All Forum Posts by: Denise Case

The issue with buying homes last year in 2022(Especially in the second half) is that home prices are high and interest rates are high.
This makes it very hard for rental properties to cash-flow.

Before selling it, consider what your future looking rate of return is(Future Cash-flow + Future Appreciation / current equity).
Then look at other investment options that you have and see if you can get a higher return on another investment.

The good thing about living in Texas is that there is no state income tax allowing you to open your search for a CPA.

If I calculated correctly at 5, 10 and 15 years the best I’m getting is 4.3. My 401k does better

0 Votes

Arlington, Texas

Bought a second home last year and was considering renting it but after running the numbers cash flow will be negative. There is equity in the home so considering selling it. Need advice and tax preparation.

1 Vote

Arlington, Texas

Screening a tenant that is self-employed. Provided a 1099 from the company he does work for which is under his company name and one month's bank statement under same company name. They also own and rent a 4-plex so that generates some additional income after paying the mortgage. From what I can tell they are not at exactly 3X rent but maybe close.

Credit report is not perfect (one medical bill in collections) but still in the good range. Also, I believe their rental history is living in the 4-plex or renting from family.

Should I be asking for multiple months of bank statements or taxes? Any advice on what else to help make a sound decision?

0 Votes

Dallas, Texas

It does have an aerobic septic

0 Votes

Dallas, Texas

Quote from @Aaron Breckenridge:

Quote from @Denise Case:

Quote from @John Underwood:

Plant grass. Tenants will be responsible to mow.

It's not the mowing I am worried about it is that when you plant grass it has to be watered frequently maytbe even daily especially down here in the Texas heat and i can't see a tenant really caring to do that. Someone suggested hydroseeding and installing sprinklers but my budget won't allow that at the moment.

The property doesn't currently have an in-ground irrigation system? Did I read that right?

0 Votes

Dallas, Texas

Quote from @John Underwood:

Plant grass. Tenants will be responsible to mow.

0 Votes

Dallas, Texas

Quote from @Ludmila M.:

It looks like you might have drainage problem that you'd want to address if you want grass to grow. If the water pulls and puddles in that yard, seeding probably worn't help much. I'd also get rid of the tree that's so close to the house.

I think the tree is too shady and doesn't allow the grass to grow. Also, there were a lot of tree stumps in the yard so my husband pulled a lot of them up and it left bare spots in the yard.

0 Votes

Dallas, Texas

Quote from @Aaron Breckenridge:

April is going to be hard to get a St. Augustine lawn established. I think it’s probably a good idea to get the drainage issue fixed first, but we’ve also had an abundance of rain, so there may not be much you can do right now. Check out Texas A&M’s guides on maintaining a St. Augustine lawn. https://aggieturf.tamu.edu/wp-...

Thanks, will do that. It is a shady area so we eithe need to cut some branches around this area or use something that grows in shade.

0 Votes

Dallas, Texas

Quote from @Bryce Jamison:

The last property I purchased had a similar situation. I ended up not doing anything because after the property was rented I didn't want to have to keep going there fairly regularly to ensure the grass was watered and fertilized properly to ensure it grows, and I wouldn't rely on a tenant to do these things. If it wasn't going to be maintained properly I didn't want to spend the $100-$200 ish for the initial seed and fertilizer.

It's good you're thinking about this and trying to add value to the property, but from looking at your picture I can't imagine this being a deal breaker for anyone interested in renting this home. I would also consider the cost of whatever remedy your considering vs how much cash flow the property is bringing in a month.

Thanks. That was my thought exactly; the grass has to be watered and I don't think I can count on a tenant to do that. This particular area does not get much sun so we would either have to cut some branches or find something shade tolerant. I appreciate your feedback. I think for now we will just let it be.

0 Votes

Dallas, Texas

Is there a general rule for how much you can increase rent for a short term lease. Let's say 6 months instead of 1 year.

0 Votes

All Forum Posts by: Denise Case

Denise Case has started 4 posts and replied 12 times.

Post: Looking for real estate accountant in ft worth tx area

Post: Looking for real estate accountant in ft worth tx area

Post: Self-employed prospective tenant and 1099

Post: Grass challenged back yard

Post: Grass challenged back yard

Post: Grass challenged back yard

Post: Grass challenged back yard

Post: Grass challenged back yard

Post: Grass challenged back yard

Post: Short term versus long term lease