All Forum Posts by: Caleb L.

Some of the biggest challenges investors of all sectors face is:

1) Managing your emotions and feelings to make rational decisions.

2) Time management.

3) Taking action. 

The calculator has the question marks over the boxes, hover over them and they'll explain with your supposed to do.

If you still confused, watch a BP webinar and watch how Brandon Turner fills out each one.

You might be a little big for Cozy, but check it out anyway! I also like Tenant Cloud.

Appfolio and Buildium are a little confusing for me, so I like other, more simple software's that has everything I need, like Cozy or Tenant Cloud.

Have you thought of getting a property management company?

Hi @Aram L.

I wrote a whole forum post about some of the best areas in central Texas that are becoming hot markets based on data I've collected.

https://www.biggerpockets.com/...

Everything is bigger in Texas, including the property taxes. It's not irregular to find the monthly property taxes to be at $400-$800/month. I've even seen some multi-family properties have taxes up to $1,000/mo!

Landlord tenant laws are a little better than most states. I'm not going to explain all of the legal stuff, but the laws are pretty good compared to most states. You can do the research on landlord/tenant laws in Texas yourself. 

Hope this helps.

- Caleb L.

Great question.

There are a few software's out there that combine property management and accounting. If you are looking for a free software like that, here's a few:

1) Cozy. Cozy is FREE FOREVER and combines property management and accounting. It has a simple place to impute expenses. It's accounting features are not as good as others, but if your just starting out with a few properties, it should be fine. cozy.co

2) Tenant Cloud. This software is FREE up to a certain number of units. I like it a little more because it's more in depth accounting and managing software that Cozy. It's has simple accounting tools and management tools. tenantcloud.com

These would be the best to start with in you case. There is always QuickBooks if you just want accounting software. But why not get both management and accounting tools in one software.

Look into both and see which one is best for you.

Hope this helps!

- Caleb L.

There are many helpful strategies to use if you have limited funds. You could partner with somebody, wholesale a few houses to get cash, etc. There is always a way.

Secondly, I'm not a fan of the 1% rule. It's one of the most well known, so called "analysis tools" out there that doesn't even make sense?! I have found many deals, and hardly any of them meet the 1% rule. I could care less whether my rent is 1%, because that doesn't define a good deal. I would drop the idea that the 1% rule is something special in a deal. Focus on COC return and cash flow, those are the most important numbers to look for in a deal.

True, it's a bullish market right now, but people are still buying deals all around! It might depend on your market. For example, my city is pretty expensive, so there's hardly any deals to be found. But, try surrounding cities. Also, once you've found the right price you can buy the property at, you can always make that your offer, even if it's low. Try looking at off market properties. Ask your friends and family, "Hey, do you know anyone who wants to sale their house, but hasn't put it on the market yet?" 

I've seen from others that, in this market, the best deals are found off market, not online.

Hope this helps.

- Caleb

I see a few things wrong with this analysis.

1) Your vacancy rate is at 2%. It depends on the area, but you should at least start around 5%.

2) Your down payment is 5%. In this market, I've never heard of anyone ever getting a loan with a 5% down payment.

3) Your repairs are at $1,000, which might be good or bad in some cases. In this case, make sure to inspect the property BEFORE buying it.

4) Make sure your rent estimate is not to optimistic.

Hope this helps!

Austin Vestors.

TexCen Realty.

Darwin Realty.

These three are good from what I hear.

You did not include vacancy. Which is a big problem. Secondly, your cash-on-cash return is pretty low, even if your satisfied with it. COC return is just as important as cash flow. I recommend 12%+ COC return.

Lastly, your repairs, and CapEx is at 5%, which is okay in some cases. But, if the house isn't in the best condition, I recommend increasing those percentages.

If you do all that, it probably won't be a good deal unless you drop the price by a lot.

Hope this helps!

- Caleb

I don't use any, but here are some I hear from others that they use and like:

1) AustinVestors Property Management. There only in 10 cities in and around the Austin area.

2) TexCen. Also a great one. Lower prices form I hear.

3) Darwin's property management. New, but efficient and relatively low priced.

Hope this helps!