All Forum Posts by: Tim Shin

@Michael Le Hey thanks for the response. For some reason, I didn't get a notification when you responded so sorry I am responding late.

Do you know how to tell if there is any cap of max 10% when you move out? I spoke to another investor today and he seems to think that if you fight it every year, they can't max you more than 10% even if you are not owner occupying.

As for the $20 a month, I was planning on having the tenants all pay electricity but I figured there would be some sort of common area light that might have to be paid for by the landlord, like an exterior light or something for safety. Is this true? 

This renovation will really be a tear-down to the foundation and build new, so the year of the build would be 2015/2016. That's why I chose such low cost numbers. Do you think that is unreasonable? No HOA fees and no deed restrictions.

Hi All,

We are getting ready to pull the trigger on a property in Houston which we are going to renovate a single family home with the FHA 203k loan into a four-unit property. We've got the loan, checked that this strategy will work with our lender, and have found a property.

Currently the tax rate is 2.686 and taxes on it are around $2700/year. If I estimate the ARV will be somewhere in the $650k range, it will be taxed around $16.7k/year if that's what Market Appraisal Value is from HCAD. When using the BiggerPockets rental calculator, what tax costs should I use? I will have the homestead exemption if I live there for 2 years which we're planning on doing but not after... How does this work?

Does anyone who does renovations in Houston know how the taxes typically work after renovations? 

I'm thinking the loan for the property and tear-down and renovation will be $555,752.00 (including FHA's 15% buffer and Loan Consultant costs. IF property taxes are indeed going to be $16.7k/year, 6% vacancy, 5%maintenance, 5% capex then I'm not "cash-flowing" in the BP way with an expected monthly income of $5600 (if we aren't living there).

Vacancy: $336

CapEx: $280

Insurance: $300

P&I: $3,094.74

Repairs: $280.00

Electricity: $20.00

Management: $560.00

Property Taxes: $1389.42

Per month (if we have taxes at $16.7k/year

If the taxes are $5000/year instead, it cashflows considerably. 

Thoughts?

@Iman Yu Sorry for the late response. I am thinking that neighborhoods like Shepherd Forest and Lazybrook/Timbergrove have some room left to go but 1-4 MultiFamilies are rare there. The Greater Heights don't really have many properties left that you can make money on. What is the Stafford neighborhood in 610? I'm not familiar?

@Charles Nguyen haha, miss you guys too. If you're being serious, it looks like the 22nd or the 29th of October are great for me :D

@Account Closed asked. As far as I can tell, you have to renovate a C into an A or B. My agent tells me the area snuggled up to 290 inside 610 is going to be hot.

@Will Barnard Don't worry, as a wholesaler, I will do earnest money with a Title Company. I can wait for you to back out of a deal now. I haven't been able to blast out my last deals because people wanted them in person.

@George Smith welcome to BP! Check out the monthly BP meet-up put on by @Charles Nguyen and make sure to PM him about how to join the us once a month on Thurdsays. It looks like Charles likes the 3rd Thursday of every month but so does my day job for their events so I have had to miss a lot!

Thanks @Jeff Onofrio for the recommendation and taking the time out of your day for the great explanation of the 203k loan, the process, and ins-and outs. I'd been getting confused by a lot of what I'd seen on BiggerPockets and I think it would be cool if @Brandon Turner and @Joshua Dorkin interviewed you to pick your brain on it and what cool things you've seen investors go with. We are starting the process and applying to who you recommended. I'll be sure to keep everyone posted about the journey.

Hi All,

As you've probably seen my other posts by now, my wife and I are looking for professionals for house-hacking our way into investing in the Houston, TX area. 

Does anyone have any experience with FHA 203k Consultants/Inspectors in the Houston area? I know some consultants double as inspectors and I'm hoping we can get a great recommendation and double-whammy at the same time!

Any recommendations much appreciated!

Thanks,

Tim

Hi All,

My wife and I are getting ready to house-hack like @Brandon Turner in the Houston, TX area!!

We are trying to get bids as one poster recommended before getting any houses under contract from FHA 203k loan approved contractors who can give me bids on renovating duplexes, triplexes for maximum income without over-renovating. Also, we are considering turning a SFH into a triplex or a duplex with garage apartment. Particularly interested in 3rd Ward!

Looking for one whooooo

1. 1. provides estimates of rehab works that come reasonably close to actuals (firm bids would be a plus),
2. 2. is able and willing to do cosmetic work as well as studs-deep rehabs,
3. 3. has a dependable crew(s) and is known to hit targeted completion dates,
4. 4. is knowledgeable of Houston / Harris County permitting and inspection requirements particularly in regard to MFH.

Any help or recommendations for contractors and FHA consultants will be greatly appreciated!

Thanks,

Tim