All Forum Posts by: Jeffrey Sturman

Hi Thomas,

I am not familiar with the real estate market in Galveston, but I am familiar with the cost of rehab in Harris County. I act as the general contractor for my own projects and I can tell you that doing a stud down remodel on a 4/2 at 2,150 sq ft is going to cost over $100K especially if you use a general contractor. This is assuming you are going to have to redo everything including MEP (Mechanical, Electrical and Plumbing). 

A rule of thumb I work off of is $65/sq ft for stud down remodel meaning the only thing you are salvaging is the frame of the house. Usually it can be done cheaper, but it is always best to plan for contingencies. I am finishing up a flip of a 1,400 sq ft 3/2 SFR with a two car detached garage with a 320 sq ft 1/1 apartment on top and the total rehab is coming out to $105K. I could have done it cheaper, but I am putting in higher end finishes.

If you have a scope of work that would help provide a more accurate estimate of rehab cost, but I don't see it getting done for under 80K, unless you can salvage what is already there.

- Jeff  

Sorry I couldn't make it. My pipes froze at my house and I was battling that all day. I hope the meet up went well and I look forward to attending the next one. 

All,

Thank you for your feedback it is greatly appreciated. 

@Matt McConkey - Thank you for the information. Going after absentee owners going through an eviction is very smart. How do I find out more about your wholesale deals?

Honestly I am going based off what I heard in the BP podcast. The guest stated that the seller must have equity to sell below market so why not target people with 100% equity. This is my first mailer so I will see how it goes. I was also thinking about cross referencing if any of them owe backed taxes via hctax.net and trying to reach out to them via phone. 

Hi Joe,

I am focusing on owner occupants of a specific zip code that own their home free and clear. I was able to have someone access the HAR database for me and get me the names and addresses. 

Hey Everyone,

Is anyone doing direct mail marketing in the Houston Area? If so, how has your experience been? If no, how are you finding your deals? Here are my questions and answers below as I just sent out my first mailer for the start of a campaign. 

1) What kind of mail are you sending (Post card, yellow letter, professional letter, etc.) ? - Post Cards followed by yellow letter

2) Who are you targeting (Absentee owner, probate, pre-forclosure, etc) ? - Owner occupant of SFR with no liens

3) Number of mailers sent? - Around 900

4) Frequency of mailer? - Between bi-weekly and Monthly 

5) Response rate? - Mailers will ship in about 5 business days.

I am interested to hear your responses. 

Cheers,

Jeff 

Hi Gonzalo,

My first deal was a house hack of a foreclosed single family residential (SFR) around Sugar Land, TX. My wife and I moved in and fixed it up over 2 years. We took a 203K loan which meant the bank loaned us money to buy and rehab the home. Once the home was in decent condition we rented out a room that covered over half our mortgage. We could have rented out the other 2 bedrooms and more than covered our mortgage, but we wanted some personal space. We sold after 2 years and pocketed about 65K in profit.

A house hack of a small multi-family is ideal, but I do not see a single listing for a multi-family on the MLS in the Woodlands area. You can search the appraisal districts website for multi-family properties and contact the owners directly. Finding something off market is the best way to get a deal, but buying a SFR and doing a 203K loan is a good way to get started. If you have any questions let me know. I am currently doing a flip and I am about to break ground on several new construction homes.

Cheers,

Jeff