This property is perfect for a homeowner looking for a deal. It can also be great for investors looking for more rental properties to add to their portfolio.
Purchase Price: $189,900
Finance 80%: $151,920
Invest 20%: $37,980
Interest 30yr fixed: 4.5%
2016 Taxes: $5,316
Insurance est.: $1,500 annually
PITI (mortgage): $1,337.75/month
Estimated Rent: $1,650/month (Click HERE for rental CMA)
Cash Flow: $312.25/month; $3,747/year
First year projected return: 9.86%
Estimated ARV: $227,000 (Click HERE for ARV CMA)
Click HERE to view listing with property details.
*Please do your own due diligence.
If you follow ultimate fighting you know Urijah “The California Kid” Faber. In the video below he gives a shout out to your favorite real estate investment company!!! He provides knockouts in the octagon while we provide knockout real estate deals!!
Houston Real Estate Did What?!
Last month, September 2013, real estate in Houston continued to improve. If you are an investor, first time homeowner, looking to downsize or upgrade, etc., NOW is the time! The median home price increased again, inventory is low, rent is increasing, and interest rates are still relatively low. The reason for each one of these buyers to buy is clear.
Investors may have less inventory to buy from but when you spot a deal, do not hesitate! With less inventory on the market, the quality of the home will win over the buyers. When you purchase an investment make sure you do a great renovation, this will make your home more desirable than the others. This may bring you a higher than expected offer. If being a landlord is your thing, then add to your rental portfolio. House prices may be a bit higher than last year but the higher rents justify the increase in prices. However, I would still make sure you have equity in the home in addition to the cash flow.
Now, if you are a first time homeowner, then the reason to buy now is obvious. Would you rather give away $1,000-$1,500 per month in rent or use that amount to buy down a mortgage? Remember that a portion of the money you pay towards a mortgage pays down the principle, which in turn increases your equity. Although the rates are not as low as a year ago, the average rate of 4.4% is still great. Also, if you wait any longer the prices of homes are just going to increase and you may not be able to live in your sought after neighborhood.
If you are downsizing or upgrading homes then you may be able to ask more for your home now while inventory is low. Keep in mind, that new construction is increasing so if you live near any newer construction you may not be able to compete with the builder’s prices when they hit the market. Due to you being able to ask for a higher price you will have more funds to work with on your future purchase. If you’re downsizing, that can mean some extra money for more features or just some extra savings in your account. This can also make upgrading smoother and possibly less money out of pocket.
Get off the sidelines and start looking at what is available to you TODAY!! I am not the only one sharing this great news. The Houston Association of Realtor’s have the numbers and stats to confirm what the Houston real estate is doing in today’s market, CLICK HERE to see their report!!
The Right Rental Property
If you are considering investing in a rental property, remember there are things that can boost your profit, but there also pitfalls that will subtract from your return. By doing some research on the right things to look for before buying, a first time investors can avoid making a costly decision.
First, look at the quality of area. The type of neighborhood will determine the type of tenant it will attract and affect how often you may face vacancies. Visit the area at different times of day and also check for vandalism and crimes rates.
Get all the property tax information from the assessment office. Remember that low property tax is not always a good thing. Talk with other homeowners in the area and make sure that high property tax is worth it.
Do a little research on the school district. Being in a high quality school zone can substantially add to the rental value and attract stable growing families. It will affect your resale value in the future and being in close proximity to the school grounds is also a good factor to consider.
Areas with new developing businesses and employment opportunities will definitely mean more tenants. But be cautious because having a possible huge corporation down the street might negatively affect house prices and rental values.
Search the area for surrounding amenities such as a community pool, parks, shopping mall, gyms, public transportation and any other perks that could attract a potential tenant. Also, see if there are any future developments that will boost the neighborhood values as well.
Check the 100-year flood plain information for the area and get insurance quotes before considering a property. Knowing the chances of flood or other natural disaster is very important. This will directly affect your insurance rates and ultimately your return.
Once you have looked at all these factors and determined the property is a good investment remember to account for other things that can affect your bottom line, like renovation, maintenance and listing costs. An investment property will most likely take time to produce cash flow. So when deciding to search for a rental property, always start with financial planning and budgeting.
And remember if you need any real estate investment advice or consulting, Venture Realty is here to help!
The Venture Realty Team
Traits of Successful RE Investors:
“The best investment on earth is earth”
Every investor understands this, only the successful ones implement it. It’s a simple change in your way of thinking, which in time, can be of great monetary value.
Successful investors understand that purchasing a property to rent, is more impactful than a brand new Mercedes. Yes, the Mercedes looks great! But it is costing $500 a month, compared to passively earning $350 – $400 on your rental. In fact, with enough rentals, the passive income can potentially make the Mercedes payment for you.
