• TalkBass has been independent since 1998. Add your voice.
    Create a free account to reply to discussions, view embedded media, and browse with fewer display ads.
    Join free Log in
    Want zero display ads or expanded classifieds tools? Compare plans.

New Project - Rental House

C

Chubby Fingers

Jun 23, 2020
108
898
#1
My wife and I already own, well have mortgages on, three properties: the house we live in, her house from before we got married, and her office condo.

On Friday we added a fourth.

A 5-1/2 year old 4 bedroom 3-1/2 bath family home, 2880 sq. ft. in a nice middle income neighborhood on the northeast edge of greater Houston.

Original owner had some sort of water incident and either went nuts or got screwed by one of those toxic black mold shyster who tell you if you spill a glass of water your house becomes uninhabitable. Anyway, the ground floor flooring and the first two feet of sheetrock, all the baseboards, door surrounds and bottom kitchen cabinets got ripped out. Then the guy's wife freaked out, or he ran out if money or something happened and we picked up the house as is.

We are going to replace the kitchen entirely, finish up the sheetrock repair (virtually all done already), put down new flooring, refit the woodwork. Then we are either going to flip it or keep it as an airbnb rental or just a regular long term rental for families only, 850 credit scores, Jehovas, those sorts. ABSOLUTELY NO BASSISTS :D

A flip could see a quick $30k profit, a rental will make $1000 a month profit over the mortgage, taxes, etc. Once the mortgage is paid - from the rent money - $2500 a month retirement income.
20200717_190039 1024.jpg
 
#2
Nice place and looks like a solid plan. Good on ya. Hope the economy over there improves enough within your timeframe. Or rather, I hope the economy improves enough here in Texas to support your plans. Keeping our fingers crossed over here in the Hill Country.
 
#3
Property market is really hot here in Houston despite the disease that shall not be named. Oil industry is down the crapper - again - but everything else seems to be thriving.

Our next door neighbors by our home just sold for above asking price in under a week.

Maybe people are moving south to escape the pestilence, who knows?

The new rental is out in the burbs and pretty close to the airport too, which should help with renting.
 
#6
Congratulations! Not to rain on your parade... but something to mention. I have 2 sons that recently lived in the same general area, and I was there shortly after Hurricane Harvey came through. Harvey caused widespread flooding, and from your "water incident" description this sounds like classic flood damage. Have you checked the FEMA flood maps or speak with any neighbors? Might be interesting to know the property history.

Best of luck being a landlord. I've done this, some parts are not so fun, but it paid off handsomely when it was time to sell.
 
#7
^ The water incident was minor flooding caused by a blocked storm drain, now fixed. It got his carpet pad wet and he went to town. Completely unnecessary. In any case thats what FLOOD INSURANCE is for.

I've been in Houston 20 years come September. Allison, Harvey, Ike, ... Every time it rains here somewhere floods. If you lived on the side of Vesuvius or Kilawayu (sp) and didn't expect the odd eruption...
 
#8
Chubby Fingers said:
^ The water incident was minor flooding caused by a blocked storm drain, now fixed. It got his carpet pad wet and he went to town. Completely unnecessary. In any case thats what FLOOD INSURANCE is for.

I've been in Houston 20 years come September. Allison, Harvey, Ike, ... Every time it rains here somewhere floods. If you lived on the side of Vesuvius or Kilawayu (sp) and didn't expect the odd eruption...
Click to expand...
Sounds like you're covered. Good find with the house. I like the brickwork on a lot of the houses back there. :D
 

Latest posts

Top Bottom
Back