluck.

Congrats on wanting to take action. Do your due diligence on the targeted area and weigh in all the pros and cons. Then, network with people to guide you through the process and avoid making the same mistakes they did.

Long-distance investing is possible. I would recommend educating yourself on the area you are trying to invest in. Then, make sure you find a realtor that works with investors, as they will be able to guide you through the process.

BiggerPockets has some great tools you can use to estimate your cash flow. They also provide a video to help you plug in any information you don't know.

At the top of the page hover over tools, then click on the desired goal you want to achieve for the duplex. It will prompt you to the BiggerPockets calculator.

@Samy Nabhani As an investor myself, I completely understand your position. 

As others have mentioned EXP Realty allows 3 personal deals and after that, you can pay a flat fee.

You may need to talk to someone about your options if you are not satisfied with your current broker.

I will recommend you do your own due diligence and decide what is best for you.

Goodluck man!

Guys,

There are opportunities everywhere only if we take our time to study the market. 

California is great and Texas is great as well but they have their uniqueness. Generally, it is all about your preferences and goals.

Some people can not just afford the cost of a house or investment property in California, hence Houston, Texas and San Antonio, Texas become an option for them.

Goodluck to everyone taking action.

@Joe Rivera

I can recommend based on my personal experience. 

Send me a DM.

@Eder Aldana 

If you can get conventional financing I will say go for it. If not, I will still do this deal because there is always an exit strategy.

Try to lower the asking price by 3-5% if no luck, I will still do the deal.

Goodluck man.

@Kathy Lien

I like the fact that you are looking to learn from others.

The $500 for taxes, is this monthly or annual?

Vacancy = 7%

Need to factor 10% for property Management

CapEx (Capital Expenditure) = 5%

The Woodlands is a very desirable place for folks looking for great schools for their kids but not so many people can afford to rent for $2,500 - $3,000 hence your targeted rentals (tenants) are limited.

Look for properties under $260,000 in a great school district (Katy, Cypress, Spring, Tomball) with a monthly rent of at least $2,100 and you will be in a good position.

Goodluck and let's connect.