All Forum Posts by: Bruce Lynn

@Syed Naqvi  I've never been, but you might want to attend Brad Sumrok camp here in Dallas.

https://www.bradsumrok.com/    I would think locations would be discussed.

@Lissa Dear   the one on Bomber did sell.  Nice deal.   Hope the one you found was better.

@Bart H.  Where do you see this or find this info?

@Trent Ford    Did you ever find the right property?   Let me know if you still need help.  Welcome to the Metroplex.  

@Dalton.....

One thing to do is start saving some cash.  No financing available typically for tax sales.  Also there is redemption period typically from 6-24 months....so typically you can't flip during that period.  

You can look up online what the current taxes are.  Values have been going up so expect some increase.  I'd base it off your purchase price.  That's the best indicator of value.   You can hire property tax consultant, but tough to argue lower value than your purchase price.

CAP rate for most properties I see in this area are probably in 4-5% range.

There are lots of class A coming online right now.  Friend has one and admits they are having tough time with vacancy.  They're now offering 2 months free rent on 12-13 month lease.  That's hard to compete with and we've not seen that for several years.

I think it depends on where your rents are now and condition of your place as to if rents can increase.  As you say most of the class A is likely much higher in rent.  Not much in that immediate area...more is downtown and in design district, but it could pull some away from you.  We're seeing more people sharing now.....instead of paying $800 for an old 1 bedroom, they'll get 3-4 girls or guys to share a $3000/month Class A downtown with all the fun amenities....

Any chance there is room for the land to appreciate...knock it down for a redevelopment at some point in the future.   

@Megan King   I think corporate type housing is pretty tough to do these days.  Seems mostly like a thing of the past for individuals.  I think now with the number of apartments in DFW that might be tough competition.  Also you have to think that hotels and long-stay hotels are competition too.   I think just fewer and fewer companies are paying for corporate housing like they used to in the old days.   I remember there were big companies that kept permanent hotel suites and permanently leased apartments for their relocating employees or staff that would be on site for weeks or months, but most seem to have given that up and just lease on demand.

You might could list on VRBO for minimum rental. I know too that when we look for short term corp housing 2-3-6 months in MLS or even furnished places in MLS it is tough to find, so maybe that's your niche. Most of the people who have ever inquired about that with me were looking in North Dallas area...like Plano, Carrollton, Coppell, Southlake.

The other people you would want to go after is builders.....Now when it take 6-8-12 months to build, people may need shorter term housing.

One thing to remember is turnover and vacancy costs you money...so when you think about 4 x turnover and vacancy a year, your rent has to be much higher to account for this.  I've never been able to make the numbers work.  Most renters seem to want the shorter term, but don't want to pay more than the market.

@Adam Beasley I will be here all week this week and working all week if you'd like to meet up. We can look at your list, look at the rental comps, and determine a good strategy for you. Your rental comps look high to me for most of this area. Typically anything with monthly HOA is going to kill your return. Very few places work well for investment with that kind of HOA fee.

@Bo A Vanecko   I will be here over Thanksgiving if you want to meet up.   Everyone has their own strategy and own success.  What I can say is the area you describe can be some of the toughest in Dallas.  A few areas are starting to turn, but it can be tough.   One of my criteria is to buy where you would feel comfortable with your wife going to knock on the door to collect rent after work when it is dark?   Not sure all of that area meets this criteria.

6% sounds way too low to me.  10% is normal.  I don't think anyone gets rich off of property management...although it feels like it sometimes.  If they're only charging 6% they're likely going to make it up from you somewhere else.....like frequent turnover of tenants....or upcharging on maintenance.

I'd be happy to give you an independent look at any of the deals they are offering to you.

@Lane Kawaoka   Happy to meet up with you the next time you are here.