All Forum Posts by: JoJo Tucker

@Aaron K. I do plan on getting a minimum of three bids on the project. The PM was a referral received from an RE agent that I trust. Thank you for the feedback!

I have come across a property management company who seemingly is a great fit. The owner is a general contractor and also facilitates rehabs and repairs. Of course each person is different, but is that something that I should be wary of. My initial thought is there certainly can be a conflict of interest. Is this common?

Hey @Rickey Davis,

I would assume you could ask your RE agent for market comps in the area. Convey your image, what your renovations consist of and they should be able to provide you with an approximate arv. I am also very new to all of this, so take it with a grain of salt. I am sure others on here can provide more clarity and advice.

JoJo

@Bjorn Ahlblad Thanks for the quick reply! Greatly appreciated.

Hello Everyone,

I intend on purchasing my first investment property in Houston by the end of the year. I reside in Northern California and after many meetings/interviews I believe I have found myself an agent and PM company. I plan on meeting with an attorney this week whose concentrations are with Real Estate. What are some general, pertinent questions I should be asking? 

Thank you,

JoJo

1. A good starting point is using the 1% rule when viewing any and all deals. This basically means that your expected monthly gross rent should be at least 1% of the sales price-talk to several different realtors and PM companies to get realistic expected rent. This will quickly eliminate a lot of houses. Once you have a handful of properties that meet the 1% rule, plug in your numbers into a proforma/APOD you are comfortable with. Make sure you account for vacancy loss, CapEx, Property Management, Insurance, Property Tax, Repairs & Maintenance, HOA if applicable, mortgage etc.

Learn about metrics such as Cash-on-Cash, ROI, Debt Coverage Ratio to help identify what makes a deal worth while.

Have you considered a 30-year mortgage? This would increase cash-flow.

If you are comfortable with it, look into investing in out-of-state properties with more favorable markets. You can read, Long-Distance Real Estate Investing by David Greene. Very informative.

2) I think a good launch point is to focus on class-B neighborhoods, this would be your mid-level housing. Look up demographics and housing statistics in your target area. I look for places with a favorable renter-to-owner ratios, low crime rates, good schools, etc. 

3) Hire a realtor or locate a wholesaler with a good reputation. In the book previously mentioned, Greene mentions finding an investor-friendly realtor....essentially someone who invests in real estate too or understands what makes particularly houses attractive for investors. Although I am new to the RE world, I have learned through advice and research that its a lot easier to have someone else look for you. Let them know what you need. Build yourself a criteria and have them work off of it.

Hope this helps. There are a lot more people on here with much more experience than I have. Utilize the forums and constantly ask questions. 

Hi @Kathy Tan,

I recommend reading, Long-Distance Real Estate Investing, by David Greene. It is very informative and provided me a general foundation and plan to work off of. @Derek Diamond mentioned building a team (Realtor, Property Manager, Lender, Contractor) to help facilitate your investments. 

I also strongly suggest networking on BiggerPockets as much as possible. I often times research past forums, such as (Columbus, OH Realtors) and view comments. If somebody seems informative and experienced, I will reach out to them and ask any questions. Hope this helps!

@Frank LaViola Thanks for the insight, Frank! Greatly appreciated!

@Wes Blackwell Thanks for the reply, Wes. I'm sure the southwest heat is a little different than what I am accustomed to in Northern California haha. I really appreciate your time!

@Cameron Tope I live in California and knew I wanted to invest somewhere on the West. I researched various demographics of different areas and refined my search to Phoenix, Austin, Denver, and Houston. I think what attracted me to Houston was the average housing price for 3bd/2ba, economic stability, economic diversity, along with other statistics.