All Forum Posts by: Aaron Rowzee

Don't worry about the home count per LLC. Few ever abide by this rule. Once you start getting close to 30-50 properties you should already have a CPA, lawyer, solid insurance person - all of which can advise you in more complex family planning scenarios that their clients "actually" use.

Sent you a PM! Sorry I'm just now logging in and seeing this.

@Joshua Farren

Investor and realtor here in the Beaumont area. You’re in a great market and we’ve got some great people to connect with including Adriel and Dustin who’ve already commented. DM me and we can chat more in-depth.

@Daniel Haberkost I love your statement and you are absolutely right. These clickbait titles are very deceptive and the real description should be “Insert stated opinion - AND WHY ITS RIGHT FOR ME”. The only way these posts and the blog articles are remotely helpful for readers is if they include the finite details of the writers financial situation, goals, and experience and how their choice has affected those.

@Chrystian Tapia

What are your thoughts on professional property management? I’ve used it from the beginning on rental #1 and every one since. I allow someone who is good at that one thing, to be good at it with my properties. Therefore, I am free to go out and do what I’m good at: finding deals.

@Robert Youngquist you should have no problems as long as you document and post the necessary notices. 30 notice to not renew and then notice of eviction are the proper forms I believe. I’m a local to the Beaumont area, feel free to reach out about anything!

Investment Info:

Single-family residence buy & hold investment in Orange.

Purchase price: $55,000
Cash invested: $15,000

Good rental in a solid rental area, with plenty of equity and cashflow. I helped an old individual out of a housing situation where they physically were unable to finish the rehab.

What made you interested in investing in this type of deal?

The fact that this listing was older than 60 days and had dropped about $10k from the original asking price. When I first walked the home, I saw that the owner had wasted 2 weeks "rehabbing" the home by scrapping the popcorn off of the ceiling, when his focus should have been on pulling up terrible, stained carpets among 50 other things. It was clear to me that the seller had no idea what he was doing.

How did you find this deal and how did you negotiate it?

FSBO on Zillow over 60 days old. I offered cash, a quick close, and my willingness to take the home as-is with no cleanup from the owner for roughly $14k less than his asking price. He took it and ran.

How did you finance this deal?

Cash from my line of credit.

How did you add value to the deal?

Expecting to rent it for $1,250/mo and have approximately $70k total in it after rehab and refinance. With an ARV of $100-105k I'm looking at $30-35k in equity, a LTV of 70% and a RTV of 1.78%.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, myself. I would totally recommend myself to others.

Investment Info:

Single-family residence buy & hold investment in Orange.

Purchase price: $55,000
Cash invested: $15,000

FSBO off of Zillow with 60+ days on the market. The owner, older, was trying to repair his house and sell it after remarrying late in life. Wife already owned a much larger, nicer house a few miles away. I offered cash, a quick close, and my willingness to take the home as-is with no cleanup from the owner for roughly $14k less than his asking price. He took it and ran. Expecting to rent it for $1,250/mo and have approximately $70k total in it after rehab and refinance. With an ARV of $100-105k I'm looking at $30-35k in equity, a LTV of 70% and a RTV of 1.78%.

@Benson Gee what is your strategy currently? Are you looking to play the appreciation game? Are you wanting more cashflow per month? Or are you wanting a stable and strong rental market that shows great consistency over the long term? I'm sure you want all of these but what would be the order of importance?

Having grown up in Houston, and now working and investing in the greater Beaumont area I can tell you that Beaumont and the surrounding towns make up one of the most incredible markets in the nation, but so few know of it, or bother with it because they see the smaller Census population of the city, and the higher crime. The larger area offers some of the best school districts in the state, some of the most stable jobs in the state, and an extremely stable rental market. As an example, I just sold a rental I owned to a turn-key buyer that was making $1450/mo and I was all in at $90k. While our appreciation is nowhere near Houston, our rents are incredible strong.

Another neat fact, during the entire recession, Beaumont barely felt it. Our local economy, by my estimate, is about 20% shipping/imports, 30% fuel production, and 60% petro-chemical (plastics, clothes, 95,000 different chemicals extracted from oil, etc). Plastics, clothing, chemicals, and military shipping contracts aren't effected by economic down-turn when compared to everything else. Shoot me a PM if you are interested in knowing more. I've got an incredible team of people that I lean on for my own investments, and would be happy to share.