All Forum Posts by: Charles Long

@Almaz Hayet I am a fan of new construction as a rental investment with a long-term buy and hold strategy (multi-unit properties more-so than Single-family). They are easy to rent and you don't have the maintenance headaches of older properties. Sterling is correct however.... If you are looking to finance the majority of the purchase it is not likely to get much if any cash flow. With recent appreciation combined with the rise in interest rates you will be doing good if you're able to cover your mortgage each month. Not taking into account the potential for repair bills and vacancies.

We have owned a new construction duplex/townhome for the last couple years that is just barely covering the mortgage payment. We chose great tenants, 24 month lease ending in a few months, and we are currently $200 under market rent on the property so we will start to edge the rents up gradually.

Basically we decided that we were comfortable with waiting for the cash flow and appreciation benefits with the knowledge that we may have to come out of pocket for a repair or mortgage payment every once in a while. So far we haven't had to do that, the property has been hands-off and stress-free...(so far)

Its just a matter of what you feel comfortable with and your goals. I have droned on here but I'll end by saying that I think either market is a solid decision. Austin and San Antonio are different but both have their strong points and are great rental markets.

Any feedback or comments always welcome, Thanks!!

@Brad Larsen I completely disagree with Justin. A major problem with some landlords is they think short-term vs. long-term. I call it stepping over dollars to pick up pennies. If he refuses to view and understand the numbers and accept the realities of the market you may just need to part ways.

@Sherwin Vargas I'm not familiar with that market at all so I wouldnt know exact rent amounts however my strategy for pricing is to shoot for the low end of the range (if you think you can get $1000-1200 then ask $1000) If you offer a great value you will have your pick of tenants. You can also ask for a longer term lease (18-24 months). Rent it now, rent it quick, then think about edging the rent up. A great tenant is more valuable than a little extra money right now. In the long run you will actually be more profitable with this strategy and less headaches with well qualified tenants. Just my two cents.

@Cassie Chun As a landlord a good relationship with your tenants is more valuable than a little extra rent. I think your instincts are correct. Speak with your tenant. Don't extend the due date however, extend the grace period until the 5th. You will gain trust and increase the likelihood of a lease renewal when the time comes.

Investment Info:

Single-family residence other investment in Houston.

Purchase price: $235,000

Cash invested: $5,000

Owner finance deal. Landlord retiring, selling a few properties. I represented both sides. Pocket listing. Was able to bring in a sale price 15% higher than market value. Buyers w/ good income but not great credit, unable to obtain "traditional" financing. Buyers understood they were paying a premium but with recent appreciation trends we all felt confident that they would recoup the equity within 18-24 months. Excellent terms $5,000 down 5% for 40 years.

How did you find this deal and how did you negotiate it?

Had worked with this seller on previous deals and had helped him lease his properties in the past. He asked me to help with the deal.

Lessons learned? Challenges?

Got a great education on the owner finance process. Worked with a real estate attorney to draft all the contracts/paperwork/deed, etc...

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked as the sole agent on this deal. Representing both buyer and seller. The Real Estate Attorney was knowledgeable as well. I will use his services again when the need arises.

Investment Info:

Single-family residence other investment in Boerne.

Purchase price: $360,000
Cash invested: $20,000

This property was purchased as a primary residence. Property was purchased under market value. Exit strategy is to hold for 2-3 years, take advantage of the appreciation, then sell to move up to client's dream-home for retirement. Looks good for about a $90,000 profit with just lipstick upgrades based on comps.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked on this deal in the capacity of buyer's agent.

Hi!! Everyone learns differently and has their own style. You might be better off in a classroom setting but for me personally, I always recommend taking the courses online. It allows you a lot more freedom so you can complete them very quickly or move at a slower pace and always on your schedule. Also, keep in mind, the goal of the courses is to achieve your license--not become a real estate expert. The real learning begins on the job----thanks, hope this helps.

Hey guys, I'm a licensed agent in the Houston, TX area. I joined the site to learn, expand my knowledge base, network and hopefully gain some new business. I can help with any type of transaction or loan. If you have any questions I will be happy to help!!!!