All Forum Posts by: Collin Garbarino

Also when you're running your numbers, you'll need to factor in the cost of the money. Hard money isn't cheap. You'll need to borrow enough to pay their interest rate, which seems counterintuitive. Bottom line: see if you can scrape together some cash. Everyone in the deal will feel better (including you) if you're bringing some of your own money to the table.

The hard money lenders that I've worked with in Houston have required you to have some skin in the game even if they're willing to lend almost 100%. For example, they might lend you enough to do the entire deal because they think the ARV is good, but they'll hold back some of the loan at closing and only disperse money as repairs are being made. Maybe you can find someone to lend you $150,000 on an ARV of $200,000 (these numbers are totally made up), but the lender might only give you $100,000 at closing, and you'll have to come up with $15,000 for your first round of repairs. They reimburse you the $15,000 when the repairs are finished, which you put toward the next $15,000. And you don't get the entire $150,000 until all the repairs are completed.

I've been an investor in the SW part of Houston metro for the last three years, so I know some contractors. I also just got my license and I'd be happy to talk to you to see if I could help you out!

Ask yourself what your long-term goal for your rental portfolio will be. Are you looking to get out of your 9-to-5? Or are you trying to create some wealth for retirement? Knowing why you're getting into this will help you take that next step.

Part of the answer to your question depends on what your goals are. If you're looking to maximize cashflow because you plan to live off some of the profits, you might buy in a dumpier neighborhood, but you might find yourself having to deal with more headaches and vacancies. (Although I've found that renters who are high earners also tend to call a lot because they want you to make their lives perfect. Middle income earners are the sweet spot.)

But maybe you don't need to live off the cashflow, and the investment is for your retirement. Then you don't need profits. You can hold for a long time in a neighborhood that you expect a great deal of appreciation.

Of course, having both long term appreciation and monthly cashflow are nice. But not every house or neighborhood gives you both.

Anyone in the southwest Houston or Sugar Land area have a landscaper they feel comfortable recommending? I've got some shrub removal and clean up that I need done for a flip.

Airlines can deny a person certain kinds of emotional support animals. Can landlords do the same?

Frontier Airlines just kicked someone off a flight for trying to bring an "emotional support squirrel." 😂

https://www.cbsnews.com/news/emotional-support-squ...

Anyone have any great (terrible) stories about tenants and support animals?

@Brian Alfaro Message sent.

@Warren Brown I'm sure that some exist, but I've only been working the SW side. Houston is such a big market!

Brian, there's a RE meet-up that focuses on Southwest Houston and Fort Bend County the first Tuesday of every month. Send me a message and I'll send you a link with the information.