All Forum Posts by: Joe Scaparra

@Kelly Stanton, you have given more info than your original post.

Yes you can get your taxes lowered at least for one year.  Protest your taxes this year.  Have your closing statement showing what you paid for the house.  You probably won't need pictures to justify your cost but have them just in case.  

Don't be over zealous and tell them all the improvements you have done.  Your taxes this year is based on the property 31 December 2023.  But since you were past the deadline for protesting they should give you the valuation that you purchased the property.  Usually without any hesitation.

However, be ready for the valuation to jump back up the following year as you will have to prove next year that the house is not worth what they will adjust the property value.  Their software does NOT look at your individual house but they price it by the subdivision/street and adjust for various items, like square footage, permitted improvements ect.  If it is not homesteaded it can jump up as much as they like.  If you have it homesteaded they cannot jump your property up more than 10% from previous year.  Good luck.

@Shwetha Pindikuri Hello Newbie wannabe passive INVESTOR.  

Got your attention.  Ok if you want to be an INVESTOR, you need to start THINKING how an investor thinks.  Since I don't know much about you and since you have not utilized your profile that might've given me some insight to you, your goals, and experience, I am going to have to make some assumptions.

1.  Obvious your new to investing

2.  Goal is Cash Flow over Appreciation (if not I can easily explain why it should)

3.  Limited $$$ to start.

4.  Single or married with one child or less.

5.  Currently renting now.

Realize you live in Texas, not California.   In California most investors HAVE TO INVEST for APPRECIATION.  They don't have the option to invest for Cash Flow, like you do in TEXAS.  Now, Austin is now becoming California, but if you live here and are renting then you have better options as an owner occupant, than as a pure investor in Austin.

If my Assumptions are fairly accurate, then listen up, if not disregard.

Buying a new built house in Austin on limited funds, hoping to sell it in two years so that you can make a tax-free profit, is NOT A GOOD STRATEGY!

Most people who KNOW me already know what I am about to tell you.  But since you don't know me here we go.

Consider buying your first INVESTMENT property.......A DUPLEX.  It can serve two purposes, provide a roof over your head and still provide some income to OFFSET your LARGE MORTGAGE payment, since you are considering putting 5% down.  Becoming an investor involves developing your buying strategy/skills AND learning how to manage your investment (property management). 

Living in a duplex will help you learn how to do both, buying and managing. Buying a duplex will give you more options several years down the road. Should you need to move, you simply rent out your side and with the hope of any rental appreciation you have a good chance that you might be breaking even or slight profit. However, buying a house and having to leave in a couple years will either force you to sale or take on negative cash flow because a SFH will not cash flow positive by putting 5%. With a duplex, you can do STR, MTR, or long term rental on the unit you don't occupy and those options might give you a substantial boost in CASH FLOW.

Yeah living in that duplex might not be as nice as that newly constructed SFH but the VERY small sacrifice now will pay HUGE dividend down the road. Investors are usually willing to let lifestyle living take a back seat while they begin their investment journey so that in the not to distant future they can be living the life style they desire with less stress.

If you want some more of my hard hitting advice, hit me up with a DM and we can do coffee.  

BTW, I'm neither a real estate agent, nor lender, just an O'ld Fart who loves discussing real estate.  Cheers!

@Benjamin P. First and foremost do NOT pay for any training or Mentorship!!!!!!!

Go to meet ups meet a grey old person who has experience and ask to buy him a cup of coffee or lunch and establish a relationship.  

I mentor a few in Austin and I love to share my knowledge.

For starters forget about buying HOMES.  Think small multi-family that cash flows.  I like duplexes they seem to do well.  Think CASH FLOW is KING!  Cheers!

 

Quote from @Bond Dan:

Quote from @Joe Scaparra:

@Bond Dan, I would say welcome to BP but as I look up at your profile, I see you joined in 2017.

