All Forum Posts by: Michael Mayes

Hello All,

It seems in prior years Jacksonville has been a hot market to invest in for a hybrid mix of cash flow and appreciation - is this still the case for 2019 and are there still a good amount of opportunities in the market?

I am interested in the market for single family and small multi’s based on future job growth projections and several other positive metrics.

Thanks in advance!

Hello All,

I am looking for critiques or suggestions to my 'hot sheet' I have compiled to help me find the best market to invest in that suites my goals. The criteria is primarily based on information gathered from podcasts, books, posts, etc. I would like to start with SF or small multifamily (<4 doors) and then transition to multifamily - strategy primarily being to buy value add opportunities and BRRRR it.

- Anything I'm missing or unrealistic?

- Any suggestions on best place to start in searching for my market once I have my criteria nailed down? 

Thanks in advance for any advice!

@Scott Fehrenkamp

- Location is good. Relatively central to both mine and wife's work, although I do work from home frequently.

- We plan to live in the 2/1 side, and rent out the 3/1 side. The current tenants in the 3/1 pay $1k/mo, which is well below market. I think we could get $1200-$1300/mo. This would put my mortgage amount at ~$1100/mo. This wouldn't include repairs and maintenance, but it seems to me that it would be hard to find a livable home in Austin area with an  $1100 mortgage.

Thoughts?

@Lee Bell good point. Usually always takes longer than expected. 

@Ryan Kelly agreed! I love the idea of someone else helping pay the mortgage - especially in a more expensive market here in Austin. 

@Jordan Moorhead got it. Congrats on that one sounds great and appreciate you sharing your experience. 

@Jordan Moorhead that is awesome. How extensive was the remodel on the house back? HVAC, roof, kitchen gut, bath, etc or mainly cosmetic stuff? And how long did you live in before selling to capture the equity? 

Thanks! 

Thanks for the advice! I agree - it seems like a great way to get started investing being newer and I’m eager to learn. 

@Luke Miller

Hello All,

My wife and I have been actively working with our agent to find a small MF property (<4 doors) to live in as first time home buyers in Austin, TX. We came across a potential value add duplex (built in mid-70s, and outdated) and I am looking for tips/advice/recommendations for this potential opportunity. Heres the details...

- Side A (2/1) is unoccupied and in need of significant updating, including completely redone kitchen, bath, bedrooms, new windows, doors, flooring, remove popcorn ceiling, etc in order to bring to date/be live-able by my wife's standards. 

- Side B (3/1) rents currently at $1k/mo (lease ends in March), which is $200-$300 below market rent for the area. B is in nicer condition, not much needed in kitchen, but needs updated bedrooms, bath, remove popcorn ceiling, etc. 

- Roof is 16 years old, HVAC looks to be old as well (pre-inspection). 

* List Price: ~$335k (~$162/sqft, average price in area for outdated duplexes, per comps)

* Class 5 Remodel Estimate: ~$40k (We will be doing most of the work, with the exception of a few things to be hired out)

* Current Sales Price of Remodeled Duplexes in Area: ~$205/sqft (potential sales price of ~$423k, without including appreciation)

I plan to sell the remodeled duplex 1-2 years later, potentially making a small profit, and living with a reduced mortgage payment. This would essentially be a live in flip/house hack. Also, my wife will be an agent by then, and would be the listing agent for the property. 

My Question(s): Would pursuing the above make sense financially for us? What am I missing here? Is this a go/no-go for a first time home buyers? 

Thanks for the advice!