All Forum Posts by: Cole Burley

@John Teachout The property is in good shape overall. The big hit is coming from foundation repair and appliances (refrigerator and washer / dryer). We knew we would need to have the foundation done in the next year or so but now that we have to move I wanted to get it taken care of before a tenant moves in. Other than that its just a little drywall repair (cracks in the walls from foundation movement) and painting. We also just upgraded our windows a few months ago (before we knew we would be moving)

@Account Closed I am staying with the same company. Would it be beneficial to stop contributing to 401K and move those funds to a IRA going forward?

@Josue Vargas

I have not really considered a HELOC. My current mortgage is an FHA and would like to refinance to a conventional loan soon. If I were to take out a HELOC would I still be able to refinance out of the FHA loan? or would they be tied together?

@Brad M. a FHA loan is not an option as I have a FHA on my current property. I would have to sell and then because I'm moving due to work re-location I would be eligible for another FHA. Not sure I would go with another FHA as my understanding is the PMI never drops off the loan.

I'm moving to a new city for work and I'm holding on to my current property as a rental, a good chunk of my savings is going to getting the property up to par prior to tenants moving in. After the repairs I wont have enough to put even 5% down and cover closing costs.

I'm on the fence about taking from my 401K for the down payment and closing costs for a new property or renting for a year and saving as much as I can in hopes of having enough to increase my down payment for a property next year. Any advice?

@Jordan Moorhead

Thank you for the input! Yes, I'm considering buying a home in Houston and then renting out the remaining rooms to long term tenants (6-12 month Lease) and possibly Airbnb my room when I return to Austin on the weekend. You bring up a great point though and I will definitely clarify my intentions with my lender to avoid any trouble down the road. 

House hacking our current residence wouldn't work as we have young children and my wife is not comfortable with the idea whats so ever......so yea I haven't brought the subject up again...lol 

@Dan Tran

That's a great point! Never considered that as an option. Thanks for the input!

Are there any REI meet up groups in the Houston area you attend or would suggest attending?

@Will Pritchett @Aaron Bihl

Thanks for taking the time! I was thinking the house hack is definitely the better option for my current situation as well, almost just needes someone else to say it...lol. Not to mention I am having a heck of a time finding something to BRRRR here in Austin where the numbers come remotely close to working, with out having the time or experience driving for dollars, etc.. I've actually considered the I-35 corridor between Austin and San Antonio as a much better option for future investment. What are y'alls thoughts on the San Marcos and New Braunfels Areas?

HI everyone! Thanks for taking the time to read my post and any advice would be much appreciated!

My wife and I live in Round Rock, TX a suburb of Austin but I work in Houston during the week, currently I'm using Airbnb for my accommodations. This is costing us about $500 a month plus gas and food for a total of ~$1100. We LOVE the Austin area and don't want to make the move to Houston as this job is temporary (1 more year).

My gut tells me to buy the more affordable property with conventional financing in Houston and rent out the other 2 bedrooms and live for close to or maybe even free while I Airbnb my bedroom when I'm not there, hopefully bringing in some cash flow. I'm just not sure the appreciation is there to make it worth while long term.

BUT..... My goal is to use the BRRRR strategy to acquire a minimum of 2 properties a year over the next 5 years and be able to quit working for someone else. The Austin / San Antonio / Waco area is where we want to be and we are more comfortable investing in our own backyard. Using this method we would need to use hard money financing and be able to find a deal in a VERY competitive market work, which has been extremely challenging.

Am I over analyzing this and trying to make something work close to home when I should just go for what I can get done now while getting my feet wet in real estate at the same time?