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All Forum Posts by: Hattie Dizmond

Hattie Dizmond has started 37 posts and replied 1966 times.

Post: Newbie from San Francisco interested in Dallas / Fort Worth

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@Jay Hinrichs

You're absolutely right.  The lack of income tax and low fees, etc doesn't help non-residents.  That's why I said for Texas residents the higher property taxes are a lot easier to take.  And, I would never just issue a blanket statement that everyone should simply move to Texas, even though we have plenty of room.  There's waaaay too many foreigners moving into the Great State of Texas as it is!!  (Please...no one think I'm prejudiced or a bigot or anything like that.  As a Native Texan, we consider anyone who didn't make it to Texas prior to entering junior high a foreigner!)

And, Jay...it's actually been a mild summer here, so I don't know what anyone is complaining about.  Heck, we didn't even start hitting the 90's, until mid-way through May!  Of course, the flooding we had back in March & April made even the 90's uncomfortable, since Dallas isn't accustomed to much summer humidity.  We send all that crap down to Houston!

Post: Reliable Dallas area wholesaler?

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@Jonathan Alexander  I'm amused at your use of the word "reliable".  It can mean so many different things.  By reliable, are you saying someone who has 100 deals in inventory at any given time?  If that's what you mean, I'll tell you that anyone in DFW who raises their hand and says they have that is blowing smoke up some not to be mentioned portion of your anatomy.  Deals in DFW are simply too difficult to come by, and there are too many investors looking for those deals.  No one has an inventory, unless they are sitting on a property they are going to execute a strategy on themselves.

On the other hand, if you mean someone trustworthy, who will not inflate ARV's or manipulate comps, then I'll raise my hand. I think my history of posts, including the numerous times I have busted several local wholesaling companies about those practices, speak for themselves.

Post: Texas Tarrant County Housing Authority

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@Damon Duperre

 @Bradley Bogdan is correct. No data to support your theory, particularly on SFR, if for no other reason than neighbors would never know a tenant was receiving Sec 8 subsidies, unless the landlord or tenant told them. We have had some issue with apartment complexes devaluing surrounding properties, but that was a result of complexes being built with the stated purpose of providing low-income housing. The entire complex was going to be Sec 8. The developer was applying for local funds to facilitate the creation of affordable housing. Therefore, there was a public notice and probably a hearing at the zoning board. For a SFR, it really isn't a big deal.

Also, there is ONLY 1 inspection.  It really is very reasonable.  Here are a list of the things the inspector will look for...

  • Utilities not on
  • Inoperable heat supply
  • Missing or insufficient weather-stripping
  • Loose or torn carpet
  • Missing or cracked electrical outlet cover plates
  • Cracked or peeling paint on walls
  • Cracked or broken window panes
  • Missing refrigerator kick plates
  • Evidence of roof leaks/pipe leaks
  • Dirty stoves, ovens or walls and unkempt perimeter surrounding house
  • Insufficient bath ventilation and inoperable smoke detectors
  • Leaking faucets or plumbing
  • No temperature/pressure relief on water heaters

You screen your own tenants, then you submit the paperwork to have a tenant approved by the Housing Authority.  It will take longer to get a tenant in the property than with a non-Sec 8 tenant, because there is about a 2-week period to complete the inspection and the "Rent Reasonableness" check.  However, you can use www.gosection8.com to ensure your rent is considered reasonable for the area of the property.

I think it's generally a safe assumption that folks living in public housing are not taking care of it the way they would their own place. However, our experience has been that Sec 8 tenants placed in SFR homes are very good tenants, when those properties are located in B or better neighborhoods. They know the number of landlords in those areas willing to accept Sec 8 is limited. They suddenly have an opportunity for some degree of stability in a safe area with good schools. They don't want to chance loosing that and understand that if they get evicted, it can have jeopardize their ability to continue on the Housing Choice Voucher program.

Even though we have chosen to target only C+ and better neighborhoods for buy & hold, we've already made the decision to accept Sec 8.  We will screen those tenants with the same level of due diligence we screen any other tenant.  As long as we don't have to take a major haircut on the market rent we are able to charge, we look forward to the opportunity to help people improve their situations.

