All Forum Posts by: Tim Shin

Pretty much most neighborhoods outside of Beltway 8 should be good cash flow burbs as long as you buy right. Your numbers are the sweet spot in my opinion so pick a side or two of Houston and get to know the neighborhoods that trade in those price ranges. Then you can move fast when you recognize a deal. 

Hello @Tim Shin, I like your idea of getting rich together!  I'm still pretty new at this, and just a couple of days ago got an offer accepted for my first investment property!  It will be a buy & hold.  It's in the NW part of Houston, more specifically in the Bear Creek/Copperfield area.  Once the inspection and appraisal is done, I will post more details about the property.  I'm nervous and excited all at the same time!  I'm already thinking about the 2nd property :)

Hi Friends!

My name is Jennifer and I'm new to the REI world. I currently own a small Asset Management business that maintains foreclosures and REO's for the banks. But my background is everything but Real Estate. My past experience ranges from being a budget analyst for NASA for several years to owning a small fitness center to being an Executive Admin for a big wig at a large oil and gas company. All have been awesome learning experiences, but this year I've reached that proverbial fork in the road. I have been wanting a change in my life and I know that 2016 is time. I was going back and forth with the idea of enrolling in a real estate school to get my license as an agent. However the idea of Real Estate Investing happened to present itself to me recently and I am ecstatic about it! Right now I consider myself as a sponge just trying to learn and absorb as much as I can (no not from scams but from nice people like you here on Bigger Pockets)!! Thanks for having me and I am looking forward to meeting all of you!

I was in Houston this last weekend.  The Super Bowl is coming to Houston next year.  I am looking for condos, town homes, and small homes around the stadium area.  The super bowl is like a mini olympics.  People will start looking to relocate especially if they are getting a job transfer.   Apartment complexes were being built all over.  I dont see Houston a down market.

pam

@Tim Shin Well I'm glad you could see it with humor as well! And you're right, I had never really given it so much thought until all this anyways. It never hurts to carefully examine what you're being covered. 
Basically, I want what any investor wants: good coverage for cheap. Which is not exactly do-able. I was trying to cut costs where I thought it would be reasonable to cut. In fact, I'm not even sure how much the fair market value coverage is costing me on this new policy because I can't get a transparent answer. I like to see the sheet that explains each costs and where that cost comes from, instead of a big number with no explanation. I know these figures come out of somewhere, just let me see where. I think/know I am being a little bit neurotic over it, but I hate to feel like I'm being charged for stuff that I won't use (that applies to any kind of coverage, not just the fair rental value, which I'm sure if I keep the houses long enough, and plan to get more,I might use down the road). All in all, I must say, it's a little frustrating. This new company must looooove me, ha. That being said, I'm ok with the coverage left in there. It's not something that I'm going to cancel my policy over. I know that it can really help me in the long run. 

To answer your last question, I would definitely use the insurance to cover the house if there was a catastrophic event. That's why they are there. I just see so many people use their insurance to cover the littlest things, and it ends up costing them more in rising premiums in the long run. The way I see it, though, is that the fair rental value coverage is just a bonus that I was/am 'having' to pay for. Yes, I can see how it would help in a big event. But, if I really don't want it, why do I need to pay for it? Clear as mud now? Pretty much how I feel too. :)

What I'm now thinking would be ideal? A cheaper fair market value coverage for up to 6 months, not 12 months. 6 months I might use. 12 months probably (again, knock on wood) would be a very, very unlikely event. 

One item I highly caution in your 6 month estimation. You are coastal. You may have 18 months with no rents if the right storm heads your way. If you were in Nevada I would think you're crazy to spend that much on loss of rents, but coastal...

I invest mainly in San Antonio but also have rental units in Houston. Here are my thoughts:

San antonio:  market is solid  for both rentals and flips. It has cooled down in the south san antonio areas where the eagle ford shale are was heavily hit. However I mainly invest close to downtown and in the northern east section and I see no significant decline in the rental demand. It's also tough to purchase  Overal: market is solid right now.  

Houston: I can't comment on purchases because I have bough in Houston in a few years. However, rental demand is still strong in the Northwest area. It may be because I have rentals mainly in B+ neighborhoods with excellentschools.  I haven't been able to raise rents as I have been doing in San Antonio however  and so that's why I think the Houston market has cooled a little.  

Finally: if you are diverse in REI it shouldn't matter whether the market cools down or become hot. If prices fall, it's a great time to pick up properties at a discount. Just don't become over leveraged and maintain a cash flow positive situation. This insulates you from a down market.

    Conversely if the market becomes hot and prices appreciate then you just ride that wave. I.e. hold on to your property and refinance to get cash out ir ell your properties if you need cash. 

Happy investing. 

Dan