All Forum Posts by: Allan Mugu

Anyone have a painter they can recommend in Northwest Houston?

Thanks

@Antonio Denmark @J Benoit Thanks for the feedback. I've also heard mixed reviews on Section 8. Glad its working out for you.

Btw, I lived in Birmingham for 9 years (Homewood, Hoover) before moving to Houston. What areas are you investing in Birmingham?

Anyone have experience in renting to Section 8 tenants in Mobile Alabama? I've heard you can purchase properties in $20K - $40K range and rent for about $800. Cashflow sounds good but don't know if it's worth the hassle especially if you are an out of state investor.

Lyall and Andree, thanks for the referrals!

I have a property in Northwest Houston that I need to repair baseboard and crack on outside concrete wall. Any recommendations on a good handyman?

Thanks!

Thanks guys for taking the time to respond. We decided to pass on the deal and keep looking. Eric Tait I'll definitely look into using HML for our next deal.

ARV is probably $110k best case $115k. Thanks!

My wife and I are contemplating on whether we should proceed with a contract we have on a house that would be our first investment rental property. Would love to know other investors thoughts on whether they would proceed with the deal or pass.

Here is some background and rental analysis for the property.
- Located in a good rental neighborhood in Houston. Estimating rents $1200 - $1250

- Listed for $95K; seller received 2 full price offers within the first week of listing. Ours was the third. Seller accepted first but that buyer backed out in inspection period since all the plumbing to be replaced. Second buyer had already moved on. Seller accepted our offer and agreed to replace all plumbing for $5650 (now completed); work included replacing electric water heater, new toilet, faucet, etc.

- Seller also agreed to replace roof for about $8500.

- Other than those two items house is in good rental condition: new carpet, new appliances, granite in kitchen. Estimating we'd spend $3000 - $5000 to replace garage door, minor sheetrock patching where plumbing work was done, blinds, some paint, clean up, replace electric box, etc.

Here are the numbers I ran using JScott's SFH Rental analysis spreadsheet. Thanks JScott!

Cost Assumptions
- Purchase Price $95K, Improvements/Rehab $5K, Closing Costs $4750

Financing Assumptions
- Down payment 20%, Interest rate 4.3%, Mortgage 30 yrs, Mortgage PMT $374, Cash Outlay $28750

Expenses:
- Monthly rent $1200, Vacancy rate 8.3%, Property Taxes $2418, Variable Cost PM 13% (includes leasing fee), HOA $200, Insurance $800, Maintenance $720 (annual).

Cash Flow and ROI
- Annual Cash flow $2850, Cash ROI 9.95%, Total ROI 14.40%

Is it really worth it to proceed with a deal that provides 9.95% COC and $238 monthly cash flow? Or should we sit tight and wait till we can get a deal that meets our goal for 15% COC and $300 - $400 monthly cash flow?

Thanks all in advance!

Welcome Todd! Nice having another Houston investor on BP. I'm a new investor in Houston getting started in buying rental properties. All the best.

Hi Gary - I think this is the newsletter you are referring to
[URL]http://www.biggerpockets.com/news/news4-4-13.html?utm_source=BiggerPockets+Newsletter&utm_campaign=39b9975f4f-April_4_2013_Newsletter&utm_medium=email[\URL]