All Forum Posts by: Jason Howell

For investor friendly contractors, check out Blake Johnson with Finishing Touches Remodeling in Fort Worth. I haven't personally used him, but I know multiple investors who have, and I've seen his work. (And as a disclosure, he's one of the sponsors of the DFW REI Club that I am a member of.)

I use State Farm for my personal residence; it's bundled with my auto insurance. But, honestly, I'm not completely satisfied with my insurance broker for my 2 rental properties. I'll probably be shopping around myself.

 I'm not familiar with the Abilene real estate market and don't invest there. But I joined about a dozen Facebook groups for the DFW area and occasionally a deal will be advertised for the Abilene market.  It might be like looking through a haystack, but that is one option. Another option might be to try to locate a local real estate agent that is investor friendly.  If there is an investor group somewhere in the area, they would likely know it or might be able to provide other resources. I think BiggerPockets has an Agent Finder service, but if you can't find anything there, I'd just start talking to local agents. They would love to talk to you, especially if you are inquiring about one of their listings. Good luck!

I wish I had a good answer for you. I'd just start calling lots of insurance brokers until I found a better quote. Insurance rates have been going up, but $4300 is not reasonable for a 3/2/2 that I am assuming is worth somewhere around $250-300k. I'm probably going to be doing the same thing when my insurances start to renew in July.

I'm not experienced in new build, but there have been plenty of infill construction projects over the last few years.  So, I assume someone is making money doing it. Hopefully, someone will jump in with more information for you.

When it comes to financing, I always start with Andrew Postell with Guaranteed Rate. If he can't help you, he'll point you in the right direction.

Good luck!

Nobody can predict the future, but the DFW area is one of, if not the, fastest growing areas in the country. Businesses are still moving to the area. As long as the country doesn't go into a long drawn out recession, I think that will continue. There has been a lot of building going on, but I think in the short term, the only rents that are in danger of resetting are in multi-family. My only concern is single-family rents could be flat for a few years due to the big run-up we've had in the past few years.

In general, I like your proposed strategy. I would double or triple check your numbers, though. I've only seen negative cash-flow for properties at that price point. Even though you are buying new, I would still account for vacancy, maintenance, and cap-ex when calculating cash-flow. You will have those expenses sooner or later. Also, insurance rates have been jumping higher recently. Make sure you have accurate numbers.  Good luck!

I'm sorry.  You are correct.  Comps are not included on the Biggerpockets calculator.  I've been using another product for a couple years now that I could've sworn worked just like the calculator here.  Check it out at DealCheck.io.  It does provide some comps, although you must manually verify that each one is a true comp.  I didn't mean to confuse the issue. 

Brandon,

Start with the Fix and Flip Calculator here on BiggerPockets.  It will provide some comps in the report.  Don't take these suggestions as gospel, however.  Look at the pictures associated with each individual property and see if it is similar in condition, age, and location to your property.  If there are slight differences simply adjust the price accordingly.  If there are significant differences, don't use that property as a comp.  This will get you in the ballpark. 

If you really need a more accurate number, @Andrew Postell has some great suggestions.  To add to his suggestions, if you decide to go the software route, another website you might want to check out is Investway.com.  It specializes in comps for the North Texas area.

Good Luck!

You don't mention how you acquired your 2 rentals. If you acquired them via BRRRR then you already understand the risks and your strategy is viable, although I don't like the idea of giving up roughly 35% of your equity.

If you've never done a BRRRR, you will be adding more risk and a lot more work. Try a BRRRR without risking the equity from your first 2 rentals, first. If that goes well, then you will be in a better position to make the decision. After all, the goal is to grow your portfolio, not sell them all, right?

i know a local investor, @Andrew Postell, that uses a similar strategy. He sells 1 each year and uses the equity to buy 2 via BRRRR. You might consider that as an option as well.

 Sure, you can look in the Events section of Bigger Pockets or simply go to the club website: dfwreiclub.com

I hope to see you there when you make it into town.