All Forum Posts by: Parker Smith

Great feedback thanks @Jarrod Weaver

@Beau Fannon Any areas you've seen more promise?

I have met several investors recently who have said they have had success in the Belton/ Temple area. Good price points that cash flow (versus the Round Rock/ Georgetown/ North Austin properties I have been looking at).

Wanted to see if there were any agents / professionals familiar with this area that may be able to provide some insight on the growth, jobs, general economic health of this area for real estate investing? 

I am an agent investor in Austin, TX and am looking to purchase small multi family properties about 2-3 hours away where the cash flow is better. Can I still get a commission/ represent myself on those properties if they aren't listed in my Austin MLS? Or would the easiest route be to contact a local agent in the city I am buying, and request referral fee? Thoughts?

Whats the most significant drop in rent you've ever seen when the market changes? What benchmark above break even do you typically use to give yourself a buffer on your buy and hold SFH or small multi family deals? (In other words, preparing to be able to breakeven if there is a 10% drop in rent? 20% drop in rent? or more?

@Greg H. what would you say is a safe estimate for Round Rock, Hutto, Georgetown?

I know there are many factors involved, but generally when analyzing rentals, what estimated amount do you input for the cost of insurance? This is the one operating expense that I just have no clue on. I've hear some folks pay as low as $80/ mo and other $220/ month on a 200-300k home.

Does anyone have any broker suggestions for an agent investor in the Austin area? I just got my license and would like to find a broker that is okay with part time agent investors doing less than 3 deals per year.

I am interested to hear from real-world investors on how much you budget for Capital Expenditures and Repairs into their single family, buy and hold rental properties. It's obviously very difficult to find cash flowing properties in this market and I'm curious about who follows Brandon Turner's advice on setting aside $180 per month for CapEx + $50 for repairs. I've also read HOLD by Gary Keller who recommends 3-6% of monthly rental income. (roughly $90 per month in my market) A huge difference from the $230.

My brother recently bought a 1.1 million dollar home in Austin Texas to personally live in by himself, in a multiple offer situation. The home sold in 4 days.

He has been in the home for 3 months and realized it is too big for his needs and is wondering how soon he can sell, and ideally breakeven on the selling costs. (which I believe are roughly 8-10%?) So theoretically we would like to list the home for 1.25 M either this summer or next. 

I know its hard to answer this without seeing a CMA of the property etc but is anyone familiar with this type of situation? Is the market hot enough right now to turn around and attempt to breakeven this soon after buying? Or will other agents see the turnaround time and not want to let their clients offer anything over 1.1?

Any help would be appreciated.