All Forum Posts by: Fred Stevenson

Does anyone know of a lender who will do a HELOC on an investment property in Texas City, TX just south of Houston. The property doesn't have a lien and does have a tenant. Thanks

thanks 

I just used Bulldog Inspections and they did an excellent job

the feedback here is really invaluable. Thanks for all the posts. I really appreciate it. 

@Gilbert Dominguez You're correct. It does feel like searching for a  needle in a hay stack. Unfortunately I don't have the one or skill set to fix and flip. It's buy and hold for me. Thanks

 Thanks Kevin. I suppose that's why Dallas and Houston are still affordable today since they aren't land locked. Where do you think Philly or Trenton fall into the types of urban areas you are describing. Also are there any cities that you think are on the road to appreciation that are still affordable and that have positive cash flow. Thanks for the advice.

@kevin smith I prefer an appreciation strategy. Which cities so you like for this strategy? Thanks

Because I would rather buy for appreciation with reduced cash flow. My day job gives me the cash flow I and capital I need. In 15 years I think I'll be better off if I pursued an equity growth strategy over cash flow. However, I don't want to buy anything that doesn't have positive cash flow either.  My point is hat it has been tough to find properties that lean toward the appreciation strategy at have positive cash flow and for sale at a discount. 

So it appears to me in my local market and also at the macro level around the country that properties that cash flow nicely i.e. >1% rule are also in markets or neighborhoods that don't seem to appreciate that much.  I have a full time day job in which I make a nice income. I'm also a ways away from retirement. So as i diversify into real estate I'd rather own properties that have a greater chance of appreciation over time with lower cap rates versus high cash flowing properties that are in less desirable neigjborhoods or cities  that owner occupants are leaving.  

For example, I'm looking at a house in Baton Rouge (which is my home) in Sherwood Forest Neighborhood. It is a 4bdr 2.5 bath on the market for 156k. It is newly renovated and won't need any rehab. It will rent for 1800.  This home is going for 59per square foot while others are comping at 67per square foot. Sounds like a great cash flowing property right with a little bit of equity built in? The problem is that owner occupants are selling their homes like crazy in this neighborhood and it is becoming a "rental" neighborhood. So in six or seven years my fear is that homes in the neighborhood will be selling for 50per sq ft. When I look at the "hot neighborhoods" that are in the path of growth it is much more difficult to buy properties at a discount or find properties cash flowing above 1% rule.

 I find this same type of scenario to be try at the macro level.  For example,  I hear great things about Orlando in terms of the economy and the future, but the properties I've looked at have cap rates <4%.  What is a passive investor to do who prefers equity growth over cashflow without taking a bath?  Any recommendations on strategies or cities that fit what I'm lookin for would be greatly appreciated.  (I am willing to buy turnkey, but I find they are often focused on cashflow versus equity growth). Thanks BP community.