All Forum Posts by: Ralph Hunter

The neat thing with concrete counter tops is that if they are done professionally, it is extremely difficult to tell that they are not granite. It does take some skill to do it properly. The time is really in the preparation of the form. 

Another option would be to offer a move in discount. Lets say market rent is $800 but in the slow season you can only get a tenant if you discount it $50. Over a 12 month rental you lost $600 and to get it back up to market you have the CPI increase plus $50. Ouch.

Instead, why not advertise a 50% first month move-in discount for qualified tenants. You take your one month hit and then poof, you are making market rent with only a $400 loss and the new tenants are thrilled. 

For the kitchen, have you considered concrete countertops? These can be cast to made to look like granite for a fraction of the cost. They are a little more than formica but if done correctly, can add a good bang for your buck. 

Also consider simply refacing your cabinets. New doors and hardware. Or even installing wood veneer tape over the existing cabinets can make them "new" and more modern for much less than installing new ones. 

I also agree with @Marcia Maynard, stainless sounds nice and flashy until you own one and have to struggle to keep it clean and looking nice. Opt for white high quality appliances. 

I know that a lot of investors access the equity in their primary to fund investment properties. IMO, you are taking on a huge risk. You jeopardize you and your families' home and security for a investment. 

That being said, if you want to access your equity I would use a HELOC but you can only access what is over 80%. If you finance over 80% you will need to pay mortgage insurance which will add on a sizable amount to your payment which could be better spent on the investment itself.

Another option is to sell and then invest in a 2 - 4 family. You live in one unit, fix up the others and rent them out. If done correctly, the rent from the other units will allow you to live "free." 

Besides a credit card, a car loan is a great way to build credit. It shows that you can handle a loan and make the payments on time. 

@Russell Brazil nailed it. Save every red cent possible. No matter how good your credit becomes, if you do not have a down payment you cannot do much at all.

Parents and other relatives (like rich granny) are great sources of capital and partnerships. You can also look into getting a job in real estate. This will give you some practical experience that will definitely help you down the road. 

Sounds like a good plan. Before you start looking for property, first you will want to make sure that you can financially handle this business. It takes either some serious leverage or a good cash flow to fund the first couple of fix and flips. I would recommend that you connect with some local lenders and see what you can do about that. 

Reinstatement costs are horrendous. It seems that the penalties exponentially grow every payment that is missed. 

Before pursuing this any further, I would sit down and honestly calculate the costs involved. Have the owner get a payoff 60 days out. Then figure out renovation costs and the ARV value. If the numbers can't earn you a sizable profit, then just pass on it and look for a more viable opportunity.

I do not know if I would agree with that decision. Lets say it takes the owners 30 days to get them out. That is 30 days that you are not able to rent out the other two vacant units. That is money lost. Eventually you are going to need to know how to handle an eviction, so you might as well start right now. IMO

You said that the previous landlord said they rented for 7 years. Sounds like a good steady tenant. I would check with the landlord and see how many times in the last 12 months were they late with the rent. How many times in the last 6 months did the landlord have to call to remind them to pay the rent. Did the tenants with all of their children damage the unit in any way other than normal wear and tear?

If the answer is no. Then it sounds like they are a good tenant in spite of their less than stellar credit. 

If they do not meet your minimum credit requirement then that is not discrimination. That would be the only reason you could state. Honestly, I would call them and tell them that you are still reviewing their credit and that their score is lower than what you normally require. You have one other possible candidate that has shown interest and you will get back to them within the week. Honesty is the best policy. 

First, there is more than just installation expenses with a sprinkler system. These systems need regular maintenance.

Second, many "cheap" renters will not pay for the water and turn them off anyways. 

Third, I know some parts of California have banned sprinklers due to the drought, might want to make sure that is not coming to Texas.

Fourth, in reality, has the HOA made an issue of the brown grass in the past? How likely is it that they will make an issue? If not, then I wouldn't bother. If so, put it in the lease that the tenants are liable for any penalties from the HOA due to condition of the yard. Then you are covered.