Ages of homes in Texas to purchase - Posted by JC

Real Estate Investing
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Posted by Jimmy on April 09, 2006 at 14:17:09:

first, forget Austin. negative cash flow is norm. reslae values are high and rents are low in comparison. San Antonio is much better, from a cash flow point of view.

I own TX properties anywhere from 75 years old to 10 years old. Nominal age is less important than effective age. How old is the electrical? how about the plumbing (and I mean the heavy stuff–freshwater lines, sewer lines). Condition of roof and decking? are your rooflines straight, plumb and square? Is the foundation solid? Are the subfloors solid or spongy? Old rotting windows or newer double-paned insulated ones?

Think of the house as a collection of things you may have to fix or upgrade. if the 1950-era wood siding has recently been replaced with vinyl siding, your house is younger than its year of construction.

With all that said: here is my sermon on TX cash flow properties, to be held for the longhaul:

  1. never buy retail. never buy finished projects. you will pay top dollar adn get minimm cash flow.

  2. look for rehab opportunities. the same line of thinking that produces rehab/flip profits ALSO produces MAXIMUM cash flow. example: Wold you rather pay 65K for a nice 3/2 house renting for $750, or would you like to buy that same house for 31K, put 12K in it, and get the same $750???

  3. If you buying from out-of-state, you will probably need to bite the bullet and buy soem finished ones to get started. But be on the lookout for rehabs, and start assembling your crew.

In the long run, you will be far ahead if you can put together a crew which can finish off projects for you,

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Ages of homes in Texas to purchase - Posted by JC

Posted by JC on April 09, 2006 at 13:31:29:

I am looking to buy duplexes or triplex in areas like San Antonio, Austine, and Dallas. One of my main goal is to get cashflow, and maybe some appreciation(bonus if occur).

In order to reduce my entry cost, it seems logical to go with older home in middle-low income neighborhoods. What should be a minimum ages of homes I should consider - say 1985 and after etc.?? Some investors say older homes were built better than new olds since some developers cut corners or use low quality materials.

What do current investors in those areas buy and how old?

Thanks

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Re: Ages of homes in Texas to purchase - Posted by Charles Parrish

Posted by Charles Parrish on April 09, 2006 at 15:05:47:

Heck with age, look for cash flow or equity. The rest is easy if you master this part of your program.

Charles