All Forum Posts by: Michael Thomasson

Thank you all for welcoming me. I really appreciate the info specific to Corpus Christi. I have reworked my numbers and found how to produce greater cash flow at the same property, vice appreciation (thank you!). I am curious, where does the 1.3 percent rule for multi family properties come from? Are there unusual expenses associated with multi family properties that require a buffer above the 1 percent rule? I was planning between 1.15 and 1.2 already. Thank you, Mike

Hi, I have been reading up on real estate and listening to podcasts for about a year now and think it's time to take the first step towards real estate investing. I am moving to Corpus Christi in February and am working with a realtor. I am currently looking at a duplex for 290k on North Padre Island. I am sure I could get 1650 to 1800 per side to generate cash flow, but insurance costs in the area would add about 7000 dollars a year to operating expenses, greatly limiting returns. I plan to hold the property for several years if I purchase, and let appreciation do most of the work. Should I go for this property, or keep looking? Anyone with particular experience in Corpus Christi or in coastal water properties with high insurance costs, how did you account for those ever increasing costs and was it successful? Thank you, -Mike