All Forum Posts by: Aadejoke Jagunna

Hi Everyone,

I was hoping to get some advice on a couple of properties I have been looking out. I am in the Houston market and have been running properties in the Sunnyside area of town. This is not the best neighborhood, but I am seeing a lot of development in the area (new construction builds etc). I ran numbers on a couple of the properties there and a few of them have potential of cash flowing at least $300 monthly based on my estimate. The price of the properties i looked at are very attractive between 90-110K and I can  come up with the 20% down for the down payment. The houses i looked at are single family homes, most were recently renovated, I checked rent estimates using rentometer. 

Here are my questions:

• What else do i need to factor into consideration of this deal outside of the numbers?
• With property not being in a great part of town should i be concerned ?
• I figure if i dont provide any appliances then i dont have to be responsible for fixing. Does it make sense to manage the property myself or pay someone to do it for me?
• On a property in a not so great part of town should i be worried about rising property tax rates?
• Does it make sense to go drive around in the neighborhood to see what its like? i don't plan on living in the property but would like to make sure its safe for my tenants.
• My realtor thinks i should look to a nicer part of town instead but this means i would have to spend more time saving to come up with the down payment since those properties are at least 50-60K more and dont necessarily generate that much more cash flow. My realtor however is not an investment adviser. 

I appreciate any advice.

Thanks

 Welcome !!

 It seems the lenders will best be able to explain the requirements !!! Best of luck !!

 I will definitely look into that.. Thank you

 Thanks very much for the advice !!!! i will work on building up my reserves and looking into the various loan opportunities available to me. 

Thank you

Hi Everyone,

Newbie future real estate investor here. I’ve spent the last month or so reading, listening to podcasts and doing as much research as I can. I am working on defining my strategy as i get more involved and I have at least settled on buying rental property to hold and generate steady stream of income. Ideally i would like to buy either a single family home or a multi-family unit in one of the upcoming neighborhoods in my city, Houston. I’ve been shopping around, playing with the numbers as best as i know how but I’m starting to question if I am in the right place to make this sort of investment.

Background story, I just bought my first house November of 2017 (bought at 15K less than the asking price and about 45K less than the appraisal value). I did not know about house hacking at the time, so I just bought the property I liked and plan to live in for a while. I got a conventional loan that allowed me put down only 3% down, and so far things are going well. I have a decent savings that covers 3 months of house expenses (I’m working on getting this to about 5 months cushion)

Here is where I am uncertain:

1. should I be focused on buying rental property now? Or should I be more focused on building more equity in my house. My brother and dad plan to invest with me so we will collectively come up with the money for the 20% I assume a conventional loan will qualify but I’m concerned the banks will not see me as a viable candidate for a loan since I still owe so much on the house I just bought (my brother also bought a house August of 2017)
2. Are there any other loans other than conventional I should be looking into?
3. Should I focus on just securing funds for the down payment and closing costs or should I be concerned about creating some sort of reserves for said rental property (to account for any vacancies and expenses)
4. I assume I need to make sure that in the event I cannot rent out the property we are able to cover the expenses relating to this house in additional to our own personal mortgages but I’m not too worried about this (please let me know if I should be worried)
5. Outside of my mortgage and some credit card debt which will be paid off by the end of this month I do not have any other debt.
6. Are there other factors that I should be considering? Am i asking the right questions?

Please forgive me if I am not using the correct terms I am still very new to all of this. I appreciate all advice 

@George Blower Thank you!!!

@Shanequa J. Thanks I am thankfully under no illusions, if anything this seems like it will be a long journey that will keep me challenged. Looking forward to connecting with you and others.

@Dmitriy Fomichenko Thanks for the welcome, will be sure to check out the resources mentioned above. !! 

@Alina Trigub Thank you for the welcome, will be sure to add the recommended books to my list.