All Forum Posts by: Jesus Roman

Would this be a flip or a buy and hold. If you are planning to buy and hold this property I would not recommend a hardmoney loan as majority of them are only meant for short term holds. As far as covering your EMD, don't believe you will find one. Lenders are going to want to see that you have some skin in the deal before funding your deal. Maybe over time once you build a relationship with your lender I am sure they might cover your closing costs, but starting off the bat I highly doubt it.

That is very much easier said then done. If you are wanting look for a undermarket value home you will not be able to find it on the MLS. If this is your first investment I would not recommend going through a wholesaler or an off market because like @Lucia Rushton mentioned you will not be properly represented in your transaction. 

Why not maybe look into small multifamilies? Somewhere where you can live in your own side and rent out the other side while still having privacy? If done correctly this will or very closely cover your full mortgage. 

@Luke O'Connell exciting stuff! I personally househack my first investment here in Houston and it has been phenomenal thus far. Have been doing it for a year and a half now, and I basically cover rent from the rents I acquire by the room. Goal is by April next year to move into a bigger deal and Househack it as well. 

Cheers from Houston! 
 

@Alex Ramirez Same scenario here, we have a project in the third ward area. 

@Susan Tan If you are still looking for one, I have someone I would be more than happy to recommend. 

@Owen Zhong I would be more than happy as well to share if you are still looking. 

Hey @Eugene Balogh I will be sending you our insurance brokers information over a PM. They are located locally here in Houston. 

Hey @Jeffrey D. !

I want to start of by saying I am basing this off on the information you provided. There is no denying that EADO is still growing and will for sure have some great appreciation of the next few years. I would typically recommend to hold as this market shows very promising numbers over the next few years but in your scenario I might suggest other wise. If the drainage isn't fixed then that is something that the future tenant will surely point out within the first month of moving in and therefor leading to you to have to fix it. If you are saying you got a quote to repair the drainage for $10k that sounds like a issue that if it isn't fixed soon it may cost you longer down the long run. Remember as a landlord you are to provide a functional home to your tenants and in the case that it isn't you are obligated to make repairs upon tenants request. 

Now even if you were to get $2,800 in rent per month and we calculated 10% percent for Capex and 5% for vacancies that would leave you well under your monthly expense. Therefor I'm not sure if I would consider this home to technically cashflow.

So in MY opinion I would sell and reinvest. 

Depends strictly on your real estate goal. For me it would be multifamily, nothing bigger than a 4-plex. Just because 4-plex you can still get a residential loan to obtain and can cashflow really well if done properly. Another route you could take with that money is to partner with someone on a flip, this is more if your looking to scale quickly. One is for long term gains while the other is short term gains, all depends again what you are looking to get out of your investment. 

Hard to judge if it's a good deal with out numbers. But if the deal works without the third unit being added then sounds like a good deal and if the city approves that third unit then it must be a homerun. Keep us posted if you follow through with it!