All Forum Posts by: Ryan Kelly

@Ryan Tongue some sage advice to share. Too many investors plant a seed in the ground and then are frustrated they don't have a mature tree bearing lots of fruit (cash flow) six months later. Growing a tree takes consistent care (property management), fertilizing (maintenance), and water (capital) to keep it alive and growing for many years. The fruit, or steady positive cash flow, is typically the result of several years of maintaining and improving the property. What is the reward while you wait? Appreciation, depreciation, and loan pay down. These are the early benefits you get for planting the seed. Keep at it and focus on the long-term goals.  

I recommend all clients get the sewer lines inspected, even on new construction here in Texas. You never know what you will find.

I would consult a real estate attorney, or if you are working with a title company, they can have their legal team provide guidance for you. 

If you are in a mandatory POA, you agreed as a property owner to pay your dues as a member. I would refer to your closing documents. Quite often, POAs and HOAs have the same option to foreclose on your property just as a lender does if you don't pay your mortgage, or county if you don't pay your taxes. As always, contact a real estate attorney for legal advice.

Great job @Devin Dang! Is this in north or northeast Austin? I toured a home last year that looked a lot like this one and just curious if it's the same house :)

Good luck finding almost any market above 1%, let alone 2%. Plus, they will typically be low appreciation, low population growth markets. You are correct, most larger markets are seeing closer to 1/2 of 1% rent to purchase price ratios. 

I like a minimum of $10,000 or more per property. Capex can catch up fast, so I want enough to handle a big replacement like an HVAC system or room remodel.

Most likely you need the dryer vent cleaned out. If it is a newer dryer, it may have a sensor that will shut off the machine if there isn't enough airflow in the dryer vent because of lint buildup.

I don't want leases longer than one year unless there is a rent escalation clause. Longer leases typically benefit the tenants more than landlords. 

Prices won't come down whether we make it in the USA or overseas. Inflation, not manufacturing, drives long-term costs. The Federal Reserve is very open stating they have a 2% annual inflation target. What does this mean? It means they are comfortable having things inflate by 2% in cost each year. What causes inflation? Money printing and the devaluation of the dollar over time. Don't expect the overall cost of things to get cheaper over time. Some will through technological advances, but overall costs will steadily go up. 

Our goal is to invest our savings in a way that helps us beat inflation. That's the game.