All Forum Posts by: Ty Man

@Jordan Moorhead - Thanks for the input. Much appreciated. 

@Matt R. - Great perspective. Yes, SFRs in Austin vs. Dayton. The SFR I intend to buy in Austin is new construction so my CapEx and repair costs should be minimal in the next 10-15 years. The properties I'm considering in Dayton, OH (Beavercreek, Centerville, Oakwood, Fairborn) are a bit older so there might be some more repair & maintenance costs. But much like @Paul Amegatcher's comments, it'll consistently rent close to 1% no matter what the cycle does. 

@Ryan Evans - Thanks for the feedback. 

1% Rule seem hard to achieve (at least harder to find) in "hot" growth RE markets (i.e. Austin, Seattle, etc.) but easier in some RE markets (i.e. Ohio, Missouri). Would you rather do a buy & hold (holding period of at least 10-15 years) rental investment in a "boring" low growth market but achieve 1% rule or invest in a "hot" growth RE market, aim for appreciation but only achieve a 0.65-0.70% rent/purchase ratio? Thoughts? My risk tolerance is high but I also want to be smart about it. 

Reason I ask is I am currently deciding between buying a rental in Dayton, Ohio (achieve 1% rent/ratio but zero to little appreciation) or buying a rental in Austin (0.70% rent/ratio but better growth prospect). What other factors should I consider?  Thanks! 

Just curious, what are you trying to achieve with the LLC? If it’s simply for liability protection, an umbrella insurance policy might work better. I was initially going to put all my properties in an LLC, but after doing the numbers and looking at the level of effort to ensure that protection from a potential “piercing the corporate veil” liability doesn’t happen, I went with an umbrella policy. Just wanted to share my experience so you can make an informed decision. Good luck.

Originally posted by @Merv Screeton:

A 30 year loan will give you more breathing room and you still have the option of paying it off in 15 years.

Very valid point, especially if things go south in Austin. 

Hello. A colleague and I are looking to partner up in buying 2 or more of the properties in this community (https://rsicommunities.com/find-new-homes/communities/42/prado/welcome) with 25% down and turning them into rentals. We intend to negotiate like hell on price since we intend to buy 3 of them. Based on discussion with a potential property manager, we could cash flow $300-$400/month per unit on a 30 yr fixed or break even on a 15 yr note. With Austin prices, looking more like 0.7% rent/price ratio; but considering that’s its new, maintenance and cap-ex should be minimal. My partner and I intend to “buy & hold” at least for 10 years and go for the 15 yr note. Could someone please poke some holes in my plan & thinking? My biggest concern is the inevitable correction, especially in Austin. Any Austin RE investors out there that could chime in ? Thanks.