All Forum Posts by: Timothy Edwards

I am considering my first purchase for buy and hold and found a potential deal, but there's a caveat. I plan on living in one side of the duplex for the first 1-2 years. By doing so, I will "reduce" living expenses by $800/month. Here are the numbers that I have. I would appreciate any feedback from all the BP'ers that are out there.

Asking price: $82,000

Located 5 minutes from Texas State University. Hays County, projected to be THE fastest growing county in Texas based on state projections over the next 30 years.

MF 2/1 and 1/1 duplex. Built 1986. 1,400 sq ft. Natural gas. No central air (window units)

Taxes $1,400 year

*Price has come down twice from $89,000 since listed three weeks ago.

The neighborhood (short street actually) consists of homes 500-900 sq ft, with one MH at 1,200 sq ft. In the area surrounding this street, the only homes listed are in the neighborhood of $90k-110k. This one would price no more than $95,000 and would probably be pushing it at that price.

Rehab is minimal - paint and laminate flooring for interior, paint exterior and minor landscaping. Total rehab $5,000 worse-case scenario barring any unforeseen issues (offer would be contingent on home inspection, obviously).

Rent potential for 2/1 side of duplex $650-725.

Rent potential for 1/1 side (I will occupy for 1-2 years) - $450-500. However, the value of me living there versus present rental is $800 month as I stated previously. Am I wrong in factoring $300 cash flow based on this reduction in living expense?

Based on the asking price having been adjusted twice in such a short time frame, the seller apparently wants out sooner rather than later, and has room to move on price.

Assuming I can get them lower, what price pencils out to where this is a good long-term investment?

I need a fresh set of eyes - way to much eraser math done already and I'm afraid I've lost perspective. I apologize in advance if I'm leaving out key information; like I said, this would be my first REI and just needing some advice.

Thanks in advance!

Tim

i can tell you Hays County is set to be the fastest growing County in thestate over the next several decades. Coupled with Bastrop County, I feel like there is great opportunity for REI for years to come. If anyone wanted do to talk more about the opportunity, contact me and we can meet up sometime.

I'm still looking for that first deal, but I'm ready. I gotta get past the jitters now.

Great questions. Looking forward to the responses!

Welcome Andrew - BP is definitely a great place to start your learning process! I It can be a bit overwhelming, there is SO much good information, so I would recommend starting here:

The Ultimate Beginner's Guide to Real Estate Investing

It will get you started, includes links to in-depth information available elsewhere on the site, etc. Also check out the forums, subscribe to categories you are interested in so you get emailed every time a new post comes up (i.e. wholesaling, buy and hold, etc), and do keyword notifications as well for more specific-to-your-area updates, like "Wallingford".

Good luck!

Welcome! We seem dead on as far as approach, financial means and knowledge. I'd love to stay in touch to give feedback back and forth as we progress on the journey of you're interested. Feel free to add me as a colleague. Good luck!

Welcome! Amen to the BP kudos - I've learned more since I signed up than in ANY book I have ever written. Honestly, most books left me with "gaps" in knowledge that worried me and prevented me from investing, unfortunately. However, BP is filling in those gaps quickly, and I look forward to my first profitable purchase. Do y'all look to Vancouver as well? Great opportunities over there as well - my parents built a modest home there and sold for double five years later when they relocated to Spokane!

@Justin Tahilramani

I am working to find out HOA fees now. What would be an example of special assessments that could hit my bottom line? UTSA is a fast growing university, developing in reputation and size, so vacancy rates are extremely light. During school break, San Antonio Riverwalk (most visited "attraction" in the whole state) could bring in weekend renters as well, for high-return as well...

Has anyone had luck with campus apt or condo purchases, as in purchasing just one unit? Apt for sale across the street from University of Texas San Antonio campus, which is downtown and very close to Marketplace and the riverwalk. Asking is $105k, dropped $10k April 11 from original $115k asking price. 2bd, 2 bath, 1,044 sq ft. Built 1982 but looks to be updated. Ceramic tile throughout, fireplace, ground level end unit. Double vanity in master and walk-in closet. Rent comps are conservative at $750, up to $850-900. Literally, only upgrades "needed" could be quartz countertops in kitchen, paint (if I go from eggshell to designer?? - question in itself!), and maybe redress kitchen cabinets. Everything else appears to be dead-on. FYI listing 92 days old. Any thoughts? Price consideration?

Thanks in advance!

Tim Edwards

Welcome Jonathon,

You've been here for awhile siding so you know the wealth of information and assume you've gained a ton of knowledge already. Keep learning, but I would REALLY immerse myself in REI clubs in the area and find opportunity to align with a seasoned mentor - ideally, working side by side slapping paint on a rehab or driving for dollars for a couple days. Questions not thought to ask at a coffee shop will present themselves over and over. Good luck!

I'm new but if my math is right, 38k would be what many would say don't go over. 70% ARV-repairs comes to $37,500. Any feedback from the pros? Like I said I'm learning....