All Forum Posts by: Rick Pozos

Hey @Jessica Cooper you would probably need to pin down a state, then a city or region first. Major cities of Texas is just too broad to even think about, now you say you want to look at Florida, Tennessee, S Carolina and Georgia. WOW. 

You should go visit the areas where you might want to own property. Talk to some local investors and/or agents there. THEN start to ask questions about THAT area. There is so much variance of tax rates, insurance rates, should the house have a basement, foundation issues, do I need a 1in copper water line or is pex better for the climate, etc. Who has a septic as opposed to city sewer and why. Too many differences that you dont even know to ask about. Pick an area, go there and see if you like it, then start to decide.

Great Job!! When I first saw that picture, all I could think of was the "Amityville Horror" house.

https://m.imdb.com/title/tt0078767/mediaviewer/rm2920252416/... 

Your blended rate would be about 4.75ish. Thats not bad either, and you have 100k in your hand. If you can buy a house for that 100k cash it should cash flow enough for both of the properties.

OR live well below your means and save $500 to 1000 or more per month. Save all the cashflow from the rental and within a year or so you will have enough to purchase another home with 20% down.

Try a different lender. Maybe find a broker who has access to different companies. Someone will lend on the property.

Sounds like you need to work on that building of trust with other people. If you are doing a deal 50/50, that is not a small insignificant part of the deal.

Whatever you are doing, it has to be valuable to someone. Find that person that it might be valuable to and partner with them.They will be the ones who offer more equity because they NEED you.

You can not be 100% efficient 100% of the time. If you are making some cash flow on the properties the way they are, keep going with it. Dont mess up something good. Real estate is supposed to be the little extra that you end up retiring with.

It's kinda like the 401k. Let it grow, let it grow. After a bunch of years, start to sell it off if you want to live off of the houses. They will probably have doubled again when you are ready to retire.

If you need cash, sell off one property that is doing the worst or the most headache. OR try the 1031 again. This time with more preparation.

It's kinda crazy the kind of tax benefits that there are in the tax code. This is why doing a live in flip is so valuable. You can buy an ugly house, fix it first or live in while you do the rehab. Stay there a few years and keep the profit TAX FREE!! You can make 100k every 2 or 3 years tax free. My wife and I have done this a few times. I love it.

Once you start doing renovations on the outside of the property the tenants will know that rent increases are coming. As mentioned, the good ones get $20 or $30 per month increase on 6mo lease, bad tenants get $100 or $200 rent increase.

As you are doing exterior renovations, start interiors as tenants move out. One by one or two or three at a time. By the time you finish all renovations it will be time to raise rents again!!

There are some really rough parts of 78244 in San Antonio. There are also some new and newer houses in the area. Depends on the street.

You probably need to analyze about 20 or so houses in an area to get a better feel for it. Prices change with major streets, railroads, or a drainage ditch.

It is not that you are not taxed on the inherited house, it is that you receive the house at today's value. So if you sell it tomorrow or in the next few months, the value is probably the same as 3 months ago when you inherited it. Hence, no profit, no tax.

It was worth $600k when inherited. Sold a couple of months later for $600k. No tax because there was no profit made.