All Forum Posts by: Luciano A.

@Account Closed

Hard to find Quads in Spring/Woodlands because they are either HOA restricted or in The Woodlands case is a master-planned community. You will find 3-4 unit complexes more likely inside the loop rather than the suburbs. Spring and The Woodlands is considered more suburbs so building out there is cheaper given land cost thus no real need for such a building. It's mostly SFR or larger multi-family. You might be able to find small duplexes but most that I have seen are set up in a way that each side is owned independently.

If you are house hacking and want the extra units to help cover the cost then try looking at east end side of town but be careful of areas now considered flood zones. You can find some at a decent price. 

To get rent values can use open sources like Zillow, HAR and craigslist if you want to see what similar units are renting for. If you are working with a broker best to ask them to run a CMA to get what things have rented for and what current rents look like.

best of luck 

@Mark Coogan

How much are we talking about in regards to security deposit? Is the amount worth the headaches? If previous owner didn’t document well the move in process with pics than you have a tough fight ahead of you. You might charge for trash removal if she left items behind like tables, couches etc. But don’t worry about a tenant telling you they will take legal action unless you’re in a state like CA where they have advocate groups that would be happy to file lawsuits on any landlord.

If you were going to rehab the unit for next tenant than just take the experience you just learned into next deal so you can insure doesn’t happen again.

However take lots of before rehab pics, receipts so if they do sue in say small claims you can show judge how unit was left.

Best of luck

@Scott Lang

Look at podcast called Old Capital. Guys do lots of funding and have knowledgeable brokers who do good deals around Dallas and throughout. Get with one of their brokers to find you a deal. 50-100 has a lot of competition right now so wish you the best. I’m searching for small complexes in outskirts of major towns. A few good knowledgeable brokers can get you leads to deals that don’t hit loopnet so finding a few commercial brokers is gold.

Best of luck

@Jonathan Masiello

Since this is one parcel of land with the duplexes on it then go Commercial. However as others pointed out they usually amortize over 20yrs with ballon in most cases 5-10yrs. Interest rate is a little higher than conventional.

I would recommend you call your local community banks and speak with commercial loan officer at each bank. Ask them for their rates and use your NOI to figure the DCR. Most banks like a DCR around 1.2.

Best of luck

@Yannes Chiang

I have bought an LLC that owned a building I wanted. Seller owned the property for a long time so the taxes were low. Diffidently would recommend using a season attorney to help you. If the state you are buying has high property taxes this is a great strategy.

@Bud Gaffney

I have done such deals. My partner and I about to close on a multi family with lower than market rents. What I have done is go in do improvements to the property. For example fix exterior especially deferred maintenance, new paint, spruce the common areas, new mailboxes. Then ask each tenant what are some of the issues in their unit. Of their list fix a few. I’ve replaced a stove in one unit, fridge in another. One tenant on a 6 plex wanted more shelves in per pantry. Then after giving each complex a facelift I’d go in raise rents by $30-60. Most tenants did not complain given they got something done to their unit as well as seeing new ownership update the complex.

Usually if rents are below market there is a reason. Old landlord did not reinvest into the place. Did raise rents because they didn’t want to deal with hassle of doing a make ready.

Just remember doing something to make tenants happy to their unit will get less push back on raised rents. Also can only raise rents if they are month to month not those on yearly leases. At least not til their leases come due.

Best of luck and congrats on the purchase

@Jeff Byrne

Advice or opinions from those not doing what you want to do shouldn’t discourage you. Surround yourself with likeminded individuals as those doing what you want to do so you can learn the game. Who you hang out with affects your mindset.

Family can be more critical on their loved ones than strangers. Win them by going out and doing with your action and results. Once they see you killing it they will come on board.

Best of luck

@Andrew Taylor

Great looking house. I think the market is just slowing down. A suggestion might be to remove off the market and resist a day later so it can look like new listing.

As many others suggested. Front door can use a nice accent color like maroon color representing Texas A&M.

If you stage it with your own nice furniture you might be able to do AirBnB during hold time.

My partner and I have a new build that’s slow to move but we can refi and use brrrr strategy to make into rental.

If you don’t want to spend money to stage your agent should have someone who can do virtual staging. If she doesn’t know a person look at competition and find one that has virtual furniture and contact agent. Of course tell agent u have property on opposite side of town lol

Hope that helps. Best of luck

Most builders get a builders policy when they sale the house so regardless if they are still in business or not the insurance policy will cover for 10 years.

I too think I know this deal. Is the seller also a Broker? 6.5 cap seems like a stretch given rent rates and property still needs rehab. If this is the property I am thinking you might want to offer lower as the cap rate is more like 8-9. Best of luck