All Forum Posts by: James Polk

@Michael Yu

@Michael Yu

Hi Michael,

I am a local Houston investor, a financial advisor, and i worked as a GC several years. We have 5 rentals and 3 of them my wife manages as STRs. My net cashflow increase on going to STR has been about 600 to 800. It is a lot of work getting them setup. It has been enjoyable. I would suggest 2 strategies:

1) Run it as a STR, i think conservatively on a good rehab i could gross $3500 in the heights. That should have you cashflow positive.

2) Sell it. Those are flip numbers. 135k + 30k (holding and closing costs on 420k)=185k. 430k-185k=245k. Purchase four 250k houses with a 20% down loan. You'll ahppreciate on 1million real estate and it will cashflow better than a 300k loan in the heights.

I would be interested in seeing the property. Sounds like a deal to me. You can pm or connect with me.

James Polk

Open a llc and put it in the llc name. It only costs 309 and run it like a business.  It is a business.  It can help limit your personal liability if a tenant or someone sues you.  They have to sue the llc first and assuming you didn't run the business like your personal finances the only asset at risk should be what the llc owns.  You can more efficiently keep expenses separate.  You can always add your wife to the llc or not(she will get half the stuff if you leave, it is usally cheaper to keep her)  If you need help or have questions pm me.

Welcome Wesley.  What area are you buying in? How did you find your deals? Good job getting started so fast.

I'd recommend Ethan.

I have a potential probate deal in Houston. The customer needs to probate her father's house and has been paying the taxes since 2008. There are 2 other out of state siblings that may have a claim. The father's will says to leave it to her but the only witness to the will may be dead.

Should i get this deal under contract with the customer now or wait till i help her do the probate?

Ben, I have bought maybe 5 duplexes over the 11 years i have invested.  I will be building a couple duplexes this year.  Yes they can be decent cashflow deals when you can get them.

Hi Ben, you can cashflow in Houston. A rule of thumb for you is that rent is about 400 per room.  The nicer the area that goes up to about $500.  

Let's say you get a 3/2 for 150 k. Decent neighborhood. You could rent 2 rooms for approx $450.  Mortgage escrow run about $1500.  You would pay about $600 net.  Not a bad deal. If you get another room at same house cost you are paying $150.  Close to zero.  Definitely house hack if you can.

What Chris said....multifamily is what is designed for cashflow.  The business is valued by it's cashflow.

Hi Wade,

I am an active investor in Houston.  I still have 3 rentals.  I'll give the rental example for this year. A flip that didn't happen.

bought a 3/ 1 house for 59 k.  Put 55k into it, plus 10k fees/ holding and made it a 4/2.  Property is worth 145k and will appreciate. 

Rented for $1400, cash flow after piti is $559 but as you say after maintenance and vacancy real cashflow is about $300.  But $3600 on $20,000 is 18% cash on cash return.  The appreciation and principal payments will bring it to the low 20's.  Still a good return.

Why do you need owner financing? My first 2 real estate deals were in alief.  I am familiar with the area.  PM me and we can discuss the details.