All Forum Posts by: Louis Craig

I could do sat and sun. I would consider myself fairly handy on the scale of nothing to handyman extraordinaire.

Don, 

How many units do you have for the valley trash and where is it located?

Is your rental that needs emptying out a house or apartment? If it's a house and it's a good amount of useful stuff, you could try an estate sale company.

@Nabeel Kurji Accept my colleague request and I can send you some more info!

@Nabeel Kurji

They do have a fair amount that were built in the 90's - so closer to 20 years in the heart (First Colony area). Deals can be had in Sugar Land but the price point is much higher. I like the looks of the outskirts of Fort Bend (Richmond, Rosenburg, Katy, etc.).

EaDo is looking pretty good IMO - it is poised for growth. We have alot of investors who are looking exclusively for deals in that area.

I am personally of the mindset that anything can be "investable" with enough creativity and good enough terms. Especially in a city like Houston. 

I am originally from Flint, Michigan where even if you hoped to death, your home will not appreciate in value.

Has any one had much experience in these? I am playing around with a project, trying to decide if I want to go after it or not. I am looking at a piece of land large enough to put 4 tri level town homes on it.

The price seems high, especially for someone who is skimping on an agent (offered me 2k to "just put it in the MLS for him").

Land is roughly 7,700 sq ft. and it is a corner lot.

So on a rough analysis I would be looking at:

$115 per sq ft for building costs

13,400 total sq ft of buildings (to include garages)

$1,541,000.000 construction costs

$720,000 land sales price

Total = $2,261,000

Sales price per sq ft $200

Livable sq ft $12,800

Gross profit = $2,560,000

Minus Expenses = $299,000

Now, I haven't dabbled into building from the ground up but I would love to hear what I am missing in my calculations. I know there is alot - the demo of the 900 sq ft house on the property and I am sure the city has hoops to jump through as well.

I'd love to hear feedback comments and concerns etc. Like I said, I know there is alot missing but before I spend hours and hours researching more I wanted to get an idea what y'all thought.

What is a typical return for multifamily properties? Even netting 100k I feel I would be happy - but I might be off on what my expectations are.

Is this price high for the land? I am not sure if the justification of you being able to build higher has anything to do for the tall price as well. When I asked him where he got the price from he simply said "appraisal." I have since asked him if he would be willing to furnish a copy and haven't heard a reply.

He kept telling me he isn't looking to list with an agent, repeatedly. I kept telling him thats fine because I wouldn't want to work with him anyway. Repeatedly. We really hit it off and had a swell conversation...

Any who, let me have it! Just be gentle....

I have been looking at them as well. Heck, I'd really like to take advantage of my VA loan and move into one of those bad boys. :)

Has any one had much experience in these? I am playing around with a project, trying to decide if I want to go after it or not. I am looking at a piece of land large enough to put 4 tri level town homes on it.

The price seems high, especially for someone who is skimping on an agent (offered me 2k to "just put it in the MLS for him").

Land is roughly 7,700 sq ft. and it is a corner lot.

So on a rough analysis I would be looking at:

$115 per sq ft for building costs

13,400 total sq ft of buildings (to include garages)

$1,541,000.000 construction costs

$720,000 land sales price

Total = $2,261,000

Sales price per sq ft $200

Livable sq ft  $12,800

Gross profit = $2,560,000

Minus Expenses = $299,000

Now, I haven't dabbled into building from the ground up but I would love to hear what I am missing in my calculations. I know there is alot - the demo of the 900 sq ft house on the property and I am sure the city has hoops to jump through as well.

I'd love to hear feedback comments and concerns etc. Like I said, I know there is alot missing but before I spend hours and hours researching more I wanted to get an idea what y'all thought.

What is a typical return for multifamily properties? Even netting 100k I feel I would be happy - but I might be off on what my expectations are.

Is this price high for the land? I am not sure if the justification of you being able to build higher has anything to do for the tall price as well. When I asked him where he got the price from he simply said "appraisal." I have since asked him if he would be willing to furnish a copy and haven't heard a reply.

He kept telling me he isn't looking to list with an agent, repeatedly. I kept telling him thats fine because I wouldn't want to work with him anyway. Repeatedly. We really hit it off and had a swell conversation...

Any who, let me have it! Just be gentle.... 

I am always weary on anyone who tries to steer you hard in one direction or the other. Only you can make decisions for yourself. 

Another thing to consider is many people who have bought or own investment properties have also put down 20% to get that so a $200.00 cash flow would be expected - but at the cost of 15% more money put down. 

I personally would rather take a property with less cash flow that I had to use little to no money to get into than one that makes me some money every month put I paid a hefty amount to get into.

Short story: our first home I bought in San Diego. 8 months later I had orders to be relocated. I would have been able to rent it and come out, at most, $100 negative each month. I was leaning towards keeping it and eating the loss but instead of following what I thought best, I listened to others and sold it for 435k. Today it is worth over 500k. That was 7 years ago. 

I'm not trying to convince you one way or the other, but rather implore you to arrive at your decision on your own, based on your extensive research and reflecting on your situation.

If you want, you can shoot me the address and I'll do a little research for you.
I agree with Doug, if the neighborhood seems appreciable, it might behoove you to hold on to it.

Either way, it is a good lesson for your next home! Hopefully you can find something that would potentially cash flow from purchase. I have used VA loans to buy my homes, so 0 down. I make sure that at the time I would at least be able to break even incase I deploy.

One theory that Robert Kiyosaki has is that even if you were to lose $100 a mo. on a property that would be 12k a year and 36k over the term of the loan. If you factor in how much you paid, even if the house didn't appreciate at all over the next 30 years, you would still be up 100k. Yes, I know this doesn't factor in repairs and other phenomena which may occur. Also, he is more of an advocate of it if you have other properties that can help to balance the scales.

Hey, maybe you want to look into putting it up on AirBnB. We have a property in Arizona that wasn't the greatest of deals but during the winter season (January-March), renting it covers my mortgage for the year.

 Ultimately though, it is your decision!