All Forum Posts by: Brant Richardson

First I would make sure the stairs were very safe... then she would "fall" down them.

" the contractor didn't leave any space along the sides for expansion."

It shouldn't be you who pays for the new floor. That is very basic knowledge when installing flooring.

Stick with it, I still see you getting a nice profit out of the deal, just a little more frustration than you planned on.

Check out podcast #70. "subject too" financing will give you a lot to think about.

Congrats on your first deal. So your plan is to sell it as is for a 5k profit? Will it work as a fix and flip or hold?

If you have 20% to put down then talk to the bank and see if you can get a 30 year fixed rate.

No HOA in my calculations, but owner paid utilities, which are almost as bad. The numbers would be excellent with out the 1450/mo utilities. You can think of this deal more like 150k for 1550/mo. It will cash flow until a maintenance issue eats up the profit. Definitely better than the 1 bedroom. 26k will not be able to make this deal happen with conventional financing though.

I hate HOA's a little more than owner paid utilities, but not by much. Your total rent of $3100/mo just got spanked down to $1550/mo.
minus mortgage of 750 = 800
minus tax/ins 450 = 350
minus 10% vacancy 310 = 40
minus 10% maintenance 310 = -270
If you pay a property manager 310 = -580

Vacany and maintenance are real, especially with students, you must account for them. If you could put in meters to make the utilities paid by tenants maybe it would work.

Multi vs SFR depends on the area. I don't know houston to be able to say. From what I have read about the area, a SFR for 100k that rents for $1100/mo is a very reasonable expectation. Yeah your multi is only 150k for rents of 3100/mo but the expenses are much higher.

The HOA destroys this deal. Think of it as a rent of $330/mo. If you have 26k cash you should be able to finance a nice 3 bedroom SFR that will cash flow, appreciate and get equity accrual.

Do you see some good opportunities around that you would want to make a move on? I think you are right on in considering that equity as your cash investment. You could also refinance or use a HELOC to free up some capital.

Sounds like you listened to podcast 73 already. Make sure you go back to #29 with Dawn Anastasi who commented above.

Go to a REIA as mentioned above.

You can also call some property management companies to see what areas they like.