All Forum Posts by: Cassi Justiz

@Chris Cooper that is amazing!! I'll keep my crossed for you as well!

I am originally from Lubbock but live in OKC now.
I still have my former SFH residence there that is a rental property. It's been a full time rental since 2015. I've been super happy with it. It's a decent B+ area with good schools. It doesn't attract the college student crowd which I'm 100% fine with. We've had 2 different sets of families live there and they've both been fantastic renters.
I haven't pursued buying any additional property in Lubbock because it just isn't practical for me right now, but I wouldn't hesitate if I found a really good cash flowing deal. 

Reach out to @Jordan Sutherland, I know he works with investors in the Lubbock market. 

Thanks for the update @Chris Cooper. 

The remodel looks great! Let us know how the sale goes! 

Hey @Ernes Sahic, 

Leaving the answer as " the ARV is all over the place" is a bad answer from a Realtor. They should know the area well enough to at least give you a range. I have pulled comps in an "all over the place" area, and even then I can at least come up with a rough range of approximate ARV. They should at least be able to show you what has sold recently and those price points. When running comps, then I'd figure out roughly which end of the range I'd expect to sell based on your finishes. Call a few more agents. Chances are that agent didn't actually pull comps if they didn't think you were going to utilize them for the sale.

To be fair though, I have heard that Lawton is a weird market so I would ask at least 2-3 people for price opinions before you make a decision. 

I would say that what your attorney recommends is probably going to be the most appropriate course of action for your situation. I always try to have title companies hold earnest money funds, however there may be something in your contract that specifies otherwise. Check with your attorney. 

Since you already have an attorney on board, let them know your concerns. Hopefully they can help you find a solution that you are comfortable with.  

Hey @Josh Doering, 

I wouldn't do anything now other than just hold tight and keep saving. 

If everything goes back to normal in the next few months, you can plan your move at that time and evaluate what the rental market looks like then. If everything doesn't go back to normal quickly, you may be able to get a fantastic deal on a property in Portland. :) 

People will always need places to buy or rent. But with all the uncertainty, they may not be willing to pay a premium for that right now.
I wouldn't leave the safety net of your primary residence (and single mortgage payment) to add on any additional expenses at this time.  

I've seen a weird mix. I think a lot of the activity is going to be driven by the specific jobs of the tenants and buyers. Some of my buy and hold investors are still actively looking and offering on property. But the ones that are buying are VERY specific types of Investors. They are locking in crazy low rates with 30 year conventional financing and looking to hit very specific metrics on their returns. As long as the houses are conservatively hitting those metrics, most of them are not slowing down. However, they are buying close to rent ready or turn-key with tenants in place. I don't have anyone right now tying up cash on big projects or trying to buy utilizing commercial financing. 

I've had 1 buyer decide to hold off right now because he is about 50/50 stocks and real estate. He's dumping his money back into the stock market right now because it's at a better "discount" than the real estate market. 

I have both residential and investment owners that are still on track to list properties in the next few weeks. I think everyone is a little nervous, but as of right now, none of them have decided to hold off or postpone for now. They are all in really competitive price points, so I don't expect we'll have any issues. 

As far as leasing, I think everyone is holding their breath here. As of right now, I haven't had any of my tenants say they are not going to be able to pay. The single income households that I have are not service based employees, so I think that makes a huge difference. One of the owners that I do leasing for had two properties available in Edmond. We signed one lease on Monday with an April 1st move in date and the second application was approved today also with an April 1 move in. The second property I listed for lease at the middle of last week. We received 5 applications, a several of those applications were sight unseen. None of the approved applicants were in industries directly impacted by the shut downs, so hopefully they all move forward as planned.  

I'm with @Rhett Tullis and @Will Fraser, I think this is going to take a while before we see all of the different ripple effects. The landlords that don't have large reserves and the ones that are over leveraged are going to be in a tough spot really quickly.
I also think a lot of the "get rich quick" airbnb hosts are going to get wiped out if this lasts for more than a few months. I know of several "superhosts" that lease properties for airbnb instead of actually purchasing them. They're about to have a really bad time. The savvy airbnb owners were already shifting to target the contract medical professionals, insurance claim people and other "longer term" short term renters.  The pure "vacation based" airbnbs are probably going to be some of the first to feel the impact. 

The house looks really rough for a 15k rehab. I can spot at least 5k of your rehab budget without even looking at the interior of the house. You can spend 15k on cosmetic updates alone if you are not careful. 

Also, you've already gotten this feedback but you need to budget way more for your expenses, especially if it's in an area where houses are able to get significantly distressed. I would look more at your 50% rule. In my $1200+month B+ rentals, I'm still in the 50% rule range most years. 

@Sheldon Zimmerman, 

Thank you so much! I will check into these. 

When we inherited tenants I did an intro letter with how to pay rent, my contact info, and how to put in maintenance requests. We had one tenant on an existing lease and another one on month to month agreement, so I also included info about their current lease terms being honored through the end of their lease date. 

My plan was to let the M2M tenant ride out through the winter and get her on a longer term lease once we got to late spring.