All Forum Posts by: Beau Fannon

Considering the issues we've faced with tenants who were perfectly good on paper, I'm a hard no as well.

Thoughts that come to mind...

1. You're young. Do it.

2. Are you sure the underlying plumbing isn't a $30,000 time bomb waiting to get you?

3. The cash flow looks reasonable.  I assume you'll self manage so paying yourself gives you extra cushion if things get rough.

4. The appreciation seems too optimistic.

5. I doubt we'll return to the 1980's decade of ever rising interest rates so you'll probably be able to refi in 5 years and improve the cash flow a bit after you've moved on to your next project.

I build my own using public data. Its a slow tedious process.  Doesn't help that the official government data is often 3-6 months behind reality.  I would imagine that the list services are providing even older data here in Texas.

Would you rent a unit to a homeless organization?  What are your fears about doing so?  Are there any advantages?  I found myself pondering these questions after reading the following article:

https://www.austinmonitor.com/stories/2019/03/real-estate-group-hears-tough-talk-from-homeless-advocates/

Howdy, what can we do for you?

The leading age demographics for every sample state I clicked were age 18 the 34. We millennials are a generation in transition. I guess it's hard to build a home on shifting sand.  The people moving between neighboring states of reduced popularity are probably being pragmatic and looking for opportunities.  The popular states are getting the dreamer chasers. 

You Aggies sure talk a lot. Is there a TL:DR summary? 

In all seriousness, you boys would do best just piling into one side of a duplex as roommates and doing a group house hack. If y'all can live together and work together in the beginning you've got a good chance of being good long-term partners.

Worked for me on mobile.

Texas has a net positive gain of about 22,000 in it's people trade with California. And most of the people moving between the two states are in their 20s and 30s regardless of the direction they are moving.

After 11 years in Los Angeles I moved to Austin 3 years ago and can't imagine a better place to be. 

Got to big in Austin to hit the 1% rule here. Last 1% deal I heard of involved a group of fourplexes. 

What are you going to be using the business line of credit for?

If you need to buy a vehicle in your company's name, that's a lot different then if you are just looking to segregate personal and business funds.

If you just need to segregate your funds, you can just take out a personal credit card that you devote to purely business expenses and use it as a business line of credit. Just remember you should only use debt to increase your productivity.

If you need to do something major like buy a vehicle in the name of your company, I'd start with the bank or credit union that you have your business accounts at. My credit union has been very helpful with my business accounts.