All Forum Posts by: Eric W.

I think it’s hard to say. The consensus is lower than they are now, but anything could happen. Inflation could spike again we live through another Arthur burns era. Maybe rates go even higher from here.

I get that monthly cash flow on the investment property isn’t the only factor and that real estate always goes up and now a days - going forward will probably just go up in a vertical line indefinitely, but if I don’t intend to sell the property due to tax purposes I wouldn’t be capturing the price appreciation, it would be the cash flow.

idk, I’m probably overthinking this lol. Just most of the people I know in real estate investing got started when rates and housing prices were all much lower. They’ve secured low rates and rapid equity increases due to the last few years of Fed/gov intervention.

1 Vote

Dallas, Texas

I’ve been searching in the Sherman/abilene areas for potentially starting out. These areas seem affordable compared to where I live in dfw. I would be looking for something in the 200k range and have anywhere from 100-130k for a down payment.

My issue that I’m having trouble getting over is that down payment money is currently yielding 5.5% in an HYSA with no risk or stress. If I pulled to put on a rental property for around 200k then after property tax, property management, mortgage, insurance I’d probably be cash flowing much less than my 5.5% at the moment.

Would this be a bad idea to pull from the HYSA to enter real estate investing right now? Would it be better to just wait for rate cuts then jump in.

3 Votes

Dallas, Texas

Quote from @Lydia Bundy:

Hi @Katie Buell! Yes! And there's a pretty good community of fantastic people investing in Abilene in all sorts of different realms of real estate using tons of different strategies. There's a dedicated group on Facebook called "Abilene Real Estate Investing Network" (with which I'm not affiliated), which would also be a great resource. Are you new in town or looking for long-distance investment options?

Hi, what areas or neighborhoods would recommend looking in for someone starting out? Also, PM companies. Thanks!

0 Votes

Dallas, Texas

Quote from @Bailey Rentz:

Quote from @Reese Brown:

Quote from @Bailey Rentz:

Congrats on getting licensed. I live in DFW now but grew up in Abilene and do a lot of business there. My biggest mistakes that have cost me dearly have all been contractor related, so my advice would be to vet your contractors as much as possible. Lot of crooks in this business.

That being said, Abilene is a great town to flip or find properties that still cash flow. I like doing business there. Best of luck to you.

In your opinion what do you think is the best property to start with? A flip, single family rental or small multi family rental?

Personally, I would start simple with a single family. Do a few of those and get some confidence, make some mistakes, etc. Then scale to multifamily eventually if you want. Look at lower ARV properties 200k and below and you'll probably find some that can work as a flip or a BRRRR even with current interest rates.

I also would recommend meeting with a lender and describing your goals. First Financial has been great to work with for me in Abilene.

What areas/neighborhoods of Abilene would you recommend for a started SFH?

0 Votes

Quote from @Cory King:

Quote from @Eric W.:

Quote from @Cory King:

lots of options depending on your goals. i focus primarily in knoxville with long term holds and a few flips. my long term holds are focused in 37921 and 37912 zip codes and focus on long term tenants and student rentals. oak ridge has a great upside for long term renting as well as mid term with the lab and all the contract labor that goes in and out of there. happy to pass out some references if needed.

Thanks I’ll research those zips. Would you say there are opportunities there for a first timer that warrant pulling money from an HYSA earning 5.5%? I’ve had this itch to get into real estate for a long time, but everytime I start to dip my toes in I get the feeling that with prices/rates where there at it’s hard to justify pulling money from risk free 5.5% ? I feel like I missed the 2021 boat and it’s never coming back.

I want to own hard assets just tough finding one in this market!

totally hear you, pre 2021 in knoxville was a totally different ball game. again depending on your goals and strategies, your expectations aren't unrealistic. some deals may require more of an investment to make the numbers work like one of my student rentals that was a full gut project and took nearly a year to complete yet it spits out 15% cash on cash returns annually and i purchased that late 2022.

investing in general is a risky endeavor, it's all relative to ones own risk tolerance depending on their position. we try and make calculated risks and look to evaluate multiple exits before pulling the trigger, yet there is still some risk involved.

maybe a reit or syndication is the way to go if you want to be in real estate yet don't want to take on the properties yourself. either way i'm happy to make some local connections.

Thanks for that! Ya I own some REITS, but trying to break into hard assets.

what’s your opinion on new construction homes as investment properties. Seems there’s some in those zips you mentioned in the 350k range. I know the builders are offering more incentives to buyers, but does new construction typically pan out well as investment properties?

0 Votes

Knoxville, Tennessee

Quote from @Cory King:

1 Vote

Knoxville, Tennessee

What are some good areas to look in the Knoxville area for someone looking to start out in real estate investing. Just off some basic research I found oak ridge and maryville. Would also need a PM company. Thanks

0 Votes

Knoxville, Tennessee

Quote from @Cecilia Hagan:

@Eric W. - Thought you might want to check out my response to this original post too.

Hey thanks for that. Good information! How difficult or easy has it been to get tenants secured in that area? I’ve not drove up to Sherman yet so didn’t think much of it until I started reading about the chip factory going in. We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it. Sherman does seem interesting though because of the lower cost and growth potential.

0 Votes

Denton, Texas

Quote from @Noel Cobb:

Quote from @Bobby Eastman:

I am looking to purchase a residential or commercial multi family in the Sherman/Dennison TX area. I am also open to partnering on a transaction. Can anyone suggest and agent or property manager that can help me with this? Any advice would be appreciated.

Hey Bobby, I am a Realtor and Sherman local. I work with a lot of investors in the Sherman/Denison area to acquire properties. If you'd like to, let's jump on a call to see if we'd be a good fit to work together.

What would you estimate the average rent to be on one of the smaller new builds say in the high 280s a 3bd/2ba. I live in Denton co and have been casually interested in starting to look for a real estate investment.

0 Votes

Denton, Texas

Quote from @Pete Tredwell:

I live in Flower Mound but do 90% of my business in Sherman/Denison. I do wholesaling and fix-and-flip, but also have about 15 rental properties up that way. It's a really good opportunity area for investors who are getting swallowed by the sharks and deep pockets in Dallas.

Hey, I’ve been on the fence about jumping into real estate investing and or moving out state. I’ve been reading about the TI factoring going in Sherman and it spiked my interest again. Would you consider this a good area/time to get started? What do you think about some of the lower priced new builds as an investment property?

0 Votes

All Forum Posts by: Eric W.

Eric W. has started 17 posts and replied 58 times.

Post: Finding deals that justify pulling from HYSA

Post: Finding deals that justify pulling from HYSA

Post: Abilene, Texas Investing

Post: Abilene, Texas new real estate agent and looking to investing

Post: Good neighborhoods/suburbs to look into

Post: Good neighborhoods/suburbs to look into

Post: Good neighborhoods/suburbs to look into

Post: Any suggestions for people to contact for investing in the Sherman/Denison TX area?

Post: Any suggestions for people to contact for investing in the Sherman/Denison TX area?

Post: Looking for my first investment in the Sherman/ Denison TX area