All Forum Posts by: Muhammad Rehan

Is it worth taking a chance on a house that is good looking, at a nice location etc. But it doesnt have a garage? That too in midwest side where winters can be harsh? Or should we stay away from such properties?

Quote from @Sean Gallagher:

Curious why you would target Texas?  Property taxes are pretty crazy. 

Already have 1 property in Texas, low entry price point, know various neighborhoods well, have enough friends network there. Also, many tech giants moving out of CA towards Texas. So high property taxes doesnt matter much as long as growth potential is there long term. 

Quote from @Charles Manabat:

i'm in the same predicament Muhammad. Based out of California and getting priced out on the markets i like here and i can't decide on which market to go with out of state... seems like a lot of people like Ohio but im looking into New Jersey, Texas, and Tennessee. Let me know what market you get into! Just curious

Based on my thinking (i may be wrong) with such high interest rates on investment loans, the only markets that can still generate positive cash flow are the ones which has the lowest property taxes + price combo. Texas has many properties that are under 300k but when i run the numbers, due to high property taxes, expenses are higher then estimated rent. So, my inclination is more towards low property tax markets.

Experts, I am looking for some pointers which areas to target for my 2nd rental property. I am based out of California.

$$ Range = max 250k

Down payment = max 25%

Goal = Positive cash flow

Below are the areas i have done some research on so far.

Fayetteville, NC 

Like the fact that there property taxes are low, hence the rental comps vs expenses (mortgage + property taxes + hoa + insurance etc) are kind of breakeven or slight positive cash flow is possible. Assuming 7.5% mortgage rate.

Pflugerville, TX

Property tax is high but austin suburbs seems to have potential of growth due to major techs moving in the area. Rental comps vs mortgage not quite giving positive cash flow with high rates.

I also have areas like memphis, columbus, oklahoma in mind but haven't done thorough research on these so far.

Can anyone advice what other areas (or best from the above list) to look for within my budget and goal in mind.

Appreciate any pointers and happy to connect with local agents/investors.