All Forum Posts by: Anayo Awuzie
Anayo Awuzie has started 3 posts and replied 15 times.
Quote from @Bruce Lynn:
Taxes and insurance seem super low. If it is a house that hasn't been sold in years, then the current taxes will go up when you buy. I'm guessing 2.5% on $675,000 or around $1400/month taxes. Insurance I see about .75% of purchase price or roughly $400/month. Can you find cheaper insurance...sure...but be super careful with that. Plenty of people had big issues with the tornadoes that swept thru north Dallas a couple of years ago and the freeze of 2020. Those guys that are $100/month when everyone else is $400/month are the ones that don't call you back and don't pay out when you need the insurance the most.
I don't think you can use FHA at that price range. Max is about $500,000 loan amount.
You might not even be at conforming...and may have to go jumbo. Your lender can guide you on that...I'm just ballparking.
Rents sound high to me. People paying $1250/month for bedrooms and shared baths and kitchen and living areas? Possible, but I'd ask your friends and co-workers what they would pay for a bedroom and shared bath and that may give you a better idea of where your rents might be.
We found a lender who would approve me for an FHA loan for this. And the units are 1 bed/1 ba each so no shared.
I'm assuming because this property has had the same owner for awhile and never got reassessed that is why its so low as of now. But I ran the numbers with the taxes I got on the Dallas county website and it still looks feasible
Quote from @Johnny Garcia:
@Anayo Awuzie Dallas County appraiser site has a tax estimator tool you can use to generate a pretty accurate estimate of what your taxes will be after closing based on the sale price. The county record for the specific property you're looking into will also show you any exemptions that are currently applied to the property you're researching. This will help you identify which exemptions, if any will be transferred or dropped off after the sale. You'll be able to qualify for the homestead since you'll live there, so when you plug in the information into the tax estimator make sure to click the homestead exemption.
This has been super helpful in generating accurate tax costs for myself, hopefully it helps you out too!
Very helpful. I just tried it out - thank you!
Quote from @Caleb Brown:
Taxes seem low, they are $2,244 annually? I would assume higher if so. Are the units rented at market rate or could they be rented higher? Also the mortgage rate you put does that already include taxes and insurance? Overall if it reduces your rent from $1,600 I'd still do it. Dallas, Texas is growing so long term wise it'll do well. Do inspections and appraisal, make sure it's contingent on those
Thanks for your reply!
Yes, mortgage includes tax and insurance. I'm not sure about the market rents as there were no comps for this property - I'll check around on that. And correct, taxes are $2,244 annually. My lender mentioned that was low as well and to not be shocked if the state of TX raises that significantly should I get the place.
Hey y'all,
I've been in analysis paralysis over the past year with this multifamily house hack goal I have but I'm finally over it and ready to start making offers. I found this deal and wanted to get your thoughts. My goal in the short term is to live on the property and eliminate my $1600 rent and in the long term (10+ years) sell and collect appreciation.
I’m looking to buy a property in Dallas, TX. It’s a 4-family house ask for 675K (which my agent says is a bit high so we're fighting that out). Current monthly rent income around $5000. Property tax $187/mo, insurance $224/mo. Rents are currently $1250 each and 3/4 units are occupied. My mortgage will be ~$3900.
I'm getting an FHA so putting 3.5% down. Thoughts?
Quote from @Michele Velazquez:
I am reading the book about out of state investing and was wondering, do people follow the 1 percent rule? I had narrowed down my search to a few cities for where I want to invest in a multi family unit and hardly any of them meet this 1 percent criteria? In Atlanta, Houston, Austin, Baltimore, Cincinnati... barely any 1 percent?
So what rule are most using now to determine value of a deal? I haven't found anything that hits it either and I know I'm missing out because of it