All Forum Posts by: Matt McGuire

The lease said nothing about smoking. I have a no-smoking clause in my new lease but they have been allowed to smoke with the past landlord. I pretty much knew the answer here but figured it never hurts to ask. Its not worth getting a lawyer involved over $400 so I'll more than likely just return it and be done with it.

I recently bought a 4-plex with 2 units occupied and 2 vacant. I painted both of the vacant units because there were smokers before and the walls were yellow. The other 2 tenants have indicated they will be leaving when their lease is up and they both smoke. Their security deposit is only $400 which doesn't even cover the cost to paint the whole unit. 

I'm sure it will come up, so what do you guys think? Does smoking in the unit constitute wear and tear or should I keep the deposits to paint?

In this case, why use a HML at all? I would give your private lenders similar terms that a HML charges and avoid hard money all together. I talked to a HML recently and they will finance 80-90% of purchase price and 100% of rehab. They charge 10.75% + 2.5 points and a $885 processing fee. All that is for a 12 month term.

The advantage to using a private lender is you can use whatever contractor you want and you don't have to get paid in draws. You still want to pay your contractors that way so you know the work will get done but its easier for you to just have access to the money you need when you need it.

I talked to my tenants this weekend and they are fine with depositing into a local branch. I'll be opening an account this week. I appreciate the feedback.

Good find! Thanks Patricia

I recently acquired a 4-plex a few hours away from where I live and I planned to collect rent using Venmo or Zelle or something similar. I found out yesterday that my tenants don't have bank accounts. They don't know what Venmo is. They just cash their paychecks at the gas station or wherever. The previous landlord was local and he would go by there and pick up the rent money. I set up a PO Box so they can mail the rent, but what other suggestions do you have to collect rent in this situation?

I think those areas definitely support the BRRRR strategy. There are a ton of houses that need rehab work especially in Conroe. Like @Mitchell Benson said, door knocking is an effective strategy because there aren't that many on the MLS that are good candidates. One thing you can do from your location is just use Google maps street view and virtually walk the streets. Then go to the Montgomery county appraisal district website and search the address to find the owner's address. Plus they have a virtual map there so you can see lot lines and click on properties.

I've been doing that and sending letters to homeowners. You can also use listsource or something similar to find a targeted list to send direct mail to. That will be your best bet for finding leads.

I live in Montgomery and work in Conroe. I think from a buy and hold standpoint all these northern areas have potential. I think finding something in the Woodlands, Tomball, Spring or Humble would be your best bet for consistent renters just because of the proximity to Houston. Most of the people I work with in Conroe live up here so that they don't have to commute to Houston. 

I have been looking around this area to do a flip or two as well just because I live here but I think most strategies will work in the Houston area because of its diversity. Just gotta watch the flood areas. There is a neighborhood just south of Conroe called River Plantation and its right on the San Jacinto River. It's flooded so many times that most insurance companies wont even insure there anymore. You can find some "great deals" in there so if it seems too good to be true it probably is.

I just insured my first rental property with Goosehead. They charge a fee to get you the insurance but the rate they got me was well worth it. I sent the quote to my local agent who insures my primary residence because she was skeptical. She replied back "this is great coverage, I cant beat it..". It was traveler's insurance btw so maybe I could have just gone to them first but who knows. I will use Goosehead again. I am not affiliated or anything, just a satisfied customer. 

@Michael Geiger Any update on the property?