All Forum Posts by: Jon Klaus

Also TX population and job growth remain healthier than most other parts of the US. And TX law prohibits home equity loans greater than 80% of appraised value. That has kept the market more stable.

Thanks Jon, that helps clarify. Another variable that has probably been dealt with is the average age of the portfolio. Expenses will run higher on a portfolio with an average age of 60 years vs. 5-10 years. Anyone mind addressing that linking to where it's discussed?

Thanks

OK, but typically I'll amortize and depreciate those CapEx's. I put a new HVAC into a property this summer. $26K. I am not going to expense that for me, my banker, or Uncle Sam. I'm going to depreciate it.

Question on the 50% rule: Is CapEx inluded? I see some posts that indicate it is and others that say it includes OpEx only. I see this as a big variable, as some properties need no CapEx and others can require CapEx greater than their current market value.

Would you consider other parts of the country? You have learned that it is very hard to make your area cash flow. Just this week in Dallas I looked at some 4- plexes in the $150K range that have gross rentals of $2600/mo. You could probably get one of them for $125K. And I was looking casually, you could do better looking with intensity and perhaps in other markets.

Should you do this long distance on your very first deal? Probably not, but if you are serious about doing REI maybe you should consider moving to a market with more opportunity.

Very nice buy! Let us know your rehab costs and the rent you get.

Hi Barry,

I'm new here too and learning a lot. I spend much of my time with network engineers as I own an IT services company. I think some of the skills that come out of IT help in REI, such as objectivity and systematic approach to problem solving. Looking at 100 homes is a great method. Takes discipline, but is so worth it.

Thank you Amy and Mr. I. I spent too much time this weekend reading forum posts. There is some really good info and investors here. I can tell I'm going to learn much from y'all.

Welcome David! How do you see the Woodlands market? And/or the I-45 corridor north out of Houston?

BG, did you get it under contract? Details?

If not, I completely agree with Nationwide, "Keep in mind that every single month, a deal of a lifetime comes across your path, so long as you have your eyes and ears open." Especially now.

At the same time I can relate to "i really want this one." I've found that a week or two really evaluating a deal helps take my infatuation out of the consideration.