All Forum Posts by: Michael Ran

all of the properties i own and manage are in Houston. Right now the word from some of my fellow lifestyles friends is actually MF... In their opinion. 

I am in a holding pattern waiting to see what will happen.(oil prices, oil industry, GOP, local economy, ect.) 

There are people who rent for a lot of reasons. And to be honest my cash cow properties are the 900-1200 rentals. Even a slightly higher minimum wage worker can afford it but cant get mortgage, so there is a larger tenant pool. The higher the rent the better the tenants but there are fewer of them and many can get mortgages. The younger generation don't want and can't afford to buy. Plus many young business people have to move for better jobs aka why buy when you may have to sell not to mention the fear of 2008 and watching what happened to their family, who lost their homes. 

You just have to find the deals. They are out there, there are just a lot of other people looking for them. Don't get in a hurry or buy a deal just to get into REI. Buy a deal because it makes financial sense. Houston is rough right now! There also some issues novices arent seeing right now that could drop prices in the next year if oil prices keep falling and business doesn't start booming.

@Lucas S. Welcome! Feel free to ask me anything you need to know about buy and hold in Houston. If I don't know I know people who can answer.

Remember to set up your key alerts to help you find what you want to learn about.

I am still newish to BP but I can say this is a great way to network and learn! I wish I had found it before I got started.

if you send me an email I can send my property evaluation.

However, it will make $340/month before you subtract vacancy, capEx, ect; at 1600 a month.....

@Geoffrey Jones the green gate property is not worth the 200k. If you look, the average listing is 120-160k in the area. In the subdivision, only 3 houses have sold in the past year and only one was built before 2000. Also, most people moving to the Exxon buildings are looking to buy not rent. The average income is 120k a year. They can buy nicer newer houses for the same price.

If you are looking for a buy and hold, my opinion is not to buy a 1970 house without a garage for more then the house is worth and CoC return is only 7-8%. That's at market rent of 1600/month. But you will have a hard time renting without a garage in this range and area.

Taxes in 2012 were $3,438+ 400HOA+ 3400 insurance due to flood and age. It just too much risk.

Plus, if you haven't heard a lot of service and oil companies are starting layoffs or hiring freeze due to oil price drops.(insider info from exec. in the know) This will make things harder for this type of house.

This is just my opinion.(i live just north of the Exxon and there are 1000 new houses being built up here for the 180-280k range. They will have access to the toll road that goes staight to their office.)

i should be there.

@Fred Heller is right. I am slowing down due to the concerns here in Houston. We are also not hearing the word deflation but its a concern no one is really talking about yet. This could be a major problem for over leveraged people if oil keeps falling. That is why I am sitting on the side lines waiting to see which way the wind will blow. I'm still praying for the best but preparing for the worst.  The real indicators I am watching for the Houston market are interest rates and oil prices. you can have all the people in the world move here but if there are no jobs... I don't want to be holding the bag! as they leave.

However, most likely there will be only a slight fall in home prices(if any) in the Houston area. Houston probably has hit its stabilization point as far as pricing now the issue will be inventory. The developers are here trying to make some money but there is a slow down in existing home sales(or at least on the northside of town). This could also just be a seasonal thing like 2011 and 2012.

We may just have to wait and see. Ask again in March!

either way, send me an email of the property listings, addresses, and financials(I can sign confidentiality docs if you need). I can get it to the right people or tell you why it is not selling. @Account Closed .

As for the fraud, seriously think about hiring a different management company. This will get the lead out of the books for the most part and make it harder to steal without notice. They may also be able to increase occupancy or come up with a few things that can cut costs ( possible fraud area) and improve the sales aspect of the properties.

I have an old family friend that has managed our MFs and made them great. I can't remember the name of his management company but he does great work.

@Ronnie Sparrow first let me say a few thoughts,

Management is a large part of keeping tenants. Poor management can drive tenants out due to pricing, conditions, just normal service failures and many other things.

A property for sale 2years? Give me the address! I know tons of people looking to buy, including me!

- now location is key to MF properties as well as price and condition... This may be why it's -not selling.

Now my opinion: 

Have you thought of hiring a different management company. That is the best idea and will solve many of your possible issues. They will also find fraud if there is any by doing the books.  If you bought the properties 2 years ago (30-35k a door) and are below 75% occupancy there may be no fraud... Rents are not yet up to the pricing over these last few years.

As for the sale- I know people that can get them sold but I would like to see them first... I may want to buy them. 2 years is a long time, are you over priced? A class C is not selling at 45k a door but I can't imagine not being able to sell in this market. You may need to contact a new broker.

I wish I could make this meeting but I will try for the next one! 

@Account Closed 

Now I would say if you can, ask your uncle to consign for the first one for ownership. That way you get a reputation as an apartment investor and manager. After you have done it for a few years the bank will see that and the next deal will not ask for him to cosign. The only other ways to really get in the game is just pay cash first or get experience and try later.