All Forum Posts by: Tim Yearout

@Iman Yu thank you for such a thorough rundown on your deal ... and congratulations!!

Can I ask you a question?  Did you determine what repairs to make (and estimate their cost) on our by yourself or did you use some other process?  I'm just wondering if that is something you get a feel for by working through so many deals?

Welcome @Chris Propes. I have only been on BP a couple of months, but have also found it to be an amazing resource for not only learning about REI, but also for networking. Have already met with several investors here in Spring.

I own a lot in Pt Aquarius that I'm hoping to build on eventually, so am also very interested in the market in and around Lake Conroe.   What price homes do you find make good rentals up there?

To answer your earlier question, to link to a specific person in your post, type the @ sign followed by a space and type the first couple of letters of the person's name you're trying to link.  Their name should pop up and you can select/insert it into the post.

Great deal....and great write up.  Congratulations and thanks for sharing.

Welcome to BP @Jonathan Holland. You've come to the right place to learn about REI. I'm a newbie too, but have a contract on my first investment property. I saw on another post that you're offering to buy a beer for local investors willing to talk real estate. I live on the north side of town near the Woodlands.... if you're willing to head up this way, I'd be happy to join you for a beer, and I'll buy a round too.

Hi @Robert Seltzer,

I'm looking for rental properties in Spring.  Since you are from out of state, I assume you are having your Spring properties managed for you.  Could I ask you what % you budgeted for property management?  Thanks.

Hi @Darlene Tyson.  I'm using a couple of deal analysis tools and cap rate is an output.  Here's one of the tools I'm using from BP. 

https://www.biggerpockets.com/buy-and-hold-calcula...

and here's a good article that tells you the importance of cap rate and other deal analysis metrics

https://www.biggerpockets.com/renewsblog/2010/06/3...

Also, the Real Estate Deal Analysis forum is a good place to learn more about this topic:

https://www.biggerpockets.com/forums/88-real-estat...

Best of luck!

@Randall Jacobs and @Jeff Wallace  You both make a compelling argument for targeting cheaper properties.   Screened a couple of them in the same areas I had been looking before and found one that did cashflow better with a cap rate of 6%.   I was amazed by how may of these lower priced homes are at risk of foreclosure.  Do either of you invest in foreclosures?

@Cody Begg and @David Light.... thanks for the info on College Station. My HS senior is still deciding between UT and TAMU (needs to make up his mind this week).  Whether he chooses Austin or College Station, I want to use that opportunity to learn about those markets and look for investment opportunities

Thanks @Dan Naughton, will keep that in mind... and College Station is a little easier to get to from the Woodlands since the Grand Parkway opened.

Thank you @Undrea King, @Dave Visaya and @Christopher Cousin for the warm welcome and the good information!

Can I ask you all a question?  

I'm interested in purchasing a turnkey SFH and turning it into a rental. Been looking at 4/3 SFH in the $200-$300K range in the Woodlands area. From what I've seen, nothing in this price range in this area rents for 1% of purchase price. I've analyzed about 4-5 homes so far and they all just barely cashflow. The best one I've seen had a cap rate of 4%. I know I need to get creative and look outside the ML, but what is a reasonable expectation for cap rates in the Houston area for turnkey rentals in this higher price range of homes?

Thank you @Undrea King, @Dave Visaya and @Christopher Cousin for the warm welcome and the good information!