All Forum Posts by: Wai Chan

Originally posted by @Justin R.:

@Wai Chan Would you agree that you should charge whatever rent the market will support?  I fail to see how your taxes or your insurance costs have any relation whatsoever to the rents you're charging - those rents are based on supply and demand of housing product.

I see the direct relationship. I run the rental houses as a business and I try to improve the profit every year. Right now the situation is that property tax has been increasing by 10-20% for the past two years (Please don't get me wrong, I am happy with the property appreciation for sure), so I must do something to keep my profit if I cannot improve it. I am out of control for the cost of property tax and insurance so in order to ensure I am still making money I must increase rent. For sure I cannot increase rent by 10-20% right now but I can foresee that it will happen soon across Dallas unless landlords are happy with a lower cash flow....

Another possibility is that landlord wants to sell the property because cash flow is lowered. Unless renters in Dallas are capable of buying their own places, the sell-off will just further drive the supply lower. People still need a place to rent so that would lead to rent increase as well...

I am from San Diego and I own 8 SFR in Dallas. I purchased them from Aug 2014 to Sept 2016. Although I am happy to see all my property appreciate, I am paying close to 40K in property tax. Thanks to the hail, I am paying another 7K home insurance every year. Apparently all these expense has been lowering the cash flow. In order to make up for the loss of cash flow, I must increase rent. But the rent increase can never be compared with the property tax and insurance increase. I am interested to learn how investor deal with this situation? How much rent will you increase this year? Given the fact that companies are relocating to Dallas,I believe housing price in Dallas can still appreciate for the next few years so maybe I will just forget the cash flow for now and wait for the appreciation and increase of equity?

Hi, I am an part time investor located in San Diego. I have already purchased two triplex in City Heights for rental and keep looking out for deals in this area. I really want to connect with people who knows the area very well. Don't want to work with average agent who claims they know the area because they have done a few deals here. I find it very difficult to find agent who know one area very well. I don't want to deal with agent who just gives me info based on MLS and google map. If you think you know City Heights and the surrounding area very well (even if you are not agent) . Let's connect and brainstorm some investing idea on this area. Thanks.

@Gary WongYes I am looking for other area as well. I am buying in Cedar Hill as well. Looks like it is less competitive but the rental return and rental demand is just as good as North Dallas. Of course the resale and future is not as good as Plano, Allen ,Frisco. I don't have crystal ball so if current return is good I will invest now.

@Matt C.

Thanks for the response. Your sister gets a very good deal! Rent is booming in San Diego so US1000/month for a new 1b/1b in City Height is very reasonable. 

I have been giving over 10 offer in the past 30 days for SFR in Plano, Allen, Frisco. I paid all cash, 2 weeks to close with short option period at either full price or higher than listing price. One house I even gave offer 10K higher than listing price but still all my offers are rejected. I wonder if anyone is on the same boat... Not sure how I can win an offer in such a crazy market. Any idea?

I have just purchased a triplex (two 1b/1b and one 2b/1b, 1700 sq ft in total)  on a 7000sq ft land in San Diego (City Height). The zoning allow me build up to 5 units (1500sq ft max) on this land. I don't think demolish everything and rebuild 5 units is cost effective now so I plan to build two studios or 1b/1b on the empty land and redevelop other building in the future. I anticipate the rent is ~US1000 for 1b/1b. I have no idea how much would it cost to build a studio or 1b/1b. Any idea? What else can I do to increase cash flow as I don't want to waste the empty land. Thanks!

I am an California investor and have been buying rental properties in Northern Dallas and Cedar Hill for the past few months and i am STILL buying now. I am not into flipping houses and I want to find honest, reliable GC to fix my SFR for rental purpose. I have 2 houses that will close escrow in a few weeks that requires some work. Please let me know if you have good referral.

I am also interested in networking with the fellow members who are actively investing in Northern Dallas and Cedar Hill. Thanks.