All Forum Posts by: Chris Bounds

@Steven Fiszer, Interesting.  Definitely be careful who you give your personal info to.

Welcome @Chris Johnson, You're in the right place. BP's podcasts and forums are a great place to learn about REI. Also, get plugged in to a few of the Houston REI / meetup groups to network. Most are free.

Thanks @Evans Wright,

IMO, that strategy is the best long-term strategy for part-time investors.  It works great for folks who have jobs and can get the best interest rates.  

@Geoffrey Jones, Like it was mentioned before, not being a turnkey provider it will be harder to get top dollar for a turnkey property.  I do not believe that is because of trust.  An investor can verify numbers and have inspections done to check the property's condition.  Your biggest issue will be not having the network of turnkey buyers that professional turnkey property sellers have.  Some landlord buyers pay as much as 80-90% value (which is crazy to me), but you have to find those buyers first.  

Thanks!

@Waylon Themer, I'll PM you the address. It is on MLS, but since BP ranks high in Google searches (to BP's credit!) I don't want to make the address public before the sale finalizes.

I haven't posted in this section BP yet.  Now seems like a good time!

This is the first investment property (Jan 2012) that my wife @Jamie Bounds & I bought in Houston. Without knowing the ridiculously long acronym at the time, we used the BRRRR (buy, rehab, rent, refinance, repeat) strategy. Since then the market has gone up dramatically (woohoo!) so we decided to cash out and use the proceeds to do more deals.

Here is a quick rundown on the details (numbers rounded): 

Deal type: pre-foreclosure
PP: $85k (100% hard money)
Rehab: $35k ($27k was hard money)
Rent: $1395 - $1450
Rehab 2: $31k
List Price : $234,900
Profit: Depends on the final sales price, but it will be a nice check to deposit.

Here are a few pictures.  

2012 Before (I wish I could attach the house smell to these)

2012 After (Clean & Basic remodel for a rental)

2015 After (Added the premium touches)

I wish we bought a lot more of these in 2012!

@Steven Fiszer, how did your conference call go?

@Cory Boren, it's been a while since I did an sub2 deal, but I know you can always order an Abstract of Title to see the chain. There are title companies that will work with deals like that. I'm not sure if they offer title insurance on Sub2 deals, but they can assist with closing. Patten Law firm & Homeland Title are two local companies to check with (no affiliation).

Welcome @Matt Wilcox- You're in the right place.

A 5 year retirement plan is possible, but you'll need an aggressive plan to get there.  You'll need (or have access to) a decent amount of cash for B&H.

Work backwards and determine how much income money you need monthly to live on.  Then estimate the cash flow from each property ($300-500 if you buy right in Houston).  Multiply that out to determine how many houses you will need.  Then spread the number of houses out for 5 years.

That is just a general plan so you'll want contingency plans as well.  Good luck!

Welcoming @JEREMIAH SANTOS.  You're in the right place.