All Forum Posts by: David Ferrette

Where is the profit in this for the "investor"?  

I am not a fan of all these billion dollar tax breaks to companies rolling in the huge corporate profits unless they then open these tax breaks to the other smaller companies in the same area.  They are basically saying we don't care about our current local employers, we only care about new money.  It is greedy and I am not a fan.  

Looking forward to the meet up, see everyone there.

With a purchases price of $260k and rent only at $1650, you will lose money every month for sure.  Use the BP calculator below to see just how much you will lose...

https://www.biggerpockets.com/buy-and-hold-calcula...

@Roger Evans

I've used this site before with success:

https://www.easyrender.com/

Clark,

Can you share some of the financial details on this home?  

-Cash flow after ALL expenses and vacancies?

-Purchase price?

-Current value?

-Exit strategy?

Right now it looks like a negative cash flow property with a little equity built in.  If you were to buy now and sell right away, you can expect 8% of the costs to go to closing the deal.  If  you add on purchasing cost and the negative cash flow, I doubt  you will have a deal you want to do.  Is there some other rehab you plan to do to increase the value of the home?

If you are willing to spend the money, you won't contact an architect just yet.  Contact a local civil engineer.  

How did you know what the land was worth if you don't know what you are going to do with it?  It sounds like you closed on the land without an exit strategy.

It looks like you have power and possibly water.  I would reach out to those utilities and also gas, water and sewer to see if they can service your lot.  Once you know that info, you will have a better idea of what's even possible for that lot.

It also looks like you may not be in a city since you don't have zoning but you may be in their ETJ which will have it's own restrictions.  I would look into this as well.

I would seriously question this development.  You can call the Georgetown Planning and Zoning department to even see if this project is real.  If it is Coming in 2018 as their website states, the city will know all about it.

It sound like the developers are a surgeon, a former NFL player and a brother.  I didn't hear seasoned developer anywhere in those titles.  I also agree with what others have said, if they really could get 200% returns in such a short period with acceptable risk, they would have investors beating down their door.

@Daniel Tisdale

There are places just outside of Austin that you can purchase that will give you cash flow and the appreciation you are looking.  Why limit yourself to just buying the house next door because it just that, next door.  Chances are, out of all the 1000's of home for sale this year in Austin, the one next probably isn't the best deal.  I say keep looking and and don't stop until you find one that cash flows.