All Forum Posts by: Franky Juwana

Thats annually just as you know, in houston market, HOA is mandatory for all property because it's sub divisions SFR. So most about $250-$400 per year which only $20-$40 a month.

I dont think HOA is a deal breaker for me because they arent condos.

If I miss 6 months, game over? no... not really. but like everybody else, I'd like to buy it at the right price and like everybody here says... if the numbers if good, most likely it can be a good deal or an ok deal to say the least. 

25% DP is because that's the requirement from my bank to put down, because It's my second house. 

but would you do the deal if you see it thru your lense?  I would do it, but I may miss something that you guys who much more experience than me see. 

@Patrick Britton  Thank you so much for your 2 cents,  that's what confuses me about 1% rule or guidelines or whatever your guys what to call it.  When it meets the  1% but after running the number after expenses, it turns out negative , every single time.

The market that i'm looking for is Houston market, and is appreciates slowly and rental is also going up slow. But in some area is the seller's market, houses selling like hot cakes

Yes, this is my first and I dont want to be over thinking it but I dont want o rush it either. 

Actually, I do have another one that I want to pick your brain out , tell me if it's a good deal or not

Property 3

SFR 5br 2 ba

Good school rating

Asking price 205k

Tax : 6329/annually 

HOA: 350/annually

Ins: 80/monthly

flood ins: 40/monthly

potential rent : 1800-2000/monthly

down payment :25% (because isnt my primary house)

rehab: 5000-6000 (estimate)

tax rate 2.888 

Tenant will handle maintenance around the house

Im thinking to put Vacancy, repair, and cap ex 4% , cuz all the big ticket items (roof, siding, HVAC) still good.   and Property management around the area charge starts from 6%-10%

please let me know if this an ok deal or should I run for the hill ? 

Thanks

Ok, yeah... the tax in houston tx around 2.5-3.2% 

Btw, Where in NJ? I have wholeseller contacted me last week in newark area but the repair was too much.  

I'm looking at Houston Market which still affordable, I also see some of SFR that in 1% rule but still after running the numbers, they're in negative. What makes it negative is the Cash reserve (Vacancy, Repair, Cap-Ex and Property management)

How much do you put on those?   if I put 10% from rent, I never seen any positive no matter in 1% or 1.5%  rule. 

I'm in Dilemma in figuring out the number on couple properties that I about to submit an offer. 

Prop1: 

Asking price 170k

I'm submitting offer for 160k

Dp : 25%

tax  4688/year

HOA 350/annually

Ins 80/month

flood ins: 40/month

Rental is $1495/month,  it can go up max 10% in 3 yrs lease, so i'm thinking to have 1545/month cuz the lease is due in Feb 2019. 

Tenant will take care all the maintenance (Mowing lawn), Landlord is only responsible for Tax and insurance

But when I add Vacancy, Repair & maintenance, cap-ex, and management fees,  never in my life I see cash flow positive, even when the rent is 1% or 1.5% from the asking price. 

I'm not sure if I could have positive cash flow without putting huge down, even then my cash on cash will be very low. 

Prop 2

asking price $211.500

thinkin to submit offer 200k

the amount of fixing isnt that much, just paint and cosmetic ($5000)

Dp : 25%

tax 5668/year

HOA 250/annually

Ins 80/month

flood ins: 40/month

Rental is approx $1750/month, 

I put 5% on Vacancy, Cap Ex, repair and 7% for prop mangmt

Which came out negative for cash flow and cash on cash

So, do I have to low ball every offer, which I've done, but because it is competitive market, of course some of the seller didnt even bother to counter. 

This is out of state investment , because at my backyard the price is double and some triple, it just doesnt make any sense. 

Any advice, from y'all experience investor would be appreciated, just to make sure I didnt miss anything. 

Thank you

Please PM or email the info to [email protected] if it's still available

(646) 321-5137

thank you

When I was an Agent in 2005 in NY, I drove honda civic 2004, pretty economy in gas for driving around the neighborhood. In NYC my  clients rarely had personal cars, due public transportation are available, and I had to drive them around. I didn't care and could care less what they thought about me or my car. If they care so much about my car, then they could find other agents who had luxury cars or pretend they had luxury cars. I work with someone who wants to work with me. 

So, afford what you can afford, the rest is judged by your services and results.  

My 2 cents

Thanks you for your response, ok i guess I wasnt too clear or detail regarding my goal in this goal of mine. 

Im looking for a single family home in houston texas that could produce passive income. Why $100, once Brandon mentioned that in his podcast, that's the least that he would take in buy and hold, but i doubt he would take that now. 

So far from what I have seen, the average rental from the area that im looking at is around 1300-1500, taxes is about 2900-3500 annually. They have an HOA for the city which only cost $300-$400 per year.

Insurance could run me about $80/ month or so. 

So with other expenses like property mngt 6-8% ( i shop around, and this what the average people would charge), and cap-ex around 10% (im guessing), and fixing etc another 10%. 

And if i pay the asking price, it definitely would take me to the negative, so i have to at least 25%-30% less than the asking price to be more make sense, and even then my passive income isnt at $100 yet. 

So with your experience,  what do you suggest in the case like me, do i low ball everything and hope for the best or do you have any creative ways or advice for me to approach this in little different mindset. 

Btw, im seeking advice with something i have never done before so i highly appreciate all the suggestion you might have  and a mentor is what I need in this very early time, so I wouldnt do any stupid or silly mistakes that would take me back years to get back up again. 

Thank you so much

Thanks for the advice,  I agree 100%, if I need to rehab, prob just cosmetic small job, like painting, flooring, etc. Other than that... it'll be a hustle.  

To get positive cash flow and even close to $100, I have to really make a low ball offer, low enough to have seller might throw something to my face. =)  but... i'll try... I might get it. 

thanks