All Forum Posts by: Mark Sewell

I am from WA state but Texas is probably more 'investor friendly' in terms of landlord / eviction / foreclosure laws.  We have our own Puget Sound area here (it's called Austin) but other than that, there are major cities and mid-size cities where you can find a nice blend of cash flow and some reasonable appreciation.

At this point in the thread, I would just like to offer this:  Go Huskies!

Wale, as you know, it's possible. We found one for Ian (I would call it a class C area). But it is just really hard.

I think I found one of the kids. No contact made, just yet, so I don't know anything new at this point. Could an heir in another state open probate there, in that state? I would think it would have to be done here in Texas, where the decedent lived.

Wow, congrats!  I guess this would simplify the whole scope of work, when you are doing a full rebuild.

I'd like to ask you which contractor(s) you used on the project, how you found them, and how that process went.

Oleg, you are in college now, you said.  I think there is a discovery process and you cannot speed it up - just like selecting your major in college.  Maybe you originally thought about being an English major but now you are considering communications, or marketing, or accounting or whatever.  Life is what happens when you are busy making other plans.

So just start!  If you think you might want to be a flipper, go try that.  You might decide you will prefer to be a buy and hold investor later.  The good news is that many of the same skills are required for both.

Originally posted by @Jesse Swagerty:

@Lucas Webb

I've done BRRR a few ways. Every strategy has advantages and disadvantages. I recommend finding a private lender that you can negotiate your own terms. We've nearly lost deals before trying to go conventional, just because the processing time is so long. But here's breakdown of pros and cons I've found:

Conventional loan: Pros: low interest, longest loan term, multiple reviews to ensure it’s a “good” deal. Cons: long closing period (risk losing the deal), highest upfront cost for services required by lender.

True Cash: Pros: lowest cost; Quickest/easiest close process; no maturity date. Cons: You’re making all the decisions without 2nd set of eyes, so you’d better know your sh*#. Need cash.

Hard money: Pros: Fast close; 2nd set of eyes on deal to ensure it’s good investment. Cons: highest interest; many upfront fees; short loan term; construction draws may require inspections to release funds.

Private Money: Pros: negotiate your own terms; Quick/Easy close if lender trusts you. Cons: Not everybody knows someone with that kind of cash; it’s their personal money so emotions are involved; unless they are a seasoned RE Investor, they are not a reliable 2nd set of eyes on the deal.

Note: regardless of strategy, I always recommend finding who you plan to use for refi up front and ask their advice. Every lender is different so you want to establish the relationship early and make sure you’re on the same page so there’s no surprises when it’s time to refi.

What a cool little summary analysis.  This could be an article.

Ok so an uber driver dug up a pretty nice lead for me - a vacant house in Houston.  

Should be a probate deal, as the owner passed in December 2017.  His wife passed several years prior to that.

However I see no probate documentation at all on the county clerk website - I do see everything for when his wife passed.

Interesting, almost exactly one year to the day before he passed, he submitted an affidavit to revoke his will. 

Trying to track down his kids - you would think by now, almost two years later, that there would be a probate case open.  But without a will, I am wondering now what this process will look like.  I guess the state will determine who will inherit the property.  I wonder, could there be a probate case opened in another state, if the kids live elsewhere?  Or would it have to happen here in Texas, as this is where the property/estate is located?

In Texas I believe the state will find some way to award the estate to a relative or somebody, even if nobody claims it.  The state won't keep the property, as I understand.

I did their training.  It is OK.  Not specific to your area, however.  Same stuff is available for much lower price (if not for free).  Feel free to connect and we can visit more if you like.

@Ian Middleton

This is good stuff here... learning something.  

@Kevin Romines I had been wondering about this -- sort of a chicken/egg thing, when you are trying to qualify for a rental property.  Can't rent it until you own it, and unless you got the cash sitting around (some folks do), then well... it's a catch-22 then. For me, at least, this explains a lot.

So if you aren't getting gross rents that are a good bit higher than your PITI (rents x 0.74%), then your DTI is going the wrong direction.

Kevin, DTI means debt to income on an annual basis, yes? So if my wife and I are bringing in $100k (example) on our tax returns, then we need our total debts to be at $50k or under? correct? So we are adding up everything we pay out, PITI on our primary residence, plus car payments, insurance, the full list, and that gets us to our existing DTI - then we add in the formula for the new property, as you described... is this close?