All Forum Posts by: Tom Smith

Is there anything you don't use from Real Estate Agent courses? I am taking courses to become a RE agent. I am wondering if there is anything that you don't actually use as a real estate agent or if all of the content will be used.

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How do you estimate rental prices/vacancy rates for "rich" areas?

I see some Facebook posts for roommates for wealthier areas of Houston, TX like neighborhoods of Kirby and Montrose, but how do I calculate what I can actually get for a given property? What resource would be the best to get this information? Of course I want the cheapest and most accurate resource to obtain this information.

I also may be house hacking a property in these areas, so how do I know how feasible it would be to rent out 2-3 rooms in a SFH and how much people would be willing to pay and how long they are willing to stay?

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Originally posted by @Brian Foster:

@Tom Smith good question about investing in Houston. The answer is that to NOT invest in Houston due to fear of flooding is probably a BIG mistake as there are some very simple precautions you can take to mitigate the risk extensively. The Houston economy is one of the biggest and fastest growing in the Nation/World so it is a great place to invest if you take the proper precautions.

Here is one: http://www.harriscountyfemt.org/

This is an interactive flood zone map. We use it when we do acquisitions of properties and lots. You can see exactly where any address is in Harris County in relation to flood zones. We don't buy in Flood zones [unless we get a deal we can't pass up] and cash flows even with flood insurance.

A little about flood insurance: Protects you from rising VS falling water. Insurance in "100 year flood zone" is quite expensive, thousands per year. Insurance in "500 year flood zone" much less expensive [$400-$600 annual] on $150K property. Insurance out side of any flood zone is about the same as the 500 year zone.

Flood damage to property is expensive to repair without insurance and a decent rule of thumb is to budget $25/ft for repairing a home in a flooded area [but that can vary a lot depending on the damage]

Hi Brian, thanks for the great post. Do the insurance companies use this exact map (the harriscountyfemt.org map) when quoting you flood insurance? How much would the flood insurance be in 500-year zone and in the X flood zone on a 300k, 400k, and 500k house? Do you know how I can get accurate quotes? I am looking at properties near the Medical Center and Kirby/Montrose/Galleria areas.

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Is it best to ask property management companies in the area you are looking to invest in to know about expenses/tenant profile info? I am trying to determine what kind of tenants will want to rent different properties in different areas of Houston. I think a property manager will know this better than a realtor right? Would a property manager/company be the best people to ask about property expenses, tenant pool, and flood issues?

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Is it bad idea to invest in properties in Houston due to hurricanes and the high chance of flooding? How much would the insurance be? How much can you lose if your home gets flooded? Is the ROI significantly lower and impacted than areas outside of Houston?

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What is the lowest rents could go? How to prevent foreclosure?

I want to know how low rents could go if we were to fall into another recession. I am mainly concerned with the Houston market. Let's say that I can find tenants to rent my place at $750 per room. What is the lowest that rents could go? Will they only go up or can rents go down as easily as the value of homes during a recession? I don't want to have my property foreclosed on during a recession due to low rent checks coming in or vacancies.

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Is there any way to look inside a lot of different properties without being an agent yourself?

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Is the best way to figure out expenses for new property deal to ask a property manager instead of using craigslist, rentometer, etc.?

Will asking property managers directly about the rents/expenses for a particular property be the best way to get an accurate estimate?

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Looking to buy investment property in Houston medical center area. Where can I find agents that work with investors who specialize in this area? I am having a hard time finding agents who specialize in this area and who work with investors. Should I use an agent that doesn't specialize in this area?

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Houston, Texas

Originally posted by @Caleb Heimsoth:

Are you assuming it’s 100k leveraged real estate or 100k equity?

If it’s leveraged at a normal amount of 20 or 25 percent equity, I would say this is fairly difficult to do long term. Assuming you mean 12k annually this is 12 percent return, assuming 100k cash. Long term that could be fairly challenging I think.

If you are talking 100k cash and not leveraging j think that’s much easier

100k cash invested in real estate.

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All Forum Posts by: Tom Smith

Tom Smith has started 37 posts and replied 64 times.

Post: Is there anything you don't use from Real Estate Agent courses?

Post: How do you estimate rental prices/vacancy rates for "rich" areas?

Post: Bad idea to buy in Houston (flood areas)? How much can you lose?

Post: Who is the ask to know about expenses/tenant profile info?

Post: Bad idea to buy in Houston (flood areas)? How much can you lose?

Post: What is the lowest rents could go? How to prevent foreclosure?

Post: Any way to look inside a lot of different properties without agen

Post: Best way to figure out expenses to ask a property manager?

Post: Looking to buy investment property in Houston medical center area

Post: How easy is it to produce $1000 in cash flow from 100k with RE?