All Forum Posts by: Tom Chen

@Marcus Nickson

Houston depends on the area.  A quick search of Loopnet for multifamily listings lists a 10 unit for $375K up to a 12 unit property close to downtown ranging between 5-12% cap rates.

http://www.loopnet.com/for-sale/houston-tx/multifamily/?sk=9ecc1327ebdcc6364a75b33b62e786fd

It's my understanding that PPR uses your capital contribution to buy nonperforming notes to rework them so they will earn greater than 12% APR. Fund investors will get their preferred 12% first and then any excess return goes to Dave and his company. One caveat is that your investment will be "locked up" for three years in the fund unless you use it to buy an individual note from them. However, Dave Van Horn and his company have an excellent reputation on this website and they have not missed an investor payment yet AFAIK.

@Scott M. - There's no real protection of your principal since you are invested in a Fund instead of an actual debt instrument.

@Sarah Lam

The rent seems about right for a house that size in that area.  Good luck with your rental home!

@Chris Fethke

Owen has excellent advice. It seems that most good potential rental properties listed on the HAR MLS are going for list price or above currently so looking for off-market or motivated sellers would be the best bet for finding a deal.

@Edith Penaloza

Welcome to BP, Edith!  If you would like to learn more about flipping houses, J. Scott's book "The Book on Flipping Houses" is an excellent resource.

http://get.biggerpockets.com/flippingbook/

@Manuel Fernandez

Welcome to BP, Manuel!  The Biggerpockets Ultimate Beginners Guide (link below) is a good, free resource to help you get started.

https://www.biggerpockets.com/files/user/brandonatbp/file/ultimate-beginners-guide-to-real-estate-investing 

@Sarah Lam

How big is your rental property?  Certain parts of Spring are nicer than other parts so rents would depend on this also.

@Chris Pohlson

Thanks for the reply, Chris.  Ideally, that's what I would like to do too but am in the processing of building out my network.

@Chris Pohlson

How many contractor bids did you get before purchasing?

@Syed-Shawn Azam

Most investment advisers required a minimum balance greater than $100K.  Best bet would probably be to look for a fee-only advisor or CPA to help the couple with budgeting, insurance, and setting their expectations for retirement.