All Forum Posts by: Nick Tarantino

Thanks for your response Wale! I have noticed a lot of 2BR condos in the Houston area for $62-70k. Do you know if this is common for the city or have prices significantly dropped due to the pandemic?

I also appreciate your input, Bill P. 

I'm considering buying rental properties in Houston, TX and starting off with a 2BR condo. I want a property manager to take care of it.

I believe the HOA fees are $300 on average. With a 20% down payment, my main monthly expense (HOA, mortgage, property manager fee) would be about $760. I can mostly likely rent the apartment out for $1200-1300. This means I'll have $500 or so left over per month.

I would like to work up to purchasing five of these condos over the next two years if the first one goes well.

Do you think this would be a good move?
How do you think the experience will be with a property management company?  Thank you!

@Brian Gerlach Thanks a lot Brain. Are you saying the COC should be 8% after mortgage, insurance, taxes, and repairs or 8% after just the mortgage, insurance, and taxes? And what does LTR mean? Sorry, I'm newbie.

I appreciate everyone's input. It all has been helpful, but I only really received one clear answer.

What is the minimum amount of profit I should aim for in a rental property after mortgage, repairs, vacancies, taxes, etc.? I'm looking to maximize cash flow. 

@Theresa Harris Let's say I invest 20% on a 200k property. What do you think? 

I'm looking to buy a rental property and hopefully make monthly profit after the mortgage is paid. I know people that have rental properties where the tenant's rent only covers their mortgage and there is nothing left over. I don't want this to happen with me. I'm looking to get started in the Houston area.

Thank you.

@Jay Hinrichs You made some good points. I never really considered the long term benefits of having tenants pay off your mortgage. when it came to REI, I always just thought about the opportunity for short term cash flow. I'm new to real estate, and I don't know the jargon yet, so you confused me with B, A, and C classes.

When you mentioned that the market is currently giving 4-10% returns, do you mean 4-10% of the property's purchase price?

@Clayton Mobley I appreciate you elaborating on how turn-key REI works because I feel like I have a basic understanding of it now. Thanks a lot. I'll definitely be doing more research into it.

@Clayton Mobley The turn-key method is intriguing. I've never heard of this method before and I'd like to learn more about it.

I see that you're involved in a turn-key business, so you might endorse it more than the average person would, but I do wonder if it's a legitimate way for someone to make money in REI.

Can you give me an example of how much money an investor can make on a 100k rental property by using a turn-key company in Alabama? How does the company deduct their fees, and how much do they charge for their service?

Thanks!

@Rachel H. Thank you. I also think it would be wise to start small for anyone beginning in REI.