As we jump full steam ahead into the new year, we can’t wait to explore what real estate has in store for you. A huge part of that includes our new Real Estate Retirement Planning course, where nearly 160+ of you expressed interest! In our sign-up form, you guys asked a lot of great questions and we want to provide answers for a few of the questions we won’t have time to cover in the course.
What is the best and worst real estate to buy?
This question was perhaps the most popular one we received. Though it largely depends on a case-to-case basis, there are some things you should definitely avoid. We think the absolute worst thing to buy is something that costs you a lot of money over time. If you encounter a deal that doesn’t have cash flow from the beginning, you might want to look elsewhere. Take it from a buyer who bought a house, renovated it, and realized it was sitting on a floodplain when it came time to sell it. Don’t let a hidden cost like flood insurance sneak up on you!
But more importantly, what should you look out for? In the commercial realm, we often see RV parks and storage units achieving success because of their low maintenance costs. When it comes to residential properties, it really ultimately depends on the deal itself. Whether you’re interested in a duplex, a single-family home, or even a luxury property, the answer is subjectively based on what the numbers say.
What is the right time to buy?
The most theoretical answer is right after the market crashes. Unfortunately, because that only happens once every ten to twenty years, you don’t want to gamble your entire real estate plan around that unpredictable event.
Instead, the more general answer is that you should buy whenever the numbers make sense according to your own criteria and goals. It’s incredibly easy to get excited by a deal and step beyond your boundaries. Yet, in the current Texas housing market where appreciation rises at a faster rate than ever, you’ll want to be very careful. Renting, even for a year, is probably not a great idea unless you’re in the $500,000 and above range. Even if you’re that person, you’ll still want to look at a property in two dimensions — is this somewhere you can foresee yourself living in and possibly renting out in the future?
Answering these questions takes time, but you’ve got to become a student of the game. That not only requires discipline and passion but a little bit of risk.
How do I get involved in Section 8 housing?
Section 8 housing is essentially where the government subsidizes the cost of rent for tenants. It provides relief to potential renters knowing that a portion of their rent is going to be covered every month on time. To get involved with Section 8 housing, the process is as easy as just determining whether you’re to accept the applications from your tenants. To really learn the nitty-gritty, I’d suggest taking a course on this, where you can learn more about rent caps and the type of renters you’ll encounter.
And that’s a wrap on some of the most common questions we’ve received! If you still want in on our course that launches on January 19, you’ve still got time to sign up on our homepage. Here at Tom’s Texas Realty, we can’t wait to help you buy your first home.