All Forum Posts by: Huy N.

@Account Closed Thank You.. I was thinking to start off with my credit union. They seem to have lower interest rates and a bit lenient. Even if I buy a house less than 100K, i couldn't come up with 20% down payment right away, especially for more than one house.. any advice there?

appreciate it guys.

I don't know why beginner can not afford 20% down Valeria? In fact, saving up is one of the best way to start in my opinion. It will prove to others that you have discipline and the willing to do that it take. Trust me, if a college kid can do it, you can do it. It is not that hard. You just need to budget your money and train yourself to live blow the mean until you reach the next level.

Welcome to BP

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@Mat Trenchard ,

Agree with you. I think we are forming a little bubble here in Houston. Some oversea investors just want to park their cash in the US and don't care much about return. that alone is driving up the price as well.

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Hi @Mike Sattem ,

Thanks for sharing the story. I am always a big fan against buying negative cash flow building, but it make sense in your scenario.

Keep up the good work!

Huy

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Hi @David C. ,

unfortunately (and fortunately) I don't have any before pictures because the before look exactly the same as the after. Like i said. I just show up with a broom with my gf and we just sweeped up the place and take pictures

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@Brett B. ,

Here come another Pro joining the site! welcome Brett. Looking forward to see you in person and learn more about Muti-Family. What is the current average cap rate inside the loop now?

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Originally posted by @Brandon Luke:

Moral of the story...get a girlfriend!

Good point Brandon!

Investing with family has pros and cons. The recent podcast pointed it out. Understand what you are getting into, accept the risk that you could and then go for it!

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Originally posted by @Bruno Tavares:

Really nice @Huy N. !

I like the break-down in Acquisition, Financing and etc... I've been involved with the same Acquisition company lately!

I found your strategy to use your rental houses as collateral for a line of credit very cleaver.

Was it hard to convince your lenders since you had no prior track of flips? Do you need to have a reasonable big portfolio of houses or do you think just 1 rental house would be enough to secure the financing?

Hi Bruno,

It's a combination of a reasonable size of portfolio plus day time job for me as of now. If you have one rental house that is paid off you can ask for the line of credit at almost any bank including big bank like wellsfargo, chase, etc..they are willing to lend up to 75% LTV.

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@Ashis Sharma ,

Welcome to the site, check out the post cast. you will like it.

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Originally posted by @Jim Lin:

@Account Closed ,

I am just getting started in rehabbing and flipping myself and have recently made some good contacts that are doing exactly what you plan to do, flip houses in the $50k - 150k range. So I will regurgitate the advice that was given me. The price range you are looking at is definitely the bottom of the barrel to lower end in the Houston market.

1) The property is in a decent market but needs significant work. You will be competing against many other savvy flippers to purchase the property and will need significant cash on hand to complete the rehab.

2) The property is in a low cost area. You can easily put in more on rehab than the property will ever be worth. This is actually where my friend focuses his efforts, but knowing the neighborhood is very important. Make sure you will be able to move the property. Low cost typically means lower margins, so the speed of the rehab becomes even more critical.

3) In either case, deals are hard to find. MLS listings will get a lot of competition. You will need a flexible schedule to be able to look at properties and make your offer within hours of the listing. It is useful to have a generic offer to purchase on hand that can be filled out and submitted right away. Deals in this price range are mostly purchased in cash, so you will need the capital squared away.

4) Learn how to find deals outside of MLS.

you touched all the points. very good post Jim!

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All Forum Posts by: Huy N.

Huy N. has started 94 posts and replied 468 times.

Post: "Investors Friendly" agent in Houston, TX

Post: types of loans

Post: Return/areas to aim for in Houston

Post: I bought a negative cash flow property, and it's a good thing I did!

Post: Boring is sexy

Post: New Member from Houston area

Post: How I flipped my way through the 1st deal with one hand

Post: How I flipped my way through the 1st deal with one hand

Post: New Investor

Post: Flipping Houses under 200K ARV