All Forum Posts by: Yavor Tomov

@Joshua Wilson I use Google docs. I a sheet per property and it works fine for me. I have about 7 doors via 4 properties and it ok for all expenses. Additional, I can take a picture and save it in the same folder with the sheet. You will need to make a naming standard for each invoice. Having an Home Depot account and a business credit card just for real estate helps. Because you can always look up something if you forgot to enter it. Hope to hear a better way of doing this. All the best.

@Andrew Neal I think it is all about personal strategy and point of you investment business. Personally, I'm paying down my personal residence(15 year fixed mortgage, will be done in about 5-7years). But not paying down my investment properties due to they are on 30year fixed loans and they do cash flow. While I will love to own them at this point of my investment life I need to focus more on buying. So at this point I'm saving as much cash as possible so I can buy distressed properties cash. Rehab them and refinance into a fixed 30 year loan. When I get to a point, where banks will not give me more loans, will start to pay the loans down. The end goal is to have a pretty good passive income and not worry about retirement. Hope all this makes sense. All the best

@Michael Roesch Welcome to Houston Michael. There a deals out there however you need to find the right deal. I would say Spring and Katy are good areas for flip. I have noticed more and more inventory being available while prices are still high. I would advise you to get your self introduced to as many wholesalers, real estate agents, and investors you never know where the deal will come from. Join the 713 real estate investors on Facebook. Also there is a good meeting called "the real deal" onec every month. Also send me pm we can have coffee. You never know. All the best.

Few more things to do: 1. Ask the seller for all the lease agreement and ask him to complete a specific form with details of each lease. That form is signed by the tenant and the seller so no issues after the sale. Can't remember the name of the form. BP will help with this!!! 2. Do your self a favor and make sure you set the rules with the tenants or they will drive you crazy. An example, I tell all my tenant to contact me via email first. However, I make sure to answer the email in quickly 5mins. So they know that if they send and email and I'm free they will get a response. Always provide a phone number but explain that is in case of emergency. 3. Setup an account with cozy.co and setup your property on it. Application, deposit and rent via the platform. This will help you to scale and make it easy on you. 4. Also look how you can save money on experience. For example, if you are paying for water install new toilets, faucets and etc. The more expenses you cut the more money you will make. Good luck

@Nicholas Butler I would defanatly get an agent or a lawyer that understand the closing process and will guide you. Do ask for a discount, you have done most of the leg work and just need help with closing. Regarding the next setup I would go on leandingtree and submit a request for a loan with your criteria. Maybe get a Google phone number and provide that because your phone will be ringing all the time. You will get some good offers, I advise you to narrow them down to three and call those banks/brokers. Make them fight LOL. Remember in real estate everything is negotiable if they say we can't do that. Tell them the other bank did it. You do not have anything to lose they have. Also I would advise you to work with two banks if possible. This a bit tricky but some of the banks will allow you to lock the rate and at the same time you are not committed to the close with them so you have your best term loan and a backup bank incase the first one does not fund your loan at the last minute. Always be prepared for the worst and hope with the best. Also, start of shopping around for insurance and inspection. Do not trust the inspection too much. If you see something that is not right always check. Always double check what people tell you. The worst will happen you will learn more. Always be polite with all the people you work with, except when they are not polite with you. So you got your loan in the bag now. You have an insurance policy on the property. Inspector that will inspect it. Just one additional idea will be if you can get some more funds so you can put 20% down so no insurance on the 2nd loan and better interest rate.

Hi @Kent McDaniel First, congratulations on your financial situation. While you may have not used your money to the best case scenario it does not matter. What matters is to learn, improve and feel comfortable taking risk. If I'm in your shoes I would definitely take some/none of the equity out of your primary residence but for sure will get approved for a loan. Few reasons: 1. You would get an amazing interest rate. To buy/rehab more properties. 2. Asset protection. An equity line of credit loan would be perfect. So even in the case you do not need money at this moment get the loan, so if any lawyer checks your assets they will see a loan on top of your primary residence. Nevermind you have not pulled a dime from the loan and you are not paying any interest. Some bank may require for you to make a small withdraw on approval. Hope this helps All the best.

@Steve Maginnis I did rehab a 1930 duplex about an year ago and had the same debate. While, for me the switch was more motivated by space saving and looks. In the end I went for the tank whatever heater. Here are my .02 cents. 1. This is an rental (not a primary residence) reliability, simplicity and easy repair. An electric water heater does not require any special maintenance (only drain) once per year (any handyman can do it). Any repairs are simple to preform. 2. My water heaters are located in the kitchens the same as yours. While I had a huge desier to move them to the attic. A plumber friend advised me against it and I left them in the kitchen. The reason was that if it ever leaks or there is an issue the tenant will tell me right away it is in everyday view so an issue will be notices imidietly (no celling to repair or paint). 3. Do not forget price. While there are savings with the tankless heaters after few years. I think the additional maintenance and complexity kills the use for a rental. Hope this helps.

I would say it is a good deal. I purchased a duplex with a single meter box and few electrical contractors gave me quotes and their way of getting the job done. In the end everything from the pole to the outlets was newly installed. Due to the the duplex being build in the 30s and so many electricans did work on it. It cost about 7500 for everything so if you can get it split for only 1300 it is a good deal. 

Congrats!!! Dennis

Hi @Monte Mabry, 

I think you have a good idea. However, make sure the numbers are good before buying, do not forget to look at the taxes and please if you buy in the area PROTEST your taxes every year.  All properties in that area are old (30s) which implies major repairs ( roof, plumbing, foundation) so make sure you have reserves if you need to fix something big. Also make sure you get a good inspector. Regarding the area I personally like it (I love victorian style, hope I never have to demo one of those houses). Also have the observation that the area is slowly improving due to many hoses are getting rehabbed or new are getting constructed. 

All the best