All Forum Posts by: Gabriel Novotny

@Lee Hampton thanks for the response!  Of course, its all about my budget and making it work for that particular market.  I am reaching out to builders that I can find and starting the discussion.  Im also trying to see who is building in the area currently as a lot of new builds are going up now.  Im really honing in on the Independence Heights area as its up and coming.  So maybe high end isnt the correct term to use, but not cheap would be better (not grader build counters, cabinets etc).  This is all discovery phase at this point.  

Im considering buying lots in the Houston area and adding new build Townhomes to rent.  Does anyone have input on what the current per square foot costs are to build for high end, and recommendations on construction companies?

Appreciate the feedback

Just curious as to how other folks are managing the rental income once its deposited into your bank account.  For instance, are you transferring the "real cash flow" to a your everyday checking account and leaving all the reserves in another account?   Are you using a high yield account for the reserves?  Or just leaving the entire rental income in one account and saving the real cash flow for another investment?  Appreciate it and have a good one! 

@Logan Reinard  Go Bulldogs!  I grew up there so I have a decent understanding of the good and bad parts - this property is on the fringe of good and bad (East Market and Oak Knoll area).  I wish I could sell the house, but the issue is a family member is living there now and probably wont leave.  

Cost of housing is pretty high in the part of Houston I am in so there is interest out there as the housing costs are really economical. 

Are you working with any real estate agents?  I have talked to a few local agents recommended to me by family but haven't hit the jackpot yet.

Best, Gabe

@Brian Beck Thanks for that run down and I agree.  On paper it makes sense that's why I was curious if anyone else has pursued this route for a down payment or even repairs.  Not much on this topic in the forums or podcasts that I can see.   I verified that my employer does provide the avenue of taking loans at of my 401K at a .0325 clip payable over the five years, and the interest goes back into the account once paid.  Not something I would do for a long term investment but seems like an easy way to fund a short term loan.  Maybe im missing something!

Has anyone used the new 401K penalty free and up to $100K loans for any short term investing for Brrrr or short term loans paying  back during refi?  Curious as to how the process worked out for those who used it - pros/cons.

Would be GREAT to have this extra liquidity

Thanks in advance!

@Caleb Heimsoth - That would definitely be the easiest route; however I dont think its possible as my brother has been living in this house only paying utilities and taxes, but thats a whole different story.  Also, if you just solely focus on the return and limited appreciation, not a great deal.  BUT, its more than that.  It frees up my stake, and would be better than doing nothing in which its doing now.  

The forefront of my original post was what is the best way to pay the siblings if I didn't have enough cash to pay them out?  With my brother probably not going anywhere, start charging him rent enticing him with the lump sum payout.  Told you, unusual situation haha.

@Greg H. That's a great question and I don't really know the answer, but probably not. The only reason I am considering this deal is I have equity money in this house and trying to determine the best way to get the money to work for me. I know its not a great deal or HR, but I do think its a base hit. I just ran some additional numbers on Realtor and BP for appreciation and might be more than I originally planned. Plus, I think I can offer FMV but with repair caveat deductions.

@Robert Arquilla I have lived in Houston for over 10 years now, but I do travel back to Warren once a year to see family.  That's great insight and I was not aware so really appreciate it.  I actually grew up on Cortland and lived in Howland!  Ill have to dig in deeper.  Do you have any recommendations on realtors out that way?

@Matthew Rolf Thanks for the contact!  Homes in Warren Ohio are very economical, but the appreciation is low and the tenants would have to be screened with massive due diligence.  Go search the 44483 zip code (further away from downtown the better) and see for yourself.  So, if I can get the other siblings to agree to the buyout, and charge rent for my brother already living there (free ride is over), then I would use that equity in that house to refi on something else, somewhere in Spring or Conroe.

@Matthew Rolf I WISH I could have the other siblings buy me out, but none of them have the cash or credit.  I have equity sitting that I cant do anything with and I'm eager to get into a deal (that makes sense).  To make it even more of a snafu, one of the family members is currently living in the home.  I have equity in my current home in The Woodlands, but I don't want to touch that until I get more equity in other rentals (unless it was a great DEAL).  Also, Id rather not do an OOS to start but felt like a good opportunity to at least get started.  Appreciate the feedback!