All Forum Posts by: N/A N/A

Not all of Texas is like I described. In fact, not all of Dallas is, either. There are sections of town that experience very little foundation movement even though the climate is identical. It's all in the soil.

There are no state taxes in Texas. There are, however, rather exhorbitant property taxes.

Great analysis, Ken.

I happen to live in probably the worst location for foundation problems in Dallas County - Las Colinas. This area is built upon a band of gummy clay soil. When it gets wet, it expands significantly. When allowed to dry, it contracts. The challenge is keeping the moisture level as close to consistent at possible. I use a network of timers and soaker hoses around the slab. I also ensure the sprinkler system keeps the soil from cracking in summer months. It's not easy...you can water in the zone surrounding the house for an hour in the middle of the night and chasms may open up in the heat of mid-day. Don't even want to talk about my water bills. There's no other option, however.

Every foundation in this area has either 1) been repaired at least once, 2) needs repair, or 3) will someday need repair. How long before that "someday" comes is proportional to one's effort (or lack thereof) in keeping it maintained.

I too have a brick wall that is leaning due to the soil around here.

PS: Just heard a timer valve turn on! Yes, I'm talking year-round!

What kind of mortgage rates are you encountering for non-owner occupied investment property?

Great points. My only answer would be the hope for significant appreciation over time by buying in a burgeoning neighborhood adjacent to downtown, where many upper income professionals work.

I recognize that hope does not a smart investment make. I don't mind sharing my newbie inexperience and lack of RE street smarts.

We'll keep looking. If anyone is wondering, the areas in question are the M-streets/East Dallas and nicer areas of Oak Cliff.

Good grief what a nightmare.

Thanks for the link...good info there.

I'm assuming a 30 year fixed term @ 6.5% for modeling purposes. Hopefully we can do better than that.

Yes that's my plan and set goal.

I guess I haven't found the right place yet. I base that on the results of running the numbers through the tool. Just about everything I've run comes out with a negative cash flow in years 1-5...even with 20+% down. We want to buy in a nice neighborhood but the ones with the most favorable numbers seem to be in the rougher 'hoods.

At the same time, even with negative cash flow, the rental income is getting me the bulk of my added equity over the long term. That doesn't seem all bad...what's wrong with my thinking on this?

Of course it would be fantastic to realize monthly income from the get-go. To find one, to find one....

Hanging out in breeze on 100% financing would keep me up at night. To clarify, I'll definitely be putting down the necessary cash on whatever deal I do - at least 20%. I'll do it for my own sanity.

My intent is to hold for many years. Finding a decent discount is the difficult part for me. I've not found any multi-families in good neighborhoods that adhere to the 100Xmonthly rent rule of thumb. Sure, there are some rougher 'hoods where I've seen those. I don't mind the rougher 'hood idea but I'm afraid my wife is not particularly fond of it.

:lol:

My excuse - I love to see my cash stacked up in my bank statement. I am extremely cheap. Big time. Therefore, I have talked myself out of "being ready" several times. The cash money is security. Of course, I recognize that I won't move forward unless I act. My goal is to buy and hold.

What if's:

1)What if I buy the place and HOLD it right down the toilet if the RE market busts?

2)What if my first acquisition turns out sour and ends up being my last?

3) What if the area I'm interested in, while I believe it will continue to appreciate, won't cash flow 1%? It doesn't (without 20-25% down).

4) What if #3 doesn't bother me too much, even though it should?

5) Here's a ridiculous one - but I guarantee I've thought about it! What if the value of the property appreciates sharply, so that the PROPERTY TAXES (outrageous in Texas) rise to a level that can't be offset by lagging rent increases?

6) What if I can't sell it when and if I decide to do so and at least break even?

7) What if I keep thinking about this for another year while beating my head against the wall?

Buy my first rental property. Convince myself to give it a shot. Convince myself to let go of the hard-earned cash (love to see it in the bank) and take a risk that could turn into a nice future (or not - darn it!) ...

Believe in myself enough to do this so I feel like I'm not totally dependent on a business that I don't own...even though I have a great job. I have a fairly significant income but I can't say that I enjoy my work. I'd like to get up each morning happy, knowing that it's me, not a boardroom full of stuffed shirts, in control of my destiny...