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Looking to buy a rental property - Spring, Conroe, the Woodlands- realtor suggestion?

2,567 Views | 15 Replies | Last: 5 yr ago by BQZIP91
Goose06
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I'd like to put some money to work and I've decided it's time I start building a rental property portfolio. I'd like to find a realtor I like and trust that knows the market for both rentals and resale. Any suggestions?
Goose06
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One financing question I do have...if I buy my first couple of properties with cash, can you later use equity in those properties to borrow against to buy additional properties? Example: purchase 2 properties for cash at $400k. Purchase 2 more properties for $400k with all debt so that all in you are at 50% debt to equity?
Martin Q. Blank
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Spring is a good rental market. You can get a distressed 3/2 for $130k, put $10k into it, and rent out for $1500/mo.
evestor1
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I would be using debt on all purchases. You get better rates than a cash out refi and you can do it with a conventional loan typically.


Even if you put 50% down...still finance in my opinion.
jja79
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You can do a cash out on investment properties but as mentioned just above the terms will be better if you finance the purchase.
SteveBott
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Another vote in financing all property until you can't. The first four homes can be financed with 25% down at say 5% in today's market. So one cash deal equals four financed
jja79
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I've had some investment buyers looking at 10/1 ARM deals. Rates ate below 4.5 and they seem to figure the holding period won't exceed 10 years.
case04
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Goose06 said:

I'd like to put some money to work and I've decided it's time I start building a rental property portfolio. I'd like to find a realtor I like and trust that knows the market for both rentals and resale. Any suggestions?

Give Bridget Moore a call, she's a rock star!

832.656.2472

Jay@AgsReward.com
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Sponsor
AG
I am a lender so I guess I am likely biased, but I am also a real estate investor. I would not want to sink that much cash into one or two pieces of real estate with no leverage at all. Especially where rates are today. For example, if you want to be conservative you can put down 40% and get 30 year fixed money at the moment at 4.625%/4.75% with no points. Pretty damn cheap for non-owner occupied 30 year fixed money.

Cash out money at the moment would be only slighter higher at 4.75%/4.875% up to the 60% loan to value. So, if buying a property with cash helps you win the deal or get the property at a significant discount pulling some cash out later can make a lot of sense.

You can actually put as little as 15% down on a purchase deal up to 10 properties so you can leverage to the hilt of course that is not for everyone but can be done but the pricing would as you might imagine be higher.
idAg09
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Haven't seen a realtor come in and throw out their contact info. Typically not the case here. Is it because it's an investor?

Are investors more difficult, cheap/looking for a discount, or too much time spent trying to find the right deal to be worth it? Curious.
mazag08
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I would love to throw my hat in the ring, but I just don't have the expertise or knowledge of the market in spring.. and probably wouldnt be as available in that area as someone more local to the area.
JamesBREI06
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I'll chime in, MLS deals in Spring are hard to turn into rentals, wholesalers gobble up most the inventory on stuff that make sense and then force buyers into quick closes which disallows for conventional financing. Of course I own a lending company, a residential brokerage and mgmt co, and a wholesaling company, so I'm partly to blame for the madness. Your best bet may be to close cash and refi. The savings for a buy it now price over a conventional price should more than make up the rate hike.
Whoop!
jjdavis85
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Feel free to reach out to me at Jonathan@wardkellner.com
springagg
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MLS homes are going to be overpriced.. off market deals from wholesaler is much better route. Anything that happens to be a "great deal" on MLS will get gobbled up by a cash buyer on day 1.
JamesBREI06
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Lol. Is there an echo in here?
Whoop!
Goose06
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Some interesting info, thank you for sharing.

Anyone have a good rule of thumb to use on what you look for in your expected rental price vs purchase price as being a pretty good deal? Real estate people always talk in terms of cap rates but I prefer cash flow multiples (the inverse). So for example, if your purchase price is $200k, what minimum annual rental revenue do you think should be expected? $20k (or a 10x revenue multiple) or $16.7k (12x multiple) or $25k (8x revenue multiple). Obviously other factors come into play, but there has to be a rule of thumb here for residential real estate I would think.
BQZIP91
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Contact Kym Herrmann at kymherrmann@gmail.com. She works with JLA and lives in the area.
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