Houston Heights Prop

[Alexander Parada]

Hello Everyone I got a property free and clear I bought for 290k all in at 330 After remodels. Rented out the back apt and the front property I would get a total of $3k a month which is 36k a year - 8k a year in taxes so lets say after realtor cost and insurance Im netting 23k a year free and clear what do you guys think about this investment ? If I sell for 490 is there a better opportunity else where? Without having to acquire a bunch of props with 25% down looking to have the best investment in one prop to have greater cash flow now not when in 60. Currently 31 let me know your thoughts guys Thanks.

[David Hines]

@Alexander Parada I understand that, but those are all things that wear out over time. The point of setting aside money every month for cap-ex is that when they wear out in 10 years or 20 years or whenever, then you have the money ready to go to pay for the replacement. Even though they are new now, they'll still eventually need to be replaced. It doesn't need to be a huge amount $20 a month means you've set aside almost $5000 over 20 years. Not enough to replace a roof, but it will come in handy when your water heater or A/C need to be replaced.