All Forum Posts by: Dave Chapa

Jorge, I know the properties and the owners. I passed on that deal long ago because the numbers did not work. When I last talked to one of the owners; he called me about comps, it was still for sale because they had a out of state buyer back out.

Do you have any net worth? Depending on the deal and size it could be full recourse loan. I don't know of anyone that would take on a recourse (or even a non-recourse) loan with someone who has no skin in the game. Work on your credit and build a little net worth, this will help you look more attractive to potential investors and banks.

Do you have any experience managing apartments (or even a house)? Do you know the fair housing and tenant laws? HAA offers a IROP class that can teach you the basics about managing an apartment. I highly recommend you taking the class. It’s 6 classes, one day a week. I don’t know what it cost now, but it was $360 when I took the class several years ago.

Can you buy a rental house with the credit and money you have now? This is a good place to start. I have several friends that started with SFH that now solo own apartments. It's a good way to build net worth and one of the gateways to MF.

I'm not telling you to give up, just to refocus your energy. Instead of jumping into a MF deal with no credit, money, or experience. Focus on building your credit and down payment on a SFH. Use this deal to help with building your down payment.

Vacancy is all part of the business. Thant's why I build it into my numbers. Depending on the area it can be 3%-12%. I have been averaging approximately 5%. However, I use 7% to 10% when I'm looking at a potential deal.

When you list your property, you want best product at best price.

What are the comps in the area?

Are you competitive with the comps at price per square foot?

Are you advertising with Zillow, Trulia and Craigslist as other stated above?

Sometimes there are a lot of inventory hitting the market and the same time, you must make sure your property is getting its share of exposure.

I looking for a maintenance/handy man in or around the Bellville Texas. 

@Mike Hineman

Sorry for the late reply, for some reason I didn’t receive an alert of your response. 

I'll send you a PM, thanks.

I have an opportunity to buy a house in Lufkin Texas. Anyone have any experiences with rentals in the area? 

@Daniel J. I'll pm you the contact.

@Jeffrey Suh

I would suggest developing relationships with investors in your area, through bigger pockets or local RE group. You have the capital and looks like the credit, all you need is a place to start.

Single family is the gateway, you could always start there. However, I would recommend jumping into multi-family. Find someone in Plano (develop a trusting relationship) that could guide you or, you could team up with on a deal. So many ways to invest.

Also, sit down with your wife and work on your long-term and short-term RE goals.

@Juan Monge

I would look at a mortgage broker for a commercial loan. They can provide more options and work with several lenders. 

Jeffrey,

You are asking a hard question because there are so many ways to approached this and, will vary from person to person.

The only way I could answer your question is, what would I do?

- I would put 25% down or whatever % you need to get the home loan amount to the conforming limit, I think it's around $453,000. When we bought our house last year the conforming limit was around 427,000. That would keep you in a conforming loan, over that, it would be a jumbo loan.

That would leave you with $500,000 to invest in RE or RE deals and, if needed, to have a down payment on the business you are buying.

Money sitting in a personnel resident is dead equity, it's not making any money.

When the time comes when you are ready to invest in RE, you will have the funds available.