All Forum Posts by: Heather H.

To clarify a couple things -

1. The strategy here is long term buy & hold

2. This isn't my first offer in SA - it would just be my first buy & hold property in this market, which is why I called it my first SA property 

Hi All,

I am offering on my first San Antonio property, which is an SFR. I've had a hard time finding deals that cash flow positively because the property taxes in Texas are comparatively high.

The reason that this one works is because the assessed taxable value is low compared to many other properties I have evaluated, and even compared to comparable houses in the same neighborhood. For example, the yearly tax is $2000 less than a nearby comp with slightly higher square footage, and $1000 less than a close comp of equivalent square footage. That makes a big difference!

Can anyone tell me why this is, and how often the taxable value of property is reassessed in San Antonio?

I'm concerned that the taxable value will be reassessed (especially when I make improvements to the property), which would make the cash flow negative.

Has this happened to anyone, or do you have experience with this sort of situation?

I would really appreciate your thoughts! Thanks!

Hi @Joshua Jackson, is this property still available?

@Christopher Lewis Here are my two cents  - I hope they help in some small way!

Having a "regular job" and being financially independent aren't mutually exclusive. In fact, a normal 9-5 can be a powerful tool on your way to financial independence. If you take that job, live below your means, and wisely invest the extra money you're making (such as in real estate), that is a great way to speed your journey toward financial independence. I'm not too far along with my investing journey, but I have already been able to ditch a high-paid but unhappy career for one that pays terribly but I absolutely love, and I did it with security because of the cash flow from my rental properties. I wouldn't have been able to buy those rental properties in the first place without the extra money from my job, though.

I have also had two awesome mentors in real estate, and they have both been people who were already doing what I wanted to learn how to do, and they taught me because people love sharing their passion. If a paid life coach is giving you advice that doesn't resonate, you don't have to listen to it. Find someone who is doing what you want to do, and learn from them instead. 

@Bob B. I play video games, and I lead a very productive life and invest in real estate.

I missed it if @Account Closed said he is a gamer who expects to make money off of it, but come on - there is nothing wrong with taking some time to relax sometimes, and some of us enjoy using video games for that :-)

One book that I do like but would NOT recommend at this stage in your investing career is the ABCs of Real Estate Investing, because he mixes a lot of simple stuff that beginners need to know, with a lot of very advanced stuff that is specific to running a company that invests in large apartment buildings. I mention it because it is targeted at complete beginners, but I don't think it should be. It's great for people who are small-time single family or small multi-family investors and want to take their investing to the next level. 

I posted a full review of it here: https://www.biggerpockets.com/forums/848/topics/599186-more-like-the-abzs-review-of-the-abcs-of-real-estate-investing

Hi @Account Closed, who is one of the main people here on Bigger Pockets.

I have noticed that a lot of real estate books (and some posts on this forum) that are supposed to be for beginners actually end up complicating things. My theory is because the authors have been in the game for so long, they forget what it is like to actually be starting out. These two are good ones that will help to elucidate instead of obfuscate.

Good luck and happy investing!

Wow, it's interesting to find out more about everyone's goals, achievements, and levels of experience. Bigger Pockets sure is a diverse community! It's great to hear from the real professionals as well as the people just starting out.

My personal RE goals this year are to close on the duplex I have under contract right now, which is my first MFR, and to complete my first flip before summer buying season starts. I'd also like to get some of the equity my husband and I have have in our SFRs working for us, and ideally use that to pick up another SFR or small MFR.

I'm returning to real estate after not making an investment since 2011, so my goal is also to be very mindful not get carried away in irrational exuberance!

My most important RE goal for this year, though, is to help my mom make an investment that will generate cash flow to support her through her retirement. 

@Adam Stroik Sorry my last post didn't give much detail. To elaborate, JJ at BD Lending is a mortgage broker for investor mortgages. I initially found BD Lending here on Bigger Pockets when I was looking at buying a 7-unit building, and was having a hard time finding a lender that would lend on properties with over four units (unfortunately I didn't move fast enough and lost that deal). I had also been unable to get regular mortgages on SFRs or duplexes at regular national or local banks before.

BD Lending can find loan products for buy & holds with any number of units, which include 30-year fixed or adjustable rate mortgages. It is hard money, but unlike some HMLs, the focus isn't just on short-term, and the rates aren't crazy high (in my opinion). The rates I'm getting for a 30-year fixed mortgage on the duplex I'm buying are just over 7% without buy-down, or as low as 5.5% with it. Of course these may be different depending on the value of your deal, the down payment, etc. BD Lending is based in Chicago, I believe, but we do everything over the phone and email.

I don't work for them or stand to gain anything by making this recommendation - they just came through for me where no other lenders did. Good luck!

@Adam Stroik talk to JJ Bliss at BD Lending. I'm buying a duplex right now with a 30-year fixed.