All Forum Posts by: Robert Pfenninger

My client has a 2 bed 1 bath house that was rezoned to commercial recently in Robinson, Texas. It is fully renovated and would make an excellent short term rental (str, vrbo, airbnb, etc...). It is only minutes to Baylor University Stadium, Magnolia Table, Downtown Waco, the Mammoth site, Hawaiian Falls, BSR Cable Park (now Surf Waco) and Homestead Heritage. The city of Robinson is very restrictive on short term rentals for properties zoned residential so there will be very little competition.

Anyone interested in more details?

I've lived in Waco my entire life minus my time in the Marines. Almost anything close to "Magnolia world" is over priced (and everything else in and around Waco for that matter) with hotels popping up left and right. In addition, an STR can not be within 500 ft. of another STR in Waco which means you likely wouldn't get approved for a new STR permit anyways. The country is rapidly heading into a recession (and possibly WWIII depending on which news you chose to consume) and I think we've only just begun to get a little taste of what is to come with gas prices, rate hikes, supply chain issues, failed crops, droughts, and layoffs. That being said, there should be a lot of opportunity on the horizon. However, if your buying for cash flow I would stick to long term rentals with a deep discount on acquisition for now. They are hard to find but still out there.

Thanks @Trevor Caswell. I had what looked to be a great deal on some land and a small house in Robinson not 5 minutes from the circle. However, after looking at how other STR's in the market were performing and seeing the writing on the wall with inflation, taxes, insurance, and rate hikes. I rescinded my STR permit request with Robinson and terminated the contract. This only would have been a good deal at past booking rates for STR's. As a long term rental I'd have to pay a lot less for it. All that to say, I absolutely agree with and appreciate your post!

Can confirm with what @Trevor Caswell said. A contractor I've used for the last four years is now buying houses cash, I've even assigned a few to him. He can barely handle my projects and his own now but he makes it work cause I bring him good deals!

@Christian Vaquero @Kathryn Harris

Check out Masterminds of Central Texas Real Estate Investors on Meetup https://meetu.ps/c/35Sny/CdvcN/a

Check out Waco Real Estate Investment Association on Meetup https://meetu.ps/c/2BCF8/CdvcN/a

Howdy from Waco! Both of these meetups are free and have been a great source of networking for me! The organizer is a great guy as well, I've JV'd with him on a few deals.

Howdy @Josh Kovats, for me networking is a huge part of my business. Set up key word alerts on Bigger Pockets to help you find and network with other investors in the area. I always like to invite other investors for coffee or lunch. Everyone's gotta eat right? Also get on meetup.com and create a free account. Try to find real estate meetups in and around your area. The key is to find value add relationships that are mutually beneficial. Though, I do try and help anyone I can as I believe it comes back around.

When I got started I had a little bit of money, very little real estate experience, but a lot of time. So I found a good deal and brought it to an investor with more experience but less time. He was happy to partner with me and give me the credibility I needed to secure a hard money loan. He showed me the ropes and even let me make some beginner mistakes. By the time all was said and done we made about 35k on my first flip and I had credibility with a great lender. Honestly though, I consider the knowledge and courage gained on that first deal to be more valuable than the money.

Best of luck to you as you begin your journey!

@Trevor Caswell Thank you for the insights! It seems like such a geographically relevant spot being positioned right before 35 splits for DFW. I will certainly keep my eyes on it.

Howdy all from Waco, McLennan County, Texas

I'm looking to expand my horizons a tad and considering other markets. I typically view most cities along I-35 as a safe bet but I was wondering if I had any Hillsboro, Tx investors on here. Any insights would be appreciated! Any one local I'd be happy to buy a coffee or lunch with!

Blessings

Yes the local government and much of the population is certainly hostile to the airbnb's. It was certainly lucrative pre-pandemic but I'm not sure now. Hotels and student housing are still popping up left and right though. Deals on good cash flowing multifamily are hard to come by and really depends what you are buying for (i.e. tax write offs, equity build up, cash flow, etc.)

@Charles Thank you for you response! I've got a job posted now on upwork. I'm just trying to shorten the learning curve!

@Charles Carillo