All Forum Posts by: Jaye Seay

Quote from @Lu Kang:

Hi Christopher,

Now that you are approaching one year with your Dallas property, have you gotten updates on new insurance / property tax rates.

I had a similar experience with my place down in Ark. The carrying costs are low, but tenant was making partial payments by month 2. That's the other challenge that i've learned, with only one month as SD, if the tenant leaves even in a relatively new build the fees add up. 

My Dallas property has been one of my best investments, but it's only been about 9 months. Rent is always on time, and things have been going well. It only has positive cash flow due to concessions by the seller that will last about 2 years.

Property values have seemed to drop in that area, so I'm doing something different by requesting a reassessment of my property taxes. If all goes well, my monthly payments could drop about $60 from a tax reassessment in about six months. So, there's more than one way to create more cash flow than refinancing:-). 

Regarding my AR properties, I, too, have had some significant challenges over the past 12 months with Arkansas renters. I have three properties in AR now, and as of about four months ago, two of them were vacant despite having two-year contracts on the properties. One was evicted after about five months and three months of working with the tenant on rent delays, and the other walked away after about three months in the property and got behind for two months. Then, both needed about $5,000-$10,000 each in repairs and cleanup.

Even with low rents in those areas, renters struggle to pay $995/month on one property and $1,095/month on another. These are lovely single-family homes. It's only been a few months, so hopefully, they will get better at paying rent on time, but they make partial or late payments nearly every month. This seems strange since PPMG (my property management company) is vetting these renters. PPMG claims "...an average length of stay of 5.3 years...", it would take a long time for all my tenants to stay in my homes to get to a 5.3-year average. Of course, it's only an average, so it seems I had some bad luck so far.

My subsequent purchases will be in better areas and will be newer homes. I'm still learning, but I'm glad I started investing in more real estate. In another 5-10 years, I'm confident I'll be happy purchasing more real estate. 

Congratulations! You are on fire, building up your portfolio so quickly.  Is your book available?  I would be interested in picking up a copy.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $83,700

My first TX property! I'm excited to invest in a TX property since the Dallas area is booming, and it's close to AT&T stadium. Plus, it's on a corner and REI Nation did another amazing job with the rehab. Thanks, REI Nation! This is #4! I can't wait get to #5+

What made you interested in investing in this type of deal?

The price was right, REI Nation offered management fee concessions, REI paid down the rate, and the rehad work was spectacular, as usual.

How did you find this deal and how did you negotiate it?

REI Nation! They're simply the BEST!

How did you finance this deal?

Guild Mortgage - 30% down with a 5.75 rate. Fees were reasonable.

How did you add value to the deal?

I put 30% down to reduce risk and create more cash flow.

What was the outcome?

I was able to invest in the Fort Worth/Dallas area! I love this area, and I'm excited to now own a property near AT&T Stadium.

Lessons learned? Challenges?

Taxes are high in TX with real estate, so put more money down to create some cash flow. Appreciation should be HUGE for this property over time. Time will tell.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If you want to get into real estate investing, consider REI Nation. They're amazing to work with, and their property management (PPMG) is exceptional. I look forward to MANY more deals and years with REI Nation/PPMG. Thank you, REI Nation!