All Forum Posts by: Jake F.

Nice! Hard to find a fourplex at $165k any more! 

I have an Airbnb out there that's doing really well. But prices are insane out there right now and anything remotely acceptable on the MLS sells immediately.

Its pretty easy to self manage. Just make sure you have a reliable cleaning crew and a maintenance guy who understands the STR market and you'll be fine. Just remember that it is a hospitality business and not so much like long term landlording.

Nobody on here is really sticking up for SPI, so I suppose I will. Our rental there has been great! No partiers, even during spring break. It's pretty easy to keep out the riffraff. If you have a 2br/2ba condo and just rent to the first person to inquire without any sort of screening, then you are more likely to have someone trash your place. Like someone said above, you can always just not rent to anyone during those two weeks.

Just check out your ROI in SPI versus the other locations if it doesn't really matter to you where you invest. We couldn't get the returns in other locations that we are getting on the Island. Plus, when a lot of other beaches were closed for COVID we were still full of guests at high rates. The city of SPI needs the rental income, which is good for those of us running STRs.

Fourplexes in the McAllen area are through the roof right now, plus there are new ones being built on almost every available piece of ground. It's crazy. The only places I don't see fourplexes being built is where they are building 100+ unit complexes.

Anecdotally, when I drive around Brownsville I can't find any construction whatsoever. Maybe I'm just in the wrong place, but it's not that big of a town. I suppose that doesn't mean they won't expand in the future though. There is a lot of opposition to the LPG infrastructure, but I suppose they are used to fighting against that. The Port of Brownsville is outside of town toward South Padre Island. If those jobs pay anything at all and the workers are from out of the area, they will likely much prefer to live in the SPI/Port Isabel area. I just don't see Brownsville having much to offer right now. 

What type of property are you looking for? Brownsville is definitely cheaper than McAllen, but not sure I'd bank on it seeing the same kind of growth we've seen in the upper valley recently. 

@David Trevino Hurricane Hanna just blew through here and caused a fair amount of damage. Almost everyone who even loosely claims to be a contractor is up on a roof right now gouging people for shingles. Insurance money is just starting to come in, and my guy expects to be swamped for the next several months. All this to say, you might have a hard time finding someone right now. Especially if you expect quality work at a decent price. 

 That's a huge apartment for Edinburg. There are many fourplex communities around the university. The rents they are charging will limit what you'll get in rents despite your extra square footage. 

We just bought a fourplex half a block from the university. Three 2br and one 3br. The 2br rent for 675 with about 900sf. Gross rents for building is 2800 and average purchase price about 90k lower. Neighborhood average for 2br is 650, which is common for the area. The budding was built in 2005 and is well kept. 

Your plan is solid, but I think $850 is a bit high for the area. Make sure you can justify the purchase price with rent. Also, like Joseph said don't forget to set aside for maintenance and cap ex. 

Lots of fouplexes down here will have an HOA that might not allow you to live in the parking lot. Plus you'll be taking away parking from one of the units. Plenty of feds in Weslaco looking for a roommate. Probably just easier to split rent with someone.

I'm looking to buy a multifamily property. Seller has agreed to owner finance but wants to know if they can see my last two years tax returns. Seems odd to me as opposed to asking for proof of funds for the down payment or doing a credit check. Is this normal? I know the bank would ask for it, but I've never considered asking for tax returns in the few notes I've created. 

 You only have to apply if you want a "superhost grant". Basically if you only have one listing and are a superhost you can beg for money from them and they will play kingmaker.