You should utilize your profile page.  Update it with your goals, desires and maybe your Why as it relates to real estate.  That will go a long way in getting good advice from investors.  My advice to you might vary if you are currently renting vs owning now.  Whether you have a family or not, and whether your seek appreciation over cash flow.  

I see you are in Round Rock.  I have several duplexes in Round Rock as well as several more properties throughout the Austin Metro.  If you are interesting in getting some more information about investing hit me up with a DM and I will give you my contact information.  Cheers.  Joe

Thanks @Joe Scaparra. Yah, as you can see i created the profile back in 2017 ,but the fear of losing money ( meaning unable to rent the property if i buy etc..)  kept me off real-estate investment . Now, i am motivated to take the next step of learning on ideally "single family rental home investments" with a long-term rental view to help me with financial freedom , still have the fear of "what-if i am unable to rent the property i buy" and hence looking for more guidance around "how to invest in rental properties mainly single family homes " in general :) . I will hit you up via DM as well. Thank you 

@Bond Dan, I don't understand the affection for SFH. In your situation, I would recommend against a SFH!!!!!!!!! A duplex will server your needs so much better!!!!!!!!!!!!!!!!!!

I understand your fear of finding a renter but if you invest in duplexes that is the least of your risk.  I have 19 rentals and it NEVER crosses my mind "Can I find a Renter".   I sent you a message, call be lets discuss.  Joe

@Bond Dan, I would say welcome to BP but as I look up at your profile, I see you joined in 2017.

You should utilize your profile page.  Update it with your goals, desires and maybe your Why as it relates to real estate.  That will go a long way in getting good advice from investors.  My advice to you might vary if you are currently renting vs owning now.  Whether you have a family or not, and whether your seek appreciation over cash flow.  

I see you are in Round Rock.  I have several duplexes in Round Rock as well as several more properties throughout the Austin Metro.  If you are interesting in getting some more information about investing hit me up with a DM and I will give you my contact information.  Cheers.  Joe

Hi Madison, I'm going to give you a different answer than what you have received so far.  Franklin Park area TO ME looks fine to be an investor.  My perspective for Austin is that All AREAS are good, it is just some might be better than others today but maybe not tomorrow.  Prices have gone up so much in the last 5 years that the lower income cannot afford to even live in Austin.  Bad neighborhoods are becoming GREAT investor neighborhood especially east of HWY 35.  

My advice is go where the NUMBERS work as first priority.  School quality is NOT IMPORTANT!!!!
Tenants renting a duplex care not about the quality of the school and if you don't have school age children a DUPLEX is ABSOLUTELY the BEST TYPE property for someone who does NOT WANT TO RENT and/or a FIRST TIME buyer!  

Now what do I know?  I may not have the experience others have on here; I only have 20 years investing in duplexes.  I have never sold one yet and my cash flow is crazy good.  

Now if you instead are not concerned about building wealth and you want to live for today and forget about tomorrow then forget my advice.  However, this is an investor's website and most people are seeking Financial independence........not necessarily their dream home on this website.

I'm also an old fart 68 years young, not a realtor or a lender.  Just an investor who loves to talk real estate.  If you want to discuss further, hit me up with a DM.  Cheers!

Quote from @Suvarna G.:

Thanks Joe.  Good points.  
In answer to your questions, investing to be have passive income.  Austin has been a tricky market in the last two years with predictions of decreasing (or not growing) prop value.  
I don't have a better opportunity (better return) but should one come by I want to be thinking ahead.

A couple of things:  Passive income is a desire (not even a goal because it is too broad) but needs to be linked to a WHY.  For example:  I want to develop a strong passive income stream to:  (this is a why) so that I can not rely on a 9-5 job and have the FREEDOM of TIME to: (TRAVEL, Spend more time with Family, concentrate on a hobby, volunteer with a NON-Profit, develop a business ect). 

Second point:  Looking for a better opportunity is fine; there is always going to be a POSSIBLE better alternative, However think in terms of WHAT is better ( it is not always return).  I have a great wife but I hope to find a better one!?  No!  What makes a better one!?

