New member in NC looking to start renting out Texas property
Wichita Falls, TX · Member since 2016 · 6 posts · 1 vote
New member in NC looking to start renting out Texas property
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Involved In Real Estate · Wichita Falls, TX · Member since 2013 · 4 posts · 1 vote
10yHello there, James! I'm a local Realtor in Wichita, I researched your home on the mls to find comps. For the neighborhood it's in, there have only been 2 on the market with similar stats within the last year, averaging $1,575 a month. Compared that to everything in town matching your stats, it still matches up to around that amount still. I can tell you that there isn't many rentals with the same size your home has to offer. I'm not advertising my services, as I'm just an agent. But since you'll be out of town, I'd suggest looking into some property managers. Typically they run about 10% of each months rent, and sometimes take a fee of around 25%-50% of first month's rent as a finder's fee for leasing a property. Now every place is different, that's just what I've seen. If you still have a home-warranty on it, that will help if any thing were to happen. Invest in a background check program if you don't want to have any property managers. I use publicdata.com it is $35 Yearly for 700 annual look-ups. I'd also look into some reputable "handymen" here to be able to fix small repairs if any were to occur, as they are usually cheaper than calling out a company. Definitely have a through lease agreement. You don't want tenants calling you every hour of the day because a light bulb went out. That's the beauty of it, you can write whatever you want in the state of Texas and it is a legal binding agreement. Also, when screening tenants always, always, always call previous land lords. While their credit score and criminal check may be good, it doesn't say whether or not they kept things clean, were good on rent or always gave headaches. Another thing is pets! I suggest small dogs, most insurance companies want you to keep from vicious breeds anyways. I personally would never allow cats, if their urine were to get into the floors, it would be a nightmare to remove. On the upside, look for a good family that may want to stay for a few years. Having a multiple year lease is the best! Hopefully I helped. Feel free to ask any other questions you may have. I've been investing with my father in rentals for the last 4 years. We love helping out fellow investors!
8 Replies
- 10yMichael S.Pro MemberBiggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
Welcome to Biggerpockets James. Great to have you on the site. Make sure to check out Education for all your REI learning. Good luck in your REI journey
- Involved In Real Estate · Wichita Falls, TX · Member since 2013 · 4 posts · 1 vote10y
Hello there, James! I'm a local Realtor in Wichita, I researched your home on the mls to find comps. For the neighborhood it's in, there have only been 2 on the market with similar stats within the last year, averaging $1,575 a month. Compared that to everything in town matching your stats, it still matches up to around that amount still. I can tell you that there isn't many rentals with the same size your home has to offer. I'm not advertising my services, as I'm just an agent. But since you'll be out of town, I'd suggest looking into some property managers. Typically they run about 10% of each months rent, and sometimes take a fee of around 25%-50% of first month's rent as a finder's fee for leasing a property. Now every place is different, that's just what I've seen. If you still have a home-warranty on it, that will help if any thing were to happen. Invest in a background check program if you don't want to have any property managers. I use publicdata.com it is $35 Yearly for 700 annual look-ups. I'd also look into some reputable "handymen" here to be able to fix small repairs if any were to occur, as they are usually cheaper than calling out a company. Definitely have a through lease agreement. You don't want tenants calling you every hour of the day because a light bulb went out. That's the beauty of it, you can write whatever you want in the state of Texas and it is a legal binding agreement. Also, when screening tenants always, always, always call previous land lords. While their credit score and criminal check may be good, it doesn't say whether or not they kept things clean, were good on rent or always gave headaches. Another thing is pets! I suggest small dogs, most insurance companies want you to keep from vicious breeds anyways. I personally would never allow cats, if their urine were to get into the floors, it would be a nightmare to remove. On the upside, look for a good family that may want to stay for a few years. Having a multiple year lease is the best! Hopefully I helped. Feel free to ask any other questions you may have. I've been investing with my father in rentals for the last 4 years. We love helping out fellow investors!
- Real Estate Investor · Wichita Falls, TX · Member since 2015 · 17 posts · 7 votes10y
Hey James!
I am prior military (C130 pilot) and now full time realtor/real estate investor here in WF. I started exactly the way you did. Some people may not agree, but when it gets competitive like it is becoming here in Texas- cash is king. I worked my butt off to pay off my first rental- then stocked up that cash flow that was coming in...when the market was right- I sold it and now use all that cash to flip. I have built up enough to stagger my flips so I always have 1 or 2 going at a time. I also still own a rental here that I purchased at discount, did some renovations on it and rent it out- paid that off as well- so it is a little bonus passive income. I personally wouldn't pay a property manager in WF. You can easily landlord from afar using Old republic HW (as Hayden said) and militarybyowner.com to advertise. Just hire a realtor when its time to sell and they'll handle it all for you...
Keep squirreling that cash and reading up. Holler if you have any questions!
