All Forum Posts by: Jarrod Weaver

Recently I've had multiple conversations with new investors who are tempted to purchase homes that would be financial disasters simply because they are having a hard time finding decent cash-flow opportunities.

The problem isn't that they can't find a deal - it's that they are looking in the wrong areas. Anyone with a pulse can find a retail property, but a retail purchase will likely be your first and last "investment".

Investing is competitive and you have to bring your A game. Seek the properties that others don't want and work your competitive advantage to make the deal viable. If you aren't sure what your competitive advantage is it's essential to figure out before moving forward.

Right now there are 3 HUD homes available each priced below $45K. Prime properties for a buy & hold using the BRRR method. For new investors looking to house hack their way to prosperity, ther's FHA money available with only 3.5% down for owner/occupants.

Live in it for a year while completing the rehab, then on day 366 turn it into a rental and repeat the process.

For some of the voodoo deals we do I also take them to Dan Castro. Dan is an investor, attorney and owns the title company. He knows his stuff and will gladly help you with deals that other title companies wouldn't.

I wholeheartedly disagree with this "opportunity". The rule is really needs to be 2% but since it is highly unlikely in this area most try to settle for 1% and hope for the best. There is no way in the world I would consider anything under 1% - immediately strike it from the list. Also, playing the new house market in this area is a losing proposition. If you are purchasing at retail - which this deal is - you will likely never see any appreciation. The only time we have done well with new construction is by buying deep (13 units) from a national builder that wanted the inventory off their books. This is the only way to get enough of a discount to do well. Selling a house that is a few years old in a new construction neighborhood is also a loser. Buyers will ALWAYS purchase a new home for a similar price vs a resale. This isn't a deal I would consider myself or would bring to one of my clients. I suspect the agent you are working with is not an investor.

Split it into 2½ acre tracts and sell them so inexpensively that it's hard to say no. There are folks who are looking for cheap places to park an RV and call their own. It's likely the best scenario for a property like this and won't cost you much in development costs. Put t-posts in the corners for survey stakes so the parcels have durable corners that are easy to see. Owner finance them so you can command a higher price and will have a long term income stream.

I agree totally with @Scott Hollister - DO NOT buy a property in Pflugerville that doesn't cash flow. I have lived and invested in this area for almost 23 years and will confirm that betting on appreciation/equity is a bad idea here. There are always exceptions but the only one I can think of is buying DEEPLY DISCOUNTED properties which are very hard to find. You also have to get into more rural areas with lower tax rates and no MUD taxes added. Taxes will kill your ability to generate positive cash flow. Also, the houses in Pflugerville are larger sq/ft than makes for good rentals. If you need to paint or replace flooring it costs too much in a house that size. Look for single story, 3/2's in lower tax rate areas. They are out there, you just need to look harder. PM me if you would like to get set up on a direct email drip from the local MLS.

I have lived and invested in both the Williamson County and Bell County markets. Some prefer the more metro market if Cedar Park/Leander but, personally, I like the returns available in Temple/Belton/Harker Heights better. Also, there are other sub-markets in Wilco that I love.

@RJ Jackson it looks like you need to narrow your focus, drilling down on the specific properties you need to acquire to meet your goals. I highly suggest that you look at properties in the area just outside of having an Austin address. There are so many reasons to invest in Round Rock, Leander, Cedar Park, Georgetown, Pflugerville, Hutto and the others. (Being in Georgetown I have a bias to the north of metro ATX. I know Kyle, Buda and Dripping Springs are also good, but I simply don't have as much experience with the area.) The taxes and regulation in ATX can make your cash flow evaporate.

I like the recommendations above because they are for specific people at title companies. The escrow officer is the key - not the company. With this in mind, I will also recommend Joy Pearson at First American in Georgetown. The office is only 2-3 miles outside of Round Rock. Joy as been my closer for 15 years now. Just last week she closed a deal that would have cratered without her. It went 3 full weeks beyond contracted close but she was able to determine the problem was with an incompetent lender, not the buyer. She pulled strings that I couldn't as a license holder. We all need someone like her on our teams. PM me and I will share her contact information.

Don't be too concerned about price - all title companies are competitive - their fees may look low because they can separate them on different lines on the settlement statement. The difference will amount to no more than the price of a lunch meeting. The right person is THE MOST IMPORTANT FACTOR.

Duplex Lots in Texas

Development recently completed on a small MF project north of the Austin market - right on the I-35 corridor. Up to 6 lots available. Currently approved for duplex construction but city manager will consider 4-plexes if plans are submitted. $65,000/per. Lot 16A is sold.

Or ask your escrow agent at the title office....