All Forum Posts by: Vijaianand Thirunageswaram

@Juan Pardo You just to plan for it. I had 2 properties actually vacant since April until last month and I still have to make the mtg payment for both. It has to come from your previous cashflow savings which might keep it seperate for vacancy or all together. It's like any business, you have to plan for the slow times and bad time. 

@Chris Hopper We are still on the same page my friend!! I am not disagreeing that Appreciation will make you wealthy but what I am trying to say it's not CONSTANT or GIVEN. Don't get me wrong, I bought a property in B Class during 2008 recession for 48k and sold for 95k in 2016 to pay off my debt. Which is also 100% appreciation?  It depends on many parameter, whether the economy is good, market condition etc., Even it appreciates 2-3% every year and when it's time to sell and market condition is not in your favor, whatever you gains cannot be realized. Same as stock market current situation. Also appreciation is not going to be keep going up. It's cycle as you know, it's going to continue to go up and during down turn it will correct itself and and start another up trend after that.  So it's all up to your situation where you are during the cycle when you plan to realize appreciation. You know it... 
I strongly believe and share to my investor mentees, ABCDE(Appreciation, Build up Equity, Cashflow, Depreciation & Equity Building) of Real Estate Investing has to work together so you can use them depending on your situation and economical conditions. 

@Wade G. I would regret about investing in B Class at all. Getting $100-$150 cashflow is not bad thing after all expenses and capex and repairs which also depends on your cash down. If you only had $10k on the deal, your $1200/year is 12% return whereas $30k down would only be 4% return COC. It all matters. Try to reduce your down and your cashflow will make sense. I wouldn't risk C class unless its really attractive.

@Juan Pardo I mentioned $100-$150 after all debts and savings like CapEx and Repairs 5% each which is still great compared to 2% bank or stock market with so much deflections. Don't you think?

@Wade G. Cashflow is always been sticky topic and important one. I see some hot discussion between Chris and Cameron but both have their points. What you quoted around $300 is about average CF before Capex and Repairs in SFH for rents around $1350-1500 and properties around $150-180 ARV. Because we live in Texas, our property taxes eat up most of our cash flow.

In my case, 6 of 7 properties have $300-$400 CF except one because I have 15 year mortgage one. If you take out Capex and repairs 5%, you will be around $100-$150 at end. This is trend in any B class neighbor which you buy in that range. If you go in C class neighborhood and invest low and get high rent, your cashflow might more. But appreciation would be nothing. If you go A class, rental won't work at all. Its all about appreciation. I like to stay in B Class neighborhood.

I don't how @Chris Hopper finds his properties so low in B class neighbors with 120k ARV. I never seen them anywhere.It might be usually borderline B & C possibly. Also I do not believe in Appreciation which is just icing on the cake. If the market is ggood, you reap the reward when you sell it if not appreciation is all up in air.

You have to go back basics. Buy and Hold is long term investment and it's meant to make you passive income when you paid off after retirement. When you retire whether its 55 or 65, when you paid off your properties, no mortgage, thats when you make the full benefit of the rentals. 

@Marianne Lopez-Henthorn People think the whole of Houston floods when it rains. That's not right!! We do have lot of areas which is not in flood zone or flood plain like Sugar land, Katy, Cypress, TOmball etc., They have good schools and good Communities. We do flood in the city lot due to the drainage and bad rain these days but it drains unless we get rain like Harvey which is 500 years rain. So don't worry about it, Come on down...

@Tammie Spikes I just looked at the plan and pictures and don't see it's possible to shove off. Sorry it might not work possibly.

@Tammie Spikes It is 26' W X 53' D so it just 1 feet difference on the width which I can check and see whether it can be shoved off. Let me know if you want me to check.. Do ping me directly and we can take it  offline. 

Computer Science Engr, doing IT Consulting which pays the bills and savings.. I have real passion towards Real Estate from young age thanks to my grandpa who used do lots of construction. I remember those days spending time with him at the rental construction projects.  I been working on goal to have rentals since 2006 and finally have 7 rentals and 2 Owner Finance properties. 

Been working on building Real Estate One Stop Shop Place with group of companies feeding each other. I have Brokerage, Property Management Company, Property Solutions Company and Development company all of which feeds each other on projects and income. 

@Shahriar Khan Option 2 was good suggestion but these City is taking forever even for small plan approvals. I been having hard time getting them to clear a simple demo lien extension and fighting for almost 2 months now. Not doing a new build might be good option only if it's done right!!

@Tammie Spikes I came across this house which is ready to move. Dimension 26'X53' which is pretty close with 1254 sqft. It's OFF Market sale came through wholesaler. Let me know if interested.  Asking around $82k plus moving cost around 10k. If you calculate it, it comes around $75/sqft which is not bad. As @Adriel Hsu says, the new build would cost roughly between $110-$120 depending on lots of factors. 

@Rusha Jayasuriya Good comments!! So your $250 cash flow is including capex and other repairs or it's after everything and if so what are they and what's would be total cash flow including all. 

About your comment on the equity play, it's tricky in houston but you do get deals with large built up equity on it which can really beneficial but it's only on OFF Market properties. 

Are you all ready for the next deal analyzer?

@Marianne Lopez-Henthorn I hope you are not confused yet. I was totally surprised that no one yet mentioned about Houston and Suburb of Houston, TX as one of great places for what you looking.... 

I been Houstonian since 2003 and I used to hate it because I came from Boston,MA. But now I love it for many reasons especially the people and opportunities abound.  Let me share some 

- Good for families (safe, good public schools) - Many suburbs like Sugarland, Katy, Cypress, Klein has great schools and neighborhoods around it. 

- Good place to invest in real estate (job growth, favors landlords, population growth) - It's 4th largest metro and it's growing. Traffic in 610 and 10 is horrible but it's getting better but you can avoid it easily depending on choosing the right place to live. City is growing and suburbs are sprawling on every side of the city. Investment opportunities are abound and it's consider Top 3 places by out of state/country investors next to Florida and Atlanta. You can buy properties less than $125k and get 1% rent anytime with great cashflow.

- preferably a major city or at least the suburb of a major city  - You got it.. We are 4th largest metro and still growing.. 

- culutrally diverse (I'm half Filipina/half German, husband is 1/4 Mexican and 3/4 white) - Diverse city in the nation with so many cultures and so many restaurants you can hit on

- good schools - Yes which I mentioned. May kids go to UT Austin which is one of top 10 schools in nation.

- low state income tax  - No state tax but we do have high property tax

- lots of parks and greenery (originally from Vancouver, Canada)  - It's green but totally greenery that's why we go state parks for camps.

- last but not least...lots of good restaurants!!! My favourote hobby is eating good food ;)  - -We have plenty of all kinds..

To summarize, you should actually put Houston as first in your list because we have everything to offer for you and you won't regret it. We also have big medical centers and good amount of medical pros live in suburbs and enjoy it. 

Google about Houston and you will find tons of information... All the best.