All Forum Posts by: Michael Bishop

I'm thinking about buying a foreclosure multi-unit in the Austin, TX area using an FHA 203(k) within the next year as a buy and hold property. Looking for some insight from those who have done similar deals or have knowledge on the matter:

- How do you find enough time to get contractors in to estimate repair costs before making an offer?

- I'm getting mixed info from different sources; does the loan automatically include a 10-20% contingency cost reserve or is it just an option?

- I know you have to occupy the residence for at least a year (correct?); are there any hoops to jump through once you decide to rent both/all units units?

- Did you use a consultant to help with the paperwork/closing process?

- Do FHA loans include a life long PMI?

- In your opinion, what are the cons of using an FHA loan for investment purchases? Pros?

- What are some problems that you've ran into during the course of such a deal?

- Austin area investors - any recommendations on lenders and/or contractors experienced in this type of deal?

If you have any more thoughts on the subject, please chime in. Looking to get a wide array of opinions/experiences to best help me understand what I'm getting in to should I decide to go this route.

@John Mathewson, great job! That's definitely an interesting property and turned out looking really sharp. I grew up in Crown Point, and my interest in REI started when I moved to Austin in 2014. Since then I've been pretty curious what the market is like up in the region. Mind sharing your numbers on this one?

Hi All,

I'd like to hear some of y'alls thoughts on the outlook of Manor as a buy and hold market. With Austin and surrounding areas (Round Rock, Pflugerville, etc) filling up and becoming more and more expensive, I see opportunity for cash flow and particularly appreciation in Manor with the relatively lower purchase prices.

There are a lot of development plans for Manor in the works (new elementary school, gas stations, fast food restaurants, park/road improvements, etc). In your experience, in what ways/how quickly do these things affect a rental market?

Any thoughts are welcome, just looking to open up discussion!

With this rule, when you subtract mortgage from 50%, what exactly is meant by "mortgage?" Some comments have mentioned the other 50% (expenses) including taxes, insurance, etc. I'm a bit confused given that a typical mortgage including principal, interest, taxes and insurance. Are we to subtract principal and interest from 50%? The entire mortgage from 50%? If the ladder were the case, wouldn't we then be counting taxes and insurance twice? Any info helps!

Thanks for the input, everyone. I'm trying to consider all factors - appearance, renters preference, price, durability, etc. Your opinions will surely help me in making a decision.

Hi Evan,

Kassidy Hulen with Austin Luxury Realty is great. She's a fairly new realtor but she's very high energy, easy to work with and eager to help her clients fill their needs. Not to mention her support at Austin Luxury Realty is amazing. You can find her email on their website - http://www.austinluxuryrealty.com/agents.php

Happy hunting,

Mike Bishop

Hello All,

I hope everyone is having an awesome and productive Sunday!

From your experience, what type of flooring do renters prefer in bedrooms? Carpet? Laminate? Others?

Curious to see everyone's opinion as I look to do some upgrades.

Thanks!

Mike Bishop