Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Bart H.

Bart H. has started 11 posts and replied 1128 times.

Post: Investing in turnkey in IL with 10k down

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Joan-Marie Pagan:
I would like to pick up a couple turnkey properties for buy and hold in Indianapolis IL, would like to try to do so with 10k to work with. Does anyone have any advice or contacts on my plan. I’m in the very beginning stages of my research on this area and am looking to connect with the correct people to help make this possible or hear form those that have done this. Thanks in advance!

 ummm….I assume you mean Indianapolis Indiana?

Others may have mentioned it, but there are some pretty bad neighborhoods in Indy at that price point.  I wouldn't do a turnkey at that price.

Post: [Calc Review] Help me analyze this deal

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Dennis M.:

110k to get 1200 rent ? No thanks

 In Dallas unless that is near Fair Park, it would be a screaming deal. Bought one for $135K in Elmwood about a year ago that was renting for $1,200.  We put 20K in, and its worth 200K+ and rents for $1,900.  And I think there may be additional upside.

Everything under $200-$300K in Dallas is flying off the shelves.  

Post: [Calc Review] Help me analyze this deal

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Anthony Heatley:

@Jaysen Medhurst Thanks for explaining that!! So would you pull permits during the due diligence period, right?

 You can actually go to the Dallas city website to see what permits have been pulled.  See example below for one where a bathroom was added.

to Get licensed in Dallas as a GC, you just go to the city and pay the fee, and then pull a permit to do demo and rehab.  If you need electrical and/or plumbing, then the individual trades pull their permit off of your permit.  They have a a rough inspection and a final inspection.  All of the final inspections need to be done before you can close out and get your occupancy permit.

Its honestly not that bad of a process once you get thru it the first time.

https://developdallas.dallascityhall.com/Default.a...

Originally posted by @Thomas S.:

@Bart H."having some compassion during Christmas is the right thing to do."

You have missed the point of this thread. For a landlord to have to post a eviction notice they have already been dealing with the tenant in regards to what ever the issue may be and have been shut down. Eviction is the last option. Making the tough decisions to evict is the point not the fact that it was posted on a tenants door some time around the Xmas time. The eviction process generally has time lines and when the date comes to post the tenant is already aware it is coming, no surprise, so the landlord posts the notice.

What would be the point for landlord or tenants to delay the process both parties are aware is coming. This has nothing to do with Xmas and even less about compassion. It's all about whether a landlord is capable of operating a business.

"we try and treat people the way we would want to be treated"

I treat tenants the way they treat my business. If they do not pay their rent and disrespect my business then my business responds in kind.

In Texas, which is our case, its 30 days give or take to evict.  So Anyone who hadnt paid from October of before would have been already evicted before December.  If rent was late from Nov, we would have had multiple conversations, and a notice would have been posted during the first week of December.  

If rent was late from December, we would have had multiple conversations.  If those conversations were not going well, AND they were saying they werent going to pay with no reason given. Then yes we might be forced into posting an eviction notice.  If we were given any reasonable reason, we would likely wait until January to post an eviction.

Sorry, running a business doesnt mean you have to purposefully inflict as much emotional damage on another family.

If anything I think its good business to be firm but fair, and often I think its smart to show a little compassion.  Because at the end of the day there is some political optics to what we do, and you dont want to give the news something to latch on to.

Originally posted by @Nicole Heasley Beitenman:
Originally posted by @Patrick M.:

I would have superimposed it over the present Santa is holding. Perfect size.

 I have no problem making the decision to evict a struggling tenant in order to protect my business, but you won't see me being an ******* about it. 

I'm not posting evictions on Christmas day because I'm taking steps now to ensure I build a business that doesn't require me to work on Christmas Day outside of real emergencies. 

 Agreed, I will aggressively work to make sure we get good tenants in the first place, and we will stay on people who dont pay throughout the year.  And if we really had collection issues, we would not renew.

And I get it IS a business.

But be realistic, if someone is having a tough time, to go out of your way to insult them during Christmas is cruel.

Plus, its a lot more likely to elicit a response where the tenant trashes your property.

 I am all for being strict and living up to the lease, and I DO think that people for the most part make their own bed financially.  But there are exceptions, and I think a little compassion goes a long way.  

Plus why do you want to run the risk of ending up on the local news and be labeled as the modern day Henry Potter.  Heck, you might end up finding a bunch of city inspectors up your backside.

Look, we try and treat people the way we would want to be treated, and it wouldn't happen again in January.  But I think both from a business perspective and a personal perspective having some compassion during Christmas is the right thing to do.

Originally posted by @Anthony Heatley:

@Bart H. I really appreciate your point of view. I was really focused on buying at a discount and being to add value. But you're saying that it could be more advantageous to pay closer to market value if that means that I don't have to pay cash or spend the time and money on a rehab. In this case, I may not get the greatest monetary return, but the learning experience and possible appreciation could make up for that.

Is this what some people would call an "appreciation play"?

