All Forum Posts by: Richard Redding

How would I have gotten all my loans without a full-time stable job? I got into it while I had a full time job and had one for 11-12 years before finally going full time investor.

For my projects, I've learned spending a little extra on the front door is worth it (must have glass). Try to keep it somewhat consistent with the neighborhood.

Someone else suggested pressure washing the driveway, totally agree. Obviously, herbicide the heck out of those driveway cracks.

What I'm learning more and more is that the landscaping is extremely important. I allow a pretty healthy budget for it. (also don't forget it has to be maintained if it takes longer to sell than you hoped, so you might budget for that)

The big bush needs to go. A flower bed lining the path to the door would be nice, but keep whatever you plant short (monkey grass?). Create some raised flower beds along the brick from the porch to the edges of the house. Add medium sized flowering bushes there, but keep them below window level.

Also I'd like to see a cobblestone and pea-gravel path going straight from the porch to the street.

1st, avoid 6 month leases. 12-18 are the way to go. This game only makes sense if vacancies a rare.

2nd, newer tenants without an established good payment history get no breaks, for any reason (even if they are nice). You are running a business, treat it as such. I pretend that I am just an employee ( I report to 'retired me' in 10 years) and I make decisions as if this is my salaried job and I'm going to be in trouble with the boss if I manage it poorly. 

It was mentioned earlier, but immediately start the eviction process with a 'notice to vacate letter'. Keep a written record of each step, meanwhile verbally let the tenant know you hope they stay as it's in your best interest too (it's true!) and all this goes away as soon as you get your rent.

I prefer not to have pets, but add into all my leases for tenants with pets, they must professionally steam clean and de-flea the house upon move out. I specifically state they must provide me with a receipt for the services or I will charge them. I also add to all my leases, a professional maid must be hired at move out and receipt provided.

So far as what you can charge, be fair and reasonable. Err in their favor. Touch-up paint would be expected, but a fist size hole in the wall would not. I few darker spots in the carpet is expected, but certainly not urine or a wine or ink stain.

Good luck. Fail fast and move on!

You need to get rid of the pool and keep the tenants happy.

Verbally tell them you went to your insurance agent to look into cost of additional liability coverage due to the pool and now they will be dropping you in 30 days unless it's removed or a new expensive fence is installed. Let them know how good of tenants they are and that you want them to stay but you can't afford the fence. The pool has to go.

Then follow up with an email quoting policy language regarding their lease violation and set a deadline for removing the pool.

How would you feel if someone did this to you? What would you say about this person if they pulled it off and you found out afterward?

Depends on holding and sales costs....

Your gonna pay agents 6% to sell it....so I'd estimate 7%in case you pay for closing fees etc. 7% of 130k is 9k.

Sounds like a lengthy repair, plus some time on the market perhaps so I'd plan on 6 months holding time (worst case). Interest on $78k at 14% (just guessing) is about $900/mo + $300 mo utilities + $100 mo taxes +150/mo insurance comes to maybe $1440/mo, so 6 months would be $8700....lets just call it 9k.

So 130k sales price- 9k sales expenses - 9k holding costs- 78k rehab and purchase leaves you with a projected profit of $34k. On a project this cheap I think that's a very solid return.

I'll also throw this out there (I'm just thinking out loud, not an expert), mold remediation may not be needed. You're gutting it, which I'd think includes replacing all the sheet rock and ductwork, so what are you paying to have 'remediated'? I'd think that'd do it, worst case you could always pay someone to spray down the studs with diluted bleach. Afterwards, just buy a mold test kit from home depot and post the lab results in your sales disclosure.

I've never heard of a buyer paying the commission.....

Here's the thing with Austin real estate: True or false? When people visit Austin they want to move here. 

If you believe it is true, there will continue to be demand for housing and thus when interest rates increase we will only stagnate, but not lose value. If you believe it is false, then perhaps there will be a loss of value.

Now Brushy Creek.....if you're in Austin and wan't to raise a family in a fairy tale of a community and want a house for $250k or less, that's the place.

6% is the standard in Texas...once you get $750k or higher you'll see lower percentages.

3% to the selling agent/broker and 3% to the buying agent/broker. It sounds like a lot, but after the broker takes their cut and taxes, the agent is keeping about 1%-1.5%. (depends on their negotiated split with their broker)

You could ask them to take less, like 4% if they also bring you the buyer.

There's discount listing services...as low as 1%, but I would proceed with caution.

Start with an experienced realtor who also has their own rental property....A realtor will have access to the MLS will tell you what a property is worth and what you can rent it for. Their advice will not cost you any money.

The Houston market is pretty volatile right now....I suspect you can find some good deals at present.