All Forum Posts by: Christopher Sica

@Brandon Turner Hey Brandon! I have been digesting your material as fast as I can. I just finished the BP beginners guide as well as the article on NOI, PIMI, Cash on Cash, etc. And now I will start this one.

I set up a few keyword alerts: Austin, Multifamily.

What do you think about a fourplex (live in) as a first time purchase. Is this to much project? Any other factors like how long I plan on living in Austin, etc.?

Thanks!

Chris

@Jeff Clawson I am no where near that level of play, at least for the next decade or so i will probably be more of a duplex/quad kind of guy.

No I don't! I feel like a freshman in Organic chemistry again. i am learning all these different phrases and nomenclature and formulas for calculating things and they all make sense on their own but then my brain goes crazy and is trying to wrap around all the different possibilities and options for my first project. Maybe a M/F Fixer upper is too much for my first deal, I just don't know that yet!

I hope to have my ideas pushed and prodded like you just did until they are refined into some semblance of rationality and a great first idea.

Thanks @Mehran K.

Chris

@Roy N. the property taxes in Austin range from 1.9%-3.1%. So not quite as high as yours but I have been looking at properties in the 300k range and they average a tax bill of around 7k a year which is IMO a lot of money to spend every year just for the right to be here.

@Fred Makaye i just checked out PITI, and its obviously easier than i thought it was going to be. When you say it can't exceed 40%, do you mean 40% of rental income on that unit?

Interesting stuff from everybody. I have so many variables to learn.

@Fred Makaye I am going to google PITI and find out how to calculate that formula and see if maybe that gives me some clarity.

@Chris Adams I dont know about the property tax cap, i am also going to look that up this morning.

@Joel A. Williamson County makes sense as its going to have a bunch of folks from Dell and Instruments moving in up there to do work for a couple years and then getting transferred. I will give the MLS a search up there.

Thanks everyone!

Hey Guys. I have been doing the numbers for rental properties here in Austin implementing the 50% rule (I know its super conservative, but so am I) and if the property taxes in Austin were lower like in other states it seems it would be easy to be cash flow positive. However with these massive taxes every year, I have no idea how the heck to do a cash flow positive deal unless I buy a property at a ridiculous deal like foreclosure.

Any suggestions???

Thanks,
Christopher

I am usually away on work during the week. I think I will be in Dallas this Thursday but I will put this in my google calendar on repeat so if I am here I can swing by. Thank you so much for reaching out to me!! I am so excited to be here.

".Yes, I agree that from a stand point of tax deferred exchange a 4-plex hardly warrants the legal bill, but it affords easier exit in other ways."

@Ben Leybovich

What do you mean by the legal bill? I am super new to this so i have no idea what that cost means.

Thanks

Looking to find my first property. Looking for a multi unit fixer upper in an up and coming neighborhood! I am really excited to have found Bigger Pockets and can't wait to start meeting like minded people here in Austin.