All Forum Posts by: Bart H.

 The listing says it requires work on both sides.  The property probably doesn't cash flow if the rehab gets over 5 or 6K. (Guessing, without running comps that your $1,800 total for both sides/month is probably fairly close.

My wife and I bought a duplex and rented out the other unit.  We just bought a house for our daughter to rent to her friends while she is in college.

Its a small thing but we also have older paid for cars.  My car doesn't have Bluetooth, so I carry around a Dewalt shop radio so I can listen to my "Bigger Pockets" podcasts.

Hey Abel, did you see Dallas is on the verge of passing an ADU ordinance that allows owner occupied folks to have an accessory unit/Grannie flat.

Seems like a potential huge opportunity for a way to get additional income by building/buying an additional rental unit out back. (or live in the back unit.) 

 What price point are you looking at?

There are some cool duplex's from Greenville to Skillman, Live Oak/Ross up to some of the M Streets. 

Just saw one on the market today.  ITs a little pricey as a pure investment, but would be an outstanding house hack.  On a great street. 5821 LaVista.  Its a great neighborhood, I think its slightly under market based on the pics (I haven't actually walked thru it).

https://www.zillow.com/homes/for_sale/26689962_zpi...

 Good relations with our 2 agents who helped us find contractors, taught us a lot about rehab and have given us excellent guidance about when to and when not to buy.

You should be no more than 4,000-4,500 for a name brand (Rheem or Trane) AC unit.  You might be able to get it a little cheaper if you look around.

My last two were something like 3,800 and 4,000.  For a complete replacement.

I think they might well not buy SFH's vs prior generations but I expect them to rent SFH's. MY reasoning is they have had their formative years in a low interest rate, low inflation period with a major real estate crash. I think they are used to renting and assume owning a home is a poor decision.

I think that MF rentals will become tiresome at least for those millennials who end up having kids. Furthermore we are building fewer SFH's than we did in the 50's, and last I heard fewer than are being torn down.

My sense is class "A" luxury MF apartments are at or near a glut, and if I am right that millennials matriculate to SF rentals, those will be in short supply.  And I think there is a real chance that interest rates AND inflation kick in over the next 5-10 years.  SO it seems to me that owning SF rentals, or reasonably priced ($1,200-$1,700/M rent) is probably the best place to be.

I do think millennials who wait to buy are making a big big mistake, if we ever get back to inflation like we had in the late 80's or early 90's,  many will wish they owned something.

We have used a realtor that has brought us some off market deals, we have caught a FSBO, and done a few things off of the MLS. We have not as of yet bought any properties from a wholesaler.

Its not that we wouldnt, but we just havent found any wholesalers we either trust, or whose numbers work for us.  Most of what we see listed is garbage imo, nothing like getting the privilege of paying retail after repair values on houses needed 60 or 80K of rehab.

Its not worth chasing the market.  If we find something we like, we will do it, but it might not be the worst thing to just leave the bat on our shoulder.

As far as "activity at the top of a market", what I meant is that at the bottom of the market, the sellers are serving cookies and Mimosa's trying to get people to tour their houses and make offers, but there are no buyers.  At the top of the market, sellers are showing the house on their schedule and are dictating terms heavily favoring the seller.  And people are swarming like locusts to bid up the prices of anything that sounds like a wholesale deal.

It just feels like behavior and terms that to me signal we are getting close to the top of the market.

Nah.....I will pass and work with someone who isnt trying to create some sort of shark feeding frenzy for at best marginal deals.  

I don't think your exposure is that bad on interest rates, because you would likely be refinancing at the 6 month mark.

Your biggest risk imo is did you get the rental income you expected, and did the property appraise for what you thought it would after you financed it.  Did the rehab cost what you expected?  If not the capital gets caught up in the process.

 I have a wholesaler sending me emails with this tactic.  Honestly, I am not exactly sure how I got on his mailing list.  But never the less, it feels like used car sales, high pressure tactics.  And I more or less leave those emails in my spam folder.  

Even if the deals were decent, which frankly I am not sure they are, this whole sense of loss marketing it too transactional for me.   And it feels a lot like activity at the top of the market.