All Forum Posts by: Shaun Morgan

I'm no expert, you should definitely get @Matt Moreland to weigh in. But my view on Lubbock is that Job Growth is steady because of the university here. But on top of that, with the massive demographic shift going on out of more densely populated areas, especially since COVID, I've seen a good amount of growth and I think people are going to keep doing that. That is just my thought.

Crime rates are high is certain areas, but not in others. You just have to know where you are investing in Lubbock and adjust accordingly. You have two options, invest in the higher crime areas with poor school systems and probably rely heavily on section 8 housing for cash flow, but not get appreciation, or invest in the nicer areas with a bit more capital going in and appreciation. Generally speaking the western side of Lubbock is nicer than the Eastern side, but that is a wide over simplification.
I decided to invest here because of cheaper houses compared to other markets (like Utah where you're coming from or Colorado where I came from) and nice cash flow. If you're in it for appreciation other markets are probably better for that, but cash flow is king over here. In my opinion.

Originally posted by @Brandon Pace:

I'm considering building a new SFH in Lubbock For a long term buy and hold. 3 bed 2 bath. I'm trying to get to know the market.

Would you mind sharing with me why you have decided to invest specifically in Lubbock.

Job Growth: I've heard that healthcare jobs are growing. An important part of economy is Texas Tech. What job growth drivers do you see over the next few years?

Crime Rate: I'm a little concerned in what I’ve heard that crime (burglary) is common. What do you know about the crime rate?

Population growth: what do you know about migration and organic population growth in Lubbock?

School Ratings: How are the school ratings?

Appreciation: How do you see real estate appreciating in the next 5-10 years?

3 Votes

@Michael Mendez A "Payneless" experience you might say? hahaha.

Sorry I couldn't help it.

I'd love to connect sometime. Do you attend the Lubbock REIA meetings? I've been considering Lubbock National Bank too. Do you do personal banking there as well or just business? I'm not happy with my personal bank right now.

2 Votes

Hi Dan,

Glad you’re here. I’m just starting out in Lubbock as well. So I’m interested in these answers too. @Matt Moreland is a great resource here.

Shaun

2 Votes

Originally posted by @Johnny Paramo:

@Shaun Morgan

These are rough numbers but taxes are $2298 and insurance is $1500 per year. I am planning to put the lowest down payment possible so I am verifying with the lenders. One is saying the minimum is 15% down payment.

On the rental calculator it is saying my expenses per month are around $1300 if I plugged in everything correctly.

Then that is even better than I originally estimated. Like I said, living for less is the point of house hacking, so that is a win. I assume you'll have PMI until you reach 20% equity, but as long as you're living for cheap and getting into a good investment then I'd say that looks good. Dropping the PMI at 20% equity will just be gravy. Once you move out, if rent stays the same, you'll be cash flowing somewhere around $500 a month, minus capital expenditures, vacancy etc. you'll probably be sitting at $2-300 a month in real cashflow. That sounds like a deal to me.

0 Votes

Your numbers are incomplete. Don't forget about Taxes and Insurance when calculating. Especially in West Texas where insurance and taxes are rather high (nearly half of my monthly mortgage is taxes and insurance).

Also, are you putting 20% down or are you going FHA? If FHA you'll have PMI to consider.

Lastly, remember that if in the end your housing cost is less than it would be otherwise, your house hack is a win.

Based on my currently loan I don't think your PITI will be over $1000 per month. So maybe $1400 with your HOA. That means you'll be living for about $500 per month at most. That seems like a good deal to me, but those are very rough back of the napkin numbers. Consider running it through the BP calculator to get a better idea.

0 Votes

Hey I'm partnering with someone for my first deal (I'm way excited) and I'm wondering if we need to create an officially recognized partnership that is registered with the SOS to do that or if we just sign a contract stating how we'll operate and share profits etc. Thanks

0 Votes

Hey everyone, I am looking at a deal that another investor is selling because he didn’t have the cash to complete the rehab. I could either do one of the three houses by myself or I could partner with him to do all three. I’m leaning towards the partnership but I’be never partnered before. What should I look out for? What “I”s should I dot and what “T”s should I cross, etc.? Thanks

0 Votes

I’m just wondering if you had the ideal 25k that is so hard to get that Scott Trench talks about in Set for Life, what would you do with it?

1 Vote

All Forum Posts by: Shaun Morgan

Shaun Morgan has started 14 posts and replied 52 times.

Post: Made a Rookie Mistake

Post: Lubbock, Texas Multifamily

Post: New investor in Lubbock, TX

Post: New investor in Lubbock, TX

Post: New investor in Lubbock, TX

Post: First time investing tips and help!!

Post: First time investing tips and help!!

Post: Do I register a partnership to do a deal with someone?

Post: Partnership pitfalls to look out for

Post: What would you do with 25K