All Forum Posts by: Danielle Jackson

Tough situation to tackle, and certainly a conversation to be had. Sometimes educating tenants on market rents, and what it would cost should they decide to move is overlooked and invaluable. After 25 years, they may not know what "market" is. Educate, listen, and go from there. Incremental adjustments probably make the most sense. Best of luck! 

In my very humble opinion, given your families expertise as tradesmen, taking advantage of historically low conforming rates, with limited down, on a heavy rehab project, may make a lot of sense. By forcing the appreciation with the value-add component, you aren't paying for someone else to have done the work. 

Now that is all heavily caveated with knowing the numbers. They have to make sense. NOI, cash flow, total return, and growth projections. How do they cash flow with the rehab completed?

You are focused/thinking about all the right things. Good luck in whatever you decide. 

Breathe. You aren't alone. So many before you were in the exact same boat. There is no timeline to achieving your dreams. Just make sure you ready. And by that, I don't mean for the "perfect deal" because let's be honest, they are unicorns. 

The 1/2% rule isn't the only metric when analyzing a deal. Candidly with prices where they are today, it's a tough one to accomplish in growth markets. What does the full financial picture look like for each strategy (NOI, CoC, IRR, etc)? What does appreciation, rent growth, and population/business projections look like? Don't allow yourself to feel overwhelmed and potentially make an emotional decision. That is generally when things go awry. If it feels that overwhelming, try to walk away from it ALL for a few days. Clear your head and tackle it again when you feel ready. Remember. Your journey is going to look like no one else's. That is the exciting part.

Finally, given you are feeling overwhelmed now, it seems taking on the real estate license may not be the right solution. So many other ways to achieve the education you are searching for. Have you tapped into your local REIA? A great place to start. Wishing you the absolute best of luck in your journey.

How is the contract written with regard to the current tenants? Normally, yes, you have to honor it as the leases are tied to the property, not the owner. Exception is a termed lease with the exception of a change of ownership. All of this should be written into your agreement. Suggest asking your broker or consulting an attorney if any gray areas. 

If they are good paying, long-term tenants, I might suggest having the conversation around market rent and expectations upon lease renewal of paying market rate. In my opinion, it's always a conversation if they are worth keeping. Good paying, long term tenants are worth their weight in gold! 

Not sure your goals but this is a great list to start with. While the dates are old, you can easily search for the 2022 dates for each host. 

Best Conferences for Multi-Family Investors (biggerpockets.com)

Contact your local REIA group. They are the BEST way to get involved/network.

First, contact your local REIA group. Second, find as many title companies in Houston you can. If you are looking for a national company, given your investment focus, First American Title is one of many you should call. I suggest contacting several before making a decision. Ask questions. Understand fees, process, and restrictions. Good luck!

Congrats on the new endeavor! Having been a recent (and recently sold) Portland SFR investor, I understand the desire to look at other markets.

What do the numbers look like? Hard to make any recommendation on whether it's a good investment without knowing that. 

With the section 8 piece, are they currently charging close to market rent? Section 8 has its own nuances, make sure you are educated well on all aspects prior to making any decisions. 

Not sure on the FHA eligibility.

We just did purchase a 2nd home with 10% down, so I know that requirement to be true. Keep in mind a 2nd home purchase requires you to include your first residence (no rental income allowed) so consider your DTI, and the rate is a bit higher (although not too significant).