All Forum Posts by: Edita D.

Carlos F. Hey Carlos! I am not sure what you were referring to with the description... Were you describing Perma-Pier's logo?

Rent comps? This is an excellent school district)Keller ISD), and rent comps look good. 100k house will bring about 1200$/month

Gordon T. Hey Gordon! Knowing the reputation/quality of work would be so helpful :)

Hey guys!
We are looking at a house in Keller (close to FW, TX) that had a foundation repair done by Perma-pier foundation repair company. Did any of Texas investors out there had to deal with this company?
If no, how do I do research if the company is trustworthy and reputable?

BBB showed "A-", with more complaints against this company in comparison with industry average.
Thanks guys!
Edita

Brian Hoyt I am so uncomfortable considering a house with a foundation issue... Even if it got repaired...Since, like you mentioned, 90% of the houses will need an adjustment in the future!

Landon S.
Thanks Landon! I was looking at Fort Worth, TX area, but it seems like there are a lot of foundation issues, which is NORMAL due to their soils... Being a California resident, foundation issues terrify me financially (in CA it's a BIG DEAL if a house has a foundation issue)... To stay in my price range, I am considering Louiseville, KY and Knoxille, TN (looked at Lexington, actually, a little over my price preference :)
Thanks for you input though!

P.S Lexington has good schools, cool area :)

Hey there Kentucky investors!
Are there any problems with KY soils? Is it typical of KY to have foundation issues?
Thanks!
Edita

Mitch Kronowit Thanks Mitch! Your post gave a me a little hope... We live in San Diego, and the prices here are super high... I decided to invest out of state (currently considering TX), but now I feel like doing a deeper research on CA inner cities... Thank you!
I am surprised to hear it took you only 6 weeks to evict a deadbeat...

Here's the list of landlord-friendly states, according to this blogger:
http://blog.investrent.com/2012/04/03/8-landlord-friendly-states/
-TX
-IN
-CO
-AZ
-FL
-KY
-GA
-Mississippi

HOWEVER, when I dug deeper, I realized that it also depends on the CITY and COUNTY itslef! For example, Arlington, TX is actually on top of the list for tenant-friendly cities!!! And it's in Texas! I guess you have to pay attention to tenant-associations and councils...
Here's the list of tenant-friendly cities according to an article from 2012:
City Cost % Change Vacancy % of Income
Chicago, IL $1.00 -3.71% 12.8% 26%
Arlington, TX $0.52 -2.34% 13.3% 12%
Mesa, AZ $0.65 -1.23% 19.8% 15%
Indianapolis, IN $0.60 -1.48% 10.2% 16%
Phoenix, AZ $0.77 -6.03% 19.8% 18%
Jacksonville, FL $0.76 2.58% 19.5% 18%
Fresno, CA $0.74 -5.75% 3.8% 22%
Sacramento, CA $1.05 -6.46% 7.1% 25%
Detroit, MI $0.60 -2.45% 17.7% 25%
Tuscon, AZ $0.80 -0.67% 10% 26%

See article at:
http://blog.softwareadvice.com/articles/property-management/2010s-most-tenant-friendly-u-s-cities-1071210/

Kirtley Whittington 1.5% of 107K is 1600$, and the rents on this porperty are 1500$, which is really close to 1.5%!

What I am baffled with is the cap rate! Why is is 4.8%? Am I taking into account too many expenses???
Do you guys take into account all the expenses I did?

The second property I am looking at is a duplex, I am still not happy with the numbers (definitely, better than SFR analysis I posted a few minutes ago, but still I think this is not a good deal). I am looking forward to your input!

2. PROPERTY 2
Duplex in a decent neighborhood
-purchase price: 107K
-cash to close: 28.8K (seller will pay 2% towards closing costs)
-monthly rent: 1500

Expenses:
-mortgage: 350
-tax: 280
-insurance: 63
-prop mng (10%): 150
-vacancy (10%): 150
-repairs (5%): 75

monthly CASH FLOW: 430

Cap rate: 5160/107000=4.8 %

Cash on cash return: 5160/28890=17.8%

And this is the BEST deal I got on the market for duplexes. Property is in a decent condition (rent ready), in a decent neighborhood.

I feel like purchase price in this market is too high maybe??? What am I doing wrong? I am not an absentee landlord and I am not trying to buy in a shady neighborhoods... But this DECENT neighborhood numbers are horrible!
What do you guys think?