Newbie from Texas

[Jon Rood]

hello everyone,
I'm an excavation contractor from Texas with cash. Business is drying up and I'm thinking about investing in a multi family project or two within 50 miles from my base. I am intrested in buy and hold as I am just 33 years old (kids going to college in 10 years). I know how to move dirt and make money, but I am a little green when in comes to investing in realestate. Am I thinking right for cash flow or is there a better way??Any input appreciated!
Thanks in advance
Jon

[Jon Holdman]

Welcome to BiggerPockets, Jon. Awesome name, BTW.

Do some reading in the Rental Property forum. Especially about the "50% rule". Sounds like you've done quite well for yourself. Take time to learn this business before jumping in. I hear there are good deals in Houston.

I'd caution you that commercial real estate looks to be entering the same situation as happened with residential a few years ago. Lending is VERY tight right now. Many commercial properties, including multi-families, are purchased using balloon notes with 3-5 year due dates. Owners are getting stuck because they can't refinance and are upside down and cant sell without a big pot of cash. It looks like there may be a buyers market in this are over the next few years. Spend some time learning first (i.e., read here, books and other places, not as in pay some guru $10K for some mentoring program.) You'll be in a great position to jump in when things really come to a head.

I used to live down on the south side of Houston. Rosenberg. We drove though Livingston many time going camping over at BA Steinhagen. Always had to plan ahead to avoid running out of beer in those dry counties.