All Forum Posts by: Andy Webb

Absolutely - San Antonio and Houston are great markets that cash flow for long-term rentals.  I am in DFW - you can find SF here as well, but the out of pocket tends to be higher than in those markets.  Austin is too pricey. 

I am staying with SF and MF housing and sticking to the sunbelt.  Check the demographics and where people are moving to and from (to the sunbelt, from the West Coast and Northeast).

Think of the Security Deposit as incentive for the tenant to perform.  "If I keep the property in good shape and follow the lease, I can get that $NNNN security deposit back".  If you do a lease fee, that is one and done - where is the incentive to perform?

Personal and business are separate.  If you are just starting out, one separate account for all rent is just fine.

@Whitney Breedlove -  I offer a 12 month renewal rate and a month-to-month (M2M) option when we send our renewal notice.   M2M is always at a higher rate - say $100 per month higher.  So if existing lease is $1500....and new rate is $1550, then M2M will be $1650.  Of course you could make the premium higher.  I am not a fan of 2 year leases unless you include some sort of an "escalation" clause that allows for an increase after 12 months, in the even of higher property taxes, insurance or other expenses...

Not sure how things are in Clear Lake, but we still have a shortage of inventory around DFW, so tenants still don't have a lot of options.

Andy

Not sure if this applies to your situation, but you may want to check out (think Dirty Jobs show) Mike Rowe's foundation that assists with trade school scholarships:  mikeroweworks.org

Andy

P.S. I did enjoy a bottle of his Knobel Whiskey - supports the foundation....give it a try!

What are your thoughts on Livingston, TX?  Any insight on the growth there?

Andy

Hi Scott - club or association or group - something in that vein. Here in DFW there are several groups that meet. There is a DFW REI Club that meets in Ft Worth for example. Personally I am a member of a sizable group called Lifestyles Unlimited that has a lot of education and mentoring around residential real estate investing. I have gotten into quite a few passive apartment investments with syndicators I have gotten to know there, both in Texas and beyond.

Andy

There are ways for syndicators to file/structure their deals that allow non-accredited, but "sophisticated" investors to participate; up to 35 sophisticated investors. This is done via private-placement memorandum, not openly marketed, so you have to have a relationship with those syndicators. Are you in any clubs or REI groups that have that type of syndicator that you can meet and get to know?

One thing you wrote in your original post jumped out at me:  "In the past, when i tried calling the previous landlord(high rise multifamily residential)-nobody responded to my voice mails. Employer gave above average feedback."

If you did not get a response from the prior landlord and getting that feedback from them is part of your process, then I would not consider the tenant screening complete.  You cannot make a good decision with incomplete information and this info may have helped you go in a different direction with this guy.

Slow down and do not move forward until you have all the boxes checked that are part of your tenant due diligence process.  And it should be a process that is clearly laid out (e.g. use a checklist), that you apply to everyone.  

Andy