All Forum Posts by: Jon Klaus
Jon Klaus has started 322 posts and replied 7794 times.
I am not having the long close time issue. Mine have closed within 30 days.
Post: Lifestyles Unlimited by Del Walmsley

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
Charles, you should be OK on this deal, but in June of 2009 you can do better. If you stay at this, you will get better and better buys with your growing experience and knowledge. And you do make your money on the buy side, but it is less important if you are going to hold long-term.
What is the single most valuable thing you've gotten out of LU?
Post: Lifestyles Unlimited by Del Walmsley

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
"What am I missing?"
Property management--even if you do it yourself it is a real cost. In fact it may "cost" you more to do it yourself.
Repairs
Maintenance
Capital improvements or repairs--I had an AC go out today. It's 103', I have to get it replaced today
Vacancies
I am having pretty good success with HUD's. I have gotten a couple for @65% of their asking and all of them for less than 50% of tax appraisal.
Usually to get a good buy, they have needed repairs which helps weed out the OO's. Also they need to be on the market for a while and undergo a couple of HUD price reductions.
Occasionally, they are priced right at the outset. I bid on one like this yesterday. I bid $1150 over asking, but I could still get beat by an OO who bids less. I'll find out in a few hours.
I am winning less than 10% of my bids, but that is fine with me.
"Also here in Texas you have to use their title insurance company which is Goverment at it's best."
This has not been true for me, I've had the option to choose my own title company.
HUD is working for me.
Post: Appreciation VS. Cash flow - The clash of the titans....

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
And for the "this time it's different" view, why not go into these markets that are down around 50% and buy for appreciation with income carrying the costs?
If you buy a previously $100K home for $50K and rent it out, and over the coming months and years it "recovers" to $75K, you have captured 50% appreciation.
Since rents have not dropped anywhere close to 50%, you are are more likely to cashflow in the mean time.
I know some of you are pursuing variations on this. It is about appreciation and cashflow. Or maybe it's about cashflow and appreciation.
Post: Multi Unit - What is a good per door price?

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
Class C -- good price per door = <30x monthly rent
But watch expenses (determines cash flow and net income) closely as Mike says.
Post: Stopping break ins?

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
Great ideas Scott and Chris. I'll try some of these things. Thanks.
Post: Anyone have rentals in west palm beach?

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
Doug, have you checked out your local REI associations yet?
Post: Stopping break ins?

- Developer
- Garland, TX
- Posts 8,666
- Votes 4,015
What are some ways to prevent break-ins, theft, and vandalism to vacant homes?
Alarm systems? Not keen on doing that (monitored)
for a short term. Lighting?
Someone stole copper out of one of mine this week. I thought there was less of that now with copper prices being down from the last couple of years. Fortunately, they left the AC alone. I filed a police (sherriff) report, but what else can I do to stop it from being repeated?
"I am having a hard time coming up with a name for a website, I do get one with the company I'm looking at but to name my own is another story...still working on that one...once I have the name it'll be a snap to put it up."
Did you get your own website yet? How about your name .com .net or .biz? Build a brand around you.