All Forum Posts by: Laurie Williamson

@Bruce Lynn, Thank you for the suggestion! I know those areas are really growing. I think you're absolutely right on those reasons why tenants aren't biting on some homes with more DOM. That is really helpful. My last property I said no pets, but they got a pet anyway, so I think that requirement may be futile. May try something different this time, like a pet deposit or just looking for a place with tile floors.

@Tyler Hodgson, thanks so much for the intel. That is good news. You're right; I'm barely seeing anything in Frisco and Allen, but there are 1 or 2 that come up in the search. Good advice on the agent pulling comps. Will have my Realtor do that.

@Philip M., thank you so much for that suggestion. I will definitely check out Mr. Landlord! That would be super helpful once I get the next property purchased. For my rental in Garland, I had a property manager place the tenant, then I took over management. Tenant ended up staying nearly 6 years, so I have never had to place a tenant myself!

@Paul Blair, thank you so much for that info! Exactly what I was hoping to hear.

I have a friend who is a Realtor, and I have asked her to run comps for me a couple of times, to see if my rents need adjustment. She is happy to do it, and doesn't charge me, because she is the Realtor I work with when I need to buy a new property, or sell a property. If you don't already have a business relationship with a Realtor, you probably have a friend or acquaintance who is a Realtor. You could ask them to do it, and ask what it might cost for them to do that for you. Probably not too much, or they might even do it for free. Realtors can search the MLS and more results than someone with out a license can. While anyone can look and see what people are asking for rents in their neighborhood, a Realtor or broker can see the actual sales prices—meaning what a property was successfully rented for. They can also help you search for rents on properties that are similar to yours. You can do that yourself to some extent (check zip code, age of home, look at finishes, etc.), but for example, my Realtor will say, "Here's what I found on properties that were within .5 miles of yours, similar age and sq. footage, and rented out in the last 30 days..."

The report shows a negative cash flow, if I'm understanding it correctly. Your expenses are higher than the rent. You could cut property management, and manage it yourself, and that would save you some money, but it looks like it would still be too high. Might see if you can put more $ down, or else need a lower purchase price or higher rent.

Hey guys! Anyone here have SFH rentals in Plano, Texas? Or, in McKinney, Frisco, Allen or Little Elm? I would love to hear about your experience. I live in Plano and want to buy a rental property that's nearby, in Plano or at least in Collin County. I am specifically curious about how quickly you're able to fill vacancies, if you're getting good tenants, and if you're able to get what you're asking for in terms of rent, or if you're having to lower it to get tenants. Also wondering if any one of the cities listed above is a better rental market than another. They all look like they are getting good rent rates per the MLS...just not sure how long they are sitting on the market before being rented.

More info: I am looking for a 3-bedroom, 2-bath home with a 2-car garage, between 1500-2500 square feet, built 1970 or after. Price range between $300-$365,000. I am selling a rental property in Garland, Texas, with similar specs, except it was built in 1956, and I am doing a 1031 exchange. I never had any trouble keeping my Garland rental occupied, so I know that demand there is high. It was also generally profitable... but older properties need a lot of TLC, and after moving to Plano, we don't like driving out there anymore. I am hoping that replacing that house with a newer property that is closer to home will minimize maintenance hassles. Also may have more appreciation over on this side of town. Thankful for any insights!

P.S. I haven't received the comps from my agent yet, but I am anticipating a substantial increase in value over the six years I have owned the property. The proceeds from the sale should pay for the repairs, and also be a sizable return on my investment, to alleviate my pain and suffering! ;) 

Ooh, I've had this question before! Maybe I can provide some useful information, and also learn something from others who post here. Six years ago, I bought a single family home, my first and only rental property, from an off-market listing. I was really interested in real estate investing, and had made three offers on other properties that were listed the MLS. I even put down earnest money, but those deals fell through during the inspection and due diligence phase. (One had a slab leak that would take months to repair, the others had plumbing-related issues, I think.) So I reached out to a friend whose mom owned rental properties, and she sent me a 3/2 property that was going to be $122,000. I could not find anything obviously wrong with it, and was also a bit skeptical, as you are. Why were they selling? Why not put it on the MLS? Also, even though that sounds really low now, at the time, it was just about market, or maybe only slightly below. It appraised for $126,000. There was already a tenant in it. I felt like a sucker for paying market prices, but I had a two-year-old and I was 8 months pregnant with my second baby, and I work full time, so I and didn't want to do a lot of work; I just wanted to buy my first property.

So, what happened? Well, I bought it. I kept the tenant and the property management company. I did not even make any improvements. The first tenant was OK at first, but then stopped paying rent. My property manager had to evict them, and they stole the refrigerator when they left. I also had to pay for an expensive make-ready, but she was able to get another tenant in quickly.

The next two-three years were a dream. Rent was paid on time every month, no problems, and I was making great money on the place. I had to fix the A/C or heating from time to time, but overall, it was gravy. I was wishing I had three properties just like it!

Then--everything broke at once! Or, rather, I got called out for one problem and found many more problems than I knew about. There were plumbing problems, lots of plumbing problems. The garage door was broken and I had to replace it. I repainted the exterior, replaced a broken dishwasher, spent about $9,000 total that year. That was last year.

THIS year, everything seemed fine and I was going to upgrade the flooring, but discovered the subfloor was wet, and I don't want to get into it, but let me just say I'm about $8,000 in and ready to sell. I will probably sell it off-market, to the same agent I bought it from. Why off market?

1. Biggest reason - there is a tenant in it, and she is only a month into her lease. I don't want to send a bunch of people out to look at the property, with the tenant in it. She would be inconvenienced and probably not compelled to accommodate the showings. Listing off market lets me offer it to investors, and whoever makes the best offer gets to come out and inspect, and buy if they want, with less hassle to the tenant. 

2. Next biggest reason, since there is a tenant in it, if I were to put it on the MLS, anyone could buy it, not just investors. However, a homebuyer is not going to be too compelled to buy a property with a tenant in it. I don't think she wants to move, and I would like to give her the option to stay if she wants.

3. Last reason, also about the tenant, is that even though I do have an early termination due to sale clause in the lease, I don't want the hassle of asking her to move and dealing with the frustration, emotions, etc. I just want out of the situation.

Reason I am selling -- it is getting too expensive. There will not be not anything major wrong with the house when I sell it because I will have already paid for the bill to fix all this stuff. I'm just "out of money" as far as I don't want to spend any more of my money on this house, and I am out of patience with dealing with repairs, contractors and being a landlord. 

But nothing tricky or alarming to the buyer. The tenant pays the rent, and the place is fine; I am just over it, and don't want the hassle. I hope this helps. I did not understand why the previous buyer listed off market either, when I bought, and now I do.

@ Terrell Garren, Thank you for saying that! It makes me feel a little better during a difficult situation! I do feel that my clock has been cleaned, ha ha. However, I am feeling much better today because I started looking at similar properties for sale in this area, and the prices are good. I am 80% sure I will sell this property after these repairs are complete—especially if expenses get really high. It is going to be painful to pay the bill(s), but I think I will be able to recoup my losses and come out of it with a profit, and a lower stress level.