All Forum Posts by: Stanley Ezeadi

Been there done that! If you’re buying a 1920s-1950s build expect a 60k rehab if you plan on gutting it minimum. If you get the wrong contractor though 60k turns into 150k rather quickly.

As for your options if you’re by the University. I would try to keep it since you’re already this deep in. There may be some value even renting it short term. 

As for the rehab remaining. 45k sounds like a lot. You may need to do some cuts and not make the property as nice as you’d like. 

I bought my first full gut property by UH 2  years ago and estimated 45k for the rehab. We finished at 101k after all the change orders tagged on. At the end I ended up firing them cause they just stopped coming to work. Hired my own crew/subbed it out. And even had to get my hands dirty to drag the property to the finish line. In the end it appraised for 30k more than I expected it to due to the market riding up (definitely got a little lucky) and I brought 10k to closing to keep the property. It was a tough 9 months! But we ended up liquidating an underperforming rental a few months later and that more than covered the expensive lesson learned. In the short term it may look like a loss. But if you can hold the grass may be greener on the other side…long term. 

Hey Daniel!

Most of Houston’s multi family is in the inner loop/inside 610 or close to it. If the price point or safety in these area aren’t ideal for your situation, I would look into purchasing a larger single family home that you can rent out spare bedrooms. 

Getting living costs close to $0 using a house hack is always a good idea. 

I did something similar after my first post here at BP. Bought a dumpy house near Sharpstown after posting for help on here about 2 years ago.I bought my first house for 189k I sold that house this year for 375k and learned a lot lol.

Now I still try to replicate this live in flip/house hack scenario every 2 years.(For Tax purposes) I have one here in the Stafford area that I plan on exiting this year same numbers.

Now as far as what your client would like to do with that chunk of change is up to them and there goals but also know people change and life changes. I started investing in somewhat suburbia, but now I’m super focused on buying inner loop properties with land. I picked up 2 last year and will probably focus my portfolio in these areas as I see the path of progress here. Putting that money to work now and buying some more cashflow whether multi or single family with a long term mindset is what I would do. Fix and Flips are cool but not for everyone. Most people will win long term.

Several online websites you can use to post your add for potential tenants for your Househack. Facebook and Spareroom are my top 2. Same rules apply though, make sure you run a credit check and background check

@Michelle Garcia negotiate or ask. Definitely harder to do in this market for sure, but not impossible.

I would first figure out what kind of deal you are looking for. Be specific, reasonable and think long terms. Also make sure it cash flows. I’m still a rookie but here are the results of my first 2 deals.

Jan 2020- Bought 1st Househack $189k (paid asking and did low down loan) current value 250k (forced appreciation/value add+ Crazy appreciation) Cashflow $800 I rent this one by room but will actually be turning it into a full time rental and will be refi-ing.

Feb 2021- Bought 2nd Househack Original list price 220k, actual purchase price 187.6k + seller paid closing. I rented the rooms on this one as well and lived in the master. Area got hot, brand new elementary school opened, Multiple new restaurants came into the area. Current value 250k(Although no 4 bedroom house in this area is currently listed under 275k waiting for sale, I also put in about 10k in repairs) I will rent this one to a family and refi by EOY.

No crazy home runs, I didn't flip or BRRR 10 houses but I got in, instead of waiting. And at this point I have a great cash position from living rent free for more than a year, and cashflow positive on 2 properties.

What has worked best for me when trying to buy houses on MLS instead of looking for the newest house that hit the MLS. I'm looking at houses that have sat for 40+ days. At that point the listing is dried up and the seller may be a bit more motivated. At this point you need to ask yourself, what number makes this deal work for me. This helped me get my last deal 20K under list plus seller paid closing.

Hope this helps! 

Congratulations! Never heard of that kind of loan but seems interesting and in fact a win/win situation. 

What side of town was this? And how did you find this deal?

@Susan Tan I disagree. I know many Airbnb’s that are doing very well in the third ward area after doing a large Reno. I’m seeing investors pick up properties like this one and doing a 6 figure Reno. One of the main key drivers is just the proximity to midtown/downtown. Buying right though is key. 

@Uche O.

Keep an eye out. And revisit after sometime. They may be more flexible on price if it continues to sit.

Hey Eliot!

I have 2 house hacks in Houston and I also rent by the room. House hacking in those areas are definitely do-able. But you will be left to pay a little out of pocket every month. Also in my opinion I would not house hack a single family unless it’s a 4 bed 2 bath minimum. And at 350k in that area it will be tough… but again not impossible.

If you don’t mind being out of pocket some every month to live in the areas specified. If I was in your shoes. I would buy a new build house hack that if your not looking to get into Reno’s…

This is a scenario for someone wanting to house hack a single family with minimal work needed to building, and assuming you still want to live comfortable and have somewhat privacy in a single family, Buy 3 bed 3 bath newer build around 350k

Put 3-5% down conventional loan for first time home buyers (yes these are still out there and the fees are a lot less than using and FHA but it is limited to a single family home) 10.5k

Live in one of the bedrooms with wife, rent spare bedrooms for 800-900 (This is what I’m seeing people are willing to pay for a bedroom with private bath all day long)

Rough math

PITI= 2400

Gross rents from room=1800 (new builds =top rent you can even push it to 1000 a room but again this is on you)

Reserves= 15k (You only put 5% down save the rest and use that as your reserves you’re buying a new build so it’ll come with some sweet warranties use that first)

Cashflow= -600

You mentioned you have a wife so assuming you guys split it down the middle essentially you will be paying $300 each to live in the areas mentioned above. Not bad at all. 2-3 years down the line if you no longer have to live in the home and it won’t cash flow as a long term, try Airbnb, rent out master for 900-1k, or sell and capture any equity/ gain.

My 2 house hacks I approached it in a similar way but I bought fixers and I cashflow around 900-1000 a month net after moving out! Avg rent per bedroom being 700. If you are looking and investing for cashflow as @Cody L. try nearby areas with lower prices such as 3rd ward, Eado/East End, Fifth Ward near east river project, Medical center south(77051). Shoot me a message if you have any questions.