All Forum Posts by: Adam Wright

I would also advise to look closely over any HOA restrictions (if you have any). I sold three condos to an investor for short term housing in Dallas and the HOA changed the rules after purchasing the condos to not allow the short term rentals. He ended up selling all three, flipping them for a nice profit (I sold two of them for him) within six months of purchasing them.

Try Pratt Aycock Legal and Title Services.  Donna Moody will take care of you.   

Try Zach Perkins at Keller Williams.  He can help you.   You can find him on the web.  

Try Paul at Ivory Pillar Properties, Inc   He has worked with several of my flip worthy clients and done an excellent job.   Let me know if you need contact information.   

I don't think you did anything wrong. It seemed to be a fair offer considering the rehab work. I always tell my clients that you have to make deals where the numbers work and you don't know the seller's frame of mind until you make the offer. In the current environment, which is slowly changing, you have to make an offer of 90% ARV for most sellers to consider it. You should set your expectations that you will get rejected much more than accepted because of the seller's mindset that they will get what they want for the property.

We are seeing more and more sellers dropping their prices to find a buyer.  I personally think sellers will be more open to negotiation in the near future.  Just keep making offers based on your numbers and you will eventually get a property.  Good luck!   

@Jeremy Mabry I agree with everything that has been mentioned so far.  If you are looking for a place between Fort Worth and Granbury,  you might want to try the Benbrook area.  I recently did a study of rental rates versus sales price to see what areas hold the greatest potential to meet the 2% rule.  The closest I was able to find was 1% of rental of sales price and Benbook showed up as one place where this is a possibility.   The other places were North Fort Worth and East Dallas. South Arlington to the Desoto area were also decent areas to investigate.  Of course, my study was unscientific and you will need to look at each property individually to determine if it fits your numbers.   BTW, I have done a lot of work in Oakhurst recently for another client and have found most properties are overpriced and don't come close to any reasonable cash flow.   It is a great place to live tho...a nice spot close to downtown.   Good luck!  

Basically, I agree with Mylan. You can find the deals with the specs you have put forth, especially with SFH, that tend move more slowly than lower price points. Cash flow gets to be tricky at price points over $200K, but it depends on your cash flow goals.

I did a quick look on the MLS for 4 plexes under $340k. You can see the results below. There are even more two and three door MF. Let me know if you would like to know more information.

Hi @Sam Wydner

I have not had any luck with the 1% rule for a couple of years now.   With the recent price escalation, it can be tough to find properties that rent as high as the sales price, even if it needs rehab.   Most of the investors I know are happy to get in the .7% to .8% range.  I did speak with an investor who is buying up newer homes because he can charge more monthly.   He doesn't have anything older than 2010 in his portfolio.  I was touring a new build with a client last year and the salesman there told me he had an investor buy three of his lower priced new models since he could charge the top rate for rent.   Finally, I know of a couple of investors who just deal in rural areas, specifically mobile homes because you can get close to 1% with these properties.   Just some ideas.   Let me know if I can help.   

This question is debated a lot on biggerpockets.  I see a post on it once or twice a quarter and always find the discussions enlightening as it is reflective of what we are seeing in the market today with many brokerages offering flat fee commissions and paying a salary to agents (check out the brokerage Door in Dallas for an example).  I think we will continue to see more and more of these brokerages develop as time goes by for all the reasons you mention in your post.   

At Integrity 1st Real Estate, we work with both traditional clients and investors.   @Mike Dymski is right that we can charge less to investors because of the volume we realize via multiple investor deals during the year.   For example, we have a Flip Worthy program where if the investor buys a house through us, we reduce our commission on the sell side by up to 33%.  We know investors need to get as much as they can on the sell side so we work with them.   

I agree with everyone else is that it depends on what you want to do yourself versus what you want to hire out to do.  If the agent you are working with does not provide that value-add service you require, I would look for one that does.   

Good luck! 

Hi Mark

I don't know if you have thought about the westside of the DFW area, but North Fort Worth area has some great rental properties.   I had one Virginia buy three rentals here in North Fort Worth last year.   In fact, there a lot of areas of Tarrant county to consider when it comes to rentals.  I would avoid East Fort Worth and areas around Las Vegas trail in west Fort Worth.  There are also some pockets along I35 in North Fort Worth that might not reach the B+ status.   

Here is a breakdown of MLS properties under $175K in Tarrant County. If you have any questions about certain areas, just ask. Good luck!