All Forum Posts by: Blake Choisnet

 If you ever offer this in TX sign me up!

It depends on what your goal is. If your goal is to pay off the loan entirely, it'd look different than if you wanted to maximize monthly cashflow. Personally, I want to maximize cashflow so I usually refinance my properties once they're at 50%-60% LTV and cash out the equity available and buy additional properties.

As far as a 'worst case scenario', if you're not in a position to weather a 6mo downturn, you should sell and transfer that money into a higher cashflow property. In '08/'09, property values declined 33% overall but recovered and are up almost 100% from their 2008 peak. Cashflow on a property is your hedge against market downturn. But with the way we've been printing money it's reasonable to expect property values to continue to grow - Goldman Sachs predicts home values across the US to increase 16.4% in 2022. 

In my opinion, this isn't the most effective use of your money. Would you make money? Probably. But if you put that $100k into five properties valued at ~$100k (20% down being $20k), you'd reasonably be able to get $300/mo cashflow per month meaning $1500/mo pocket money (not to mention principal paydown, tax sheltering, and appreciation). 

Average 3BR rent is $1,304. You can find a bunch more information for the market as a whole here: https://www.bestplaces.net/hou...

If you need evaluation on a specific neighborhood or property, I recommend talking to (and building a relationship with) an experienced property manager. They're the expert in rental rates in the market. 

@Carlson Driver It's important to distinguish to what kind of taxes you're referring. You will mainly be concerned with sales tax, state income tax, and property tax. The first two should be used to evaluate the market you're considering, while the latter should be used on a property by property basis (including them in your operational costs). Generally states with no state income tax will make up for that loss in state revenue by increasing property taxes. So while they're related, they don't explicitly affect each other. My recommendation would be to find a market where the deals work (even if you have to analyze 20 deals before committing to the market) and go from there. 

@Andy Lanyi Dual agency can be weird but I don't think you have much to be worried about. A Realtor is legally responsible to act in your best interest if they are representing you (see 'fiduciary responsibility') and they open themselves up to a LOT of liability if they act dishonestly. First, you have grounds to sue them and second, they can (and should) lose their license. Getting sued AND losing your livelihood is a steep price to pay just for an additional $1000 in commission. 

@Carmen Ruiz I recommend calling a local property manager and asking them what market rate it. You'll get to vet them for being your property manager, you'll get market-specific insight, and you'll get rent estimations from an expert in that field (their full time job focuses on it. You can get property manager recommendations from other investors in market specific groups on BP or Facebook. 
 

@Rasheed McDaniel Nice! Looks like a great property. What market is it in? What's next for you? 

@Jacob Miller I'd recommend getting some recommendations for property managers and give them a call to talk. You'll get a two-for-one: you get market insight from an expert and can vet a future property manager all in one call. 

@Kyle Spearin Generally you should have your tenants pay utilities. There are exceptions (multi-unit properties without separate utility meters, pricing higher rent with all-bills-paid in a college market, etc.), but as a default you should have your tenants pay utilities. It aligns their incentives with things they control, and does the same for you. If they want a lower utility bill, they'll turn off the lights more. If you're paying utilities they can take a 90 minute shower twice a day without paying for it.