All Forum Posts by: John Nguyen

Hi BP fam!

Looking at a few homes suggested by my agent but wanted a second opinion. What is everyone's thoughts on areas of gentrification as a starter home? I'm currently residing in Houston, TX and there are plans to gentrify several areas around Houston. My agent has mentioned the East River Project on the outskirts of Downtown and that the area will be seeing some gentrification over the next decade. When I do a quick search I see a lot of new construction town homes being built in the surrounding area. After doing a bit of research I also see that the city of Houston is planning to expand and bring the surrounding areas up. My question for you would be would the area be worth considering if I plan to buy and hold over a ten year period. Rental numbers don't match the 1% rule here with townhomes ranging from 250-400+k and current comp rentals are more around 1900-2300. I will plan on living in the home for about two years then rent it out and look for my next property. From what I understand the 1% isn't a hard set rule more of a general quick analysis to see if the property is worth investing into. Should I avoid the area as its currently more industrial, with pockets of C and lower neighborhoods? Would love to hear your thoughts on this subject.

Looking to invest in West / Northwest Houston area. Let’s connect!

Hi new BP fam!

My name is John and I’m brand new to RE and BiggerPockets. I’m currently residing in Katy TX some 30 miles west of Downtown Houston. Like many of you I dread the 9-5, thought to myself there has to be more in life than this..After deciding that I do not want to be working the same old job for the next forty years of my life, I began reading and researching as much as I could on building wealth and being financially free. This led me to RE and BiggerPockets! I’m born and raised in Houston and recently moved to this side of town (previously lived in Tomball northwest side of town). I figured to get started on my first starter home why not do it in my own backyard. I am extremely excited to be embarking on this journey and looking forward to connecting with you all!

Hi @Mitch Messer thanks for the insight! I will definitely run the numbers to include property management as an expense. From the BP podcasts that I am watching it seems like its best to allocate 10% towards property management even if I plan on managing it myself just in case I ever want to offload it to an actual property management team. Thanks for the advice! This place is awesome!

Hi BP family! My name is John, I'm brand new to RE Investing looking to buy my first property. My question is would it be wiser to do a FHA loan with a 3% down and save my cash but pay the PMI or should I down the 20% and have more equity in my property. I plan on living at the property for at least a one year period. Is there an advantages to doing FHA vs Conventional loan? I found a property which had recent Cap Ex done and once I decide to eventually rent out the property after a year or so I would be managing the property myself. Any advice is greatly appreciated! I am so excited to be starting this journey! Cheers!

The property estimates the below:

Rental income: 2195

Expenses: 1762

Mo. Cash flow: 432