Find your strategy that you can build confidence and boldness needed to become GREAT!  I am a duplex investor.  People ask me why don't I upgrade to buying individual apartment complexes.  I could do that but I am content with duplex investing.  I am confident, knowledgeable  and highly successful with small multi-family and I have achieved my Goal and my WHY!  Moving to Apartments probably would be successful but it involves more risk and uncertainty that I don't need because I have the game won now.  

Now don't get me wrong:  If your goal is more audacious like I want to build a 100 million dollar real estate company and I am starting out with a SFH but my vision is so much grander then you should absolutely be looking for better opportunities.

For us more simple minded investors, my advice: choose a strategy you like (feel comfortable) and perfect it!!!!  Cookie cutter approach worked great for me. I am a much better investor, property manager, acquiring repairmen, assessing properties than I was 10 years ago.  This gives me more confidence which translates to being bolder and more successful.  I feel that way with small-multifamily but would have to put more effort if I was to shift strategy.  More effort is not a problem at age 35 but I am 68 and have no desire to put in more effort........at 68 I don't want or need to make more money, I want the FREEDOM of TIME to do what, when and where I want.  My focus now is ease of management;  prioritized over making MORE money!

You may not be there now but you will someday!!!  My bottom line is if something is working for you now, perfect it, build more confidence, develop your strategy and then go KILL IT!  Cheers.

I have been investing in the Assist area for 19 years.  I have never sold any of my properties and I have never lowered rents.  Life is good and Austin remains hot for a rental market.  People from all around the country are coming to Austin to invest. If your Cash Flow positive now then it should only get better from here.  Cheers.

Quote from @Suvarna G.:

Wondering if it is time to sell or keep.  I am cash positive but thinking if time to move to different markets.

 Are you investing just to invest? Do you have a plan or strategy; and then I ask you Why?

Are you after more money?  What is your why?  Are we trying to make more money for money sake?

Really, what is your goal, time frame and WHY?  This will determine which action to take.

If you are cash flow positive in this market, that is a really good thing!  Are you comfortable with your investment, location and tenant quality?  If your consider moving to something else how are these items going to fare? 

Don't make a move, just to make a move.  Be intentional, develop a strategy that supports your goal and a goal that supports your WHY!   Your goal stands on top.  The Why is the motivation to keep pursuing the goal and the strategy(ies) are the steps to accomplish your goals.

If over time you realize a better strategy to get to your goal then it may be time to make a change.  However, don't let money be the driving factor.  Making more money at what cost.  Selling, buying, relocating, finding new team to work with all take increase effort and uncertainty.   

Only you can make the determination.  But if you have found the fountain of youth, why look for another..............unless the fountain you found has flaws that warrant looking again.  Cheers.

Quote from @Steve Thuan Ho:

Dear Bigger pocket forum,

Can you help to estimate this deal for me.

House location: https://www.redfin.com/TX/Pflugerville/13900-Greinert-Dr-786...

Zillow estimate

https://www.zillow.com/homedetails/14000-The-Lakes-Blvd-UNIT...

My Question is: should I buy this deal? Does this property profitable?

It near the job places so I think It is easy to rent.

Please help.

Thank you

 Come on Dude, garbage in, garbage out.  Give us more information@@@!!!!!!

Start off with your stated GOAL for this Property.  Cash flow, Appreciation, what's the focus?

What's the strategy you are shooting for. House hack? STR, MTR or LTR???????

If you plan on cash flow as your objective:  How much are you planning on putting down and what interest rate can you get??????????????

Are you going to be the Property Manager????????

What is your experience with INVESTMENT REAL ESTATE!

Is there a REASON you are considering SFH over small multi-family@@@@!!!!!!

I could go on but ALL these questions SHOULD be impactful on any decision you are trying to MAKE!

Yes I am a little bold, so don't take it personally please, I'm just trying to help you get focused.

Cheers!