All Forum Posts by: Ross K.

@Rick Pozos thanks for the offer for help!  I am using an attorney to represent me on the matter, I agree with you and don't want to say one wrong thing and mess it all up.  I may hit you up sometime when I'm over in that area. 

Ross

thanks everyone for all the advice. I've started eviction proceedings!

Good morning all, I recently purchased my third duplex in San Antonio and am having a hard time getting one of my inherited tenants to move out. I plan to use the BRRR strategy on this property and need to get the rehab started asap. Here's the situation. I purchased the property in January from a woman who had just inherited the property from her late father. The prior owner lived in one side and had a tenant on the other. That tenant is who I have inherited. The tenant claims she had a lease with the prior owner paid in full through June 30th, but the daughter has no knowledge of it and the tenant herself will not provide me a copy of it or even let me see it. Hmm. So I served her on February 3rd with a 30 day notice to vacate and she accepted. Through discussions with her, I extended that through yesterday, March 8th. I went by yesterday and she hasn't moved out and is now asking to sign a 3-week lease at market rent. My question is this (calling all San Antonio, specifically Leon Valley, property managers here): can I give her a new lease that is less than 30 days and include a clause that the new lease supersedes any prior lease? My thought being that I would then know with certainty the lease status on the property and can then more readily move to evict after that term. Or do I just proceed with eviction? She hasn't paid me a dime in the 6 weeks I've owned the property and the daughter of the prior owner says there wasn't a lease in place. I'm worried if I go this route, a lease will magically appear with no one to vouch for the validity of it. The daughter I purchased from has no interest in assisting anymore, she just wanted to get rid of the property. Wow, sorry for the novel! Thanks for any help you might have! Ross

@Dannielle Hoffman 

I would agree with everything @Will Pritchett said and will add one thing regarding small MF in San Antonio. I own 3 duplexes in and around the medical center area (NW side of town) and only one of them has separately metered water. My opinion would actually be that the norm is one meter for water for the whole duplex. And then electricity is separate. Before assuming Water is metered separate or going off of what an MLS listing says, a quick call to SAWS (SA water system) should be able to tell you.

@betty 

@Betty Cruz for a conforming loan, Fannie and Freddie seasoning requirement is 6 months. If you're going with a conventional, find a new lender who can do the 6 months. 

a couple thoughts:

- rentometer is good for average rents, but it doesn't give you price per sqft (maybe the paid version does). That's a starting point, but if you're looking at properties in nice areas of town, and thus higher rents, many of those renters have agents, so check for comps on the MLS too. I look at both.

- valuation is different for different people. Yes, prices in San Antonio are higher than they were a few years ago. Your question about potential rent vs actual rent is a good one. I think people are tending to price based on potential rent these days, now that the forced appreciation concept is more widely understood. Maybe those prior sales are based on actual rents. Keep in mind to get those potential rents, some rehab will likely be needed. I have two duplexes here in SATX, both are forced appreciation/BRRRR properties, with a third under contract. But I didn't buy at potential rent valuation, I bought at actual rent valuation, knowing I can get more out of the property.

Just my two cents. 

Ross

@Anthony Geren does BBVA do portfolio lending or is that a conventional/conforming loan you're doing with them? 

@Kevin Dee 

@Christopher Phillips

I do what Christopher mentioned above.  I have a letter from my bank stating I have immediate access to $XXX funds.  It also states that any real estate purchased with the funds will not be used as collateral.  

Not gunna do a ton with $1,500, but first thoughts are:

- are you removing window units as part of rehab?  (I.e. Putting in central air?)

- remove bars on windows if allowable. 

- shrubs to hide the meters and around the front.  Something drought tolerant assuming tenants won't be watering anything, by the looks of it. 

- is the front yard used for parking?  Maybe tidy that up if so and get rid of all the grass, maybe crushed limestone or something instead of hoping grass will grow. 

- paint everything and get some color on the front doors.  Maybe a two color scheme to separate siding vs trim. 

- maybe address the roof?

Greg S.

Colton Joseph

For the type of loan you're looking at, you could probably take out 75% of the appraised value, or about $127,500 and use the built-in equity as your 25% down payment.  The higher loan amount will slightly reduce your monthly cash flow, but you pull out more money than you put in so you have more capital for the next one!