All Forum Posts by: Agustin C.

@Dan H. thank you very much for your analysis. Is the 5% vacancy just something you use? I figure that's relatively low, but I feel the maintenance is a little high so it evens out. 

Please take a look at the numbers below and see if they make sense to you guys. 

Per month I am figuring the following:

Cash flow: -175 to -200

Appreciation: 0

Principal reduction: +240

Tax advantage: +50

While, I do come out ahead in theory a capital expense or terrible tenant can cause me hardship. Especially if its early on. 

Being that I'm not ready to move out and will likely wait a year. I will re-evaluate the situation when the time comes, taking in consideration my financial status and full time income. I may just decide to keep it and purchase an investment property. 

I really appreciate the time and effort by everyone who has participated in this exercise. Having a property cash flow is not something that was in the forefront of my mind when I purchase this property. Had that been the case who know if I would have bought a house at all. Home ownership really is a learning experience and I want to take it to the next level. I will certainly look at house hacking my next residence and probably going to go with the buy, remodel, and refinance strategy, so when I move out I have a cash flowing property with forced equity. 

@David Faulkner Thank you for your input. Thats actually not a bad idea. That way I get to enjoy my renovations before moving out. 

@Tony Castronovo great feed back. I am thinking about remodeling rest rooms as they are mostly original. They changed out the tops to granite to match the kitchen but other than that it still have ugly vynal, ugly 80s small white square tile in the tub. I'm thinking a good $1200 to retile the bath/shower, new faucets, toilet , glass sliding door, and tile or laminate on the floor would improve the restrooms a great deal. 

To that end I could also do flooring everywhere but the bedrooms. The flipper that sold it too me pretty much did new carpet and paint. Half-assed everything. If I could go back I would have busted his chops. 

Looks like 5 people are interested. We are moving into a new office space next week that has some cool common areas where we can meet if you guys are interested. Or we can arrange to meet in West Houston. Does anyone have any suggestions that would be conducive to a meeting? 

Something laid back with a patio or lounge area where we can talk while we have lunch. 

Meet and greet

Welcome and introduction

Each participant gets the floor for 5 minutes, round table style

Freestyle networking

WHO: RE Investors

WHAT: Networking Lunch

WHEN: ?

WHERE: West Houston

TIME: 11:30-1:30

@Louis Craig Thanks for your input. I'm leaning toward keeping it. From the numbers I would be very close to break even or negatively cash flowing $50-100 (taking $200 and putting them in savings account for maintenance and capexp.

Since I have no Idea what the market will do when rates peak I can also consider putting a Lease option on it. 

@Ryan Terwilliger Thanks for your input Ryan. I will def be connecting with you. 

@Denise Mayo-Walley Thanks for your input. I'm a Loan officer and have pre-qualified myself to purchase. 

What do you think has spurred the growth in value in the 77083 area without growth in rents? When I bought in 2015. I likely bought too high. Do you see the values dropping in the future with increase in mortgage rates? 

It actually may be beneficial to sell since my property has appreciated about 10% and I would be able to pull a little bit of money out. (My initial down payment and closing costs) I could use that to start working on another property. 

On my next purchase; I plan on buying distressed, rehabing, and refinancing, so that I increase the value and possibly lower my mortgage (no PMI). That way I'm more likely to cash flow when I'm ready to move again.

Thank you @Vijaianand Thirunageswaram I was leaning toward keeping it. As far as it being new, it is not. The flipper I bought it from did the minimum, as I stated earlier. I was inexperienced and it was relatively close to my job in the Energy corridor. The zip is 77083 so you can get an idea. Quiet neighborhood and decent charter schools in the area.  

I do expect some capital expenses in the next 5 years like the A/C outdoor condenser unit and roof. 

Hello Jai The Alief area is a C maybe B class neighborhood. Depends what part and where your near but I don't see too much appreciation in the future. That price seems steep but depends on how nice the property, age built, etc. That being said give us more info so we can give you better feedback. The rent ratio is a bit low and double check all your expenses. If you plan on financing I see no cash flow.

Hello *sorry was on my mobile*

@Doug McLeod Thanks for your input, that's pretty much what I figured. Id have a property that I can gain experience on. I would have to screen the tenants very carefully so that they are not a headache. 

@Louis Craig great points. It's a quite suburb neighborhood and I like the house. The idea of building equity over the long haul is attractive. The AirBnB is not a bad idea either. Its something I hadn't considered at all.

@Paul Hitchings The area I purchased in is relatively stable. It has gone up over the last 5 years. I bought it from a (half As*) fix and flipper that did the least, so I bought it high for an investment property. I bought it at close to the top of the market. I think the neighborhood will hold steady and see very nominal appreciation. 

@Thomas S. Thanks for your decisive suggestion. Short of it cash flowing I may not want to keep it. After calculating all the liability and expenses I think its a break even at best renting it. Im going to look into AirBnB and see if I can cash flow that way.