All Forum Posts by: Andy Webb

Aha - Houston!  That helps, so we know you don't have any of those strange things like basements!

@Mike McCarthy mentioned foundation repair being something to stay away from.  But generally in Texas, a lot of the distressed houses that you pick up are going to need some level of foundation repair.  I would not shy away from houses on that basis.  Just keep in mind that if it is an older house with cast iron pipes and you lift the foundation, those pipes are likely to break and need replacing - partial or a complete repipe.  Gets expensive, but again, part of the process for Texas.  You just need to have a good foundation repair company and a good plumber (or multiples of each) on your team.

Just watch out for the big ticket items:  foundation, plumbing, electrical, roof and AC - these can quickly bust your budget if you aren't planning to repair/replace them...

Remember that the older you go in terms of build year, the more of the above issues you are likely to run into. So if you target newer properties, say 1980s and newere, you will have fewer issues with these items.  And likely just need to deal with the cosmetic stuff.

Also, since you are in Houston - watch out for Flood Houses.  Yes, they can be repaired, but after some point, i.e. too many flood events, getting insurance will be a problem.  Keep that in mind if you are holding these as rentals.

@Jonathan Miranda - it would be helpful to know where you are buying/are located (your profile does not indicate...), so that someone more familiar with your area can comment.  

@Ron Ripley - it sounds like you should go ahead and sell the house in NM.  If you do decide to hang on to it and have already arrived at that great place without that W2 job, keep in mind there are other financing options out there.  At least in my market, I am seeing a lot of long-term, 30-year note options being offered by hard-money lenders.  The rates aren't too terrible and they won't need to see a W2 income...so you do have other options.

Generally if you are targeting families, for whom the school district would be relevant, (not that we discriminate in any way based on familial status), you want a higher bedroom count, something more like 3/2/x or 4/2/x.  I would think a 2 bed may garner a different type of renter that may consider the schools irrelevant.  Are there other amenities that my attract say retirees or single folks?

Also, take a look at the rent comps and see what the rental rates are (for 2-bed...does the amount work for your model?) and the days on market (DOM) in general for getting the properties leased - this will give some indication of whether you could run into issues leasing the place.

One last thing - staying local is great, but what is your local economy doing?  Growing? Shrinking?  If folks are moving out of the area and the population is declining, I would go elsewhere to invest.

If the residents specifically asked for carpet, I would go that route if you plan to keep them.  It will be cheaper than refinishing the hardwoods.  You can always refinish the floors later if the move out or you decide to sell.

I check Craigslist periodically when I have a house up for lease for this very reason.  We have caught the occasional scammer. Normally flagging it with the site gets it removed.

One thing you can do on your own listing is watermark the pictures with your company name and/or phone number to make the scam more difficult with your property.

@Lisa Lusby - I would look south towards San Antonio or possibly north to Temple/Killeen/Waco if you are doing rentals.

@Teri Feeney Styers - keep in mind you can also create an LLC and then have it assigned a DBA (Doing Business As). So form Boring LLC DBA Teri's All Star Marketing Brand Name...at least here in TX where OP also resides, that is an option.

Most HML's I have worked with here in TX do not require an LLC for buying rentals. Not sure where you are located - you might flesh out your profile a little better.

In fact, for a rental investor, our local HMLs understand that we will want to refi out of hard-money into a 30-year fixed rate Fannie Mae or Freddie Mac product, which cannot be done under an LLC...so of course they let us buy in our names. For protection you can just buy a good sized umbrella (liability) insurance policy for a few hundred bucks.

Now if you are flipping the property, then I would want to have it under an LLC.

Ah - gotcha, that is a handy savings.  And I just realized this is in the DIY forum!  So well done, no pun intended.  I am guilty of jumping in and doing this stuff myself as well...but am working to cut it out to afford myself more time with family and traveling.  It is a balancing act for sure...

Severna Park - we have relatives there...and I recall they have a basement as well...nothing like that to worry about here in TX fortunately!