All Forum Posts by: Logan Turner

very interesting stuff. I've done research on the oil market and talked with many locals who have been through up and down years. All in all, seems like a lot of guess work. 

From currently living in an oil town, I can tell you that the housing market which was red hot two years ago is now starting to come down. Homes are not selling and sellers are being forced to lower their asking price. Market correction vs bear market. I think bear market. 

I'm holding off for another 2-3 months personally to keep trending the local market. 

Just do some leg work and make sure you    can rent it out. Otherwise be prepared to eat the carrying costs. That's a gamble I'm willing to take as worse case scenario no one rents it, I can still eat the carrying costs or drastically lower rents. 

Plan A, Plan B etc..

I think you take on higher risk for finding quality tenants, but you have a better chance for appreciation when markets turn around. Depends if that fits your investment strategy. Be bold when others are fearful

Welcome Kurt. I'm in the medical field as well. Leveraging high income into passive income for future security. Also in Texas

Welcome to BP! 

First you need to define you're criteria. Know exactly what you want to invest in. Then start networking. Contact RE agents, wholesalers and flippers. Go to a local REI club and talk to people. Ask to help a wholesaler for free. Be a bird dog for them and learn how they analyze a deal, what neighborhoods they want and what is a deal and what isn't. Make a habit of analyzing properties daily so you can quickly tell what is and what is not a deal... According to your criteria. Drive the neighborhoods you're interested in. Look for vacant houses. Talk to people on the street about houses, you may be interested in. Get a "pulse" on the area. Lots of things to do and things you can do. But decide your criteria and stay focused on that. Don't allow yourself to get distracted by all that RE can encompass. Focus on your area, develop a niche, know all there is to know about your speciality, and then take ACTION. Rinse and repeat. Adjust when your niche or tactic drys up.

Keep the student loan debt. That is a relatively low monthly payment. I would not wait to invest, by paying down your student loan debt. Run some numbers (with assumptions)

Student loan debt is 20k, so basically you have 20k to pay off the loans or invest.

If you pay of the loan then you save 5-6 percent on 20k

If you invest then you leverage that 20k into a 100k property that will produce >5 percent on the 100k, not just the 20k.   

If you run the numbers in more detail then, 

invest at 10 percent discount into a property, so you buy an 80k property for 72k. You put 20 percent down ( 14.4k) and another 5-6 k for fixing up the unit. You rent out the property for a cash flow of 200 dollars a month because you researched and only bought a property that met your criteria. Because you bought at a discount, and you put in a little sweat equity, the home value at 80k increased to 90k. So now you have a mortgage loan for 57.5k and a property valued at 90k that is cash flowing 200 per month or 2400 per year. 

After the first year you have roughly (based on major assumptions) 33 k in equity, and 2400/yr of cash flow ( which is a cash on cash return of 12 %) Thats not counting potential appreciation, debt pay down by tenants, and the equity you already have in the property.

Of course none of that is guaranteed, thats why investing involves risk. The student loan debt is guaranteed. However, i for one am betting on myself and taking chances vs playing it safe and regretting lack of action in the future. 

Hey @Chuck Brickman, Im an investor in San Antonio. I focus on minor to major cosmetic repair, buy and holds, in the 50-100k range, (2/1, 3/1 or 3/2) in C and B neighborhoods. If you get any inventory that matches, shoot me a PM. 

You can sell it to me at an 8 cap then :) 

I either think you should list it and see what you get

or

Maybe its time you raised the rent. 

Also, are you counting the rent you are paying yourself in there too?

Each state is very different. So i recommend looking into the state you are interested in and see how the laws apply. Or ask about a specific state. Only reason being, advice from nevada won't correlate to Texas. 

Like anything though, if you overestimate the ARV and underestimate either the cost of repair or length of time to repair, you hurt your profit or may even go negative.

There are also some potential legal hang ups.

making good progress. Keep us posted with some pics and what the project ended up costing. GL