All Forum Posts by: Wai Chan

@Emy Bernardo thank you! Yes, every year I receive the tax mail from the county in DFW I will have heart attack. I am happy to see the property appreciate so much but the rental income just cannot keep up with the property tax increase. Also the insurance cost is also killing me. A 200K house cost me US1300/year on insurance and people still say that I have got a good deal....

@Emy Bernardo

I am also thinking to 1031 some of my SFRs from DFW area to some multifamily deal in midwest. I will still keep my rental in San Diego though. I have purchased those in the right time so they actually cashflow and appreciate very well :)

You mind telling me the "bad" thing you come acoss in the Cincinnati market? Any other market you have studied for cash flow in mid west area?

@Antonia Bokelman good to see some fellow investor from San Diego! I also have a few triplex and doing one flip right now in San Diego. Everything is definitely more expensive now comparing with 5 years ago when I first started investing real estate. I am also thinking about investing the multifamily apartment in other states. Seems everyone is talking about Kansas City so I am studying right now. Don't have much idea right now and just keep reading here and there to get some idea. Let me know what you find out in San Antonio maybe I can leverage the knowledge here :)

It's good that business is still doing well on your end but this has also explained why we still cannot flatten the curve :(

Hello, I am an investor from San Diego. I have been investing in DFW area (Plano, Collin, Cedar Hill) since late 2014 after knowing that Toyota and a few other big corporate moved their headquarter to DFW. I have purchased 8 SFRs (All 3/2/2 or 4/2/2 SFRs) from late 2014 to mid 2015. After that I haven't purchased anything in and I just keep speculating the market. You can tell that I have got good amount of equity gained for the past 5 years. Cash flow is okay but not great. Property tax and insurance cost have increased dramatically for the past years and it has taken most of the profit. Rent has increased but not significant comparing with the cost. For the past 5 years experience with all the repair, I am also surprised to find out that the repair/maintenance cost is about the same or in some case even more expensive than in San Diego (I manage all properties by myself in San Diego vs I have PM handling all issues for me in DFW. Most PMs don't seem to be knowledgable about repair cost and just cannot help saving my money. For example, a PM has spent me US250 to repair the toilet twice! I need to explain to that PM that you can get a brand new toilet in HomeDepot at ~US100!)

That's why I have debated with myself for a long time if I should just sell everything in DFW and invest in San Diego or somewhere else. I have been hesitating of doing it because I am still seeing the housing price increase year by year in DFW (although it seems the momentum has slowed down since 2018?). Also it should be quite a lot of work for me to liquidate all 8 SFRs and find other deal and do 1031 exchange to avoid all the capital gain tax and depreciation recapture. That's why I just let them grow on their own now. Cash flow is not great and dealing with PM is a big hassle too but at least the rental income is enough to cover all the mortgage and cost. (All 15 years fixed at good rate, ~3.75%)

Should I just let the portfolio grow on their own and have all the properties free and clear in 9, 10 years or should I sell everything and invest somewhere else? If any local investor or realtor can share their opinion and let me know their thoughts on DFW market that would be great. I have to admit that I haven't really followed the DFW market close enough to make the right decision. 

I am looking for architect to add addition (extra bedroom/bathroom) and redesign the floor plan on the existing dwelling in City Heights. Ideally, he/she can also help with the permit process. Pls let me know if you have any good contact. Thx!

I think it really depends on if you are experienced enough. If you are first time home buyer then I understand that you need someone to hold your hands throughout the whole transaction. If you have some experience then you can do your own due diligence and save some money (or as an incentive to get the seller to pick your offer). A lot of time I don't know the reason why I would want to bring a buyer agent when I am the one who find the deal and do the research. They just help me submitting the offer and answer question as a middle man. So for these kind of situation, sorry I don't know why I would need an agent.

I think that is a good move from redfin as it will awake a lot of realtors not to take the heavy portion of commission for granted. Of course there are some good realtors who found deal actively and create value for investor during the transaction but it is just difficult to find .... 

@Mike D'Arrigo

Thank you for sharing your opinion. I have sent you a PM too. Thanks again

I have been investing SFRs and 2-4 units for the past few years but I always want to invest in farm land. I have been looking recently and saw a piece of 20 acres lemon grove for sale in SoCal. Does anyone know how where can I start with loan? What programs are out there for farm land purchase? What is the usual requirement?

Seller has indicated that he is not willing to share the profit and loss statement so I am not sure if any bank is willing to give out loan.

Any other idea what to look out for farm land? I am also planning to talk with the local farm management companies but want to get some insights from here first. Thank you in advanced.

Thank you for all the good advice. Looks like everyone is asking me to talk to a CPA :)