All Forum Posts by: Alex J.
Alex J. has started 17 posts and replied 307 times.
Post: Areas to buy in Houston
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
Originally posted by @Shawn Harvey:
Just have to look for deals. I have several in the $100-150k in Texas City and La Marque. I have a couple off Hwy 6 on the west side of Houston. One in Spring. Have one under contract in Navasota to close next Friday. Spring and Bear creek have some good deals on flood properties. If you wait about 6 more months there will be a buyers market on flooded properties that are REO.
I like Beaumont, but I rehab about 50% of the work myself and I live on Westside of Houston. Long drive. You can find some good deals in Beaumont. Beware most of them have termite damage or wood rot. But if you buy it right you can have that repaired.
whats so magical 6 months from now that will be triggering this buyers market in houston? i am interested!
Post: Thoughts on demoing a single family house and rebuilding a tri pl
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
What's the numbers behind it... building in LA is not cheap....300$sqft..... So if it's in a bad area then might not be worth it
Post: RE Crash prediction for 2020
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
i dont know "when" if 2020 is right or not but i do personally think that these mega plex luxury buildings are going to feel some serious pain
the problem is that theres still so much capital floating around trying to find yield that even if they take a big haircut on price or large vacancy ... there will still be appetite for the risk
one thing that could put a big change in the market and probably not talked about as much is the Millennials will stop wanting to live in a box and will start wanting to move into a house.... suburbs that have been basically looked down upon will find itself going thru a renaissance
we are already seeing suburbs starting to get things like trendy coffee shops, art centers, etc to make them more geared toward millennials ... this will continue and i think the "city living" in metros that are not nyc sf will see an influx to places
i know what you are thinking "ok Alex sure... but what will be the catalyst will be for this change in behavior?"
millennials are just starting to have kids and are going to get to an age where they care about their kids schools etc and it will be far too costly in the city to sustain.
so you read it here, mark it down, we are going to see a shift
Post: My very first $100,000+ net profit flip
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
West Adams? Nice flip well done
Post: Awesome Flip or Rental in SW Houston TX
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
ill pm you
Post: Hot Market? What's Your Strategy?
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
Originally posted by @Antoine Martel:
Patrick.
I live in Los Angeles and not only is this market hot but it is also very expensive.
Therefore I invest 100% our to state. It is the only way for me to cash flow on rental properties without putting $250k down on a single family home.
I buy single families out of state and put $15k down and cash flow $200-250/mo.
thats very nice cash on cash return!
Post: Awesome Flip or Rental in SW Houston TX
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
hey sir can you send me the details, this is in my area of interest... big question is the flood risk due to the keegan bayou being behind it... can you send me the photos to [email protected]
thank you
Post: Houston stafford Meadows place Missouri City texas
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
Originally posted by @Robert Haney:
For my rentals I look at:
Annual Net operating income/(purchase price + Rehab costs)
I'm assuming you meant to include your all-in costs (rehab and purchase) but accidently left it out?
Yes I include that in my purchase assumption...if the prop needs 15k work my purchase price gets adjusted up
Post: 6th flip in Los Angeles
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
nice work! great flip
Post: Houston stafford Meadows place Missouri City texas
- Investor
- Tarzana CA and Houston, TX
- Posts 326
- Votes 130
Originally posted by @Robert Haney:
I'm not challenging you, just trying to clearly understand your metrics/goals so I don't offer you properties that don't work for you.
Can you please state your formula?
(When I look at my "equity" in properties I subtract out selling costs because I always have some. Lifestyles Unlimited does not do this, so their "equity" is inflated/unrealisticstic.
My "equity" is: ARV minus selling costs minus liens.
My "profit" or "gain" is: ARV minus selling costs minus liens minus total cash invested.
What is your cap rate formula since I still do not fully understand?
Thanks
yeah thats right but i am not looking specifically to flip properties... i am trying to just get a return on my cash ... my goal is to buy a fixer upper to produce a better return on my cash than a turnkey propert... regarding cap rate... its a formula that is just for comparison ... its not the end of to real estate investing, i just use it to get a sense of what markets i am looking at in my area.
its your net operating income / purchase price... so if you net 10,000 a year after all costs and the property was 100,000 then you have a 10 cap
it takes leverage and downpayments etc out of the equation and makes things easier to break down for me personally
the higher the cap rate the higher the theoretical return on paper.