All Forum Posts by: Bruce Cash

I don't live in Pearland but am not too far. I will be there.

Houston is my primary focus because I am new in REI world and think investment in out of Houston would be a stretch for me.

Hello there!

Although I have one rental property, I am not a seasoned investor. Lately, I have been active and like to get into Real Estate investment. I have a had a good realtor, but being with her for two months, I guess she is not interested in staying with a beginner who want to start small and grow then. She likes to close a deal quickly and move to another investor. So I really need a good realtor, anyone or anything who can help me find a suitable property. By good realtor, I mean someone who cares about the client and take time to help and not just want to close out and walk away. If you know someone who is willing to help, please let me know.

thanks  

Brooke

I like your comments. My realtor believes that this is the BEST deal and wants me to pay cash (160K). But when I do the  math, results do not make sense.

thanks!

Joe

You are correct, there are other fees. Even without those extra fees, I am still below 8% rule let alone adding the extra costs.

thanks!

Hello there

I have been posting in BP to seek your expert advice on real estate investment. As my previous post indicates, I have started to be (hopefully) a real estate investor. 

I have read few articles in BP and other website on when/if a real estate investment makes sense or not. Terms like "Cash Flow", "Cash on Cash", etc. I have been looking for a good and affordable SF which is zoned to good schools and stays below 150K. For those who are familiar with Houston, I focused in area north of I-10 and west of I-45. My realtor found a house for 160K with avg rent of 1450/month. House was built 2005 and does not require too much rehab. Property tax is 3% and estimated insurance 1200/year. So with 30 years mortgage/20% down, the cash on cash number came out as 2%. Even if I buy the property in cash 100%, the Cash-on-Cash is around 4%. These numbers are well below recommended 8% limit. 

A quick answer would be to find a 1) cheaper house or 2) house with higher rent. I think ( and I may be wrong) that #1 can be found in lower income neighborhood (lower rent) and #2 can be found in high income area (more expensive house). 

All of a sudden, my driving force in real investment comes to a halt because it seems I can't find a good return on my investment. 

So I would appreciate your comment on

1) where is my mistake? I know my logic is not right somewhere, otherwise there won't be too many investor in Houston. 

2) For those investors in Houston, where do you recommend me to zoom in (neighborhood) and search for an affordable and positive cash flow property?

thanks

Hi there

Although I have been a landlord for three years, just recently I have given serious thought to get into real estate investment. I have a realtor who is an investor and seems to be very good at it. It seems there are two school of thoughts in investing for rental property

1- Pay cash or get loan as little as possible so investor has a good cash flow every month

2- Get loan as large as you can. Cash flow won't be large but keep the property and let tenant pays the mortgage. Then after sometime (10 years ???), sell it assuming property appreciates. 

I do not have a huge lump sump so really if want to pay cash, most likely I can afford one house (normal size/price). However, if I go with option 2 I can have multiple properties but there won't be any cash flow.  My realtor advocates the #1. 

I would like to have your comments on this subject and what would you consider a good investment for a beginner in Houston? 

thanks a bunch!

Hello there!

I would like to expand my real estate portfolio in Houston TX. So far I have rented a SFR and would like to be more active in property investment. As such I do really need a realtor who can help me in this regard. Someone who is passionate about his/her clients and care more about the client that get the commission and leave.

Truly appreciate your insights and if you can recommend me a realtor in Houston, TX