All Forum Posts by: Christian Rojmar

What about all the cap ex? Roof, driveway, plumbing, windows, water heater, appliances, HVAC, flooring, paint, cabinets/counters, structure, landscaping, etc.? Is the property old and there is a risk you have to fix some of these early on? If so, make sure you have enough cash available to fix it. If new unit, just make sure cash flow allows you to save for these expenses.

@Amy H. Gotcha. Yeah, I also focus on less risky/better areas - not willing to take that additional risk to make higher returns. 8% is still really good not including taxes savings and appreciation!

@Amy H. Are you finding CoC returns of 12-14% in today's market after considering all expenses including cap ex? I have now researched and gotten help in 3 different markets and are struggling finding anything above even 4% true CoC. I am already lowering my requirement from 10-12% to 8% ad will continue searching.....

@Yvette Valencia the school ratings are ok. I personally prefer areas with 7. As for crimes, 34 reports during this month seems high for me (typically less over multiple months where I prioritize searches) but as long as violent crimes and drug crimes are 0, it may not be a huge problem. In the end, it is all about the type of areas you look at. My focus is to find C homes in B areas but may not be what you look for. Also for crimes, you may want to look at how crime rates have changed over last few years. Are they declining which would suggest the area is being "cleaned up" and is becoming safer. That may be a great sign.

Finally, I am also not sure what you mean with diversity. I would personally not worry much about whether the neighborhood is diverse or not but rather if it is safe, family friendly, and in a good location.

and schools at www.greatschools.com

and jobs and employment at www.city-data.com

Check with realtor that knows the market and see what their opinion is and what the vacancy rates are. If you can, drive around the neighboorhood. It may be an area that is transforming rapidly from D+/C- to C+ or better and you may have a goldmine. Hopefully you can get out of deal if it doesn't check out. May also be worth researching if any companies (ex. starbucks) have opened businesses in the area recently or are planing on opening in the future as it may suggest the area is growing rapidly.

Good morning forum!

Do you guys have some great suggestions on reading material related to out-of-state/city investing. I am looking at broadening my location to Houston and Kansas City. Being a new RE investor it scares me a bit having to begin this journey out of city/state but see no other way with the way the Austin market is and have some friends and family in Houston and Kansas City.

Thanks!

Hi Matt. I am in the beginning process of getting pre-approved for a HELOC. Based on research and an early discussions with my lender, on a high level, I understand that with a HELOC you have a maximum amount that you can borrow whenever you like based on equity in house. You can take however much you need from that max amount whenever. As such, you can borrow multiple times. So you can use a portion of the HELOC for the down payment, another portion for repairs or another investment etc and do notneed to use it all upfront. I would suggest that you find a great lender that can go through all the details with you.

People have been talking about a recession since 2012ish and will always keep talking about it. With that said, the run we have been on since the 08/09 crash is unprecedented and eventually we will see a correction/recession (when? your guess is as good as anyone else).

I am also new to real estate investing and I personally believe we are not too far away from a correction or recession. That as well as the fact that it is extremely difficult to find cash flow positive properties in my focus area (I am focusing on rental properties rather than flipping) have started making me focus on building a bigger war chest and expand my knowledge for when the next opportunity shows itself. If I find a good opportunity before the next correction/recession, I will be ready, but I will certainly not buy something just to buy in today's market!

In the end, it is impossible to time the market. As such, as long as you are comfortable with the risk/reward of whatever property you buy, someone telling you that a recession is coming shouldn't scare you away because then you would never invest.

Just my opinion as a newbie in real estate investing.