All Forum Posts by: Tim Jones

Hi @Wes Blackwell,

I'd be interested in hearing about any of those 15 properties that reside in at least a C+ neighborhood.

Thank you,

TJ

Hi @Pratik P.

You should definitely know and understand the rental market in your area. Your future job as a landlord is to market your goods (apartments) to the people there. Each MF property that you analyse can fetch a different amount of rent based on condition, location, and amenities offered.

Also, no slam on loopnet but sometimes it appears to be a commercial RE graveyard. Definitely seek out a good commercial RE agent as they sometimes have listings not on, or not yet on loopnet.

Best of luck to you!

TJ

@Raj G.

Make sure you have your own buyer's agent. It sounds like your using the listing agent as your realtor though I may be wrong. Buyer beware!

TJ

@David Zocchi

Good things (may) come to those who wait...

The CA Central Valley just saw 7 years of appreciation following the Great Recession (depends on locale). I would argue it's not the time to buy, at least not at retail price. I suspect that @Chris Kirk is right with regard to the market cycle.  I would look for local wholesale properties because the price you pay for that may help offset any potential downturn in the market. Anything local will be easier, and perhaps cheaper to (self) manage.

Good luck from 2 hours South,

TJ

@Reaz Alli

There are many, many strategies and this is but one:

FHA loan on a MF property that you live in and needs some (mostly) cosmetic repair.

This would be an owner-occupied, 3.5% down, 30yr fixed rate loan on a duplex, triplex, or fourplex. Get in and house hack, learn to be a landlord, learn the rehab side of things, and build sweat equity.

With the numbers you presented, it appears that you have about $33k. 3.5% DP of a $168k property would be about 6k, leaving you with about 20k+ after loan costs, etc. You could do some decent DIY rehab with that.

The MLS is a decent place to start but you may want to find some wholesalers in your area to find a better deal. There's bound to be some on this site and you can also call the number on the banner signs (I buy houses cash) in your city. Craigslist too...

Buying below market may protect you from what some think is the near-top of the market cycle. Texas is pretty hot right now but if 2007 taught us anything, it cools down too! Use the time in your lease to analyse 100 deals, enjoy SA's weather, the Riverwalk, and to save! Try not to "pre-spend" your tax return and you can add that to your pile of cash in the spring!

If you live there 2 years you can sell and keep all the proceeds tax free. You would then have a bigger pile of cash to invest with. You could also just rent out your unit and go and purchase another owner-occupied property. You might also have the ability to do a cash-out refi, eliminate PMI, etc. You'll have options once you increase your equity in the property.

There's a lot of variables in all of this: your skill set, what the market is doing & where it's going, neighborhood, etc, etc. You are definitely on the right track though. Keep reading and asking questions! Follow the advice of those above; there were many great ideas presented!

Best of luck to you,

TJ

@Brian Barfoot

Definitely discuss it with them. If you've already made an offer with an agent, you probably have signed "exclusive paperwork". Check and see. If your agent is residential, then maybe they would be ok with having another search the commercial listings...In any case, honesty is the best policy.

Also, I had a great discussion with my agent about investor criteria, strategy, and their comfort level with the way I want to make offers. I introduced her to this site and now she's a member! It's all about communication and expectations.

Best of luck to you!

TJ

Welome @Florence Jones

@Brandon Reed

Just something to consider:

Purchase a MF property (du-, tri-, fourplex) as a primary residence via FHA (3.5% down, 30yr fixed @ 4%ish). Move in for a little while, learn to be a landlord, set up your systems, and THEN start looking for your primary residence...

Best of luck to you!

TJ

Hi @Karla Talancon

Your post came up as a keyword alert. I have family in McAllen, Tx and we were recently in escrow for a fourplex there...unfortunately the deal fell through.

We have a good, hungry RE agent if you are looking for one. We also have an uncle who is an A/C contractor down there and I'm sure he would know some GCs.

In your post above, are you in need of a GC to fix all of the listed amenities? For example, do you need it to be made ADA compliant or is that a description of what you bought? If it is a description of what you bought, what is the scope of work that you will need performed? I'm just trying to get a good idea before contacting anyone down there.  

Also, I'm interested in your property's location. I've been there twice in the last 6 months evaluating neighborhoods and properties. 

Good luck to you!

TJ

@Reginald Dillard

1st: Thank you for your service!

2nd: Welcome to BP!

Before I forget, reach out to David Greene (former PD) and listen to his podcast.

I highly recommend reading, "The Richest Man in Babylon". I fully understand the salaries that we public servants must live on, but I'm afraid I have to agree with @Daren H. You must, above all things, pay yourself first! Also, realize that you can use this years RothIRA contribution to invest and put it back in later. This is assuming that you have one. You could also get a HELOC on your house...another assumption. I'm just trying to show you that you can be creative with your finances.

Good luck to you,

TJ