All Forum Posts by: Andrew Herrig

@Benjamin Barredo I wouldn't even think about calling a list a success or failure until you've mailed every lead on it at least 6 times over 6 months.

@Benjamin Barredo As others have mentioned, how much to mail depends on a lot of factors. How good is your list? What is your response rate? Letter or postcard? What is your lead conversion rate? Do you have good follow up systems in place?

My advice would be to just focus on doing what it takes to generate a certain amount of leads. Get a list and stick to it mailing once a month for at least 6 months. Track how many leads you get, and if they aren't ready to sell today, keep following up with them over time. Theoretically you should be able to close a deal every 20-40 leads. If after awhile of tracking this, you aren't closing deals at that rate, I would start to evaluate your processes for answering the phones, setting up appointments, and salesmanship skills.

@Zach Vaught Welcome to BP! I am originally from Tyler, but now live in Dallas. I have considered looking into the East Texas market to invest since I still have family there and I assume it is a little less competitive than here in DFW. Good luck with your investing!

@Ray Lai I have heard a number between $150-250 per month should be set aside just for capital expenditures (roof, HVAC, plumbing, electrical, etc). If it's a fully rehabbed house, you shouldn't have any of these expenses for 5-10 years, but you have to account for them in the overall analysis. Sure you could have great cash flow for several years, but one big capital expense would eat up many years of positive cash flow. 

For maintenance, like others have said I'd probably use 5% to be safe. 

@Tom Feret It has been on MLS. I have negotiated and put it under contract for significantly less than list price.

Don't miss out on all the action happening on Lower Greenville! This is a duplex that is currently rented out (1 side at $995, 1 side at $870), and is in great shape as-is. Hold for cash flow, or teardown and build new construction. Lots of new single family houses going up in this neighborhood for $800k - $1M+.

One lease has a 45 day move-out clause, the other expires in July 2017 (may have to do cash for keys if you want to end lease early). Or hold onto it and collect the rent while prices continue to appreciate in the M-Streets.

Click here for more info.

To get on our buyer's list for future deals, go to http://www.andrewbuyshousesdfw.com/investors

@Marie Chiang As others have mentioned, The Colony is a good area near where many new businesses are relocating. It's a little cheaper than surrounding Frisco/Plano/Carrollton so you have a lot of people moving out there. Good chance of appreciation.

My only concern with this house in particular is that it is pretty far over median rent for the area, so I think your pool of tenants is going to be smaller. Also, I'm not sure what they quoted you for taxes, but I would be very careful. Dallas County (and I think the other counties in DFW) has been extremely aggressive in raising property tax appraisal values to within 5% of market value. I would assume in the very near future that you will be paying around 2.7% of $250k ($562 per month).

If it were me, I would be looking for rentals a little closer to the median. Not sure what turnkey companies are selling these days, but I would be looking for something that rents for $1500 and costs around $150k.

I agree with @Chris Clothier and @Jason Hirko. I would absolutely ask for a POF from a new buyer. If they get offended, move on to the next one. There are way more cash buyers in DFW than deals, and I want to work with the ones who are serious.

@John Chapman I haven't gotten too far in my research yet. I have looked a bit into Chicago (good cash flow, high taxes, questionable chance for appreciation) and Indianapolis (fairly stable market, but low rents). Most of the turnkey providers I have found tend to operate in a small handful of markets - Chicago, Indianapolis, Ohio, Alabama, and Tennessee. I'm not sure if I really want to try to go the route of building my own team on the ground somewhere, but maybe...

@John Chapman You could try to take on the challenge of another market. I've only been at it a few years, but I feel you that the numbers in DFW are not looking so great anymore. I have considered selling off a few of my properties that have significantly appreciated and putting that money into turnkeys in other markets.

Have you thought about hiring someone (part time?) to handle the property management aspect? With 30 properties it may make sense financially. It would take the burden off of you, but you would still control the quality of work.