All Forum Posts by: Sanjay Aluri

Hi Irene - Im interested appreciate if you can add me to your list. - Sanjay

Hi All,

Appreciate response from experienced rental income investors. Im in the process of learning the basics of RE investing (im a beginner): wondering, why is a cap-rate important ? DO lenders seek this info, even if I go for a conventional loan, instead of seeking investor funds? As far as Im concerned for an individual investor shouldnt the simple math: return on initial capital outlay be enough? if i have positive cash-flow on my initial outlay, assuming property value is not volatile, shouldn't it be enough? how much I expect as an ROI is my problem, anyways isnt it?

Everything seems to be so cap-rate oriented not sure how should it make sense for me, it is anyway a hypothetical/speculative %. What matters is cash-out and cash-in, isnt it?

Jon, 

Very good insights thank you so much. I'm fine taking the leap but like you said in your email struggling to create right metrics for the 'investment box'. I'm trying to get my head around to understand what makes sense for now and for future (go fwd as well). I'm fine going for the leap but struggling to get to terms with cash-flow vs valuation (present & future - which may eat into the ROI because of high present valuations). For instance im looking at some properties in copperfiled area which are quoted at $125k but 1-2 years back they were valued at $84k, which sounds scary - 50% increase ! with such high rise in valuation I can only imagine them to fall from these levels. Thats the reason I was pointing to my thought - maybe the current owners are unable to mange the escalating taxes hence selling.

Nick - good to be connected. Sure lets catch up sometime. Im @ Riverstone subdiv. cusp of Sugar land and Missouri Ciy. Friday eve's work best for me.

Hi,

I'm a new member to BiggerPockets, joined with the intent to take benefit of collective wisdom and knowledge to build a rentals RE business. Im a beginner to RE investing and would highly appreciate your advice.

Tried reviewing few potential properties in HAR.com and find the steep increase in property appraisals between 2014 and 2015 (almost 26% in most cases for under $150k properties). Is the market overpriced? with the O&G industry under recession should the prices be under strain? Im also seeing the sale prices are also shown as 5-10% discounted too (still very high compared to 2014 appraisal). I'm wondering if the high tax appraisals one of the reasons people are willing to get rid of their rental assets? Im also seeing rental prices/month are also going down.

Would appreciate advice from experts on is this a good time for Houston investment or is it highly speculative right now. My thought is for rentals it is better to go for properties that are more or less stable in prices, isnt it?