All Forum Posts by: John Humphrey

Hey @John Humphrey! Would love to dive in to this with you. I'll send you a PM.

@John Humphrey I am an active investor in Wichita Falls. I would want to look at your rental comps with a fine tooth comb. The section 8 rate does not seem to line up with my experience. 3 bed 1 baths are very common in the area but do more much slower than a 3/1.5 or 3/2.

I don't understand your last comment. Do you own 20 of these already? Or you plan to purchase 20 properties with the numbers in Wichita Falls?

Do be aware that your property taxes and insurance are going to on top of that. Together, those would be about $4000/yr. (I know. I own 4 homes in WF, so I'm very aware of the insurance and tax rates.) So that's going to put you at $1030 for PITI. Take 10% off your $1274 for management, and you're only clearing $116/mo. That seems mighty thin to me for something that is that cheap. I know WF very, very well. Section 8 housing that is going for $100K is potentially going to be in rough shape, in a rough neighborhood and have little appreciation potential. If the water heater goes out, for example, that's a year's worth of profit gone.

Best of luck to you, but I'd be a hard pass on this. I need bigger margins than that to justify the risk.