All Forum Posts by: Account Closed

Being local, some repairs and jobs that are needed on the property you could DIY and save a ton.

Not seeing the property in person you may miss some important details that if you had known, you would have put in preventable measures that would have saved you thousands.

Yes, I am speaking from experience.

But I still do out of state properties with PM in place, due to the high priced market here in the greater Austin, Texas area.

Everything is a trade off with pros and cons to every situation.

Invest outside of New York, make your money go further.

It may take you roughly 10 properties to achieve the $5k a month after your monthly expenses of PM, taxes, insurance, mortgages, etc. 

I’m half way there myself at 5 properties collecting $5,684 before expenses and $2,653 net.

I look for sub $100k, low rehab homes, 25% down loans, in the burbs, with at least $10k in reserves for repairs, that number will go up as I add more homes.

Not going to sugar coat it, check deep down inside for your risk tolerance level, because the repairs that come along with these properties are killers.

It depends on the deal you find, the amount of rehab needed, you're going to need at least 25% on the downpayment in these times to even get a loan and buy credits on top of that to get a good low interest rate. 

You will also need to show proof of cash reserves to your lender if you go with a conventional loan.

For a sub $100K house with a low rehab cost of $5K with 25% down - $24,500, cash reserves for me at least $10K.

So on a conventional loan, at least $40K, $50K would make you sleep better at night.

Buying a SFH in Dallas, Georgia for $107,000 in 2016, unheard of today, less than $7K in rehab, now the house in today's market is worth about $180,000.

East Point, Georgia

Purchase Price - $150,900; 25% down; 4.78% 30-Year Conventional

Appraisal July 25, 2018

2,110 SQ. FT. 8 Rooms; 4 Bedrooms; 2.5 Baths; Built 2018

Value - $166,000

Refinanced Appraisal April 25, 2020; 3.5% 30-Year Conventional

Value - $169,000

Verify if your property has a septic tank or not. Very costly if you ignore a septic tank and don’t have preventive measures in place with your PM to clean them out 3 to 5 years. 
Also have the rain gutters scheduled to be cleaned out at least annually as I had a roof that needed repair that had water seeping into the interior causing wood damage due to clogged gutters.
Both mistakes cost me thousands of dollars 💵 in repairs and damage.

I'm 49 and I own 6 properties, 5 SFH rentals (4 rented, just bought the 5th one and getting it ready to rent, 1 SFH residential (will be paid off in 2023).

Started back in 2008 with my residential and then 8 years later in 2016 when I got my first rental property using part of the money from ($100K) that I had built from investing in stocks that I started back in my mid 20's. Spent a couple of years trying to buy properties in the Austin market but no luck and then realized I could go out of state to get more with less.

I don't touch any of the rent I collect, 100% goes into a business account and accumulates for the next one. 

Right now my goal is just to have a nice even 10 SFH rentals to generate me over $5K net income a month to go with my future pension.

I'm eligible for my pension in 2023 when I turn 53, it's also the year my residential house will be paid off and I hope to have 10 SFH up and running.

Don't think I'll ever fully retire, I'd get bored real fast.

Look in the southeastern part of the country for what you are looking for in sub $100K homes, lower property taxes, insurance, higher cash flow, and some appreciation. 

The property taxes combined on my 5 rent houses I have out of state, almost equal what I pay on my residential house here in the Austin area. 

North of Austin in the burbs is no better like Cedar Park, Leander, Georgetown, and Liberty Hill. It's booming out here, subdivisions going up left and right, luxury apartments by the thousands. If appreciation was your main goal, then yes this is the area, but you will need more funds.

We bought our house 3 bed, 2 bath, 2 car garage, 1,700 sq. ft. built in 1993 here in Leander on the back half of 2008 for $144,900 and today it is worth over $245,000.

Good luck to you