All Forum Posts by: Lawrence Ratliff

I am looking to refi a SFR in Dallas, TX. Does anybody have any experience doing a Refi with Interfirst (https://www.interfirst.com)?  

Any other recommendations on Refi companies?  

Thank you in advance!

I am interested in learning more about buy and hold SFRs in Killeen, TX! Any investors (local or out of state) or local agents have knowledge that can help me? I would like to spend $150k, and get $1,500/Month rent for 3/2 SFR (I don't mind doing some rehab). Possible? Likely? Thank you!

I am interested in learning more about buy and hold SFRs in Killeen, TX! Any local agents have knowledge that can help me? I would like to spend $150k, and get $1,500/Month rent for 3/2 SFT (I don't mind doing some rehab). Possible? Likely? Thank you!

@Jeff Lamothe Thank you! I like those cities as well! I live in San Diego and my first few properties are in Dallas. I needed to be really far from CA to find my $100k Sale Price /$1k rent properties. Most of my property management is via text and email so distance plays less of a role I feel. Dallas has really jumped up so I am moving into other markets. I am looking at Cleveland, Indie, Birmingham, Montgomery, and Cincinnati as well. I really like NE Indie Devington & Lawrence. Thanks again for sharing, and much success to you!

Hi Jeff, I have similar rental criteria and I am looking to invest in the mid-west, would you mind sharing some of the cities you found that meet your criteria in the mid-west?  Thanks in advance!  Lawrence

I had the same experience on one property. I went with somebody with good rent payment history (my pm company verified) but only fair credit because of some large medical bills, good person bad situation. There’ve been my tenant almost 5 years and I hope they never leave. Point is depends why the credit is bad, and have they paid their rent responsibly in the past. Also I always try to be a good landlord and it seems to pay off. I rented another property to a single Mom with 4 kids, never paid late. I am sure the house will need quite a bit of work, but knowing those kids have an SFR recently renovated with a huge yard makes it all worth it. I am sure the right tenant will come along for you soon.

Thank you everybody for providing the positive words and calling out that my story has inspired you to start building your own Real Estate empire!  Keep moving forward and the best of luck to you!

Everybody who provided detailed "Rules"  and examples I do value and respect your input and take away that it would clearly be a good idea to plan more for unexpected expenses.  Thank you for taking the time to layout the examples.

To date I have four properties all positive cash flowing, and I'll keep moving forward!

Lastly, since everybody has different investing goals I'll leave you with this: Even if my return is zero or even somewhat negative during the repayment period, in 15 years (actually quite less on many of my properties now) once the properties are paid for and still generating a ton of cash is when I will enjoy the returns...I can see it now, I am 60 years old traveling the world with my wife and not a financial care in the world, and when I am 80, my kids  saying "Dad, your so cool, we're really glad you bought those houses"

Cheers, Lawrence

Originally posted by @Ashley Trahan:

I loved reading your story!! Now to just find something and make myself actually do it! 

Use the Redfin Website/App, look for markets that you can buy an SFR for under $100K and rent it for over $1k per month. Good Luck, you'll do great!

Originally posted by @Chinmay J.:

Originally posted by @Lawrence Ratliff:

So here’s my story, why I thinks a good one, and that you can do it to.

I like to buy SFR buy and hold rentals in Dallas TX. I need about $25k (20% down and about $5k rehab) to buy each one.

I have a full time sales job, so bills are paid. From that I have $200 per week go into a separate account. $5,200 per year, $10,400 every 2 years.

Then the hustle comes in. I am also a licensed Real Estate Agent. I do 1-2 real estate transactions per year. That’s right 1-2. If I sell 1 I get about $7,500 per year, $15,000 every 2 Years. $10,400 + $15,000 = $25,400.

I am married with 2 kids and love the family time, so 1-2 transactions per year is a small time commitment and just barely cuts into family time.

If I sell 2 transactions in a year then I buy another property that year as opposed to every 2 years.

I put all houses on a 15 year loan. They are all positive cash flow.

My goal is to have 10 properties with about $15k monthly income, $180k annual. Definitely enough for me and wife to retire on.

I like buy and hold because of the long term income for retirement and I’ll leave a cash flow machine to my 2 kids. Whatever life throws them money shouldn’t ever be a worry.

The best part of this is that anybody can do it. You need a few things, cash (see above), good credit, a little discipline, and some serious guts (I remember sending the first wire transfer 😮). But I did it, never regretted it, and so can you.

I hope this story encourages a few people. I would love to hear of others using my plan and finding success!!!

Cheers, Lawrence

Good luck with your plan to buy 10 properties. However, in your math you need to account for upkeep of those properties as well. Usually about 8-10% per yr of gross rents. Another 8-10% per yr for vacancy. If you are doing simple math, Rent - PITI = Positive Cashflow w/o accounting for any aforementioned expenses, you are in for a rude awakening later on.

$5K of rehab is not going to give you a whole lot of rehab. That's probably what you would need for tenant turnover assuming they didn't break anything and its just paint and some updates. 

Are you going to manage all the properties yourself.  10 properties is a lot to manage while raising a family and having a full time job, plus doing real estate work, or are you going have a PM. That's another 8-10% of work. 

Buying a property is not all that hard. Keeping it profitable and tenants happy is the tough part. 

Lots of good calls out, for sure! I live in San Diego and my properties are in Dallas, so most under a PM company. After Rent - PITI + PM, I still make on average about $200 per month on each property which is $2,400 per year surplus, my rents on average are $1,200, so 10% repairs and 10% vacancy, that's $2,880, so probably no rude awakening. If I ever need to throw $1,000 from personal savings to cover a surprise I am happy to do so in the name of creating this cash machine once paid off and retirement hits. Having 10 properties paid off should net me over $150K per year, I have no issues throwing an extra $1-2k here and there to get there, I am in it for retirement not income. The Dallas rental market is so hot, of my 4 properties I have only had one tenant change so far (cost me $2,000) which helps the numbers as well. Again, thank you for the call outs. My experience has been the opposite as the Dallas market is heating up, It's harder to find good deals, and easy to keep rented. Much success to you!

I am an out of state investor so I love turnkey. I prefer not to do mini remodels from home, which I have done twice and worked out fine, but somewhat of a headache to rehab a new acquisition. I think the question to ask is “is the price fair based on comps” and you want rent to cover all expenses (assuming your doing some type of financing). I suggest you have an agent looking at traditional sale properties in the same market and they’ll be able to tell you if the price is fair, if not go with a property the agent finds for you. Good Luck!