All Forum Posts by: Mark Sewell

Get out to some networking events, and participate on these forums - I need a lot of local contacts right here, first, and then I run into them later in person.  

Somebody might refer you to a good mortgage person that 'gets it' and can suggest some programs that could work... and if they don't work now, they could work eventually and you can take the steps you need to take and use that as kind of a road map.

Originally posted by @Parker Eberhard:

@Dane Espegard listen to the BP Real Estate Podcast #356 with Joe Asamoah for his perspective on section 8

Guys, I listened to that same podcast and it prompted to me to rethink what I plan to do with my primary residence here on the West side of Houston.

This house is about 2450 square feet. Moved here in 2008 and we paid about $135k for it, using a VA loan. Now after a refi or two the balance is just under $105k, but the value (with a few minor updates) is at least $200k.

It was built with 4 bedrooms, and this room where I am sitting as type this is walled in, and could be a 5th with the addition of a closet.

If I am reading this right, on this link the City Houston will let me rent place out for $2700 per month. 

http://hchatexas.org/housing-choice-voucher-program/

See we were thinking we might could rent this place out for $1600 a month, tops.  Usually the smaller 3/2 houses around here rent for about $1300-$1400... some of the larger ones go for $1500.  So I had been operating under the idea that this house would probably cashflow, just barely.  

Then I heard this podcast.

Right now my mortgage is about $1300, that is with tax and insurance in there. OK the tax and insurance will increase a bit, once this turns into rental property, but still. I should be clearing $1000 / month easy.!! 

Of course I realize there is property management and maint,capex etc.

My wife wants a newer but smaller house, so the question has been what to do with this one. I always considered it too big to really work as rental property so the plan was to sell it - sort of a live-in flip. 

The kid is in 10th grade and we plan to stay put for another 24-30 months, but after that we'll be in the market to move. That gives us time to get our debts paid off and our DTI really whipped into shape.

Now the wheels are really turning in my little head.

I could maybe refi this house using a conventional loan (paying off the VA loan), and probably pull out a good $30-$35k in equity, which could be used as down-payment on a new primary residence or hang onto it and put it toward another rental property. I know that the VA loan can be used again, so we might try that.

Wholesaling is the hardest way to make living - however, you could partner up with an established wholesaler (find one that actually has money and closes deals for themselves) and you can perform certain tasks for them.  Earn while you learn, if possible.  There is much to be done.  

Just go out and start networking! 

Originally posted by @Jason S.:

@Mark Sewell do you experiment with varying qualities of creative content?  I'm reading direct and simple, think neon text, are more effective than high polish creative.  The logic makes sense due to distressed vs. curious.  My recent campaign utilizing this is showing ok to above average results so far.  

Also, most importantly, with the HEC special category, do you envision this being a long strategy?

Yes I do a lot of experimenting, but I've not really gotten that far in depth as to test varying degrees of quality.  You may be a little more advanced than me in that sense.  

In fact, I would say that I need to reign in my creative side a bit and bring out the scientific approach a little more.  But I do try to test different things.  And not just the creative aspect.

I look at ad campaign objectives -- lead gen, video views, traffic, and reach (for lists).  Just started testing a messenger ad the other day.

I look at various audiences.

I look at various ways to retarget - site visitors, viewers of X% of certain videos (or Y seconds).

I try to use video a lot.  Short stuff mostly, some is a minute or two in length.  

So far, my most effective campaign, far and away, has been a before and after street shot of that house I flipped. No video, just two images.

FB market is the new craigslist.  Free.

I wanted to ask the OP if he plans to live in as his primary residence while he renovates.  That changes things a bit.

John L I am down there a lot and I know this area.  I'll say that is not a bad area but it is a little 'transitional' … there is really pricey and nice mixed in with sketchy and outdated.  I'd be careful.  North of Westheimer is Tanglewood and expensive & trendy.  Go south of Westheimer and it drops off dramatically.  Maybe if you have evidence that this pocket will turn and really start to appreciate, then you could have an amazing deal.

The other part of this is townhouses -- are they rented out currently?  Or owned individually?  Are these really condos?

Just go slow and do a bit of networking.  Meet some others that do the same thing.  They'll have some tips, I am sure.

@Alan Grobmeier is spot on.  This is just a number, these things can be fixed and so if you know the cost to do that, then it can be priced into the offer.

I've only completed one flip myself on my own, but that one did have mild foundation issues at the back end of the house.  It was a $3K repair - and the wholesaler already had a bid lined up for me.  After closing, I just made a phone and stroked a check.  Done. 

Now here is the other aspect of this - that house will need some time to settle after you repair the foundation, and you will find a lot of other items that need fixing as a result.  Doors that don't close, windows that leak... things you maybe didn't notice before.  So there is a small cost multiplier effect with these foundation houses (in my single-project limited experience).

Originally posted by @Juan Abreu:

@Mark Sewell

I spoke to my VA loan officer a couple of weeks ago and he said I could not use my VA loan to build a multifamily, only a SFR. He also said you can't use to add units, it has to be for a home built from zero.

Ask your VA loan offer again - specifically ask him about 2 - 4 units, are they considered multifamily? Pretty sure only 5 units and up are considered MF. Maybe some lending professionals will chime in on that.