All Forum Posts by: David Ferrette

I think it is going to be hard to have these properties cash flow positive.  I know you say cash flow is low on your priority but why buy a property if you are going to be out of pocket every month.  That isn't a model you can scale very well.  What if there is a down turn in the market, then you will be upside down on the home and losing cash each month.  Why not buy in another location where you can get appreciation and cash flow?

I would talk to a Realtor to see the ARV for cosmetic fix up vs. garage renovation. You will also want to confirm with the city and the HOA that they will even allow you to convert the garage into another bedroom.

Question: How do you plan to do a refi and pay off the FHA loan after just one year?

Did you ask why they aren't using a bank for the spec build loans?  I am doing a spec build and my construction loan is 6%.  If they have their ducks in a row then they shouldn't have an issue getting that construction loan.  If they have prior legal issues or bad credit then they may need to go the hard money route which should make you question the deal.  I am not saying don't do it, just protect yourself as best  you can.   I also agree that I would not be a private equity investor for just 10%.   

@Brendon K.

Were you able to find what  you were looking for?

IMO, duplexes tend to be in C-class neighborhoods.  If I go to a neighborhood filled with duplexes or quads, the buildings are often run down and the tenants look to be c-class people.  The apartment around the corner will have on site management that should keep the facility clean and safe.  Clean and safe will drive up rents. 

Do you have a contract with the Architect?  If so, they are required to fulfill the terms of that contract.  If they still refuse, you can follow up with the state architect's board and see what your options are.

I like the location! See you there.

Due to a very unfortunate situation, I have relatives that are in immediate need of a property manager in Fort Collins, CO.. They asked for my help as I personally own and manage several of my own rental properties here in Austin. I am reaching out to the BP community to get recommendations for a successful property manager who can take on 8 new SFR properties.

With the new BP layout, has this tool been removed?  I can't seem to find in on the site anywhere.

Can't make this one as I will be in Dallas.  See you all at the next one.