All Forum Posts by: Robert Steele

@Felipe Lois Affini While the Texas Property Code states there is a 6 month redemption period for a non-homestead, proving that the property is not a homestead is another issue. Texas has a very broad definition of homestead. It is pretty much only a safe bet if the property is zoned commercial.

I don't think any title company is going to write a title policy on any residential tax sale for at least a period of 2 years because of this.

I use DT Air Conditioning & Heating for all my HVAC installations, repairs and maintenance. Ask for Dana and tell him Melissa sent you. 

Just a followup for those in Texas who are not aware of the law change last year.

HB 2489 adds Section 209.016 to Chapter 209 of the Texas Property Code. Section 209.016 now restricts a Subdivision Association from adopting or enforcing a dedicatory instrument provision that: (1) requires a prospective tenant to be submitted to and approved for tenancy by the Subdivision Association.

However, my HOA has a restriction that no more than five percent (5%) of the total dwellings may be leased at any point in time. Upon the expiration of a lease term, the Owner of the dwelling must again notify the Board of his or her desire to renew the lease.

It is not clear to me if this restriction is enforceable or not given the spirit of section 209.016 which seems to indicate that a HOA cannot stop you leasing your house to whom you please. But without someone testing this in court we will never know.

@Zoe Lee My understanding is that the contract you signed with the PM stated that you had to sign off in writing for any repairs over $250. So the burden of proof is on the PM. He has to show the court that you gave him permission to move forward on the $3,000 repair.

Small claims court are for claims less than $10,000 if I remember correctly and you don't need a lawyer so the cost is minimal. If you don't want to go to court at all then you could perhaps pay a couple of hundred dollars to have a lawyer right up a threatening letter to your (should be now defunct) PM and scare him into paying up.

@Zoe Lee No a leaky bath tub is not considered an emergency. If you didn't sign off on the repair and the PM went and did it anyway I'd tell them they have to eat the cost. If they say no, and I'm betting they will, it's time to fire your PM and then take them to small claims court.

@Account Closed "5 different types of flooring". That's a good one. I know what you mean. I've been doing comps lately against my properties and that is exactly what I see. It's different than what I used to see which perhaps indicates the different type of landlord that has entered the market as other have pointed out in this thread. 

I do wonder about the impact that apartments are having on SFR though. I always thought they attracted a different pool of tenants and thus did not really impact each other that much. The family of 4 with two pets for instance.

Thanks to everyone who replied to this thread. The information provided has been valuable.

I am talking specifically about cities north of Dallas such as Plano, Frisco and McKinney and single family homes in the A and B classes.

Last year I was only able to raise my rents by a nuisance amount and then only on about half my portfolio. This year it looks like I won't be able to raise them at all. I am getting top of the market rent in my neighborhoods already. About 5 to 5.5% cap rates. 

Meanwhile the property taxes march higher every year. Roughly 10% last year and 10% this year. My cash flow is getting squeezed out.

It is interesting to note that back in 2012 before this market took off that the rents started increasing significantly before the prices did by about 12 to 16 months. I wonder if stagnating rents are a precursor to stagnating prices at the tail end.

I anyone else getting squeezed by rising property taxes and stagnating rents or is it just me? What kind of cap rates are you guys getting in these cities for these class properties?

I've been reading that this deduction wont apply to service businesses like accountants and lawyers and such. I assume landlords will also be included in that basket and thus we miss out?

@Vivek Khoche Yes. I've been lurking for the past 4 years. Selling my holdings into this rising market and taking profits. When the cycle turns down again then I'll be buying.

One doesn't flip tax sales.

There is always a right of redemption period and it can last anywhere from 6 months to 2 years. In either case most companies will not write a title policy against these properties for at least 2 years. So no flipping. Buy and hold is another matter.