All Forum Posts by: Account Closed

Hey! Good job! Welcome back!

@Vijaianand Thirunageswaram 

Why specifically do you perceive SFH to be a better beginner investment?

@John G. Anything the loan officer at CitiBank told you needs to be seen (and kept where you can reference it again) in writing. Get it in an email with the loan officer's name attached. A simple phone call has no future accountability and may not offer accurate information. You can't show a phone call to a lawyer to aid in intelligent decision making. 

Back in '09 my husband's property got foreclosed on. At that time I knew nothing about REI or the foreclosure process in Texas. We tried sorting it out over the phone and it was a nightmare. Each time we called, the person we spoke to previously was never available again. Much of the information they gave us over the phone was either deliberately misleading or not accurate to our situation. Nothing they told us was later verifiable. We got nothing in writing and ultimately NationStar screwed us over, big time.

One of the many lessons from this experience.... get it in writing. If the banker isn't willing to put it in writing and sign their name on it, then the information cannot be trusted.

Good luck.

Liz

@Dan Schwartz Thank you very much, for your thoughtful and insightful response.

@Vijaianand Thirunageswaram At least part of the reason new investors are interested in MFH can likely be attributed to many of us reading the same books. I first discovered the term "house hacking" in Set For Life by Scott Trench. https://www.amazon.com/Set-Life-Dominate-American-... Amazon pushes this book alongside all the Bigger Pockets books and Rich Dad Poor Dad, so it's a safe bet that many people on this forum have read it.

Additionally, purchasing a duplex first and using the collected rent to pay down the mortgage quickly is how my father was able to buy his first few properties. It is a simple formula proven to work.

Since a small MFH (up to 4 units) qualifies for exactly the same kinds of financing as a SFH, it appears to me that starting in a SFH is a much slower path to financial independence.

Personally, my interests are vacation rentals and apartment housing. Beginning with the end in mind, MFH investing makes far more sense for me as it aligns perfectly with my long-term investing goals. 

Liz

Do I think 3rd Ward is a good prospect for "house hacking" for my personal family situation? No. Not even a little bit. 

Would I buy a MFR along the proposed route for the commuter rail and/or within walking distance of one of the colleges for the purpose of renting all the units to university students? Yes, definitely.

I would be sure to encapsulate that property in an LLC and insure it really well to protect my assets. Then, I would pay considerable attention to securing the property, install some seriously durable flooring and a fire sprinkler system. Of course in this scenario I would budget for a property management company to handle tenants for me.

The Purple and Blue lines of the Metro rail will eventually run through 3rd Ward. Here is a map of the proposed route so far.

http://transitmap.net/post/124154822087/future-hou...

Liz

P.S. I didn't intend to hijack the thread.

I think once the rail meets the University the 3rd Ward area will really start to bloom. From a strictly investment-for-potential-appreciation perspective, it looks like a really sound part of town to invest in. 

That being said, driving through 3rd Ward one may notice that there are far more easily observable drug dealers lurking on corners than most other parts of the inner-loop combined. It is also worth taking into consideration, that this neighborhood has been listed as the 15th most dangerous neighborhood in the U.S. (on a list compiled by the FBI) and is currently noted as an area to avoid by SmarterTravel.com.

 "Houston has two of the most dangerous neighborhoods in the U.S., according to the Houston Chronicle. ... The areas to avoid are Houston’s Third Ward neighborhood near the University of Houston and Sunnyside south of Downtown Houston. These areas have a very high crime rate, especially for violent crimes. Another neighborhood not listed in the Chronicle report is the Southwest side of Houston. There is gang related activity, especially at night."

Alternatively, here's an article from the Houston Chronicle about redevelopment in the district. It's a very informative read and paints a rosy picture for the future.

http://www.houstonchronicle.com/local/gray-matters...

I might consider moving to either the north or west edge of Third Ward (near the Museum District, Med Center, or Midtown) if a really stunning opportunity presents itself. For anyone looking to invest in the area, I think it is worth perusing the Houston SE Management District website and exploring their programs. http://houstonse.org/

Since my personal goals involve using at least one unit as a vacation rental, and adding another baby to my family in the next 2 years, it is highly unlikely I will begin my REI adventure by moving into 3rd Ward. The personal risk/reward potential for me is way too heavily skewed to the risk side.

There will always be another opportunity to make money. More importantly, I have never felt more vulnerable than when I was buckling a screaming newborn into a carseat, while running errands alone, still physically weakened and recovering from childbirth, with my wardrobe basically limited to stretchy clothes (impossible to conceal a weapon.) I this scenario my back was exposed, I was unarmed, and my hands were full with the most precious treasure on Earth. The treasure in this case happened to be struggling against being buckled in, which prevented me from finishing the task quickly, and screaming at the top of her lungs, giving away my position. You know where I really don't want to repeat this experience? In my driveway, every single time I get in or out of the car, in one of the most dangerous neighborhoods in the whole country. Sorry if this last part was TMI. 

Liz

I have the same goal. Move into a mutlifamily, rent out the rest. CityData is an excellent resource, but taking a drive around is better. I believe the highway construction in that area just wrapped up. My husband asked me to not even look along 290 because the freeway commute down 290 is awful and he hates the drive. It may be better now that the construction is done (I think), but I haven't looked since. I do have some friends who live out there, where Jersey Village meets Willowbrook, and they really like it. However, they both work from home.

Ikea also has cabinets. Delivery and installation are each optional add on services with purchase. Every so often they have a kitchen sale and shave a big chunk of the price off, too.

Hi Bigger Pockets community!

I currently do all my banking with USAA, but it has come to my attention that it would be wise to expand my banking horizons. From what I've read, I should begin building a relationship with a local credit union. My area has 62 local credit unions. What criteria should I sort them by? What kind of qualities should I be looking for in a bank? My immediate objective is to begin acquiring multifamily homes and small apartments. I am a total REI noob with an excellent credit score, but under $5k in liquid assets. Any insight y'all may offer will be appreciated.

Thanks, Liz