All Forum Posts by: Jeffrey Suh

Hi, My name is Jeffrey, and I’m a veterinarian living in North Dallas area. Me and my wife worked and saved for the last 15 years to accumulate a little over $650K. We are currently in a situation where I will be purchasing the practice ($1.6M) within several months that I’m working at (owner finance), and we (my wife) decided to build a $600K home. My question is: Do we buy the house fully with cash or do we spread the money and invest? Since we’re pretty new at this, we’re thinking of putting $300K to the house then purchase a townhouse or an apartment with cash. That way, we may be able to purchase it at a cheaper price and get better cash flow. What do you guys think? We have never invested in any property; so advice will help.

I’m not sure if I’m being inappropriate. If this sounds completely idiotic, please forgive me. I’m a newbie renting in Plano about to buy our first primary residence in the Colony. I have no experience of owning a rental property who just got through reading The Rental Property Investing (my first Real Estate Investment book)...yes, I have long ways to go.... My real estate agents are telling me it’s great to be investing in Northern Dallas Area (e.g. Plano, Frisco, Allen, etc) due to the rise of the value of the homes ~5%/year, I understand the national average is somewhere around 3%. From what my real estate agent tells me, tenants aren’t too hard to find (the internet tells me vacancy rate is 15%). Here, I think it is almost impossible to find that home for 20% under the value, and the return on investment per year is at best 4-6% here. Given all the growth I see around me, however, it’s really tempting to dive in and just invest. Yes, there are areas here where it is very easy to find tenants to rent. Why is it so bad to invest here? It’s a good and safe area with good schools and big industries like Toyota, Pepsi, Liberty Mutual, etc. Is it really bad to just buy and hold in this area without much cash flow for a while? And what do you mean by 0.8?