Post: Newbie from San Francisco interested in Dallas / Fort Worth

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810
Originally posted by @Griffin D.:

@Account ClosedI had no idea Texas charged different rates for out of staters! That definitely makes it more difficult. Birmingham and Indianapolis both look strong for cash flow. What metrics do you target for those cities?

I continued my analysis mentioned to look at both long term appreciation and cash flow (I primarily looked at rent:price ratios which is OK, but obviously not perfect). I found a few cities that are strong for both historic appreciation and cash flow:

  • Chicago
  • Milwaukee
  • Minneapolis
  • Philadelphia

Any out of state investors have any experience in these cities? Thoughts about these markets?

Griffin

Texas absolutely DOES NOT charge different tax rates for non-residents.  Are you kidding me?  I'm seriously concerned with an investor who doesn't understand why number may be different in one market over the other &/or doesn't take the time to find out, instead choosing to make assumptions and then pass those assumptions off as advice or warnings.  Unless you're planning to attend one of our fine institutions of higher learning, you have no worries about being a non-resident.

California investors in particular find Texas property taxes very high.  And, they are much higher than those of CA.  However, we have good schools, great hospitals, excellent & affordable higher education, robust infrastructure, and none of our cities are going bankrupt.  Just saying.

The reality is that, for Texas residents, the higher property taxes are easier to swallow, because there is no state income tax, it costs me about $70/year to register my car & $35 to get it inspected, and gas is sitting around $2.50/gal.  Additionally, I am not constrained by miles and miles and miles of red tape, ridiculous nanny state ordinances & laws, or 12-month permitting timelines.  I could go on.

Also, property tax rates in Texas are not established at the state level. They are managed at the county level, but there are multiple taxing entities that contribute to the overall tax rate for a given property. (i.e. City, County, ISD, Hospital District, etc.) Therefore, similar sized properties sitting less than 5-miles apart can have vastly different property tax assessments. There are areas of DFW where the property taxes are high enough that cash flow becomes extremely difficult on a typical buy & hold purchase (i.e. 20-30% down on a 30-year mtg with reserves of 10% PM, 5% OpEx, 5% CapEx, 8% vacancy). There are other areas where the property taxes are not an impediment to cash flow.

Texas does have higher property taxes than many other markets.  However, I would suggest no other market offers the "bubble-proofing" or at least the strong bubble resistance Texas' major markets do.  Combine that with the lack of state income tax, incredible job growth - both organic and resulting from major companies flocking to Texas, and the excellent schools available in the major markets, you will be hard pressed to find a more desirable target market.  What you have weigh is whether things like the 2% Rule or the 1% Rule or an arbitrary Cap Rate are your plumb lines for an investment.  Or, are you happy with hitting a minimum monthly cash flow target you have established for yourself in an area where vacancy rates are almost zero; properties are appreciating at a solid, consistent and sustainable rate; schools are rated as good or better; and, indicators for both the economy and population are all pointing upward? 

Post: I need help pulling the trigger in the right direction.

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@Benjamin Blackburn

Check the FHA site for the regulations around the 1st time home buyer program that offers low money down financing. My point was that for an FHA homeowner loan, regardless of the specific program, you have a 1-year occupancy requirement. Whether it's a house or a duplex, the idea is that you do a live in flip. With the duplex you have the option of renovating the side you are NOT living in first, so you can maximize the market rent value. You then rent the fully renovated side to pay for or largely off-set your mortgage. Then you live in the 2nd side, close to mortgage free, while renovating. At the end of 1-year, you rent the newly renovated side and move on to your next property. Alternately, since you have small children, you could renovate 1 side first, move into that side and then renovate the 2nd side.

The main principal is that you acquire them and hold them.  You may find yourself needing to go to a schedule that sees you flip or wholesale a number of property.  The proceeds from these transactions would then fund the down payment for your buy & hold. 

Check out Brandon's blog & podcast about BRRRR.

Post: Texas investment

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810
Originally posted by @Johnny Khoury:

Hi every one,

I need advice  on buying rental propriety in taxes,

best areas,  and connection with a real estate agent 

thanks

 Hey...wait guys!  He isn't trying to buy rentals in TEXAS.  He wants to buy rentals in "TAXES"!!

