All Forum Posts by: Chris Kersey

Hey Kelvin, 

Good idea to get into house hacking. This is a great way to be able to put down a smaller down payment for an investment property. 

The question of buying now VS later when rates come down is a good one. I believe a lot of other people are asking themselves the same question right now and are sitting on the sidelines. The problem is that when rates do come down, all of these people are going to be ready to buy as well and this may drive the price of real estate up. So it really comes down to buying now at a lower price, or waiting for rates to drop to buy at a higher price. 

My opinion would be to buy now and refinance out later if the rates drop to a level that make sense to do so. You can change your interest rate through refinancing, but you can't change how much you pay for the house after you purchase it. 

I'm a real estate agent, investor and developer in central Houston (i build duplexes). Feel free to reach out with future questions. 

- Chris Kersey 

@Phil Avery great idea looking into the developer world. When we can't find deals, we make them. Feel free to reach out to connect or jump on a call. I'm happy to answer any questions. 

- Chris Kersey 

Hi Angel, 

Most of the small multi family in centrally located in Houston. Looks like you would prefer something in South to Southwest Houston. 

Check zip codes 77021 and 77051 (Sunnyside area). This area does great with STR and MTR's because of its location close to the city and Med center. 6812 Winton St, 77021 may be a good fit for a light value add.

I'm a realtor, investor and developer in central Houston ( I build small multi family). Feel free to reach out with any specific questions. 

- Chris Kersey 

Run some rental comps for both. 

I pick the Duplex. 

I would bet the duplex brings in more per month. You also get the stability of two rents coming in for one property. This helps when you have vacancies but still have one of the rents coming in. As mentioned above, different exit strategies. 

Message me the addresses and I can run rental comps for you. 

I am a realtor, RE investor and developer in central Houston (I build duplexes). I'm happy to answer questions. 

- Chris Kersey 

@Tanner Lewis, 

Can you confirm if flood insurance is required on a new construction build with no garage? Meaning no part of the structure would be in the flood plain, rather built up to the current building code. 

@Deonte Hill

I think it matters what part of Houston you do this in. I build in Independence Heights which is usually in the 500 and 100 year flood plain. This area pulls comps. and appreciation from the nearby Heights area. The land is about half the cost of the Heights. All of our structure is well above the flood plain with no garages (I build duplexes).

Couple of thoughts:

- Permitting the project takes longer because it has to go through additional departments with the city. I think our last set of plans took 5-6 months approval time (this may have gone down now). 

- Construction is more expensive. There are more hoops you have to jump through with inspections, building techniques and building materials. This adds cost and time to the project.  

- Resale value may be lower depending on factors regarding the flood zone. 

I would suggest not trying to re-invent the wheel. I build duplexes in areas that have good duplex comps for long term holds (avoid overly saturated areas). I try to copy the type of structure thats working (changing the elevation) and use those as comps when I go to use a DSCR loan on the back end to pull money backend.

Knowing what strategy you are going for would help me direct in a more accurate way. Feel free to shoot me a private message. I and a Houston Re investor, developer and agent. 

- Chris Kersey

Hey @Ann Mclean

I just switched all of my policies to a local agent with a major company. (message me for details as I don't think BP will allow public posts of contact info). 

My insurance costs went up dramatically after year 1 in one of my properties so I asked around to other local RE investors and found this contact. 

- Chris Kersey 

A couple of thoughts: 

- Factor in more contingencies for the unknowns (this has been mentioned above). Construction time and budget rarely stay as planned, especially with a remodel. 

- I'm OK with 5th ward. The area is rapidly changing/appreciating and will continue to do so. 

- You can absolutely manage 2 units yourself. Do the research and stay compliant, but this is completely doable when you set yourself up for success with knowledge and systems. 

Welcome @Michael Crocker!

Great idea starting your journey into RE investing. It sounds like you are off to a great start trying to learn as much as possible and playing the long game. Those two factors alone will pay off down the road. I would suggest finding a local meet up to go network with peers in your area. Also, listen to podcasts regularly on RE topics. BP has some great pod casts that helped me gain confidence when getting started but also help me now by keeping me up to date on current topics. 

Feel free to reach out of you have any specific questions. I'm a Houston RE investor, developer and real estate agent. I work up North in your area as well. 

- Chris Kersey 

Hey Randy, 

Welcome to BP and great idea considering Real estate to supplement your income. 

To achieve cash flow in this high interest rate environment, it will take finding/making a great deal or putting more money down. I would focus on properties with more than one unit to maximize cashflow. 

There are actually some decent looking duplexes available in central/east Conroe area currently. Most other duplex type homes are in the central Houston area. 

I'm a realtor, investor and developer in central Houston but work with investors all over Houston. I currently have 2 homes under contract in your area for an investor (Spring and Conroe). Feel free to message me if you would like to jump on a call. 

- Chris Kersey