All Forum Posts by: Aaron Rowzee

I apologize if this has been asked a billion times before, as I'm trying to understand all of the abbreviations and vocabulary.

For owner finance purchases, is there a best practice or way to mitigate as much risk as possible when buying an investment property from someone that still owes a note? And conversely, is there a method of owner finance to absolutely avoid like the plague?

Antoine, thanks for the reply. I'm not actually trying to get into that price range; my market is filled with under $70k houses that can obtain the 2% RtV. I was just curious as to what strategy investors were using at that price point. I can't imagine those "pretty" houses cash flowing. Is the plan to forecast appreciation for a higher sale point at 5 years? Or something entirely different? Really just curious.

For those of you buying the 100-200k range, I have a few questions: do you ever get a 2% rent to value on your purchase, and what is your specific strategy at this price point?

In my area I'm shopping for under $70k houses that require a bit of rehab that follow Brandon Turner's numbers (12% CoC, 2% RtV, and $200/mo per door). It's hard for me to imagine buying in the mid range and actually achieving those goals without a house requiring extensive rehab.

I also had my CPA tell me not to buy between 80k-180k because the profit margins were too tight. Is this because of my specific area or are you guys actually getting $3k/mo on a $150k home?

@Mike B. so awesome! I have a question about the bathroom refinish: you mentioned epoxy on the tile and fixtures. Questions: what specific product did you use? Was it easy to apply and not mess up? Why didn't you do the floor tiles as well and save some money?

Loving this thread. Originally from Houston now living in Beaumont and beginning my investment journey. My interest is similar to Jason's though I'm looking for a lesser price point and keeping to the Golden Triangle for the most part. 

Out of curiosity, has Pasadena made any more progress in turning itself around? Is Pearl Land still too hot to find good deals in?

@Jason E. what are your reasons for not looking in your immediate area? Also, are you apart of either of the local REI groups?

You are right, John, however you still answered the question succinctly. 

It is on a quiet side street of a recently zoned commercial/residential area. The office space is small and, while at one time there was an insurance agency renting, now it is unoccupied. The town itself has a decent and growing population but other, larger towns around it dominate the commercial space.

My gut was telling me residential rehab would be best, but I know nothing about the demand and permanency of commercial tenants. My guess from simple observation of commercial areas would be that residential has less turn over.

Hypothetical: let's say you've got a deal for a home and garage apartment on the property. The home needs renovation but the second building is move-in ready. One caveat: the upstairs of building 2 is a great looking studio apartment, but the bottom floor is a very basic office space.

My guess is both will rent for the same. So do I keep the office space how it is and market to businesses, or renovate the bottom for another apartment?

Good afternoon, guys. I was hoping I could find some investor perspective on both the Anahuac and Galveston markets. For the basics, how are the school districts considered overall? Are there areas/neighborhoods to avoid? What is the growth rate like for both? And how is the rental market compared to the cost of property there?

Being a software nerd, here is a suggestion and what I actually did. Although I have no properties yet and am totally green in REI I decided to sign up for all of the free to use softwares and try them out with a fake property, or the address of my own home. You can get the feel for most of the functionality with the exception of taking rent payments (unless you want to charge yourself $1) and can make a hands-on decision without swapping your tenants around between systems.

Thank you, great to be here.