All Forum Posts by: Wayne Kerr

I would personally ask for a price decrease based on whatever estimate they got for the installation of that equipment (assuming you can get a loan without those things - depends big time on the bank - my local banks would do it for me). 

If not - yea, let them get installed, do the inspection and go about it. 

I had a house in an area like this (previous HVAC was stolen while the house was vacant) although it doesn't seem nearly as bad as your area. I put up a mix a fake and real cameras. Had a couple of cars towed when they parked in the driveway. 

Nothing you can do about people knowing it's vacant though. And most of the time police won't even pursue something like this with any sort of effort. It definitely causes some anxiety anytime the place is vacant. 

I'm actually selling that house right now - I stay away from that type of area now. B class and up for SFH and C class and up for MFH. MFH I haven't had as much of an issue. I'm guessing because the population density is higher with more neighbors and all that.

And I see you're located in Texas. I'd look closely at the Texas market as opposed to Detroit. You're having issues and you haven't even closed yet. The issues are just starting and the area is literally telling you what it's going to be like before you close. I'd seriously think about whether or not is makes sense to pursue that market in that location. 

Quote from @Wale Lawal:

@Erick Hennings

Houston's emerging neighborhoods include East End, Third Ward, Heights, Spring Branch, Independence Heights, Alief, Cypress, Pearland, Richmond/Rosenberg, and Conroe/Woodlands. These areas offer a mix of renovated bungalows, new construction, and industrial conversions, with increased demand from young professionals. Near the University of Houston and Texas Southern University, these areas offer rental properties and investment opportunities.

Good Luck!

Can you explain the similarities between the Third Ward and the Woodlands? 

Cypress and Alief?

Spring Branch and Conroe? 

These are quite literally opposing areas in nearly every facet. 

Quote from @Chris Williams:

I'm going to be honest here - Real Estate takes money. I don't care who you are or what you do. You have to have it. 

You'd be 100% plus leveraged going into your first deal - no track record - I don't even know anyone that would lend money to you. It sounds like a trainwreck on paper...and things usually go better on paper than in real life 

I would suggest saving, increasing your income streams, and learning in the meantime while you save. 

Then come back and make a great deal 

Along any major road heading out of the city. The city looks like a wagon wheel. Buy along the spokes  

This is true for just about any metropolitan areas 

Buy along a major road. Or a major road connecting two major roads. 

Houston is so big - do you have an area you like or is local to you? Katy, Cypress, Spring, Woodlands, even up into Magnolia, Tomball, Conroe - all that is prime - west to north is where I'm at 

Horrible idea for many reasons...

1) Without a decent down payment ~20%, it's very unlikely you'll cashflow after all expenses 

2) Sounds like this would be a highly leveraged property - high leverage when rates are high is a dangerous game to play. Leverage is not an asset when rates are high. 

3) No talk of cash reserves - what happens if you have an emergency? You have no cash, high leverage and can't make payments - bad idea. 

4) What's the plan to pay down the second mortgage/HELOC? Say you profit $200/month and you have a $20k HELOC. 100+ months to pay it off - not a good idea.

Unless you have great capital reserves, high leveraged debt is a bad idea 

What's the LTV the lender's are looking for?

What's your property worth? How much do you have in it?

What's the "smart accounting moves" that you are keeping a mystery?

What's the income of the property over the last year? 2?

Some details would help to give you advice!

I think the idea would be to make a 180 - not a 360. 

I'm not trying to be rude - but why would someone invest their time in you? Why would anyone care to watch you grow? There's no real reason...everyone wants to turn their "dreams" into a reality. 

If you're a hands on learner - go do something. Go be a plumber, electrician, carpenter...then start your own company. You'll get to know contractors. Then you can become a contractor etc. Doesn't matter how many felonies you have when you work for yourself. Plenty of blue collar construction jobs are fine with felons, many of the workers aren't even citizens, and they have their whole family out on the jobsite. 

So my advice to you is stop worrying about people helping you, and go help yourself. Seems that your goal to me is to find someone to help you - go get started. Make specific achievable goals and go from there. 

Just deny them or don't message them back - don't give them a reason for the denial. 

If anything "Thanks for your application, we have decided to go with another applicant"

The less you say, the better off you will be when it comes to all these protected classes, potential discriminations you're unaware of, and people's hurt feelings 

Welcome - there's several of us here from the Lafayette LA market

I do the standard buy and hold but the property has to be bought at a discount - 85% of ARV is my maximum - including purchase price and rehab. Typically I like to be a little lower, but for an awesome property in an awesome location I can go up that high.

I like it because it's relatively simple and repeatable. Also less risky - the gains may not be as high but the losses also shouldn't be as bad if things go south. 

BRRRR has gotten too hard to do and the money is tied up too long. I essentially try to buy a BRRRR type property and fix it up but never refi. So I'm in 20% down on the purchase price, plus the rehab costs (I only do cosmetic rehabs) - and I just never refi. So I take the equity gain on paper then rent it out.