All Forum Posts by: Franky Juwana

Originally posted by @Andreas W.:

You are late in the game. Prices have run up substantially, making it harder and harder to find the few good deals around. Plus there is still a lot of cash chasing those deals. I wouldn't wait for the perfect opportunity, but I would definitely not jump on the wagon just to create some action. There is nothing wrong with waiting a few years if no good opportunity arrises. I agree with the others here. There might be better options out of state.

Im not sure I agree with you but what do you mean late in the game?   I am looking out of state because opportunity in my backyard is just too expensive and rules and law dont favor landlord at all. So I'm in the process of buying in Texas where price still make sense. But even then, the cash flow still negative or under $100 after all expenses.  

I'm new in buy and hold, that;'s why i'm trying to get better perceptive from others and hopefully learn something. But I think I can start now, just might be taking bit longer to find a deal. I'm not in a rush. 

Originally posted by @Nathan Gesner:

You have to understand the 1% rule is a general rule of thumb and not applicable in every situation. In my market, 0.7% is the typical sale. The good news is that when I find a 1% property, i'm pretty sure it will work.

Agreed, it is a starting point for me to start digging a little more. I'll do more research and see if I can find a way to create the cashflow, if not then I'll try somewhere else. 

Originally posted by @Brent Coombs:

@Franky Juwana, "This is outta state rental". "Cap Rate is not even close to 5%". "Am I looking at the wrong location?" Answer: If you want cash flow, then yes: (generally)* wrong location.

ie. Why are you looking at only one of the other 49 States? Cheers...

* ["Generally" means that within any market, there will be opportunities, but, some of them mean that you will need to overcome your reluctance to make lowball offers].

Thanks for the respond, I might have to offer really low ball and see if any being accepted.

I cant buy any in NY, where everything is expensive and takes close to a year to get rid of tenants. 

Yeah, there 49 more states...  i'll start looking on the map =) 

I'm about to purchase my first Buy and Hold SFR, Most the properties rental around 1% out of the asking price and tax about 2% from the asking price. So I started from there, then I went a little deeper and using Biggerpockets Rental Calculator and started plugin the numbers.

After seeing the results, mostly the cash flow is negative and Cap Rate is not even close to 5%. Am I looking at the wrong location? 

My questions are;

1. What are you strategies to achieve at least $100 cash flow after all expenses. 

2. Can you guys share any unique method to offer the seller without insulting with low ball offer. Is there any incentive that I could offer to make it attractive?

3. This is outta state rental, so I know resources is kinda limited and is it wise to buy a property that need rehab or just buy the one that ready to move in. 

Thank you so much in advance

Originally posted by @Chris Matson:

Where in Houston is Your Property?

Im in the process right now, location will be in katy. 

Originally posted by @Michael Pittman:

Single family or multi family?

Single family house.

i live in new york city, 2008 crash in few areas was not effected at all, even it went up and very steady. but some part was 'under water' so based on that, you might take a wild guess where market will correct itself. I learned once some guru said, you should think and navigate to make money when market is up and down, cuz somebody will make money one way or another regardless.

Hi all, 

    Any recommendation for Houston area for property management and contractor (reliable and trusted) 

thanks

hi @Mike H. thanks for your input, 

300k is the purchase price they bought 3 yrs ago, now they probably want more.  I asked this morning, how much they're looking to sell, she said around 359k, which I know top of my head with that size of house, they would be lucky getting 330k, plus there's an illegal bathroom with no c/o that they need to remove before selling. 

Just like @Patrice Penda said, I gotta get more info so I'll know my constraints in order to structure any type of deals.  

I just dont want to say no without exploring what I could do for a win-win deal. 

I'll update once I know details thanks again,

Originally posted by @John Thedford:

If they have a mortgage it probably has DOS clause. I would be careful about taking it subject to. Also, where is the value to you? You can't pay market and make any money.

Thanks for replying,  that's why i'm here in biggerpockets to know what are my options that could work for me and the seller in a win-win scenario. I'm pretty sure they still have mortgage on the house they bought 3 yrs ago so seller financing is a bit tough.