I currently have a mortgage and want to begin real estate investing. I wanted to start off flipping a few properties before acquiring property to put onto the rental market for residual income. I have a long term goal but am unsure how to reach it. Any information would be invaluable to me. Thanks!

John, Real estate investments are very popular right now and therefore have attracted a lot of \"gurus\" that offer all kinds of detailed information sometimes at extremely high prices. As a new investor to real estate you should interview professionals in your local area such as brokers, lenders, etc. and first build a team that is experienced that you like and trust. Then together with them build your investment plan carefully considering your risk tolerance, cash and credit resources, and industry knowledge. Remember to proceed with caution if this is a new investment arena for you. The market and available properties changes daily and a competent team can guide you through the many opportunities and keep you from making big/expensive mistakes. The good news is, if done properly, real estate can outperform most all other sectors in cash on cash return, leverage, appreciation (capital gains), etc.

For 130k-150K which area would generate the maximum monthly rent?

The amount of rent versus investment is not a common parameter in evaluating investment properties. The more common term is cash flow generated from total cash investment - which is called \"Cash-on-cash return\". This tool is used to compare properties for the first year only return on cash invested. Cash invested will include down payment, closing costs and other costs to prepare the property for rental. Cash flow (pre-tax) will be the funds the property will generate the first year in excess of the costs to pay operating expenses and mortgages. A typical good investment should return 10-25% first year cash on cash return. An excellent property with good leverage (financing terms) can return in excess of 50% cash on cash the first year. To achieve the higher yields, you will likely have to find multi-family properties that offer attractive owner finance terms and are in distress. Most of the time, these properties are not ready to rent and will need some rehab work to get ready. The purchase can be completed in two steps - first, with a construction/hard money loan, then refinance out with a permanent investor mortgage. In some cases the owner will finance with a low monthly payment for the first 6 months to give you time to rehab and lease up the property. The area is not as important as the property itself, but always seek an area that has low crime, good schools, access to freeways and shopping, etc.

How dangerous is it to buy flooded homes?

There are many factors to consider - the current status of the property, the current flood plain status, current status with the flood plain administrator for that area, etc. Harris County and most of the cities in the County are in the process of evaluating their floodplain management policies and how they are going to handle the many flooded properties. So, even if you try to get a status now, it may change as the policies change. Understand that any mortgaged property that is in the 100 yr, flood plain requires a flood ins. policy for loan approval. If the property has been issued a substantial damage letter/designation it may not qualify for flood insurance without major changes - like raising the structure several feet. Plus Harris County is now restricting solid foundations near floodways, so your structure may not just have to be raised, but put on pilings rather than a slab. If the HOA does not allow pier foundations you have a conflict and may not be able to use the property at all until it is resolved. Right now buying flooded homes is full of perils in addition to the physical rehab of the property.

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" Let me put my 35 years of real estate experience to work for you. With a background in residential and commercial/investment properties, I will make sure you build a winning strategy for all your real estate needs."

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9700 Mykawa Rd

Houston, TX 77048

$3.50M

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4.899 Acres

000 Bluewater Hwy

Surfside Beach, TX 77541

$105K

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4,051 sqft. lot

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3605 Farmer St

Houston, TX 77020

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5,175 sqft. lot

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3617 Farmer St

Houston, TX 77020

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5,175 sqft. lot

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2313 Poseidon Street

League City, TX 77573

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1,907 sqft.

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14611 Leacrest Dr

Houston, TX 77049

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1,872 sqft.

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3422 Lantern Ln

Baytown, TX 77521

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2 beds

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950 sqft.

Rented: 05/31/2022

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14611 Leacrest Drive

Houston, TX 77049

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1,872 sqft.

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Greg Buchanan, is a Texas real estate firm, located at 1407 3rd St, Galena Park, TX 77547. Greg Buchanan provides a wide range of real estate services. Consumers continue to find value in having a real estate professional help them through the home buying and selling process. The range of services the real estate professionals provide is proving ever more valuable in real estate transactions (financing twists and sales contract intricacies). Please view Greg Buchanan current listings, or sold listings.

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