All Forum Posts by: Matt Stricklen
Matt Stricklen has started 39 posts and replied 217 times.
Post: Networking in San Antonio
- Investor
- Austin TX
- Posts 224
- Votes 152
@Gail Campion: Welcome to BP.
Post: Austinites - Let's talk real estate
- Investor
- Austin TX
- Posts 224
- Votes 152
Post: Buy and Hold in Austin?
- Investor
- Austin TX
- Posts 224
- Votes 152
What I needed were so.e sample numbers to clarify your previous post. Thanks very much for giving a helpful sample.
Post: Buy and Hold in Austin?
- Investor
- Austin TX
- Posts 224
- Votes 152
Ok Dan, I'm with you on the long term appreciation play, but help me understand what your rental numbers look like on a BRRR. if you are pulling out as much of the LTV as you can (defining element of a BRRR) is your rent collection covering the PITI? We have the luxury of rarely, if ever worrying about vacancy in Austin, but I'd still be remiss not to budget for things like the world getting turned upside down by a pandemic. Are you building reserves for cap ex? How are you managing Austin's ever inflating property taxes? How long do you tolerate the cash flow situation you describe while hoping to avoid any big problems waiting on the appreciation to offset your thin or in the red rentals?
matt
Originally posted by @Dan Burstain:
...I love Austin and have bought 5 BRRR's in the last two years for myself ...The play in Austin is to ride its 40 years of constant appreciation. I believe Austin is one of the best places to invest in the country .. I don't invest to solely maximize cash flow. I am into return on investment, forgoing some positive cash flow for the appreciation piece that in many areas is icing on the cake
Post: Buy and Hold in Austin?
- Investor
- Austin TX
- Posts 224
- Votes 152
Ok Dan, I'm with you on the long term appreciation play, but help me understand what your rental numbers look like on a BRRR. if you are pulling out as much of the LTV as you can (defining element of a BRRR) is your rent collection covering the PITI? We have the luxury of rarely, if ever worrying about vacancy in Austin, but I'd still be remiss not to budget for things like the world getting turned upside down by a pandemic. Are you building reserves for cap ex? How are you managing Austin's ever inflating property taxes? How long do you tolerate the cash flow situation you describe while hoping to avoid any big problems waiting on the appreciation to offset your thin or in the red rentals?
matt
Originally posted by @Dan Burstain:
...I love Austin and have bought 5 BRRR's in the last two years for myself ...The play in Austin is to ride its 40 years of constant appreciation. I believe Austin is one of the best places to invest in the country .. I don't invest to solely maximize cash flow. I am into return on investment, forgoing some positive cash flow for the appreciation piece that in many areas is icing on the cake
Post: Austinites - Let's talk real estate
- Investor
- Austin TX
- Posts 224
- Votes 152
Certainly no expert, but definitely still looking. I know a lot of people in Austin are taking a hit right now. Cancelling SXSW in and of itself was a major blow. Everything else on top of that has got to be a tsunami for earniers in Austin and I hope we will help to get everyone through it.
Still, it will be temporary. It feels like we pressed the pause button on the entire economy. when the dust settles, I think Austin will bounce back quickly. Who disagrees?
Do you guys foresee a drop in Real Estate prices? Right before the quarantine, a house in my neighborhood got multiple offers at what I felt was a high price. Since the quarantine, another has listed quite a bit lower, but still an Austin kind of price. They are offering video tours for potential buyers.
As an owner, of course I don't want a pause in appreciation, but as a buyer, a pause in price escalation might be a good thing.
Does anyone think that out of town investors might pull back a little? That wouldn't hurt my feelings at all.
Hope everyone is healthy and safe.
Post: Why Do You Invest in Austin? (Testimonial for BP!)
- Investor
- Austin TX
- Posts 224
- Votes 152
@David Chappell:
If you find something for 120k please let the rest of us know. Maybe partners would be helpful to stretch your capital, if sharing the returns works out in the math.
Post: Why Do You Invest in Austin? (Testimonial for BP!)
- Investor
- Austin TX
- Posts 224
- Votes 152
all that was great and then came the simplest, yet comprehensive answer. Tacos.
Post: Marketing to Divorcing Couples
- Investor
- Austin TX
- Posts 224
- Votes 152
Post: Foundation repair- long term effect on price?
- Investor
- Austin TX
- Posts 224
- Votes 152
I'm looking at a possibly undervalued SFH that's had a recent foundation repair. Warranty work transferrable to new owner. It seems to be scaring buyers off though. I'm still gathering info- to include whether it's been looked at by a structural engineer.
Hypothetically, if the repair is sound and long lasting, my question is: should I expect this history would depress the price 10plus years out, or can I buy and hold expecting that the value/ price will keep up with comps ? Or is it too big a gamble? Any insight from those with relevant experience is greatly appreciated.