All Forum Posts by: Tom Cooper

@Michael Le, My reading is absolutely fine!  Go read your own post!  In your original post you wrote "real estate never went down"!  You never specified Residential, much less one small portion of residential!  Also, it may be news to you, but apartments are residential and definitely impact the single family rental market.  You also wrote "all indicators point to another strong year here."!  "ALL" has a very specific meaning, which I can define for you if you like.  I see that you have now gone back and edited that phrase out of your post.   Thanks for that, but that means you must agree that was an exaggeration.  So why are you now criticizing me and trying to make this personal.  If you want to present statistics and discuss them, fine.  But don't go making blanket statements which are exaggerations, fluff, or outright falsehoods and expect to not get challenged on this forum.

@Michael Le,  Again, I believe you are overstating what the facts show when you write, "all indicators point to another strong year here".  If you want to state that as your opinion, fine.  But there are numerous indicators that say the opposite, primarily in high end residential and Class A rentals.  The new mid and high rise apartments coming on line are offering huge discounts and freebies to get those units filled.  Additionally, while there is a lot under construction, new builds and starts in that area have ground to a virtual halt.

@Sharon Tzib, No shots to be fired here! :)  I, like you, work primarily in that under 250K space, which is still strong.  I just did not want anyone newly looking at Houston to be mislead when you look at the overall Houston real estate market, which encompasses numerous sectors.  Office space is another area of weakness, as there is a lot of vacant space, especially West side/ Energy Corridor.  Hopefully oil prices will move higher and that will improve.

@Robert Rayford, What is the collateral?  Other notes, liens, encumbrances?  Need a lot more info on this?

Sorry, @Michael Le, that is just not true.  While our real estate market in Houston is not the disaster that many predicted with the Oil and Gas slowdown, lots of statistics point to a slowdown in real estate.  Over the last year we have witnessed increased average DOM, increased inventories, very much a slowdown in sales of higher end properties, excess of class A rental units (much of which came on line in the last year or so) and more.  I'm as big a fan of Houston as anyone, but let's tell the truth!

You haven't said how much credit card debt you have, but I am guessing the interest rate is 18-21% or thereabouts. I am thinking your expenses (taxes, insurance, maintenance, CAPEX) will run more than $250 you state, to say nothing of potential vacancy. But even if you are correct, 900/month on 70K (plus closing costs?) is not 15% and well under what you are paying on the credit cards. So you are losing money by paying a higher interest rate on the cards than your net return on the rental. Plus the rental is taxable income (less depreciation I know) and the interest on your cards is not deductible. Also, you have wiped out your savings and so now where is your safety net/emergency fund and/or funds to pay for a major CAPEX should that arise?

 If you want to be in rentals longer term, you need to get your credit straightened out.  IMHO, you should either pass on this one and pay those credit cards off (and maybe cut up all but one?) or find a private lender/investor to go in on it with you, and then still pay off those cards.

Daniel,  Short answer is that there are apartments close to the Medical Center that I would call "affordable" but most of the nicer homes really close are 500K and up.  There are also some close-in areas that are less expensive and are in transition and on the way up.  However, if they are okay with a 20-30 minute drive, there is a lot of homes in nice areas available under 200K.  Pearland is a very nice community due South of the Med Center and I know nurses who make that commute.  Very family friendly area.

Look up Michael Plaks.  I haven't worked with him personally, but know many who do and he only works with real estate investors and agents.  I have also heard him speak on several occasions, and IMO, he knows his stuff!!!

Look up Michael Plaks.  I haven't worked with him personally, but know many who do and he only works with real estate investors and agents.

Real Estate Express!  Definitely the best value I could find, especially with the discounts they offer!

@Larry Williams, I cannot help you for a local to you CPA. But there are two CPA's (and probably more) on this forum that focus on REI clients and have nationwide clientele. Consider reaching out to @Brandon Hall or @Steven Hamilton II and having a conversation with them.  Both are extremely knowledgeable and professional based on my limited communications with them, as well as reading many posts here by both.