My name is Michael, just moved from NY, dec. 1st.
I live in Georgetown for now. I need any opinion and help. I am having problem finding a property, at a right price(at least 10% below asking price) and with a decent cash flow(at least 200 a month). First I was looking for duplex and 4plex. Soon, I realize, they are a way over priced, because of the low inventory. Then I pointed to single-families. I am looking at the newer houses, good neighborhood and a potential of good appreciation. I am finding good houses, but the prices don’t justify the rent. I am looking at the houses between 1300 to 1600sft in price of up to 120K in GT and RR area.
Are any of you facing the same problems, or am I looking in the wrong places.
Thank you in advance,
I think that based on your criteria, it’s simply a matter of additional searching. Locating a SFR property that is at a 10% discount that cashflows $200 per month should be fairly easy in any market, and especially this one.
I agree that finding a duplex or fourplex that throws off $200 per door may prove a challenge with only a 10% discount.
As I mentioned in my private email, I have one available that will meet those criteria.
Actually, I think that once you get familiar with the market you will land something better than your initial criteria.
Welcome to Texas!
The properties you describe are out there. You should be able to pick up just about anything in RR or GT for 10% below asking price. Just make them a low ball offer. I’m sure they’d love to have any offer at this point.
I’ve already know about the houe in Crystal knoll, listed by bob. I am currentley negotiating on another house in that community.
You would think that they would jump at any offer, but for some reason my contracts keep getting rejected - not even countered. I don’t know, I’m beginning to think it’s either me, or my expectations are too high for rejection-acceptance ratios!
Ex: 3/2/2 in RR listed for $99k (down from $125k) - no major repairs needed for rental (to resell I would put about 5k-10k in updating the early 80’s decor). CMA’s are about $120k. Been on the market for about 8 months. Out of state landlord (which I thought meant motivated). My offer - $90k with them paying closing costs appx $3500. Rejected. I guess not so motivated! :?
Personally, I would think that if it had been on the mkt. for 8 months, the seller would be motivated.
However, the sense that I’m getting from the people I’ve been talking to is that panic has not quite set in, yet.
I think that the market will need to continue to tank for another 8-12 months before the panic (and reality of the situation) starts to kick in, and we’ll start to see more motivation amongst sellers in the market, in general. At least this is what the stronger guys I’ve been talking to are saying.