All Forum Posts by: Chris Frydenlund

Do you need help with your flip?

I offer my time in exchange for your experience.

I am willing to work for you on a current project, so I can get experience with flipping houses.

Areas

- League City

- Seabrook

- Dickinson

- La Marque

- Texas City

- Alvin

- Friendswood

- Webster

- South Houston

- Pasadena

- Deer Park

- La Porte

- Pearland

- Santa Fe

With my background in online marketing, I see great potential to mix my experience with marketing with my interest in real estate business.

I'm looking to start rental properties and/or RV parks in Texas.

I'm considering buying a rental property in Pacific or Mission Beach area to rent out to international students. 

Would you recommend this? 

I know that there can be a lot of trouble. What are your main challenges as landlords?

I know that international students has trouble finding reliable and trustworthy landlords so I was thinking about housing international students. What are the pros and cons when dealing with international students?

Thank you guys! Great input. I appreciate all the helpful information.

Unfortunately, my wife isn't willing to have someone staying in our own home sharing bathroom, kitchen, living room, etc. and specially not with a young child.

I will use the 203K loan for sure. Looking at the math it seems to be smartest with a low down payment, when ROI is based on my down payment and closing cost. I know my mortgage will be higher and my cash flow will be lower, but it seems to me that I will still make best ROI with low down payment and lower cash flow. And with a 203K loan I can start investing with a small saving. I don't understand why people want to put down 30% in down payment. The down payment is so much higher than the extra annual cash flow you'll gain as far as I understand.

Now I'm really having trouble finding a property. To make sure I understand the 50% rule I will use an example:

Rental is $900, so $450 for expenses. If the mortgage is $400 I have $50 in cash flow right?

If the example above is true using a calculator from this site below means my options in Austin are VERY limited. A $105K property with 30% down payment ($31.500) and a 5.2% interest rate makes the principle and interest $400.

http://www.austinincomeproperty.net/sellers/

A $105K SFR seems like a rare deal in Austin. And if it needs major rehab it will add to the amount I need financed and make the mortgage go up.

I'm so thankful for your advice Jon! I can tell I still have a lot to learn, and your respons has changed the way I need to think and approach my REI.

Thank you Jennifer and Brian for great advice. I checked the Domain and I'm in love. I long for areas like that, since I'm from Europe these areas attracts me. Maybe Hutto won't be the choice for me to live and invest after what you said Brian. Thanks for the insight. Great to have knowledgeable people like you guiding me.

Since I'm new in REI I'm afraid of buying a property that needs work. To me that seems to come with bigger risk. I'm aware that problems can pop up when starting to rehab, problems that didn't show upon first inspection of the property. That scares me. What would you consider "minor" work Rolanda?

Thanks Brian for your insight!

After some studying on Austin area and biggerpocket's teaching on real estate investment I'm trying to screen some homes in Hutto,TX and Round Rock, TX.

The idea of a duplex seems to be the best solution for me and my wife and our new born daughter, but I find duplexes rare in Austin area and often overpriced. Do you guys agree with me? I don't know the market that well, so I might be wrong.

So based on that I thought we should buy a single family home for a year or so, buy another and rent out the first, etc.

My problem is that some of the rules I can use to screen properties before I get into a deeper research seem difficult. If I use the 50% rule non of the properties I looked at will bring in cash flow, but instead I will just be covering monthly mortgage payment (principal and interest). As far as I understand you don't count in taxes, insurance.

Here is one of the houses I've looked at in Hutto, TX.

http://austin.craigslist.org/reb/4316979690.html

The listing price is $160K, 2000 sq. ft., 3 bed/2 bath, build in 2003, 8000 sq. ft lot.

According to this site (http://www.austinincomeproperty.net/sellers/) principal and interest will be around $850 with a 3.5% down payment ($5.600), which means the rent should be $1700 if I use the 50% rule. With the 1% rule (because the 2% rules doesn't seem to work in Austin unless I flip) I should pay $170K for the property, which matches the listing price, but no one in this area would want to pay $1700 in rent in Hutto, TX for a 3 br. Or am I wrong?