All Forum Posts by: Chase Smolik

Welcome to BiggerPockets, Chris! You're already a step ahead of the game being a home-owner. It's very interesting to hear how your background in analysis sparks the interest in REI!

As I'm still new to the game and haven't found my first investment property just yet, I would say start exploring with/toggling the different calculators BP has to offer, they provided some insight into the overall costs and how cashflow can be considered.

In regards to condos with HOA's, I actually started searching for different articles about condo investing and found this which cleared some things up for me, maybe you will find it useful:
https://www.biggerpockets.com/blog/2016-05-27-ultimate-guide-investing-condos-townhomes

Finally, I'm still bouncing back and forth between the idea of a SFH and MF properties. I even posted today about considering properties if you are willing to live in them and your primary 'value' is the equity growth versus actual cash-flow.

Best of luck in your endeavors! I hope you are able to find the answers you are seeking!

Hi BiggerPockets, 

Quick Background: First time property buyer/investor. I've made heavy use of the rental calculator, as well as read through the Ultimate Beginner's Guide and Duplex Investing Guide. I have been looking for properties in College Station/Bryan area purely as investment, but have decided to make a shift and move to Austin. With that, I thought it would be wise to look into small MFH, ideally, a duplex that I would happily live in for a few years and renovate. 

Abridged Background: Moving to Austin: Considering duplex with details below. Would love to connect with any contacts that know the Austin area, have investments or live there!

Area of Austin

Location is East Riverside which, from my understanding, is not the highly desired area, but one of major revitalization and quite a bit of new construction. It's convenient to down-town ~10-15 minutes to Zilker Park and in the other direction conveniently located ~10-15 min to the airport. 

The Property

The property is competitively priced, and visibly, calls for only minor repairs. All things considered, a thorough inspection is definitely a must, and personally I believe there is opportunity to increase value through renovation of both units. (Something I would like to do when/if I move in to the property.)

The Numbers

From my research, I do not expect live for free, especially in a duplex, and am already planning to spend up to the amount of rent I currently pay to live in one of the units: ~$1600 per month. The asking price on the property is ~$350k, the mean price of rent in the area for 2x1 is ~$1250 per month. (these units each have a garage and backyard) 

Obviously this doesn't make magic happen on the calculator, but while I'm looking at this property, it balances between a property that fits my personal needs for living, gives an opportunity to manage my own property, gain experience as a home-owner, and potentially serve as a buy & hold after I move out. 

Financing: As a first time home-buyer, I know I would easily qualify for an FHA loan, which would help me keep more cash in pocket, and I've also read a bit into 203k to help with the renovating costs, effectively increasing the rent income potential. To start a pre-approval process for an FHA loan, would it be best to use the hud.gov, FHA Lender list?

Other Thoughts:

1. This property will not likely have a positive cash-flow for a few years, but fits the bill for a property I would happily live in for a few years. Ideally, I would like a long-term renter in the other unit, which would give me an introduction into managing property, and further down the road potentially test the short-term rental market. 

2. Considering I'm paying rent for an apartment now (and looking to re-locate to Austin), should I be willing to pay an equal amount if it's building equity in property? (Even if the property doesn't have a positive cash-flow?)

Thanks in advance for any and all input. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

While this house is on the small side: 680 sq feet, it sits on nearly half an acre with a small storage shed. The house is turn-key, and within city limits. $1050 is actually on the low side for competitive rentals in the area, however I was conservative on this end. Property values are increasing rapidly as people are flocking to the town.

This would be my first investment property. Open to any and all advice! 

Thanks,

Chase

Congrats, Joshua! I'm shopping for similar properties in College Station. I've connected with a few AirBnB hosts in the area, as well as found some powerful calculators to help estimate costs. Happy to connect with you and share what I've learned!

-Chase

Hi BiggerPockets, I've narrowed down my search and identified a few potential first properties in a town north of Houston. Now i just need to identify my best lending option. I have a few recommendations from the property manager I'm working with for lenders but wanted to see if anyone has advice or has had positive experiences with local private or traditional mortgages. Thanks! Chase

@Cameron Tope - Thanks for the welcome! I definitely have big dreams, measured in small goals. That's incredible, I will keep that in mind for this journey!

Hi @Annchen Knodt and @Tom Knodt

Thank you for the warm welcome and suggestion for BRIC REIA. I will definitely look into that further! (And potentially meet you at one of the meetings.)

Hi Joel,

Thanks for the welcome, I'm excited to get started and happy to connect with you. I'll send you a message! 

Hello BiggerPockets!

Intro

My name is Chase Smolik and I'm a new investor from Houston, Texas. Currently, I work in educational technology sales. I've been fortunate with my success here and am looking to build my portfolio and pursue my dream of REI. Hobbies include cars, camping, hiking with my dog (Kona), and consider myself a 'foodie'. Alongside my long-term goal of becoming a full-time Investor, my current goal is to visit all 50 states by my birthday in July 2020. I'm 7 states away and have trips planned!

Background

My background in real estate comes from a pure interest in housing, a desire to be financially 'free', and a goal to retire from corporate America early. I have been a lurker for BiggerPockets for quite some time, but just upgraded to Pro, as I'm am finally ready (both mentally and financially) to make a move on my dream. After reading the Ultimate Beginner's Guide here on BiggerPockets, my niche/interest is to focus on SFR and short-term rentals.

Currently

I've spent time writing my mission statement, setting my goals, planning my long-term goal, and running data (thank you, BiggerPockets Pro Calculators!) on several different properties, and have now stumbled across one that is of sincere interest that fits my criteria, almost perfectly. At this point, I feel I may be hitting a little "analysis paralysis". I do plan to share the report with the group for any and all feedback. 

I look forward to connecting with everyone here on BiggerPockets. 

-Chase