First rental/live in Quad potentially. Texas. What do ya'll think

[Zechariah Moore]

Hi all

Current Situation:

29
500-510k/assets (420k taxable brokerage - 55k roth - 14k hsa - 10k + liquid ish)
75k annual income
Current rent 1000+200 utilites


I've never taken an FHA or anything - I did sell my house over 2 years ago though (bought through a land contract from my father under the table sorta due to self employment stipulations at 23 and sold it when I moved).

I've been trying to get into real estate for a while now. Risk reward numbers all that jazz. Most of my taxable brokerage is TSLA so I'm dead on the inside when markets drop which means I have a bit of a propensity for calculated (or as calculated as possible) risk.

My market is SATX - and yes like every other market it's high. I've been waiting since I moved to see if it would drop or such but hey here were are 2.5 years later and nothing in sight.

That being said I've tried several evaluation tools/templates/methods and they all seem to hit different marks. Some claim the 1% rule is law whilst others provide alternative options. Whilst 1% would be rad in this market it's proving difficult.

Another thing I'm dealing with is the spread - Ideally I'll live in a unit to get the gains (if a MF/duplex) - but I'm between purchasing a larger Multi/MF or several smaller houses. I have my father as a partner (he want's me to write him in up to 150k investment if I'm interested - not sure at all how to structure this but that's that) and of course my own funds.

This is my current fascination:

https://www.zillow.com/homedetails/10011-Vasso-Vw-Converse-TX-78109/169020842_zpid/

Rent should be at market 1500 a unit

Gross AI: 68,000
NOI: 52,000
AOE: 16,000


This seems like a pretty decent return albiet if I were to live in one I'd give up another unit and cut that NOI down to 39000. However - my sister wants to move in around july and I may have a sig other to live with as well which would be at least 500 in rent either way.

Other concerns are how to allign for costs of everything coming up - as in how often do entire kitchens/appliances/etc need to be replaced and should I average all those out long term/per year/etc? Obviously the year guesstimate 20 minimum on and it was built in 2007 so that'll be up in 5 years+ but aside from that everything else has to be calculated out some way correct?

The last bit is what would be the best way to finance? I'm of the mindset of paying down enough to drop my monthly payment to a comfortable level but also keeping enough in the market aside (especially with low interest rates on mortgages right now). I intend for this to be a long hold (ideally) unless we have some nuclear spikes in the next 5.


Any input is appreciated - thank you