All Forum Posts by: Andrew Allen

It will also void the title insurance in most cases.

@Jason Hirko just the home

Anyone invest in mobile homes? I have a lead for one in Dallas but don't really know anything about mobile homes. Looking to hand it off to someone who knows what to do with it. 

I don't think you can put 4 units on SF3. Only duplex, from my understanding.

@Mary M. @Lewis A Martinez , I don't think this is the best way to look at this. What Lewis paid for the house is a sunk cost...so don't use that to calculate IRR (or anything). Instead, think about the equity you have in the house right now. $80,000. What could it be doing for you if you put it into another asset?

Right now it's costing you $9k a year...but earning you roughly $9k a year in amortization.

So all your gains will mainly come down to appreciation (I'm ignoring depreciation)...like all real estate, that is by and large local. Austin prices just flatlined during the 2008 recession. I'm guessing since your house dropped so much in value maybe it's location doesn't have as good fundamentals (population growth, job diversity, etc.) ?? 

And remember, your returns will be levered. So if the house goes up 10% (or $24k), your return will actually be more like 30%...since that's your equity growing from $80k to $104k. (The opposite is true as well...if the house drops by 33% you'll lose all your equity...$80k). 

Hopefully that makes sense. 

I don't think there's a "list" or map of the different class areas. At least I haven't seen one. 

For the second question on doing the numbers, I'd do the analysis as if I weren't living in one side. Will the duplex cash flow if it has both sides rented out? 

Regarding the conflict between your kids' safety and your investment goals... just decide which one is more important to you.

I strongly disagree with the advice to "aggravate them so bad that they want to leave." What kind of way is that to treat people? The tenants aren't the ones that did anything wrong. Francisco is. He's either such a newb he doesn't know the basics of lease renewal, or he's a horrible landlord not even paying attention to his property and has no respect for contractual agreements. Either way your advice is just going to generate another landlord that the rest of society wants nothing to do with...and make the rest of us look bad. 

Bell County does it. 

I would do the analysis as if I weren't living there. Unfortunately for a $580k property, I know $3000 a month won't cash flow either.

A higher down payment will allow you to cash flow. It will have to be an enormous down payment though. 

I agree with the other suggestions about house hacking a duplex or quadplex. Regarding location, there are plenty of those to be found in NW Austin or even Cedar Park. Those areas will continue to grow with the huge tech companies up there, anchored by Apple's campus.