All Forum Posts by: Lia Locarnini

@Joe Hammel

Thank you for your helpful feedback!

@Johnathan Klemm 

Thank you for your reply!  I appreciate your feedback.  The Class A property is in Aledo, TX and the Class B property is in Forney, TX.

Hi!  My husband and I are new 1031 investors.  We have are nearing our 45-day deadline to name our replacement properties.  We made many offers and have two accepted offers that we need to choose between.  Both properties have pros and cons.  Here are some descriptions:The first property is a 2018 build in a nicer area, with very good schools (9.8.7 Great School rankings).  The purchase price is above the comps in the area by quite a bit.  It had very few rental comps (only two) and we will likely have to wait two months to find a renter for the property.  The lack of rental comps makes the property riskier.  The property is not typically a rental neighborhood.  Most people buy homes here, but the area is very popular because of the great schools.  The home is $82,000 more expensive than home #2 and we will require that we finance part of it.   The cap rate is 4.79% at our estimated rent of $2,850 per month and a tax rate of 3.17%. The second property is in an area with schools ranked 5.4.7 on Great Schools.  There is more crime.  There are good rental comps, and we estimated a montly rent amount of $2,150.  The tax rate is 2.93%.  The property was built in 2017.  The purchase price is close to comps.  The cap rate is 4.92%.  This seems like it will be an easier property to rent out, but could possibly be harder to manage?I guess the question is how much is the good schools and safer neighborhood worth so you can manage properties from afar on your own and save on property management costs?  Are Class A properties more oftern easier to manage, or can good vetting of tenants in Class B or C properties make them easy to manage.  I know there is no definite answer, but maybe some of you have recommendations from your own personal experience.       Thank you!

@Ryan Kelly @Kyle Mccaw

Thank you very much for the helpful input!!

@Aaron Gordy. Thanks so much for the great feedback!!

Hi Bigger Pockets Community!  From a buy and hold investor’s perspective, I know you should generally look for good schools in the area because it lends to higher rents and fewer days on rental market. But, since home prices tend to increase in areas with better schools, I wonder if there is a breaking point of home price value and high rent/rent ability.  When you look at Great School ratings do you always aim for 9/10?  Or do you find better returns when schools are 6/7/8 in up and coming neighborhoods?   I am looking in the north Texas (Fort Worth and suburbs) as well as Austin and suburbs.

Thank you, @Ryan Kelly!

@Andrew Rosenberg Thank you!

@Andrew Rosenberg Thank you, Andrew!  Yes, I have noticed the high property taxes in Texas, especially in the newer neighborhoods with all the special assessments for new infrastructure.  Do you have any input on which builders to be wary of or how to vet them?

Hello!  I am curious to get feedback on the best places to invest in Texas.  I have been focusing my search on Austin suburbs like Cedar Park, Leander, and Lago Vista.  But, as I run my numbers to find cap rates, I keep finding that other cities far from Austin (like Flower Mound) would give me better returns.  The big difference is that Flower Mound commands much higher rents.  Yet, I know that a lot of CA businesses are moving to Austin, and I think rental rates will increase in these Austin suburbs. I am curious what other investors have to say about the future potential of some of these Austin suburbs.  Would you recommend I buy based on what my cap rates are telling me, or on the future potential of where businesses are moving?