All Forum Posts by: Vahid Mostafavi

I came across this post and noticed all posts are pre-Covid. Wondering how the investors feel like about BRRRR feasibility in Houston in 2023?

We are putting together our strategy for rental properties in Houston. We own rentals in Canada but are pretty new to the market in Texas. One question we had, was about the maximum amount spent on a single property. We are mainly interested in single family houses, and we hear from some investors that it is a good idea to buy several properties but spend less than $250k on each. Some others believe that the rent to price ratio is higher for more expensive ($500k) houses. 
my question is, is there any advantage in buying more properties for cheaper price? 

Thanks @Jon Crosby

Thanks @Jon Crosby, no I am not paying him anything, as he is essentially doing the job "for free" to get equity in the house. so my question is what should his equity be? only the 50k which is the material and labor cost or 100k which includes his profit on a regular rehab job, or something in between?

P.S. yes you are right I have excluded lots of additional costs to simplify the question.

I am starting a partnership with a contractor. He is completely reliable and I do not have any issues with him. I will be putting in the cash and he will only charge for the cost of material and labor, and completely exclude the profit he makes on his typical renovation jobs. Currently we are looking into BRRR deals and fix and flips. My question is how should we share the profit? what would be fair? let me explain with an example:

Purchase price: 200k

Rehab cost: 100k (with a non-partner contractor)

Charge by my contractor: 50k (only material and labor)

After Rehab sale price: 300k 

Profit: 50k

My question is how should we share the 50k profit? 20%/80%? the problem is that I would 40k for my 200k investment, which is a good 25% return, but he makes 10k, while he would make 50k for a regular renovation job, so this deal would not be interesting to him.

I hope the situation is cleat, I would appreciate your insights.

Hello fellow investors. I am bit new to the American real estate market and have done some investments in Canada. I noticed in one of the BP posts (link below) that a rent-to-price-ratio metric by Zillow was mentioned, but I can no longer find it. Has Zillow taken it away? is there any other resource for detailed rent/price ratio for cities/states in the US?

https://www.biggerpockets.com/member-blogs/6157/69626-narrowing-the-search-for-property-using-price-rent-ratio-maps

Hello,

I live in Houston but have solid connections and team in Montreal, so I am starting to look in to properties in QC. Would be glad to have a chat.

I got into a bad deal years ago (with little real estate knowledge), which had created negative cash flow every month. The price of the property in the area has also depreciated and is not expected to up soon. I know better now how to invest and what deals not to get into, but this old deal is draining cash every month. Should I just accept the losses and get out, or stick around, try to make a bit more cash flow (or minimize negative cash flow) and make equity and hope for the best?

Does anyone have any similar experience?

I have invested in real estate properties in Canada in the past but recently lived to Houston and need to build a team here to start.

Would anyone please introduce investor friendly realtors, PMs and potentially mentors to me?

Thanks...

@Philippe Laurin thanks! That was helpful. I have a very good and reliable general contractor and property manager which I completely trust as an investor in Montreal, but I am searching for the right real estate agent.

I just moved to Houston from Canada, and am familiarizing myself with the market here. That’s why I have not invested in TX yet.