All Forum Posts by: Nathan Hui

@Nathan Hui

I moved from SoCal to Bozeman, MT in May 2007. I was completely unaware of how inflated and over-built the area was. I was used to SoCal prices, so Bozeman felt affordable. By Fall 2007 the market crashed. People lost jobs. People had to move and couldn't sell so the market was flooded with rentals. 80% of the condos in my HOA became rentals over-night, which meant I wasn't able to refi or sell. It's a college town, so there were students to rent, but that's not my ideal renter. Rents dropped due to over-supply. I broke-even for 9 years. Then I was able to cashflow $250 a month for 3 years before finally selling at a nice profit last month. The HOA was still allowing too many rentals, so I had to find a cash buyer....12 years later. SO MANY MISTAKES.

How I survived a really dumb purchase: I put 20% down even though I could have used my 0% down VA loan. I didn't panic and sell when I was 60K underwater even though I had a lot of pressure to do so. I didn't have any debt other than mortgages, so I was not financially over-extended.

I am looking to network with real estate investors living in Rome, GA

I see potential to build a good portfolio of multi-family properties in that area. Any thoughts?

@Nathan Hui

Started buying foreclosures in Houston back in 2006-2010. When markets everywhere else crashed, but Houston was not suffering the same effect as other cities were. Was buying at $30 per sq ft for duplexes and SFR. Rents were going up. Cashflow normally was north of $300 but most higher given you were able to buy 3/2s in great school districts for under $90k. Still own a handful of them since 2006. Appreciated 3-5x and cashflow is very healthy but taxes and insurance is starting to become problematic but still cashflowing after refi cash-out to buy other properties.

I believe those who bought with positive cashflow didn’t suffer the same faith as thought who bought for appreciation with negative cashflow. Not all us investors lost properties in the last crash.

@Nathan Hui

I remember right around graduating from college 2006/2007, I was looking at houses in Texas because I couldn't afford to live in my local area (Northern VA). Condos were around $300k when homes in Texas were around $130k.

Then the great recession came and in 2008 I was finally able to afford something. Manassas took a bit hit because of ice's crackdown on illegal immigrants. The house I bought went from $340k in 2006 to $133k. I rented the rooms out while living in it for years and now it's assess for $260k. It now rents for about $1,800.

I had a few pre 2008. All in Vegas. They fell from $150-$170k down to $100k. Luckily rents continued to rise right through the recession and now they’re worth about $250-$270k. Of course the money makers are the dozen I bought after that for half price. 

Time solves almost any real estate mistake. Imagine buying or not buying a $100k house for $110k by “mistake” 30 years ago. At 4% appreciation it’s worth over $400k. 

I lost soooo many deals haggling over $5k here and $10k there because I had just bought an identical house for less the week before.