All Forum Posts by: John Nguyen

@Wale Lawal lol I literally just DMed you before seeing this. Yes working with a relative agent. That’s good to hear though and definitely helps in making a decision. I guess I’m still looking at it in the mindset that this would be my home for the next two years or so and basing it off emotions rather than focusing strictly on the numbers. Numbers wise Spring does look more attractive: lower purchase cost, capex mostly taken care of. I guess I always heard location location location as the most important rule in real estate and the Conroe property just felt like a better location. Thanks for the insight Wale! Hoping you and your family are doing well in 2021!

Hi Houston BPers,

Wanted to ask for some advice regarding two different properties. One I found in Spring, east of I45 kind of near Cypresswood and Traeschwig. Location is alright...it seemed kind of further in off of 45 than the other property off 242 near Harpers Preserve.

How is the area I mentioned in Spring? Is anyone familiar with the area. Good for rentals? Schools are not great (C-F)

The second property is zoned to Conroe ISD (B). I like the Conroe property as it’s closer to Exxon/HP campus and woodlands mall. Also seemed close to the H‑E‑B and other amenities in that area.

For the Spring property it is an older area and the closest thing I could find was an old Kroger’s and another 15-20 min drive to the nearest Walmart.

Numbers wise Spring is better...marginally. House was remodeled and major capex is done. The house in Conroe is a 9yr old home with original everything. I’m planning to buy and hold. Live in for maybe two years then rent it out. Initial cash flow would be negative for both.

Appreciate the advice.

Thanks @Dave Chapa for the insight! Yes my fiancee and I are very biased to Katy as well :) we love it here. I will definitely look into old town Katy as the area is still my number 1 pick and would hate to have to move away.

Hi BP!

Still shopping around for my first live in/fixer property and upon doing some further reading on the forums discovered that I could use a Homestyle loan to not only purchase but rehab the property wrapped up into one loan. This definitely opens more opportunities for my fiancée and I as we were looking at newer homes with the hopes of not having as much work to do but if I am able to find an older property which requires a little bit more rehab work, I would be interested in pursuing this route. Does anyone have any recommendations for experienced Homestyle lenders that they would be willing to recommend?

TIA!

John

@Lionel Mosby Jr - I'm currently reading a couple of books mentioned here on the forums, David Greene's Long Distance Real Estate Investing and the BRRRR book which I have yet to start. I'm thinking once I've had my first property under my belt, the second I would be looking into OOS markets with lower entry price points which would require less of initial down capital. I've also done some research on subject to, but of course this requires a specific type of seller. As far as capital other than my current W2 job which provides a pretty decent income I guess I have to start figuring out ways to increase income streams which would allow me to quickly accumulate more assets. My buddy mentioned that I should start a photography business as a way to increase my income. My current hobby is to do portrait photography but I'm thinking perhaps why not try out real estate photography as they are both something I'm highly interested passionate about.

Hi @Jaime Lazcano, I would most likely live in it for two years before renting it out. My goal is to try to have it to cash flow but from what I'm seeing it'll be difficult at least unless I find an off market to try and rehab however have no knowledge with GCs. I currently work from home due to the pandemic but eventually will have to make that commute back to downtown once everything settles down. Currently residing in the Katy area and would like to stay here if possible however noticed that the rent/own demographics usually favor ownership in this area. I'm considering Conroe Spring area since they have a higher rental demographic.

Hi @Matthew Rolf, I'm originally from Tomball and am familiar with the Northwest side of town. I'm also looking in those areas as well. 

In both of your experiences, do you find that in order to cash flow a property, generally would it require the purchase price to be sub 200k range? I've found some homes in Spring that are newish construction for around that price mark. From my research I'm seeing that average rent in Houston goes anywhere from 1000-2100/mo depending on location. With the current market homes are going for 250+ for anything decent in these areas: Katy, Richmond, Tomball, Cypress. I'm using the 1% as a rule of thumb for quick screening but this market is HOT! and things are flying out the door.

I'm wondering if I should just do an appreciation play instead and maybe look elsewhere for cash flow markets.

Hi BP fam! 

So after searching for homes in Katy and Richmond and made an offer on an older 1983 SFH which ended up having a lot of issues during the inspection (plumbing, electrical, foundation, etc), I decided to go the new construction route and save me the headache. I plan to live in the property for at least 2 years to build up more capital and then move on to the next property and renting out the first. Problem is the tax rate out there is at least 3.0 so now I am thinking of looking at North Houston. Are there any areas you guys can suggest without an insane tax rate? Or are they pretty much the same?

I'm preapproved for up to 270k but would like to stay as close to 200 or below 250k if possible. Are my expectations realistic? 

Which areas in Montgomery county would you suggest to look into? I feel that anything above the 200 mark would be hard to cashflow so I am open to looking at maybe an older home say 10 years. Any advice or guidance would be greatly appreciated!

Thanks!

J

@Timothy Frazier I have the same question. From what I'm reading so far others are suggesting to have an REI attorney draft a contract in which should the buyer stop making payments, that the seller would retain rights back to the house? Someone please correct me if I'm wrong as I am still researching the topic.

Hi BP!,

Here's the scoop. My sister and brother and law want to move out of there current townhome here in Houston and move to the suburbs. They are currently listing there home for 350k but from what they are telling me it seems that they are having a hard time selling it. I randomly stumbled upon a podcast where Brandon and guest mentions subject to financing and it crossed my mind why not ask my sister and brother if they were open to doing this.

I've browsed all the "subject to" posts and blogs on here and understand that I would be taking of their mortgage and they would have the title transferred to my name. A few questions I had are:

• Why would anyone want to do a subject to as a seller as it is a risk?
• What happens to the equity the seller has in the home currently? Do I pay them out? Do I not?
• How does the Homestead Tax exemption work as the mortgage will still be in their name?
• Does anyone have any experience with subject to buy and hold as an exit strategy? Will you please share your experience?

I'm only thinking about suggesting this to them as a possible solution for them if they cannot find a buyer. As it is my younger sister I want both sides to come out on top for this deal but since this would be my first investment I'm not entirely sure if this is the best route? Would greatly appreciate your thoughts and advice.

Cheers!

@Conley Norris how do you feel about Spring Branch? From what I'm seeing that area seems to also be undergoing gentrification in small pocketed areas. It seems like its slightly more developed in terms of amenities (City Center, Memorial mall)? Maybe I missed the train?

@Blaine Gerick that is awesome advice! I will be sure to look into that as an indicator.