All Forum Posts by: Account Closed

PROPERTY PRICE: $150,990 (Built 2018)

4 BED 3 BATH 2 CAR GARAGE 1,805 SQ. FT.

RENT: $1,325

30 Year Fixed Conventional Loan

OPTION #1

20% Down – $30,198; Rate 5.625%; 0 Points

Cash Flow – $294

Investment – $42,663

Estimated Monthly Loan Payment – $696

OPTION #2

25% Down – $37,748; Rate 5.25%; 1.135 Points

Cash Flow – $364

Investment – $50,062

Estimated Monthly Loan Payment – $625

Which option do you take for a long buy and hold rental property?

Yes I agree love Alabama, got a house in Pinson, Alabama right on the line with Birmingham. 

Love the property taxes versus Texas, that's why I invest out of state, more cash flow. 

$70K for the house about $8K on the rehab rented first week on the market at $875 cash flowing about $370.

Zip code 35215 

I have a property in Warrensville Heights 4 bed 1.5 bath 1,580 sq ft built 1952 and paid $2,028 in property taxes In 2017. I also pay an annual occupancy fee and in the 1st year of ownership got hit with garage expenses as the city deemed it not up to code. Rehab took a while as well with all the city regulations and inspectors who had to go through the property. They even regulated what paint could be used in the rehab. It cash flows almost $400 on a $985 rent.

My property tax Dallas, GA was $900

My property tax in Birmingham, AL was $768

My property tax in Leander, Texas was $5,000

I'll be investing in GA or NC from now on.

Yes sir I sure do, tenant just reupped on the lease over the summer.

I learned never buy another house while doing a rehab on another, speculating that you will have the reserves to do so. So many unknown variables. 

My CPA is my father, 300 miles away in northeast Texas. 

Great having one of those in the family. 

He is almost 75 years old and still doing it today with my mother as his office manager (they celebrate their 50th this July.) 

He was also county auditor for 29 years, but has been retired from that for a few years now.

Associate Degree - Liberal Arts (Northeast Texas Community College)

Bachelor Degree - Communications (Radio & TV; Minor in history) (Stephen F. Austin State University)

I have a property in Pinson, a northern Birmingham suburb. 

C class property $70,000 for 1,200 sq ft. 3 bed 2 bath garage, split level built 1975 near Turkey Creek and Jefferson County College.

Nice area, low crime, full of nature and less than 10% vacancy rate on rentals. 

Rent my property out for $875, lease is up in June and will be going to $920 a month with a cash flow of over $400. 

Taxes only about $900 for the year.

Going up at least 1 to 5% to stay above the slight projected tax increases, while maintaining a rent that is below the area's current median to attract tenants.

Buy at below market $90K to $105K

Cash flow over $300

Low Taxes

Class C or above 

Area's Vacancy Rate 

Below 1,800 sq. ft.

at least 3 bed 2 bath (or one and half)

Low Rehab cost