 Here is the thing, and its a question you would know individually.  What are your skill sets?  What kind of capital do you have access to?

If you are a contractor, and have some money in the bank, then starting off with a full gut job rehab is no big deal.  But if you dont have construction experience, I can tell you that your first rehab will likely take twice as long and cost twice as much as you expected.  If your budget it tight going into the project, a bad rehab with no other funds available could literally bankrupt you.

As an example, on our first "house hack", we bought a duplex, anticipating one tenant would move out, and we would sell our condo that we had under contract.  Within 30 days, our condo fell out of contract, and both tenants at the duplex had given notice.  Oh and we got sued by an unethical Real Estate agent who wanted a commission that they literally didnt do anything.

Now eventually we got everything all worked out, and luckily we went into the situation with a solid W-2 income.  But it was a little stressful.  I cant imagine trying to do everything right off the bat with no experience.  Just patching, painting, refinishing floors etc is plenty of value add on the first project.

As far as an appreciation play, yes it would be to some extent, but I think its also better to view it as 1) a learning experience, 2) a cost avoidance play.  If you were paying $1,500/M in rent, then after tenants pay you you are covering $500/M in mortgage (tenants paying the rest), then you will have a nice return.

I am not saying that you ignore the normal return metrics, just that you can go with a slightly lower return than on a property you wont live in.

Originally posted by @Anthony Heatley:

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Good evening BP,

If I were to buy this property, I'd use a 203K loan. I checked rentometer and saw that I could comfortably get $1,000 per door here. All things considered, I wouldn't call it a great deal. I'd get a $170 discount on my rent though. It's in a good location. Near markets and restaurants. It's also 3 miles from UTA.

I'm hoping you can give me some feedback and tell me if I fudged on the numbers somewhere. The owner is asking $305,000 for the property so I doubt he'd accept $210,000 due to its good condition. The only place I could imagine adding value is the landscaping. Maybe update the cabinets and paint, but I don't know how much value that would really add.

I'd appreciate any feedback or suggestions. Thanks!

As a house hack, its fine.  I agree with others that getting in for $210K might be optimistic.

But the deal as presented would be ok.  

Here is the thing, don't worry about if there is something "off-Market" as a first time buyer.  Almost all of the off market deals that are out there would require, either an all cash purchase, short closing date, and/or the house would need  substantial rehab. 

I suspect an MLS deal might be your best scenario, it will allow you get to get a move in ready property that you can finance.

Others may have a slightly different take, but imo for a house hack, (and I have done several of them).  Find a property that you are willing to live in.  A bonus if it is in an appreciating market/neighborhood. 

I believe with a house hack that you look at your budget to buy a house.  And what you would pay in rent (say 1,500).  If your house hack is less than what you would otherwise spend, then any rent is positive.  Plus you get tax write offs, capital appreciation, mortgage paydown.

The classic return doesn't have to be that great, you are learning about being a landlord, and learning the process.  Once you get the blocking and tackling down, its pretty easy to scale up and look for off market properties.

Post: Over-under or side-by-side duplex. Should I wait for one?

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Kyler Cook:
@Ned Carey That is super interesting, and I wonder if it’s specific to your area. I’ve never heard of them being owned separate. Thanks for the insight!

 It happens in some areas.  Its not the norm, but there are some in Dallas.  

Post: Newbie in Normal, IL

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Ron Fletcher:

@Christopher Wasowicz

I would be cautious about the Bloomington Normal area. My understanding is that State Farm

Is moving a significant number of its people. That combined with the general flight of Illinois population could mean a glut of housing.

 Illinois is bad, but BN does still have ISU.  So I think its a lot more stable than most of the cities in Illinois.

Post: Need to close on a Multi family in 35 Days

Bart H.Posted
  • Dallas, TX
  • Posts 1,165
  • Votes 744
Originally posted by @Omar Khan:

@Darius Anderson Once we pick our preferred markets (based on a combo of simple econometric modeling, economic research and where we already own assets), we just focus on 2-3 sub-markets in 2-3 MSAs at a given moment in time. Honestly, unless you have a sizable team of seasoned pros or run a PE slave-shop where you can grind Ivy-league analysts for 100+ hours, you will be fighting a losing battle. 

You've got to reduce the noise. Often times, more data is not better data. It can give you analysis paralysis.

For a simpler explanation, I wrote this post: Underwriting the Google Way: Building Maps. Not Numbers

 Agreed, we focus in on a few neighborhoods and more or less look at everything that comes on the market.  I would say we now know 5 or 6 neighborhoods.  In those neighborhoods we routinely check out open houses, drive for dollars, look at the pictures for everything that comes up in the area.  

Every property we have ever bought, we drove the neighborhood months or even in one case years before it came on the market.  IMO that is our competitive advantage.

I think having a really narrow scope until you find your rhythm is a good thing, imo.  I cant imagine figuring out the regulations in 3 or 4 cities in my metro area let alone figure out the rules in multiple states.