All Forum Posts by: Jon Shoop

Originally posted by @Jon Schwartz:

Originally posted by @Angeli Castrence:

@Jon Schwartz

Yes, I’m interested in the Carmelina property. What do you think about tenants not paying rent due to the pandemic?

They have already started construction in that corner. There’s also a low-income apartment building being constructed in Bundy and Nebraska, where the animal shelter used to be. You’re right, plenty of development in this area.

 Angeli,

Tenant non-payment is definitely an issue because the eviction moratorium is in place until Jan 31, 2021. So a few things are important when pursuing a property now:

Firslty, you want to get the last six month's payment history for the property, and then you want to verify it with bank documents. If the tenants have been paying this entire time, they're unlikely to suddenly stop because there's a new owner. Tenant who have continued to pay rent have maintained they jobs or care too much about their credit to take advantage of the situation or both.

Secondly, you want to go into the deal with additional reserves. If you househacked this property and moved into the lowest-rent unit, you'd be collecting about $6000/month from the other units. You might want to have 6 months, or $36K, in reserves to cover any unpaid rent that might occur. If all tenants have been paying rent, you might only need 3-4 months reserves. Having reserves insulates you against the risk of non-payment.

I've made a spreadsheet that I called "The Househacker Calculator." Enter the basic info, and the spreadsheet auto-populates the rest with a pro forma and a longterm projection. Here's what the results for this property look like:

Given the price and current rents, I think this is a really good candidate for a househack!

Best,

Jon

Dang that is nifty! Are you willing to share that tool? I'd love to try it out. Even if the answer is no, I appreciate you sharing the idea with us!

For us, average is about 2-3 weeks on the market.

Hi Bailey, it's a big hard to say without knowing more. But if your friend sent in an application for it and hasn't heard back in over a week then that's definitely something to be concerned about. Sometimes mgmt companies get overwhelmed with things. If you've reached out and expressed your concern on top of them already lowering the rent without contacting the interested $1,300 parties then I think it's time to kick it up a notch. You can do this by putting more pressure on them to get it taken care of with a good tenant. We aren't having any trouble getting our properties rented throughout DFW and North Texas.

This doesn't normally happen with a company that has their I's doted and their T's crossed...

@Kasey Rowe I may seem a bit biased from my current perspective, but coming from a family that owned rentals before I even had to think about a real job, I can safely say: get a good PM And learn from them as much as you can, learn from them, but give yourself time and don't go into it without a seasoned pro helping or guiding you along the way. It can become a cluster before you know it, as my parents experienced.

Bank of Texas has always been great to me. I'll PM you details since I can't post on here. 

I completely agree. A bunch of our clients in DFW invest in turnkey properties and it makes things much more simple when everything is new and all the HOA docs are ready to go. In Dallas na Fort Worth it's not everyday that you get a property like that though, but even so there's a lot of properties with a quick fix or two and they're ready to go.

That roof color is pretty popular in Dallas (as the red bricks in homes) and they look pretty good with white and another accent color. I think if you painted the whole house white and then had some green trim that would look really good and "pop"!

@Jim J. Js exactly on point. And also you should research your state and the federal laws regarding the fair housing act.

@Adam Azam I'd charge the market rate. % or $ - wise, Maybe give them $50 below market rate since they're good tenants.

@AJ Shepard this is great! Thank you.