All Forum Posts by: Jesse Howell

I would agree with @Eliott Elias on this one - focusing on smaller secondary markets can be beneficial, especially in a market like todays. Killeen is small but growing in density and quite undiscovered for investors. An area like this provides for great cash on cash returns, as well as stable appreciation that you may not be able to obtain in more saturated markets. 

@Jesse Howell

I am a real estate agent and investor in the Houston market.

Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.

Rent growth and appreciation is steady.

These cities tend to command quality tenants, and they have great schools.

Good Luck!

 Curious on why you listed Cincinnati over Columbus

So those could all be good options for you. I'm excited about Ohio with the news on the chip factory and can't say I blame you if you go there. I personally can only speak into my local market, being Tulsa. I'm in the middle of a couple Brrrr's, I've got more in the pipeline and a few behind me too, and of course have helped a growing handful of clients acquire brrrr-able deals too. I've refined my contractor list over and over again, and try to keep cosmetic only rehabs as my primary focus and bids around $15-20,000. This is best done by actually eliminating GC types and going straight to subs. I do like our market because deals can still happen below $100,000. I personally think the ceiling that makes sense is around $130,000… reason being, our average sold price is mid $200's to upper $200's (near $294k at the height, some fluctuations now) and so I feel really safe with a renovated asset in the mid $100s knowing that odds are I get some built in equity with appreciation giving us room to average out closer to the area average. Also, rents are comfortably averaged in the mid $1000's per month so that mid $100k ARV target allows for the probability of a "1% rule" deal. Tulsa has a lot of upside there, as the door is still open for affordability for however long. The only real downside to me for our market is job growth in terms of wages. There's not a HUGE surplus of 6 figure plus wage earners and so I find the renter pool to be consistently around our median income of about $60k and factor that into safe numbers for rents. Anything near or above $2,000 per month doesn't consistently make sense unless MTR / STR is your thing. So many folks really pushed rents for LTR recently but I am a fan of strategic pricing at about 95% of max market rent and to make sure I remind prospective tenants that I'm giving them a bit of a deal with the expectation they will pay on time and really value the asset almost as much as me, and hopefully stay longer than 12 months to mitigate the turnover. Yes you can tell I self manage but I do have referral relationships with great PM's in town who have take good care of my people.

A ton of people will probably hit you up because that’s what happens when areas get the tag. I’m not here to push anything but this is a conversation I love to have and if you want to contact me directly please feel free to send a message or look me up. Good luck to you whatever you decide, best wishes to your success! 

Look into Killeen Texas 

@Jesse Howell

For fix and flips, your experience will likely carry more weight on the terms than your FICO.

Lenders are still doing up to 100% financing on purchase and rehab if you've got the right experience.

If not, 95LTC is ok, but 9-11% interest only payments for 12 months is pretty typical...

Cheers!

@Jesse Howell..I usually run on commercial, and I don't think they're the cheapest but they're aggressive and nimble.  Check Cetan Funds.  Zach Smith.  I've done a couple deals with them for clients.