All Forum Posts by: Account Closed

Right now I only see myself doing it on the side. I do love my job and the benefits are great. Of course, things change and I'll probably change my mind in the future.

Joel Owens, thank you for your reply.

You bring up a good question. I would say my primary goal at this point is cash flow. I'm looking for a way to supplement my current income.

I'm a relative newbie investor looking at purchasing a SFH but wanted to evaluate my current situation before I decide. I've also been reading quite a bit about the 50% and 2% rules and wanted to validate my understanding of them. I'll use the property I'm looking at as an example.

SFH for sale for $145k. From what I was told, the seller is eager to sell. It is in a desirable area of town in a decent neighborhood in a great school district. The home needs new carpet/tile and a minor indoor paint job. Otherwise, it has a new roof, new HVAC, new water heater and includes all appliances. The seller's agent said the seller would be willing to give a carpet and paint allowance. So, assuming I'm able to get the property for say, $140k, my monthly PI would be ~$500. With new carpet and paint, the property would be ready to rent. My analysis shows the house would rent for ~1250. This would result in the 2% rule being more like 0.9%.

Thoughts?

Applying the 50% rule ($1250/2 - $500) would result in a cash flow value of $125. I've read that anything over $100/door is acceptable. Is this correct? Did I do my analysis correct? If so, thoughts on the value?

I'd also like to mention I do my own property management/maintenance. I know there is more money to be made with rehabs and what not but I don't feel I'm ready to go there just yet.

Any thoughts, comments, or feedback on the situation I described above?

I think the east side has the most potential as well. It is growing like crazy and is very close to Fort Bliss. The number of returning soldiers you provided is good to know. I am curious though, it is not hard to see the houses going up on base. How does this affect the number of potential military renters on the outside? Are there not enough houses or do military families generally prefer to live off base?

Elliott, Welcome to El Paso and thank you very much for your service. Sounds like you have a game plan and a git'er done attitude. I think you will do well.

If you aren't already aware, there are a couple real estate investment clubs located here in El Paso that meet at least once a month. You should be able to find more info on meetup.com.

I'm curious, where in town is your property located?