All Forum Posts by: John Vo

@Joe Fairley

I'm not too sure how rentometer or other 3rd party source calculate a location's potential rent since I use the free version for research comparison study. One thing I did notice, was that for rentometer, it did not break down the potential rent of a location by single family, multifamily, condo, etc... at least in the free version.

I'm sure you know that particular submarket much better than me, but I would encourage you to do a more in depth potential rent study, if you haven't already, since rent projection impact your deal analysis much more that any other factor.

Source - I am a real estate broker with HAR.

@Joe Fairley

$3000/month for a 3/2 or 2/2 multifamily unit seems like it's on the very high end for Galveston. I would definitely re-check the rent comps for Galveston before you commit since your deal is dependent on your rent projection.

@Brannon Marsh

Welcome to the site. I'm next to you in Richmond, TX. Reach out if you have questions or want to connect.

@Deo Sanders

I haven't found a multifamily deal I like inside or outside the loop currently for the same issues you mention in your post due to high sale price, too many deferred maintenance, lower rental rate, etc... Houston is a bust to me for multifamily, I dont know how other people are buying multifamily but if you're looking at the MLS for multifamily it's overpriced IMO.

If you want to stay in Houston, maybe take a different investment approach or start doing your ad campaigns to find deals.

I live in Houston,TX, where the real estate prices are just rising too quickly for me. I'm seeing an appreciation of 17%-18% in one of my property that was bought 5 months ago. While I like that my property appreciate, it worries me more that prices are rising during Covid-19 where millions have lost jobs.

I understand that prices are dictate by supply and demand, but I'm scratching my head as to where the demand is coming from when there are millions that are currently unemployed, and homeowners are asking for forbearance on their mortgages because they lost their jobs or have reduce pay, etc... so where in the world is this demand coming from?

Can't speak for other market, but I just have to wonder what's going to happen next year when government aids to homeowner and business owners run out, when forbearance is no longer acceptable by lender, etc...I know I know if everyone has a crystal ball we all would be millionaires.

Would love to get some input on this subject.

@James Wilcox Just a couple of simple questions below regarding the new eviction moratorium.

Who is going to verify that tenant have done everything they can in order to pay their rent? The landlord? The tenant? The judge?

How can someone go about verifying that tenant have done everything they can in order to pay their rent?

How long will this process take and how much rent payment have you lost out on during this process?

This is just absolute insanity. So tenant get a 4 month pass, while landlord are left with the bill. And if landlord ask for a loan forbearance with their lender because their tenants are getting a pass, the landlord are taking a hit to their credit and ability to get present/future loan due to said loan forbearance.

At least buy me dinner first before taking me out back and shanking me in back.

@Dmitriy Fomichenko

Thanks for the feedback Dmitriy. So let's say I change the scenario to below: 

I invest $100,000 of my own cash as seed money. Both of my friends are investing $150,000 of their own cash. In addition, each of my friends will put in an additional $50,000 from their self directed IRA to bring the total seed cash to $500,000. I will still be the managing partner, while both of my friends are silent partner.

Would I now be able to use a full recourse SBA loan that I and only myself, will put up my personal property as collateral to guarantee the loan?  Or is it that a full recourse SBA loan will not allow the investment of any SDIRA?

I have a feeling I know which self storage property you're looking at, because there's just not that many that's being listed for sale in Houston. Houston is saturated with self storage units, with more in the pipeline. I see some listings that are asking 4-7% cap rate, which if you buy at that price you better be doing a lot of due diligence to make sure that you know what you're buying. 

Try Texas Self Storage Association (TSSA) or Self Storage Association (SSA) if you're looking for vendors who will manage property in Houston. 

Two reasons come to mind:

1) As a last resort after exploring a 1031 exchange, I would sell to get the cash to finance other deals.

2) Retire to go traveling and don't want to deal with the tenants and bills.