All Forum Posts by: Jorge Quintero

Hello, everyone. I have an upcoming showing of a property I’m interested later this week and wanted to compile a list of questions to ask the realtor/seller before I make a final decision on the offer price or if I plan to go through with the property. The house is located in Houston, Tx. Hurricane Harvey caused a lot of damage but this property did not flood. However, I do plan to ask about the flooding history of the property. Other than that, I’m thinking about asking questions about recent maintenance, taxes, and is it too nosy to ask for their insurance costs? I’m not sure how in depth I can get with these questions or if there are other important questions I should be asking. I’m fairly new to this so any advice is appreciated.

@Brent Coombs I should've mentioned that the final cash flow number provided already takes into account property taxes. So the cash flow is still $3245. I was also considering maybe getting an FHA loan and renting out the other two bedrooms for $750 each. I would have to pay for utilities (~2400/yr), but I would be living for free and making some profit on the side.

@Derek Kirkwood sorry I forgot to include them! They are $2295 a year 

Hello, all! I just made my first deal analysis on a property and wanted to get feedback and your opinion on the numbers.

The house is a 3-bed, 2-bath, 1559 sq ft single family home in Houston TX. The house is in a B- neighborhood. Most of these numbers are very conservative.

Sale price: $150k

2016 Appraised Value: $102,625

Market value: $123, 872

Offer Price: $92,000

The following are yearly estimates

Annual Potential rental income: $16.8k (1400/month)

10% Vacancy: $1680

Annual Property Insurance: $1200

Annual Accounting & legal: $1000

Annual Advertising: $100

Annual Lawn and Grounds Keeping: $500

Repair and Maintenance (10%): $1680

Annual Misc: $500

Mortgage (30 yr., fixed, 5%): $5928 (494/month)

Initial investment: 0

Cash Flow before depreciation: $3245 /yr.

I wanted to offer about 70% of the market value of the house in case I get a hard money loan/private money and need to refinance. The house doesn't really need any rehab, but I don't have much money that I can invest right now which is why I would need the whole purchase price of the house financed. What do y'all think? I used very conservative numbers for my estimates and most of these numbers I would anticipate to be better (like less vacancy rate, more rent per month, and lower interest on the mortgage because of my credit score).

So would you suggest I take out a personal loan for the down payment and a conventional loan for the rest?

My credit is above 750 so pretty good!

Hey, all! I’m starting to analyze deals on single family properties and after I put in all the estimates for the expenses, I play a little around with the offer price to get a good ROI. However, one of my concerns is what kind of price I should be using for my offers. I don’t have much money saved up to invest out of pocket (only a couple thousand) but I want to start investing as soon as I can. I know the BRRRR method may work for me, but the houses I’ve been analyzing don’t need much rehab so the price is close to the market value. In my analysis I offer about 75% of the purchase price assuming that I could get a loan from a HML to cover the down payment and loan and then refinance it later through a bank. Are there other financial options I should consider?

Hello, BP!

I'm currently building up my team to begin investing in real estate. In particular I want to invest in properties on the NW side of Houston (outside 610 loop but inside BW 8). I haven't had luck finding a good real estate agent who I can work with and send me leads, or a good insurance agent who could help me on my estimates for deal analysis. Are there any professionals or companies that you recommend I work with as a new investor? Thanks a lot, everyone.

Right now, Bitcoin has skyrocketed and anyone who knows basics about investing should be really concerned. However, as a long term investment, I think bitcoins value will continue to increase even beyond the current 18k price it has right now. The blockchain technology is becoming commercialized by various other companies, and the concept of digital currency is already permeating society even in ways that don’t make us think about cryptos. You can pay someone on FB, Snapchat, iMessage, and with Apple Pay. We already are digitizing currency before the mass adoption of cryptocurrencies like bitcoin. It has too much attention now and multiple American agencies will soon implement futures to bet against bitcoin. It’s already established itself as something that will not go away. Too many people believe in it now that even after a crash, it will still have significant value. And until we really know what we’re going to do with it, it’s kind of like an expensive collectible that many people want their hands on. So I would say yes! Pay me in bitcoin. I will be extremely happy in a couple of years with that trade.

Joe Villeneuve you provided an interesting answer! A follow up question I have is, for a new investor, what are some resources we can use to analyze local markets? Is it as simple as just reading articles on the housing market of a particular area? Or are there places where the information is more organized?