Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
New Member Introductions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on . Most recent reply

User Stats

5
Posts
1
Votes
Krishna Kiran
1
Votes |
5
Posts

Need advise: New Town home vs Single Family

Krishna Kiran
Posted

Hello all,

I am totally new to this, this is my first post here and need some help from all the wise people. I am a federal employee and my wife is going to be a dentist soon, I am not in the market for investment right away but it is in my mind for sure in next couple of years as my wife starts earning. For now, I own a town home in Chicago which is rented and which we do not plan to sell for at least couple of years.

I am planning to move to Houston by sept of next year. I am confused between buying a townhome for 285k or buy a single family for about 345k. If we buy a TH, we might stay in it for two to three years and then move to bigger house, if we buy a single family, we will stay in the house for five or six years in it and then move to another house. We wont be selling either way, plan is to rent when we move to our next home. Also, which location is best for living now and renting in like three four years, Sienna, Spring or Fulshear. As for the Chicago town home, plan is to rent for next three years and then sell it and buy another investment property in Houston.

Sorry, if I am all over the place but, any guidance would be highly appreciated, my main concern in buying single family for 345k is renting scope after we move to another house..  Whatever we buy, we are looking in Sienna or Fulshear. Would love Sugar land but could not find any that we like with in the Price range. 

Most Popular Reply

User Stats

62
Posts
48
Votes
Robert Haney
  • Investor
  • Sugar Land, TX
48
Votes |
62
Posts
Robert Haney
  • Investor
  • Sugar Land, TX
Replied

There are 3 ways to make money in RE.  

1. Positive cash flow rental income.  

2.  Price Appreciation 

3. Both 1 & 2 above.

I like #3 above.   All my buy-and-holds made nice rental money on day one per #1 above.  All of them were also saleable on day one for a profit without any appreciation (could be flipped for a profit).   All have appreciated too per #2.  

Buying RE for #2 only is called speculation.  Speculation is just gambling.  Why gamble when you can you can make a profit immediately with smart investments?

Buying a $345k property in Ft. Bend county to turn into a rental later is speculation #2 above.  It will not cash flow if you have a mortgage.  This is a very poor RE path compared to sure investments.

If you sacrifice and buy 2 properties less than $200k, live in one and rent the other for a couple of years, then move and rent the one you were living in - you'll have 2 money makers instead of one money loser.  Then you'll actually be a RE investor on his way to success.

Loading replies...