All Forum Posts by: Michael K.

Congrats, it's a beautiful looking finished product. I'd be curious to see what it looked like before the flip.

I copied and pasted my response from a previous thread regarding the Dallas/DFW REIA:

My experience might not be the most accurate based on me only attending 1 meeting for each group but here they are:

DFW REIA - I attended a seminar with a "complimentary" ticket about 7 months ago and the host/owner of the REIA pretty much turned it over to her husband who was pushing for everyone to sign up for the $100-$200ish weekend class where they would actually teach about RE investing. On top of the weekend class to "really" learn a thing or two instead of wasting your valuable time like at the meeting I was attending, they then were pitching their exclusive next tier program where you and 15-or-so others could have the distinct "privilege" of having breakfast/brunch with them and be able to talk with them for the low price of $500 or so...THEN there was their "top dog" program where you and a select few could have the great honor of becoming their padawan after you took out a 2nd mortgage on you (or your parents) house to pay $20K (or was it $50K?) for that honor. Of course you would be selling 100's of properties a minute and pulling in a large enough income to single-handedly pay off the entire US deficit afterwards, so you'd have paid off your (or your parent's) 2nd mortgage and be living in a mansion on one of your estates on the French Riviera and across the globe. Oh, and you could get complimentary food/drink IF you showed you left a positive web review of them.

NTAREI - I attended a meeting I paid $25 for as a guest with non-membership. The host was a folksy non-flashy type in stark contrast to those of the DFW REIA -who claim to be personal buddies with Trump btw, take note - and had the guests give their informative presentations. Part of the meeting was allotted to members recounting success stories and not-as-successful, though important, learning experiences - which as you should know by now the DFW REIA owners/hosts have never had to face since they only know how to win. Oh, and there was food/drink available without showing proof of positive internet review, but hey, I paid $25 bucks! :P

I'd like to go back to a NTAREI group meeting but I now work in downtown Fort Worth and I think the meetings are all held in Dallas...

Again, my experiences could be skewed based on the insufficient sample size but my gut is telling me otherwise. Anyone else have group recommendations for Fort Worth?

Regards,

Mike K.

Awesome, thanks for the group recommendations @Ryan Blake, I will make plans to attend!

My experience might not be the most accurate based on me only attending 1 meeting for each group but here they are:

DFW REIA - I attended a seminar with a "complimentary" ticket about 7 months ago and the host/owner of the REIA pretty much turned it over to her husband who was pushing for everyone to sign up for the $100-$200ish weekend class where they would actually teach about RE investing. On top of the weekend class to "really" learn a thing or two instead of wasting your valuable time like at the meeting I was attending, they then were pitching their exclusive next tier program where you and 15-or-so others could have the distinct "privilege" of having breakfast/brunch with them and be able to talk with them for the low price of $500...THEN there was their "top dog" program where you and a select few could have the great honor of becoming their padawan after you took out a 2nd mortgage on you or your parents house to pay $50k for that honor. Of course you would be selling 100's of properties a minute and pulling in a large enough income to single handedly pay off the entire US deficit afterwards so you'd have paid off your (or your parent's) 2nd mortgage and be living in a mansion on one of your estates on the French Riviera and across the globe. Oh, and you could get complimentary food/drink if you showed you left a positive web review of them.

NTAREI - I attended a meeting I paid $25 for as a guest with non-membership. The host was a folksy non-flashy type in stark contrast to those of the DFW REIA -who claim to be personal buddies with Trump btw, take note - and had the guests give their informative presentations. Part of the meeting was allotted to members recounting success stories and not-as-successful, though important, learning experiences - which as you should know by now the DFW REIA owners/hosts have never had to face since they only know how to win. Oh, and there was food/drink available without showing proof of positive internet review, but hey, I paid $25 bucks! :P

I'd like to go back to a NTAREI group meeting but I now work in downtown Fort Worth and I think the meetings are all held in Dallas...

Again, my experiences could be skewed based on the insufficient sample size but my gut is telling me otherwise.  Anyone else have group recommendations for Fort Worth?

Regards,

Mike K.

Originally posted by @Stephanie P.:

Originally posted by @Michael K.:

Originally posted by @Jason Ray Richardson:

Originally posted by @Michael K.:

I'd prefer to stay near the Fort Worth area since I work in downtown. What is this house hack you speak of? Renting out rooms?

 House hacking is where you buy a du, tri, or quad plex and you live in one of them while renting out the others.

Ok, then house hacking was what I meant as my initial strategy when saying I was intending to go the owner-occupied 2-4 multifamily route via FHA.

 Here's one from a quick internet search.  Not sure where you work, but this price point is the max I'd go for a rental.  At 4.5%, principal and interest would be $2913.  Add taxes and insurance to it, and don't forget .85 MI monthly and you're looking around 3K for a monthly payment.  What would the property bring in for rent on one unit while you live in the other?  What would both units bring next year?  What would it cash flow?

  https://www.realtor.com/realestateandhomes-detail/...

After doing some number crunching assuming the following:

5% down payment

5% interest rate

0.9% annual PMI payment

2.6% annual property taxes based on sale value

$480/month property insurance (1% of sale value ÷ 12)

Total estimaestimated PITI = $5,123

Rents assumed at $1750/ month for each unit based on the rental ad they have for 1 unit.

Monthly Cash flow if BOTH units were leased after only subtracting PITI is estimated at $(1,623). Annualizing everything and assuming just $480 in yard maintenance yields an estimated NOI of $(11,737) which would give a CAP rate of -2%. Based on those assumptions it would take a down payment of 39.5%, or $226K, to have break even NOI.

Am I missing something major in my estimates/analysis or is this marketed purely as a "buy for appreciation cash flow be damned" investment ? I have to have screwed up with my numbers somewhere...

@Bart H. thanks for the input Bart and a thought provoking scenario. Just curious, does anyone know/remember roughly what price adjustment percentage the DFW market experienced as a correction during the aftermath of the financial crisis and into the Great Recession?

Originally posted by @Jim K.:

@Michael K.

As God is my witness, I'll never be cubicled again.

May you lie in greener pastures...go forth and be free!

@Jim K. that's pretty much what I was trying to show, there are differing kinds of hard work from different perspectives. Lol, nice descriptions. It seems like you've been in both trenches.

@Jim Cummings you are correct, however I have heard it been said by a former CEO of Wells Fargo (not Stumpf) that housing prices are somewhat inversely related to interest rates, when rates rise prices seem to decline since people are chasing a monthly payment.

@Dylan Mejo yeah, you're right. On another note regarding"stealth wealth", how do you go about accomplishing that if you intend on house hacking in a 2-4 multifamily and your tenants are your neighbors?