All Forum Posts by: Tim Shin

The 5th Ward south of Interstate 10 is in transition, but you need to be very wary of the rest of it. I would not walk some parts of this area during the day, much less at night.

Land prices have been historically cheap in this neighborhood because of the long blue collar history, proximity to the Port of Houston, and the prevailing crime rate in the area.

I do believe in 50 years it will return to a nice bluecollar neighborhood when energy prices rebound, but I would not invest there today. There are better deals to be had with the current energy downturn in Houston.

You might be able to work a good Section 8 play in the area but I wouldn't take a property there even with a 15% cap rate over a 12 month period - in the long run your place is gonna get trashed. The quality of tenants you will get is going to be terribly sporadic. On the plus side you should be able to score some crack on a regular basis.

How do I know about the area (not the crack)? I lived in the 5th ward for two years after college as it was affordable...my truck was vandalized every six months, and I was in the nice south of I-10 area.

I own several rentals in the Houston and larger metro area now - none are in the 5th ward.

This is some great insight! Where do you have your rentals? My wife and I have been using the BP method of calculating operating costs for rentals in Houston but we were starting think that just using say 8% for maintenance, 8% for vacancy, etc is fine for a place that only commands $1000/mo in rent but really penalizes a place that commands $3000/mo in rent making it impossible to find a good deal. It's not like AC's cost 3 times more in the Heights than they do in the 5th ward right?

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Originally posted by @Nicholas Testa:

Hello, I'm looking for any wholesaler or wholesale companies that have a lot of deal flow. I could forward them to my investors. I wouldn't split the assignment fee, I'm licensed with Keller Williams so I'd profit with a commission from my buyer.

Thanks!

Nicholas Testa

bulwarkrealty.com

Hi Nicholas, we don't have a particularly high deal flow but our deals are great. Pm me if you're interested.

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Originally posted by @Chancy Hu:

Hi all,

I'm new to BP. Always interested in real estate, I started my journey last year and bought my own residence. Now, I'm really learning and aim to have my first rental property this year.

All connections and references welcome, especially in Houston, Humble, Las Vegas, New Orleans and surrounding areas.

Hi Chancy, welcome to BP! I hope we can all help you get started. Let me know how I can help.

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Hi Stephanie! Welcome to BP. Let us know how we can help!

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Hi Kenny,

Please PM me so i can give you my contact info.

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@Jamie Wooley As a wholesaler, I often try to work deals out with NetWorth as often as I can. I wouldn't say they have all the good wholesalers but those of us who aren't part of them enjoy working on deals with them.

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@Jojackson Prado Welcome! This is the right place to be to ask questions. Good luck. I hope you find that right duplex or triplex deal for you but make sure you do those numbers right and save for expenses properly or it will come back to bite you. You might ask @Yavor Tomov about owning one!

Try coming to the local BP meetup put on by @Charles Nguyen

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Hi @Mo Sheikh

Welcome to the site. I am not as active as I should be, but welcome to the BP community. Ask @Charles Nguyen when and how to find our local Houston BP meetup. I haven't been in a couple of weeks but I'll be back. Look forward to seeing you there. Waiting to get that first wholesale deal can be rough!

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Originally posted by @Brandon Turner:

Hey @Tim Shin - this is a tough one. But I think you'd have to account for what the tax COULD be. I might look around for other very similar properties in the area, that are already nice, and look up their tax payment. Maybe that will give you a better idea?

Thanks Brandon! This is an up and coming area in Houston with lots of duplexes and ttriplexes but few have been renovated in forever! Those guys are clutching to them with a death grip or selling for non profiting prices.

Would you buy a property if it didn't cash flow over saving for operating expenses for the first 3 years?

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Hi @Michael Le Thank you for the response. I hadn't thought of the cost of lawn maintenance and garden area upkeep! Garbage collection is supposedly included as part of taxes in Houston I hear... but I could be wrong. Anyone know? How much do you think common area water costs are?

It looks like massive taxes in this area may kill this deal. It may not cashflow in the traditional BP sense after saving those amounts for expenses if I get a 250% increase in taxes after renovation to $13,043/year. But, it does flow positive after PITI + management...

Ugh. Any thoughts @Brandon Turner?

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All Forum Posts by: Tim Shin

Tim Shin has started 22 posts and replied 239 times.

Post: Question about Fifth Ward, Houston Market

Post: Looking for Houston wholesalers!!! and Wholesale Companies!!

Post: Newbie from Houston

Post: Hello

Post: Wholesaler in Houston

Post: New Western & Net Worth??? How the heck are they doing it?

Post: Newbie From Houston, Texas

Post: New Member from Houston, TX

Post: FHA Renovate to Buy & Hold: How do Houston Property taxes work?

Post: FHA Renovate to Buy & Hold: How do Houston Property taxes work?