All Forum Posts by: Victoria C.

 Thank you Jason. It's nice to "meet" you. All good points you are making.

I want my properties to be cash flow positive from the beginning, but I'm okay with that "positive" being very very small (like $50 small) at first. 

In your experience, (and I know it depends on many factors) what is the average percent down payment you see to be cash flow positive from day one with today's interest rates? Assuming the house is a decent deal, and needs some work?  I've been thinking around 30%.  I am a bit conservative (financially) by nature and definitely want to SWAN with my properties with no chance of being underwater.  Also, in general, do you recommend a 15, 20 or 30 year mortgage?  I can see pros and cons with each.  (We have top credit scores and enough $ to put as much down as needed to secure the best deal for long term success/security).  

 Thanks!

Hello BP community!

I’m Victoria, and I’m ready to learn all I can about investing in single family LTRs in my north-Houston area. I plan to purchase my first property within the next six months.  

I hope it's okay I jump in and start asking questions. 

A few questions to start:

1. How much cash should you have in your rental-business emergency fund for each property you own to cover repairs, damage, voids, etc? Is there a rule-of-thumb-percentage based on the price of the house? For example, I’m looking at houses around $300,000 - $350,000. How much should I keep in my business bank account for that first house as an emergency reserve (NOT counting money for the initial rehab, general business start-up costs, etc)?  Also, I will be keeping my business finances and my personal finances separate, so this money is outside of my own personal/family emergency cash reserves, which I never want to touch for the business.

2. I understand the concept of property classes (A,B,C,D), and for the most part I know when I see them. However, sometimes there are small pockets of much less expensive, older and smaller properties in more expensive neighborhoods – does that make those homes a lesser class, even though they are part of the broader, better neighborhood? Are the class levels averages of the broader neighborhood, or can they be street-by-street (or cluster) specific?  

3. Are there maps for the Houston area, that show which neighborhoods flooded during Hurricane Harvey? I want to know more than what general flood plain/topography maps will show me. I specifically do NOT want to buy property in areas that flooded during Harvey for peace of mind (SWAN) reasons. I lived through that once – never again.

4. In the Houston area, are there certain times of the year when it is better to put a rental property on the market (for renting)? Are there slower months to avoid? I’m thinking about my overall timeline for purchasing/rehabbing and putting on the market for rent.

Thanks!

Hello BP community! I’m new around here and want to introduce myself.

I’m Victoria, and I’m ready to learn all I can about investing in single family LTRs in my north-Houston area. I plan to purchase my first property within the next six months.

I may be new to rental investing, but I am a long-time homeowner with experience doing renos and have done very well buying/selling my own personal homes (non-rental). My superpower is making houses desirable and caring for (maintaining) my properties. Over the years I’ve put together a team of contractors I trust in my area. I’m also experienced at starting businesses and bookkeeping.

My goal is to buy run-down starter homes in A and B neighborhoods within 30 minutes of where I live, then make them safe, sound & beautiful, and rent them out for the long haul. I am more interested in appreciation then cash flow (but don’t want negative cash flow). I truly want this business to be a win/win for myself and for future tenants. Knowing that I’m providing a beneficial product/service to people is important to me. I believe our homes are the foundations of our lives.

What more can I say? I am financially secure and ready to start this business.

I’m going to be asking a ton of questions in the next few months as I prepare to buy my first property, so bear with me please! If anyone wants to reach out to help guide me in this journey, I’d be appreciative.

Cheers,

Victoria