All Forum Posts by: Brian Scott

@Patrick Drury

Thanks for the quick reply. I tried posting it on Zillow/Trulia through the Zillow Rental Manager, but it rejected the listing and said Room Only listings are not accepted. It did post it on Hotpads though.

I'm wondering if posting it as a full house for rent and putting in the description that it's a room only might help. It'd be more visibility at least.

Airbnb might be the last option as opposed to full time roommates I guess.

What website or method do people use to find quality roommates nowadays?

I just bought an SFR to house hack but cannot get any roommate leads-good or bad. The room is posted on Facebook Marketplace and several rental groups, Craigslist, Hotpads, Roomies, Roommates.com. I listed on roomster.com but got nothing but spam and couldn't message without a paid account anyways so shut it down.

Facebook doesn't have a "Room Only" property rental option that I can see so it's a 1bd/1bath house for rent and I put roommate wanted in the description. There is a Room Only option but it changes it to a general for sale listing so I'm using that as well.

I originally put the screening requirements in the ad but removed them thinking it was turning people off. However, there has not been any change with removing them.

 Any other avenues with a good response rate in 2021?

One thing to consider is the basis for depreciation. Depending on the numbers and if you qualify for the 250k/500k cap gains exclusion for it to make sense, you might be able to sell it to an entity you own tax-free on the gain (LLC taxed as S-corp for example) for a lot more than you paid and up the basis so you can depreciate more each year. Otherwise you'd be stuck with your original purchase price plus any improvements done.

For asset protection, might want to consider your current net worth, insurance limits etc. You can always deed it to an LLC later once net worth gets high enough for people looking for a quick pay day to go after.

hey Katrina I'm in your shoes now just starting in Dallas. Competition is fierce for BRRRRs and "slow" route deals both on and off market from what I'm seeing. Prices are getting driven up from retail buyers and wannabe investors so it might be wise to be open to both types of deals if the numbers work. The limiting factor here is finding the deal not financing. As far as lead source I've had good response rate driving for dollars in my target neighborhoods and texting the owners. Just started last week but one owner considered an offer on the spot. Financing the deals isn't an issue for the buy, rehab, or refinance since there are tons of lenders here. Just my .02.

Texas is non-disclosure I believe so it has to come from the local MLS via agent or software like Propelio/Propstream ect.

edit: Without direct MLS access, I've been looking at the previous list price on Zillow and assume sold price was close to it if the sold date was a few weeks later or less. It beats annoying an agent for comps for every property.

Thanks Paul. Unfortunately only one certified contractor in DFW and he won't answer calls or emails. Going to rethink this strategy especially with the Consultant setting price for Standard 203k...so limits it to 203k Limited or Homestyle to get competitive bids. Finding lenders who originate 203k and Homestyle regularly (and won't bog down the process) isn't so bad, it's vetting a list of contractors beforehand who will agree to the draw schedule and process.

Not to mention in this competitive market getting a buyer to accept a renovation mortgage offer over a conventional isn't likely without overpaying for the property! 

Has anyone done an FHA Standard 203k rehab in the DFW area recently? I'm looking at a HUD property that will only qualify for a 203k loan and am looking for lenders and contractors that specialize in this arena. Due to the paperwork involved and long draw request periods I'd prefer to start with referrals as it'd be hard to convince a normal contractor to agree to the terms. I'd appreciate normal contractor referrals as well since I think I can prepay for materials at least to reduce the headaches.

Hello Danny congrats on your successes so far! Your agent might be right on the lack of options when it comes to huge margins. The midwest just doesn't have the prices like Texas, Colorado, California etc. so ARV is more or less capped for majority of houses when considering the average income. What's dangerous with the small flips is the small things adding up like you fear will happen, especially if you go older 1900s era. Just my .02. I've been looking at 1970+ 1-owner houses which are basically paint/carpet flips, which can be bought at good discount because many of them are estate sales. Population is VERY aged here so plenty of options. Biggest thing when buying remotely is getting the right agent who is investor minded IMO. Hope it helps and good luck!