All Forum Posts by: Bart H.
Bart H. has started 11 posts and replied 1128 times.
Post: Am I being cheap or am I being robbed?
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Val J.:
@Wayne Brooks. It would require the contractor to frame the porch with 2x4s, add insulation and siding to the exterior. It's just a small porch that is has aluminum screens and I'm wanting to enclose it so that it can function as a small bedroom or office. The porch's floor is concrete and so is one of the walls. So the contractor would really just be framing 3 of the 4 walls with sheetrock and insulation.
IF you are enclosing it, you will also need to run electric for lighting and plugs every 6 feet. Then add ventilation for heating and AC.
Post: Letter Of Explanation
- Dallas, TX
- Posts 1,165
- Votes 744
Post: Appreciation in the Dallas Market
- Dallas, TX
- Posts 1,165
- Votes 744
Post: First BRRRR Complete with PHOTOS and numbers
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Joseph Walsh:
Hey congrats. That's a lot of work for your first one. Knowing what you know now, is there anything you would/could of done differently that would of resulted in more monthly cash flow? $130 a month is pretty slim. Of course, you are doubling that by self-management, but the point of the question is "what would you do differently for more profit" knowing what you know now? still, nice work.
I wouldn't call it too "thin". He has 50K in equity and has 0 capital
If he'd done a 100% financing deal where he made $630/M every one would be nice job. IF you said $130 of that $630 is what he makes now, and the $500/month is a portion of that $50K in equity he has now, then you would have 8-9 years of $500/Month income before you broke even. IE basically instead of 8-9 years of $500/month in cash flow, he got $50K+ in one payment
Throw in 2%+ appreciation on the $200K, so approx. $4K/year on top of the $130/Month or about $1500/year in cash flow. Plus he pays down $3,000-$3,500/year on the note.
So on a property with no capital investment (after the loan), he probably gets about $9K/year in return.
I will take that.
Post: PM is keeping security deposits rather than charging monthly fee
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Marshall Hooper:
I'm looking into buying a portfolio of duplexes and when I asked what the PM fee was, the owner told me that the PM keeps the security deposits as her compensation instead of charging him a monthly fee. He also said she keeps the late fees as well, but she disputed this.
She told me she does this because the owner keeps her husband busy with maintenance work (lots of patch jobs we found out)
When I asked her if this was legal to keep the security deposits rather than keep them in Escrow (we are in TX) she said yes, because the deposits are advertised as "non-refundable".
This is an arrangement that I've never heard of before. I'm curious if anyone else has heard of this?
We typically pay our realtor a fee to lease our properties. And the fee is typically the damage deposit.
We are on the hook to return that damage deposit to the tenant (minus damage), so you do have to set aside money to pay off the deposit at the end of the lease.
We also do our own property management.
Post: Newbie - How do I structure this in order to cash flow?
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Yen Padilla:
What's a 1% rule?Sorry,newbie here..
Monthly rent/purchase price >= 1%
Post: Texas-Do I have to have an attorney for lease violation eviction?
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Jeri Norris:
I purchased a duplex across the street from my parents because the tenants (no lease/subletters) are nasty/high/rude to my parents and all neighbors on the street. Listed tenants moved out.
I worked with the previous owner for 3 months to help him evict them, but half the time he was high and half the time he was passed out. He has no record of leases or payments.
He finally sold me a $54,000 property (negotatied to $15,000 because of so many damages and required repairs/ 3 months later) for $9,000, on the condition I evict.
Because I purchased the property after the 1st of the month and no tenant living in properties have a lease, my attorney advised me to give a 30 day notice, find legal names for current tenants and avoid non-payment of rent eviction (because I can’t prove previous owner didn’t receive it and if he showed up for court... he would be considered unreliable).
It took me over over a week to find out who all tenants are (legal and otherwise) because code enforcement has been involved for months and issued several citations.
Tenants have been cited AGAIN, issued court dates, and were given notice to fix violations and turn on water within 7 days (which they cannot do without a new lease and I refuse to sign one because of damages and violations).
I was given copies of leases and can site all lease violations (minus late rent as I did not own property at the beginning of this month).
However, when I look up the law in Texas, it says I am required to hire an attorney for any eviction that is not for “non-payment of rent”... Is this true?
Do I give a 30 day eviction to non tenants or proceed with a 3 day and hope that they move before code enforcement returns on Thursday and condemns the property for no water and being unsanitary?
Advice y'all? I worked as an apartment manager but only ever had to evict for non-payment. This is my first REI.
Please help and send advice. I really want to move forward as this is taking up time and money and is straining my finances.
Thank YOU ALL!
Jeri
I am not an attorney, and this isn't legal advice, but I am fairly certain you can do evictions yourself if the property is in your own name.
I think you might need an attorney if the property is held in an LLC.
Post: How to make sure your tenant will Change an Air Conditioner Filter?
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Corey Demuth:
I'm sorry if I'm missing something obvious here but the title of this thread is how to make sure you tenant will change an air conditioner filter, so why are we talking about furnaces??
Often they are the same air handler.
Post: Best areas in North Texas/DFW to invest in SF homes under 200k
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @Taylor Martel:
Hi All:
I am new to Texas (about 6 months now) and would like to purchase some investment properties. I currently live in North Texas in Little Elm/Frisco area. I am looking for SF homes under 200k. I'm planning to buy and hold these properties and would love some insight from anyone regarding areas that seem up and coming and/or have shown great appreciation. I don't mind fixer uppers where I can force some appreciation, but am definitely not interested in fixing foundation work/etc.
Any feedback would be appreciated!
ONe thing that we have come to learn, every house in Dallas has foundation issues, and most will have some fun with termites.
IF you are going to do some value add for a rental, be prepared to ignore minor foundation problems. I would also say, expect property taxes to go up, a lot.
I think you might find things a little cheaper to the west of Dallas/Plano/Frisco. South of 30, or out to the east of 635, the 30 corridor.
Frankly we personally have had trouble finding much of anything lately that looks like a great deal, and the few we have found we have been outbid. Look I don't mean to be too negative, I think house hacking as always a great option to get started. And I think with patience you can find deals. But they are a lot more difficult to find than 2 or 3 years ago.
Post: Buy & Hold property-yes/no for cash flow?
- Dallas, TX
- Posts 1,165
- Votes 744
Originally posted by @James Wesley:
The numbers are like -$800 cash flow, so yeah you all validated and aligned with the calculator that this is a poor deal. I lived in Dallas for 7 years and currently have my old SF rented out. So I already have a Realtor, Handy-man and Property Manager setup here, so I have a good base to do deals here rather than setup a new team.. It's easier to cash-flow here than in Seattle (of course with the right deal).
Do you have thoughts on the values that should be inserted in the calculator?
*Vacancy
*Repair & Maintenance
*Capx, as well as future assumptions:
*Annual Income
*Annual PV Growth
*Annual Expenses Growth
*Sales Expenses
We have looked at most of the duplex's that have come on the market over the last 5 or 6 years. Honestly, I think I might know which property you are talking about.
Regardless, what we are finding right now is a many if not Most of the duplex's in close proximity to downtown are being valued as tear downs for multi family properties, at least in the background.
I really think the >$2,000 rents in Dallas are on the high side, especially as it seems like there are a lot, if not too many luxury apartment buildings going up. and there are some small signs that the top end of the Dallas rental market are showing some cracks. I think a duplex at the top of the market might be subject to a correction in the near term and not really see any price appreciation for the next few years.
We personally are being more selective about the properties we are buying.