All Forum Posts by: Tyler Bains

I would never look at Cap rate for a SFR rental or homestead. You look at market comps because that is what an appraiser will look at. CoC ROI is what I want to know when analyzing a property for a client but market comps would be the way to determine an offer price.

1. Is Section 8 paying at the current “market rent”. Section 8 can be very lucrative and an overall easier way to run your rental business as they handle vacancies, it is guaranteed money, and you don’t technically need a property manager as you can handle most of it from a contractor and maintenance standpoint.

2. Which unit has better CoC ROI when you run the numbers? Are tenants paying all utilities? What do taxes look like? How is occupancy and lease terms on each property?

3. How do either of these fit into your long term goals for investing in real estate?

I would personally look to just pay the contractor. You could offer incentives for quality, speed, etc. but I would personally avoid including them as a partner.

As the saying goes, “don’t fix what isn’t broken.”

“West” Texas is extremely broad. I live in Lubbock and am therefore partial but we see a TON of out of town and out of state money pour into the Lubbock investment market. Our entry point to value is very low compared to the DFW, Houston, Austin metro areas.

I always say it like this, "determine your game plan, then determine the market." Lubbock could be exactly what you are looking for or it could be the worst possible place. Do you want SFR and multi-family investment properties? If so Lubbock is an excellent choice. Do you want a strip mall, flex space, and entertainment venues? Then Lubbock won't hold up against the metro areas.

Oil does not drive the Lubbock economy which is why we do not see the ebb and flow the way the Midland/Odessa areas do. I would caution against investing in the oil towns just because everything is very cyclic in those locations. 

Anyone want to bring this back to life?

Anyone want to revive this?

Costar will give you quite a bit of info

Local RE agents who specialize in investment and commercial

PropStream... this is a secret but it will let you pull demographic data and you can skip trace that info

1. Establish a relationship with an investment lender ASAP. 

2. Ensure your RE attorney and CPA are on the same page with the structure you are using for the purchase.

3. Establish a relationship with an investment RE agent in your area and explain the game plan (types of property, goals for investment numbers, etc.)

4. Search quality deals

5. BUY, BUY, BUY

I know portfolio in my area range from 4-8% depending on a ton of factors. I think establishing relationships would be step one. If they understand who you are and what you want to do then getting your foot in the door will be easier.

I would also encourage you to check out the BP posts about partnerships to leverage your investment capital and place the loans in another individual’s name (that you trust completely) to gain passive income.

I would just go for it now. You know the market as it is, we cannot predict the future and regardless of who wins there may be shifts. I think now is a great time to buy and if you have a deal that meets your requirements I would go for it.