“You make your money when you buy”. This signifies that if you buy at the right price and right area, you almost can’t miss on making money. Now, I don’t have any stats to back this up, but from my experiences, this holds a lot of weight! In good neighborhoods, I’ve seen abysmal remodels sell fast, and I’ve seen great remodels set new prices. Understanding the market is key, and successful investors are very keen to this notion.
Cash vs Credit? I personally like to pay for things with cash, there’s no hassle and no rates! As an investor, I check my stubbornness at the door. I know that using other people’s money is the best long term strategy. For ex: If I have $150,000 liquid, I can only purchase 1 house at a price of $90,000 with $30,000 in repairs. With using other people’s money, this deal may roughly cost me $10,000 out of pocket compared to $120,000. Now that you see the difference, you can see how successful investors have multiple projects going at once and they still have cash in their accounts.
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The Venture Realty Team
PURCHASE PRICE: 86K
RENTAL REHAB ESTIMATE: 8K
ESTIMATED MARKET RENT: $1,250
ESTIMATED CAP RATE: 12%
Contact us TODAY!!
The “Hidden” costs of being a homeowner
The American dream of being a homeowner is made possible with the recent lower mortgage rates. Being a seller’s market, Houston’s real estate sales numbers have prospered greatly according to HAR. With that in mind, what type of facts do anxious homeowners to be, need to know? There are “hidden” costs most prospective homeowners must take into consideration.
- Property Tax:
Homeowners pay property tax plain and simple. Before purchasing a home, you should just take a second and find out more on the property tax. Property tax varies depending on location.
Homeowners insurance compensates you for losses to your home and your possessions inside it. It also protects you if you’re legally liable for someone’s injuries on your property, as well as from financial losses caused by weather damage, fire, theft and other events outlined in your policy.
- Home maintenance and repairs:
From foundation problems to the unexpected air condition malfunction, it all can be pricey. Whether you like it or not, most homeowners go through some sort of unexpected costs. Here are some great examples: air condition, water heater, roof, rotted wood, sidings, and foundation.
- Homeowner Association Fees:
HOA fees usually cover the costs of shared services such as community landscaping, water, sewer, and garbage costs, and the costs of community country clubs, playgrounds, and pools. So if you plan to live in a subdivision, planned community, or condominium area be prepared for this cost.
- Home Appearance:
This is not a necessary cost but homeowners generally tend to improve the home appearance. From landscaping to furniture and appliance up grades, it could put a serious dent in your wallet.
Knowing the “hidden” costs before applying for a mortgage for your dream home, will help you map out a financial strategy to insure you can actually afford the home. It’s just not the mortgage payment you’re making; it’s all the “little” costs that add up.
The Venture Realty Team
Keeping Cool, Affordable
Summer is here and temperatures are rising….along with your electric bill. Keeping cool essential, but where do you find the balance between cool and affordability?
The average U.S. home pays around $395 for their electric bill during the summer and that average increases in Texas to $503 a month! Staggering…I know! Here are some suggestions that can help you find that balance.
Keep your blinds closed!
- I know the natural light “is beautiful”, but it warms up your house at an incredible pace, which in turn keeps your air condition running thus raising up your bill.
Changing your filters every 30 days.
- There is a simple and fairly inexpensive task that will keep your system running smoothly. The most you’ll need to accomplish this, is, maybe a stepping stool and a $15 air filter.
Make sure you get your system service, prior to the Hot Months!
- Be proactive about this, not only can you get it done cheaper before summer starts, but this will be the most expensive repair if a problem arises during the summer months.
Turn your thermostat up a bit as the night comes.
- You’re probably like “what! It’s hot outside”, it is, but not so much at night. The average night temperature is 75 degrees compared to 91.6 degrees during the day. Turn you’re a/c up to about 78-79 and let your ceiling fans run.
Hopefully that helps, and stay cool!!
The Venture Realty Team
What housing bubble?
HAR recently reported the month of May was an all –time record breaking one-month high for sales. As a real estate investor, you may have noticed a significant increase in home prices these past few months. With low housing inventory and combining it with the gradual high demand for homes, it supports the home price appreciation we have been seeing.
According to HAR, home sales are up 28% in May 2013 compared to last year’s May. HAR states, “The median price of a single-family home—the figure at which half the homes sold for more and half for less—rose 11.9 percent to $188,000. The average price increased 9.0 percent year-over-year to $256,790. Both represent the highest prices of all time.”
So, what does this all mean? It means it’s a seller’s market right now. Good inventory is hard to come by these days. Wholesalers are getting multiple offers on project houses and inventory is low. HAR reported a foreclosure listings on MLS has dropped 10.4% from last month. Understanding the housing market can make or break a real estate investor. At Venture Realty, we can assist you with selling your current home, buying your dream home, or any real estate investment venture!
The Venture Realty Team