All Forum Posts by: Account Closed

@Shayan Malayeri

Thanks for the feedback. 

Yes, it's still cash flow positive even with a 15 yr mtg. @ $133.24 per month. I've accounted for a 6% vacancy rate and maint. reserve estimates. 

I plan on doing the property management activities, with the rationale that it's a small condo where my responsibilities are limited.  

 The condo in its current state wouldn't cash flow. e.g. White Laminate countertops, all carpet. I plan to put in around $10k to modernize it and bring to comps renting for $1,300 per month, which includes all bills (water, internet, etc. )

With the improvements to the area, I can see it being a long buy and hold play. I think it'll always be one of the lower tier midtown studios, with its market being midtown millennials, who can't afford $1,500 per month not including utilities.

By the way units in the same bldg. w/ same sq. footage sold for $99k in Jan. 

So worse case scenario, I could sell it after a holding period. 

I have an offer I'm set to close on for a studio in the Midtown Houston area.

I'm looking for feedback and maybe a sanity check.  I'm trying to avoid paralysis by analysis. 

Let me know what you think of the deal? 

I'm a first time real estate investor so I'm skeptical and being cautious of not investing with emotions. 

I'm calculating a 6% cos with a 31% ROI. I'm going with a 15 yr mortgage as I'm hoping to have it be a pure cash flow during retirement. I'm putting 10 down by the way.

The studio is off Main Street with a sq footage of 466. I'm getting it for $75k. I've estimated from realtors and contractors that it'll take $8.5k plus a Murphy bed to command rents in around $1.3k.

I'm looking to fix it in mode of the Houston micro condos in that area. 

 The cash flow isn't great but I understand that it's a by product of the 15yr mortgage and what feels like a B class property. 

What do you think of the deal?