All Forum Posts by: Calvin Clark

Hello - we are new to wholesaling and seller finance and looking to set the structure so we can lock down our first deal with a homeowner we’re talking to. Any recommendations for a title company or escrow company who can help us check the current title is clear, etc and work with us on this transaction? We’re not sure yet if we’re going to wholesale this one or keep it for ourselves with a seller finance deal. Any recommendations appreciated. Thank you! 

Hello Agnes, do you have a recording of this webinar? Thank you!

Hello BP Members!

In November 2017, my wife and I completed our first RE deal in DFW area. It was a full-duplex with 4/2 on each side. The deal was a great learning experience for us just getting started, and to date, we're sitting at about 4-5% COC ROI. Didn't knock it out of the park, but we are happy to be positive!

We live in Newhall, CA, so buy-and-hold deals are hard to come by, which is why we looked out-of-state. We have always been interested in Memphis, TN for an investment property, so that is where we are setting our sights next! We are looking to build our team out there (RE agent, property manager, possible contractors, etc.) and will be traveling in the next month or so to get a lay of the land. Before we head out, we are looking to make some connections. Any recommendations out there in the BP community?

Kind Regards,

Calvin

Hello BP Members!

In November 2017, my wife and I completed our first RE deal in DFW area. It was a full-duplex with 4/2 on each side. The deal was a great learning experience for us just getting started, and to date, we're sitting at about 4-5% COC ROI. Didn't knock it out of the park, but we are happy to be positive!

We live in Newhall, CA, so buy-and-hold deals are hard to come by, which is why we looked out-of-state. We have always been interested in Memphis, TN for an investment property, so that is where we are setting our sights next! We are looking to build our team out there (RE agent, property manager, possible contractors, etc.) and will be traveling in the next month or so to get a lay of the land. Before we head out, we are looking to make some connections. Any recommendations our there in the BP community?

Kind Regards,

Calvin

@Tonya Weathers This deal did not work out for us at all. We ran as fast as we could! We live in CA and our real estate agent in Texas went to go see the property and it was basically a drug den with several people living in each bedroom. Tons of problems with the interior, convicted sex offenders, just a bad situation. With enough time and effort there was potential to make it work, but for our first investment property, we didn't want to take any chances and dig ourselves into a hole. 

We actually continued our hunt for a multi-family for about a month afterwards and found our first deal on a duplex in Azle, TX. We have been cash flowing since about November 2016 and so far have seen returns of about 3 - 4% only because had a lot of plumbing issues early on that have since been sorted out. So far a great learning experience on managing not only the property but our property managers as well. 

Thank you everyone for your responses! The inspection came back so horrible that the inspector only charged us half of the original cost. We ran as quickly as we could from the property. Some of what was found:

- glass in front of both crawl spaces (seemingly intentional)

- all of the meters were spray painted over

- some rooms were inaccessible due to the amount of trash/furniture in the way

- registered sex offender on the property

Thankfully, we walked away. This would have been a terrible first investment. Good news is that we closed on a duplex in Azle, TX in November and are on week two of positive cash flow!!

@Bryce Y.This is an old thread, but interestingly enough, I just put an offer in on the same four-plex you were looking at. Any insight on the neighborhood/home since you last looked at it? We are getting it inspected right now and it's our first out of state investment (my fiance and I live in Los Angeles). We've been trying to find a good property manager to take the place on, but haven't locked one down yet. The place is fully rented right now and a new roof has been put in, but we're still a little apprehensive about the place with the initial research we've done (a little googling brought me here even lol). 

@Chad Benedict no, we haven't found an property management companies that have wanted to take the property on yet. It seems some of the companies we call are a little apprehensive about the property, which doesn't give me much confidence. According to the rent roll over the past 3 years, the vacancy rate is about 8%, and the average expenses are about $3800/yr. Here's the spreadsheet:

Inspector is going in tomorrow to get an idea of what the inside looks like. We'll see what comes back before going forward. Trulia crime is not the worst i've seen:

@James Syed The tenants split the water and trash equally. Lawn care should be minimal as the entire front area is a parking lot basically. The property is 32 years old, but the roof is brand new. I've attached an image here to see what it looks like. 

Hello BP community!

My fiancé and I just got our first offer accepted for a four-plex in Dallas and are looking for some advice on our analysis before our option period ends.

The property is comprised of four 2b/1ba units in the South Dallas-Fair Park neighborhood and is right across the street from a large industrial plant. The building has a parking lot with no cover and a brand new 30-year roof. It's currently fully leased at $600/unit.

Asking Price: $200,000

Gross Rents (4 units): $2400 per month

Expenses:
Taxes: $350/mo
Insurance: ~$200 (haven't gotten a quote yet)
Vacancy (5%): $120
Repairs (7%): $168
Capex (6%): $144
PM (10%): $240

Total: - $1,222

Mortgage: - $787 (conventional with 20% down and fixed 4.25%)

NOI: $2400 - 1222 = $1178

Cash Flow: $1178 - 787 = $391 per month (10% CoC ROI)

We feel like this is a pretty good deal based on our numbers, but want to see if we are missing anything? We would also like to hear from anyone that has experience with this type of investment in this area of Dallas.

Thanks all!