All Forum Posts by: John Vo

Oops just

The Center for Real Estate at Texas A&M has some good info about market conditions. Beyond that the local unemployment rate (although I don't put too much stock in this as its a little bit , manufacturing index

Sounds like it's a waste of time trying to get a CLUE report as an investor because it doesn't really tell you how much you'll have to pay in premium and that's really the bottom line an investor would care about. It would probably be better if you have a working relationship with an insurance agent to have them quote you an insurance policy before you go thru with the contract as part of your due diligence. But don't waste the insurance agent time if you're not going to be buying a policy from them, I hate when people do that to me.

Michael Seeker Russell Brazil It sounds like the three of us are lowering our offering prices based on the increase in interest rate in order to get the profits that we want. Guess that's the natural fix rate increase. I expected an increase in rate but was a little surprise it jump by nearly 1/2 point or more in some locations within a couple of days. I guess I'll have to see how long it'll take for the local Houston market to react to this increase in rate and increase in inventories.

Hi BP, in the past couple of days mortgage interest rate has jumped to over 4% since Election Day for primary residence mortgage borrower. As an investor, I would also guess that interest rate for qualified investors has also increase and would guess that it's currently over 5%. I'm waiting to hear back from my mortgage broker now to see what the interest rate would be for investors with 20% downpayment and credit credit over 680. It was previously quoted at 4.375% 2 weeks ago. This increase in interest rate would obviously affect the buy hold investors overall bottom line. Just interested in seeing if this increase in interest rate has changed anyone's overall investment strategy and if it did how did you compensate for this increase in interest rate. Any thoughts on if this is a temporary increase due to the Trump effect or is this a long term increase?

Brandon Woodall Realtors and appraisers can get the comps wrong. I've seen it happen both way. At the end of the day, what matter is if the buyer is willing to pay your listing price. They obviously thought your property was worth what they offer otherwise they wouldn't have offer it. Now they're using the lower price appraisal as a negotiation point, which happens quite often. You can either stick to your gun, lower the price, walk away, come to an agreement with a different terms, owner finance it, take it off market and lease it out,etc.... You have choices. But I do agree that maybe your agent is not the most experience or knowledgeable when he/she told you to go ahead and make repairs without waiting for the comps to come in. I would've wait at least until the buyer's lender gave the thumbs up for the buyer to proceed to closing to make repair.

Brent Coombs Thanks for your comment. Ideally I would love to get a property for 70% of market value. But the market that I'm in is super competitive and I haven't seen any kind of deals like that, especially since I'm not doing my own marketing and getting this from second or even third hand sources. So I'm fine with a minimum of 15% equity after all rehabs is done.... I guess I have the wrong impression of what a delayed financing is. What do you call a financing after a rehab is completed? Cash out refinancing? The only value I see in using the HML is a quicker closing for this deal...and you're right if I account for the property management, which I'm doing myself, it would lower the cash on cash return...This is looking like its a deal with very small margin for cash on cash return.

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Hi All. I'm working on a deal and at the same time creating my own deal analysis spreadsheet, and I would like to ask everyone to give me a little feedback. I know BP has several calculators, and have tried some of it and it's a great tool. But I like to organized my own flow of information that makes more sense to me personally as well as add in some information that's relevant to my strategy that the BP calculator doesn't necessarily have. 

Anyway, this is a deal that I'm working on. It's a 4 bed/ 2 bath single family home. I did my rental comps for the subdivision as well as the ARV for the property. My strategy is to buy this property and lease it for the next 10-15 years, where I will sell it and take the cash to provide it as college funds for my oldest child.

My question is really which type of loan should I go with. Should I use HML or conventional loan to buy the property since it looks like the cash require is pretty close anyway? Or is this a property that I should stay away from since my cash on cash ROI is too little?

@Jakub Bednarz Thanks Jakub. I'll check in with Craigslist to see what they're renting out for. 

@Chad Althaus I'm definitely considering a little bit of price drop so it doesn't sit on the market for that long. I do think that the $1200-$1300 price range is definitely the lower end of the price range for Katy, at least for the neighborhoods that I've seen, so it's a little bit surprising to me that properties priced in that range are not getting rented out as fast as I've seen them before.

@Jon Burns I'm with you. I don't know if this is another signs that the SFH rental market is correcting itself, or if this is a seasonality problem, but I'm definitely going to step up my marketing.