All Forum Posts by: Bruce Lynn

I can't believe the market would have changed in 2-3 weeks.

If DOGE continues it certainly might change.  Downsizing a one factory town.

I would expect if FedGov downsizes, a lot of the corresponding periphery businesses/consulting firms, etc shut down.

There has also been talk of such things like FBI moving out of Washington, I think some of that has already been the trend, but may accelerate.  Isn't CBP moving most of HDQ to Texas?  If I remember right about 1/2 of FBI HDQ staff is in Birmingham.  They need a new HDQ and previously looking for space in DC, but some talk of moving it to someplace cheaper.  

So over the long term, I think it certainly could affect home and commercial prices.

While I think neighborhood farming is a good idea, I'd say instead of doing it geographically, think about who is most likely to move in your community.  Farm that instead.  Can you figure out for example who has seniors in high school and do they have any other kids at home.  Lots of people move as soon as the kids are out of the house.  or Divorces or Probates.   Another idea is if you have had big appreciation runup, look at people who bought in 2021.  Their taxes and insurance may have doubled and they can't afford the house any more.

I think geographic is tough because there just isn't typically the turnover any more in most areas.  You end up being on the 10 year plan vs the 1-2 year plan.

@Nida Kazmi So it has been about a year. How is your experience so far? Are you getting the service and ROI you expected? Please give us an update.

Rare in Texas I think to find a PM that wants to manage anything as rent by the room.  That's a place where you probably will be DIY.  Too much liability for the PM, lots more work, and no promulgated forms.  When I lived in CA it was pretty common.   I remember some of my staff trying to rent rooms and they would get 70 applications and interview potential roommates in person to see if it was a good fit.

Lots of reviews...I think over 1000 on google. Always use your own buyer's agent in any transaction.  Always do a home inspection from an inspector you hire.   They rehab and flip to a lot of CA investors from what I know, but also big PM in the area.

Right...1st I would say the tax sale wiped out any liens.  While they were likely notified, they probably don't understand foreclosure law and lien priority.  You can probably try this yourself with a letter or maybe even a phone call.

If that doesn't work pay an attorney $400 to write a letter.  That probably works.  I'd probably find a board certified real estate attorney to do it.  I think I have a name of a attorney in Houston area that knows tax sales well.  Let me know if you need the resource.

Some people/HOA may try to collect to see what they can get away with. They may not know the law. They may need to be educated.

Best wishes and let us know how it turns out.

@Mehdi Mir

Welcome to Dallas.  One of the hottest markets in the US.  Plenty of opportunity here and plenty of investors.

New construction is great to live in as a personal home, but normally not great for investors for a number of reasons. #1 is most of the new communities don't sell to investors. They probably have incentives for owner/occupants. #2 Most new construction communities prohibit rentals or severely restrict them through the HOA. #3 if the pricing is such that investors are attracted and HOA does allow investors, they can potentially change the rules. I have a property in an HOA that did exactly that. Limit on rentals and we are above that limit today, so no new buyers at this time can buy to rent. I've seen at least two other big HOAs vote on this idea this year as well. I don't think it passed in either neighborhood, but lets you know where the sentiment is.

There is no specific tax offset for new construction that I've ever heard of.  Any deductions should be the same for existing resales vs new construction.  Deprecation is also the same based on value.  The warranty people talk about really isn't of value in most cases.  What they warrant probably won't break like electrical or plumbing. It shouldn't.  Also that is a rare repair even in older homes.  Most homes probably don't have a lot of common maintenance.  Some people have this dream that new homes are maintenance free, but in reality it's not much different than an existing home. Also due to price increases you can probably cut a better deal on an existing home and probably get better quality too.

Normally you'll probably need a couple of years of income to get a loan. We maybe be able to get you an owner occupied loan faster than that. I have many international customers and know lenders that understand this. Too many will tell you they can do it, but end the end can't so be careful there. Cash is always an option if you can do that. DSCR is for investment loans only, no owner occupied homes. Hard money is short term and expensive. Typically for flips only. Probably around 14% interest for six months and you will need cash reserves which perhaps you have if you are thinking about buying with cash.

Are you going to buy a home to live in or only to rent out?  If you buy to rent, you can probably do this within six months if you have work lined up and getting pay checks.

Sherman