- Wichita Falls, TX · Member since 2016 · 6 posts · 1 vote10y
Originally posted by @Hayden Gerstner:
Hello there, James! I'm a local Realtor in Wichita, I researched your home on the mls to find comps. For the neighborhood it's in, there have only been 2 on the market with similar stats within the last year, averaging $1,575 a month. Compared that to everything in town matching your stats, it still matches up to around that amount still. I can tell you that there isn't many rentals with the same size your home has to offer. I'm not advertising my services, as I'm just an agent. But since you'll be out of town, I'd suggest looking into some property managers. Typically they run about 10% of each months rent, and sometimes take a fee of around 25%-50% of first month's rent as a finder's fee for leasing a property. Now every place is different, that's just what I've seen. If you still have a home-warranty on it, that will help if any thing were to happen. Invest in a background check program if you don't want to have any property managers. I use publicdata.com it is $35 Yearly for 700 annual look-ups. I'd also look into some reputable "handymen" here to be able to fix small repairs if any were to occur, as they are usually cheaper than calling out a company. Definitely have a through lease agreement. You don't want tenants calling you every hour of the day because a light bulb went out. That's the beauty of it, you can write whatever you want in the state of Texas and it is a legal binding agreement. Also, when screening tenants always, always, always call previous land lords. While their credit score and criminal check may be good, it doesn't say whether or not they kept things clean, were good on rent or always gave headaches. Another thing is pets! I suggest small dogs, most insurance companies want you to keep from vicious breeds anyways. I personally would never allow cats, if their urine were to get into the floors, it would be a nightmare to remove. On the upside, look for a good family that may want to stay for a few years. Having a multiple year lease is the best! Hopefully I helped. Feel free to ask any other questions you may have. I've been investing with my father in rentals for the last 4 years. We love helping out fellow investors!
Thanks for the info Hayden. I've seen the same market trends as you when it comes to rentals like mine, especially in the West Foundation school zone. I feel like the location and the schools are my biggest selling points that will keep it from staying empty. I have pretty good equity in the house and I know if I all out I will come out ahead, but I just feel renting is the smarter financial decision at this point in time, especially with what I perceive as a rising market in WF. Great meeting you.
- Wichita Falls, TX · Member since 2016 · 6 posts · 1 vote10y
Originally posted by @Cori Bryan:
Hey James!
I am prior military (C130 pilot) and now full time realtor/real estate investor here in WF. I started exactly the way you did. Some people may not agree, but when it gets competitive like it is becoming here in Texas- cash is king. I worked my butt off to pay off my first rental- then stocked up that cash flow that was coming in...when the market was right- I sold it and now use all that cash to flip. I have built up enough to stagger my flips so I always have 1 or 2 going at a time. I also still own a rental here that I purchased at discount, did some renovations on it and rent it out- paid that off as well- so it is a little bonus passive income. I personally wouldn't pay a property manager in WF. You can easily landlord from afar using Old republic HW (as Hayden said) and militarybyowner.com to advertise. Just hire a realtor when its time to sell and they'll handle it all for you...
Keep squirreling that cash and reading up. Holler if you have any questions!
I was thinking I might be able to get away with not having a property manager considering I have some close friends in the neighborhood that would keep eyes on the house everyday making sure the tenants are keeping up the yard, not throwing giant parties all the time, etc. I had Old Republic but I let it lapse a couple years ago (that was a mistake), but planned on purchasing a new warranty of its possible. That would definitely help my bottom line not hiring a property manager, however I think it would previous greater peace of mind for my wife. I'm totally convinced I can rent this out and keep a positive cashflow, and while she supports it, she definitely has her reservations, as do I, but that's why I'm on the BP forums. Thanks for your input and it's great to meet you.
- Real Estate Investor · Wichita Falls, TX · Member since 2015 · 17 posts · 7 votes10y
You can call them and renew...they'll just be a 30 days lapse from the time you pay to the time it kicks in since there was a break in coverage. I recommend Ana lisa Chase with advantage Real Estate if you need a property manager. If tenants are already there...definitely wait till turn over to call her. I believe she charges $75/month, but she can let you know. The market is heating up lots because drought just cleared up- so hopefully you can ride the climbing market and see some good returns.
- Wichita Falls, TX · Member since 2016 · 6 posts · 1 vote10y
Ana Lisa was recommended to me by my next door neighbor as well and I did speak to her before I left in January (family is still there until summer, finishing up the school year). Sounds like that's definitely the route I'll go if I get a property manager since you're the second recommendation for her.
- Investor · Wichita Falls, TX · Member since 2015 · 43 posts · 15 votes10y
Hi James,
I'm stationed here at SAFB now and just bought here and will be following same pattern as you. Let me know if there's anything I can do to help you out if you need a set of boots on the ground. Happy to help out a fellow AF member. I plan on self managing as well when I leave - I figure if I can keep military couples in there it would be easy enough to take care of it myself. If it ever went to an eviction or needed legal help, the PM would be passing along the cost of that anyways so it isn't like you'd be saving yourself that money...
I read a lot at www.reluctantlandlord.net which is the blog of @Elizabeth Colegrove. She is a USN spouse and has done all self managing and her blog has a lot of tips for military REI. There is also a Military Landlords Facebook group you can peruse.
Without much money, it is difficult to grow starting out but you can look at using the equity in your SAFB home to get cash towards an investment property, but we're in a great position to take out multiple VA loans at each duty station. It can be tricky using so much leverage so make sure the numbers and market works at each place you buy. Also be thinking about taxes when you sell. The IRS gives us 10 year window for the capital gains exclusion if we're transferred for military duty so that can really help your strategy.
You're in the right place and there's a lot of knowledge here - welcome!
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