All Forum Posts by: Giovanna Owen

Welcome to BP, George! Be sure to check out the podcasts and sign up for the next webinar. They are a great source of education. Best of luck with your RE investing!

Giovanna

Hi Brooke,

I live in Oregon. What part were you thinking of investing in?

Giovanna 

Hi Theron,

You can PM by clicking on the little chat icon next to the search box at the top of the page and then selecting a colleague. If the person you want to chat with isn't already colleague, just send them a request first.

Good luck with your deal!

Giovanna

Buying out of state makes me cringe too! I can't buy local because the Oregon real estate market is way over valued. It won't cash flow. Where I live, homes start at $200,000. Investors I've talked to in my town are looking for capital gains, not cash flow. I need cash flow. 

My business is held in an S-corp (a service business, not real estate related), so my business can buy assets with business profits as long as I buy them in the same year that the money is made. On Jan 1, it will be considered personal income and I will have to pay personal income tax on it. 

I'm buying my first rental property this year, and unfortunately, it will be far from where I live because real estate is way over priced in my area. I will be visiting the area about 2x a year for business until I move there in a couple of years. I'm looking to buy a turn-key property in Texas. I plan to put at least 50% down on a house under $160,000 and pay off the remaining balance within a year or less.

I need to buy before Jan 1 because the money is in my S-Corp, and I have the opportunity to use pre-tax money to buy the property before that date. The purpose of this investment is to preserve and grow the profits from my business, and to create cash-flow. I have narrowed down my search to Houston and San Antonio, TX.

My questions are: Should I be looking at older properties, or brand new properties that might be a little bit more expensive, but have less maintenance expenses and concerns for an out-of-state landlord? Should I use a turn-key provider, or find the property myself with the help of a real estate agent?

Thanks so much!

Hi Christopher,

My friends who live there just bought a house for $56,000 and put $10,000 into it. They are renting it for $950/month and they were able to get a 2 year lease with the tenant. Where we live, it would cost $200,000 for a house that rented for $950/month. What is your experience with buying houses in that area, Christopher? I'm very interested to know what we should expect.

Thanks!

Giovanna

Thanks, James. I agree.

Giovanna

Hi!

My name is Giovanna and I live in Bend, OR with my husband, Cody, and our 7 year old. We are interested in buying our first rental property (single family home) in October or November. We are strongly considering San Antonio, TX because:

• Job growth of 2.21%. Future job growth over the next ten years is predicted to be 40.10%.
• Sales tax rate is 8.25%. Income tax is 0.00%. If we decide to move there someday, we will instantly save 10% in state income tax.
• The local economy is stable and growing.
• We can buy a 2/1 or 3/2 and do minor rehab for $70,000 or less (all cash) and collect $900/month in rent. That's not possible in Bend, we would have to use financing.
• It a landlord friendly area.
• We would like to move there someday, but for right now, we will be in the area about twice a year and can check on the properties when we are visiting.
• It will force us to take a more hands-off approach to managing the property, which I have heard is a good habit to get into.

Our reservations are

• It's far from where we live.
• It will be difficult to get to know the area and make a good decision.
• If we need to make an unplanned trip to take care of our property, it will be expensive.