All Forum Posts by: Andy Webb

Get bids for both and weigh the cost + hassle of dealing with the tenant if you do a repipe.  I would be curious to hear how far apart the two estimates are (of course, don't forget to weigh any costs of repairing the flooring, etc). 

@Kevin Von Storch - just purely from rentability, pretty much any area of Carrollton is great.  Much of the city is close to main travel arteries and decent school districts (some in CFBISD and some in LISD).

Which pockers are best?  It really comes down to your investing model and buying/investing criteria.  What are you looking for?

I personally like the BRRRR model - most of my portfolio has been BRRRRs. In that respect I would focus on most of the 75006 zipcode and parts of 75007. 75010 will be newer and too pricey to support the area rents in most cases - I am sure there are exceptions. Just watch the values with respect to taxes and insurance - those could kill your cashflow.

The further south you go, south of the tollway and especially south of Beltline, you will get into older stock.  I like older houses that need a heavy lift = greater discount.  Be prepared for cast iron sewer lines, foundation repairs and probably electrical panel swaps, along with the usual cosmetic updates.  A lot of these are the standard Fox and Jacobs stock.  Wash, rinse and repeat.

What kind of rehab are you looking for?  Or are you looking for rent ready?

Andy

I live in Carrollton, have a rental there and have done lease ups for investors in the area.  If the product is good, it will move very quickly.  Your rent range seems appropriate depending on the area of Carrollton, size and condition of property.

Don't assume you have to do 20 or 25% down - that is if you are buying in a conventional way with a conventional loan. Read up on the BRRRR method on this site - you can have far less money into a property with this strategy.

Andy

Congrats!  How is the insurance cost down there?

Andy

 If nothing else, consider the timing of the two contracts.  You enter into one with the seller and how many days until you enter into one with your end buyer?  Will you meet your obligations in a timely manner.

And typically the amounts do not line up - meaning you are probably paying a lesser EMD to your seller than you are receiving from your buyer. At least in the deals I have closed on as an end buyer from wholesalers. Their EM to the seller is typically well below the EM I pay them.

Andy

Ditto...except for the turn-key starter, went straight to rehabs, and according to this progression, it sounds like owning a small multi-family is next for me!

Andy

Certainly my home state tops the list: Texas. Indiana is right behind us.  Look across many of the sunbelt states for more.  Note that even in a landlord friendly state like Texas, there are lesser friendly areas, like Austin or Dallas proper (city, not county).  

Like @Allan Smith said - some can be close to immediate (maybe a quarter or two) if it is a straight cash flow play, others may take far longer.  I have seen some that project 24 months for a major turn.  No cash flow, but HUGE capital gains on the back end.

One bath works just fine in some markets - who are your clientele?  Not big families, then probably not an issue.

Also, we have added baths in the past - depending on the configuration of the property you may be able to find places to add a half bath or convert a half bath to a full bath.  This both adds value and widens your potential renter pool.