All Forum Posts by: James Lindsey
James Lindsey has started 9 posts and replied 33 times.
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
Originally posted by @James Wilcox:
James Lindsey welcome to BP and the REI community! Everyone has given some great advice. If you are not getting the cash flow numbers you are looking for in Austin, you could look elsewhere. IK you want to house hack but maybe a city or two over from Austin will give you the numbers you are looking for. That is what I do.
I've been keeping an eye out as far as an hour away from Austin but that makes my daily commute multiple hours during rush hour which doesn't make any sense when your job earnings depends on how many hours you work. I would be left with no time for further real estate investing or family.
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
Originally posted by @JT Spangler:
Originally posted by @James Lindsey:
I never thought about appreciation as gambling but it makes sense. Austin has been on a steady growth incline for the past 50 years with even more jobs and projected growth in the future. So I'm not worried about the market falling out. I am worried though about my novice ability to find and procure a multiplex house hack for my first home that will cash flow nicely. Maybe I am missing something on the calculator.
You're in a red hot market, and you have no experience and not much cash on hand. It's a tough spot to be in. You want to owner occupy so you can collect more doors for less skin, and that means you can't look in another market since you live in Austin. I think you have 2 options: keep scouring the market for a value add deal (an ugly house, something that needs a lot of cosmetic updates, is in a transitional area, or has a funky layout), or explore some options to add to your bankroll before buying anything.
I was in the same boat as you are a few years ago in an equally red hot market, and it took me nearly a year of looking before I found a deal I could afford and knew I could add value to. I bought it for 150k and two years later it's worth 230k or so. And it cashflows (thanks to appreciation I wasn't counting on and improvements I made).
Thanks for the advice. I'm going to flip some properties for awhile with APEX because they have the experience finding the properties and I can learn from them. Once I build up some capital it should make the numbers a little easier to find a good property to cash flow with.
Post: Reusing the same loan?
- Round Rock, TX
- Posts 35
- Votes 4
good points
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
looking forward to it
Post: Reusing the same loan?
- Round Rock, TX
- Posts 35
- Votes 4
I was looking into a fnma or fha. Although there are several conventional loans that I qualify for that my bank would cover the closing costs which could be handy.
I asked this out of more curiosity than anything.
Post: Reusing the same loan?
- Round Rock, TX
- Posts 35
- Votes 4
I have always been told that your credit score get steadily worse with each loan you open up, even if you've paid the loan off each time.
Post: Reusing the same loan?
- Round Rock, TX
- Posts 35
- Votes 4
In the case of a conventional 30 year loan used to purchase a house for flipping purposes. Can you simply re-use that same loan when you successfully flip a house for the next house? In order to not hurt your credit score as badly?
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
House hacking is my main goal as well but since teaming up with APEX I am going to get a few flips under my belt in this market first. If my perfect house hack comes along and the numbers work out, then i'll take it. Otherwise I'm going to focus on building my capital.
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
Then what kind of an exit strategy do I need to develop for a multiplex in a market like Austin, Tx? Especially if I do find that cash flow property I am looking for.
Post: Cash flow vs appreciation?
- Round Rock, TX
- Posts 35
- Votes 4
I was 2 years out of high school living in a little town in the Midwest. So I actually don't remember 2007. We never felt a big housing dip where we were at but I do remember hearing about it on the news.