LOL...just kidding Johnny.

Roy said it best.  Texas is a big state.  Each metropolitan and geographic area has it's own specific and distinct market dynamics.  DFW, even though people lump it all into one place, is terribly diverse, both on a Macro & Micro level.  Even if you confine yourself to the Dallas County side of DFW, there are still many sub-markets and hundreds of micro-markets within those.  And, it isn't just a matter of staying away from the scary areas.  We have micro-markets where on the same street, on the same block, a house 4 doors down can sell for $50k more and rent for $150/mo more, just because it feeds a different elementary school.

To invest in Texas - particularly North Central Texas - you're going to have to go turnkey or have an effective ground team you can trust.  In this market, there will be no option for flying into town to look at a property, prior to making a purchase decision.  The property will be gone.  You are going to need to be prepared based upon the opinions and photos provide by your ground team.

Post: Rehabbing for a million dollar sale

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810
Originally posted by @Account Closed:

Interesting... try not to make too many assumptions -- especially of the thoughts and intent of others and questions meant for others. The accusatory tone is somewhat offensive and disruptive. 

You clearly didn't read my post very carefully.  I was not assuming nor accusing.  In fact, I made a statement that I hoped you didn't intend for your post to sound like it did.  I was simply pointing out the "tone" of what you wrote.  You'll find, if you care to look through my posts - of which there are plenty to sample - I don't rely on "tone" for my messages.  If I have something to say or wish to actually accuse someone of something, I'll simply come right out and say it. 

Post: Is Google dead?

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@James DeRoest

You're right, it is a forum.  It's a community.  But, real estate investing is not an avenue for the lazy or the faint of heart.  I have no issue with people asking the same questions over and over.  Some things are complex, others are complicated.  Some things need interpretation.  Etc.

But, when people ask questions like, "How do you find a listing of properties for sale?" (That's a real post this week.), I want to tell them to go find another hobby, because real estate isn't for them.  

I answer a lot of novice level questions, graciously and patiently.  (In fact, I do a lot for and with newbies, which neither you or anyone else, except them, knows anything about.)  And, I'm not saying they have to Google.  But, there are a lot of people who grew up with technology and would rather ask the question than even attempt to use BP's own search feature to find their answer.  That sense of entitlement and apathy is maddening.  Do I direct my frustration at those individuals?  No.  Not usually.  Instead, I posted a separate thread that they will likely never read, because that would assume they are looking through the forums for themselves, which is clearly not the case.

And...I'm far from crotchety or old.  I just work really hard and expect others to put forth a reasonable level of effort.

Post: Rehabbing for a million dollar sale

Hattie DizmondPosted
  • Investor
  • Dallas, TX
  • Posts 2,078
  • Votes 1,810

@Erin N. There's no need to provide the address.  It isn't necessary to answer the question you've asked.  

Tile is awesome and completely appropriate, if that's what's expected in your area.  I know tile is popular in coastal communities.  Travertine is always safe, but you might think about doing something a little more updated.  The large format tiles with the linen finish are really sharp looking.  And, you might standout by going with a "softer" feel with the handscraped hardwoods.  I don't think you can go wrong with any of those choices.

As for the master suite, you definitely want a substantial walk-in closet.  Those linear, shallow closets really date a property, and don't offer what buyers at that price point are going to be looking for.

Also, there was a trend of having the closet be the connector between the sleeping space and the bath, but that's pretty much old hat.  (People want to show off their master suite, but they might not want everyone seeing in their closet!)  However, I would definitely encourage closet access from within the bathroom, not directly from the bedroom.  For one, it limits the number of doors in the sleeping area, thereby maximizing wall space and creating a cleaner look.  Also, it just makes sense!  The other thing...direct access to the outdoors, with possibly a semi-private sitting area, from the master is a bonus.  If you weren't in Florida, I would suggest a FP in the master as well.  I don't know how big of a deal that is in FL.

If you want to PM me with the actual dimensions of the 750 sq foot box you have, I would be happy to sketch something out.  Designing is actually one of my favorite things.

Thanks @Ryan Dossey  I did that.  It didn't change a thing!