All Forum Posts by: Account Closed

 A successful investor is one who invests based on their own numbers, not the numbers of a seller. They probably consider unknown contingencies in their offer. Also, if you receive an offer $80k below ask, they are likely trying to only get you to about $40k below ask. That's just the art of negotiation.

@Natalie Landry It's all about the numbers. You are still in your right to renegotiate. If the seller(s) is unwilling to do any repairs, then revalue your offer. If he declines and you know your numbers are solid, walk away. Like they say here in Texas, you got to know when to hold'em and when to fold'em.

@Chirag Shah I can speak on the paint front. I was recently quoted $3,000 for an interior job on a 2,200 sq/ft townhome. That was labor only - I had to buy the paint! Insane if you ask me. I really think it is because of the area the townhome is in is a higher-end area.

When getting quotes,I like to ask probing questions like 'how many workers will be painting" and "how many days will it take." That way I can estimate the hourly rate for the workers and then the payout for the contractor. For example, in my case, I was told it would takes 3 guys + the owner about 3 full 10 hours days to complete. This was with the $3,000 quote. So with a fair hourly rate to the 3 employees of $20, the owner is easily making $2,400. Crazy, right?

@Seth Teel is it possible to net such great cash flow while investing for appreciation in San Antonio? I am in Austin and practically no MF properties cash flow positively. Also, what are some of your favorite areas to invest in in San Antonio? From living in Houston, I have this notion that closer to the city center is best but this may not be the case for San Antonio.

Be careful, yearly flood insurance premiums can be in the thousands in many parts. 

@Brian Adams My apologies if I hit a nerve - As I mentioned my "research" was quick and dirty - I was just shooting from the hip! Honestly, I don't know a much about the area to make a fully educated comment on it. With that being said, I gladly defer to you as you are the subject matter expert on Killeen!

You are correct about the troop downsizing - I believe I read that it was announced in 2012 but didn't happen for some years afterwards. Also, I agree that the unusually high vacancy rates provided by the government are suspect and also could be attributed to the state of the economy at the time.

IMHO, 8% vacancy rate seems manageable and I suspect that could be reduce by half (on paper at least) with long term 2-yr leases to B level or higher tenants. I guess it really comes down to where you buy. The units you recommended and discussed with me via PM are in great condition but are tight on cash flow as a managed property. But, you are right about the area being good - it really is. The units I originally looked at were priced around 27% less than your recommendations and, on paper at least, would cash flow very nicely. Then again, the tenants would likely be C to B (at BEST), the units are older which indicates a medium term need for more CapEx Improvements, and your concerns of not being able to find a reputable property manager to manage such a property are concerning to me. Lots of food for though - thanks Brian!

@Account Closed I did some quick and dirty research on Google and an older (below) Bigger Pockets discussion from Nov 2017 came up. Also, looks like according to the Government, the 2015 vacancy rates in Killeen were 8.76%, actually down 4.46% (also below). This is also concerning to me because data on the same page suggests a trend from a high Vacancy Rate of 18.76% back in 2012 to where it is now, which I believe is very representative of the reliance on military (remember the military was downsized back in 2012).

https://www.biggerpockets.com/forums/52/topics/505937-vacancy-rates-in-killeen-tx

http://www.deptofnumbers.com/rent/texas/killeen/

@Taft Love Go back and listen to Podcast Show #77 and Podcast show #236 (in that order) - both touch on VERY important negotiating methods when sellers reach out to you for you to buy their house. Remember, first and foremost, by contacting you they've already offered to sell you their property - you just have to close.

Find out why they are selling the property and be compassionate to their situation. Find common ground with them and listen ... listen ... LISTEN - don't do most of the talking. You can work up an offer in your head but ask them for their number - "What do you need today to sell me your house?" so you do not overbid (but still pay a fair price). 

Again, go back to and listen to podcast #77 and podcast #236 - very powerful negotiating tactics.

As for the logistics of actually procuring the property, most title companies have in-house Lawyers. Call the receptionist, tell her you are interested in buying a local property from a seller directly and would like to speak to a title specialist. They will talk you through the process and likely also provide you with resources for the necessary contract forms. After all, they want your business too!! Personally, I believe it is much easier than working through a Real Estate Agent.

Best of luck to you!

@Fred N. If you have a Lowe's near you, pop in and check out their new 'Ready to Assemble' cabinets they sell right off the shelf. They have many options and all of them are very inexpensive yet very durable. You can also order RTA cabinets online albeit there is more risk (i.e. wrong color or damaged products received). I'd start with Lowe's first. And, if you are lucky enough to find a 10-20% coupon, then even better!

@Bruce Petersen Argh! Would love to attend but I am at my W-2 in Taylor Tx.