All Forum Posts by: Aaron Rowzee

Good morning, BP.

I've got a first time situation concerning a flip house I have under contract. My plan was originally to use hard money to purchase and flip the home, however, one of the investors in my local group has approached me to do a joint venture on the flip. He has funding available in the form of a pre-approved bank loan, and I have the contract in my LLCs name. 

Is this going to be a problem, with him having bank financing in his company name and me having the contract in my company's name? If this is an actual problem, what is the easiest way to fix it while maintaining my leverage in the deal?

@Travis Williams what a great find in the code! I've heard rumors that you will also get to protest the tax amount come April due to the damage and devaluation. While I have no experience, nor previous knowledge of that code, I say get after it! Lawyer up and bring it hard. Since you have 14 properties I would assume the lawyer fee would be worth the savings over the next few years. 

I completely agree with Sam B. As an investor in the Golden Triangle these are the exact same places I'm focused on. Midcounty is great too, but heavily saturated with competition (Port Neches, Groves, and Nederland). There also pockets of Vidor that are great for rentals.

Here are some more details. All units are 100% occupied and have been with the exception of renovations to a single unit.

Storage units are steady at about 80% occupancy. All rents are below market value. Storage could be doubled, rents could add another $4800/yr.

Owner provides trash and water/sewer, tenants pay electricity. 

2017 Apartment Financials:

Gross: $30,100 (10 months of income)

Prop Tax: $6,665

Insurance: $5,000

Lawn Service: $1,000

Water/Sewer: $1,440

Electric: $360 (storage units)

Repairs/Maint: $928

Total Expenses: $15,393

NOI: $14,707 (10 months)

2016 Apartment Financials:

Gross: $32,800 (4 months of remodeling on a 1/1 unit)

Prop Tax: $6,665

Insurance: $5,000

Lawn Service: $1,000

Water/Sewer: $1,440

Electric: $360 (storage units)

Repairs/Maint: N/A

Total Expenses: $14,465

NOI: $18,335 (minus 4 months of a tenant)

Storage 2016

$10,873

Storage 2017

$9,177

@Chris Caffey,

Good to meet you! I'm in the Beaumont area as well, new to investing as of this year.

Ahh I see what I did wrong with the numbers. You are right Joe. Glad I posted this up. @Jason D. Lewis I'll be digging this weekend to get some much harder numbers. I do think rates can be pushed with the demand left by Harvey and the influx of jobs.

Alright guys, here goes. First big deal and it's a quad Plex with 30 storage units.

2x 2/1 units - $900/mo

2x 1/1 units - $700/mo

2016 gross/net - $32,800/$18,335

2017 gross/net - $30,100/$14,677

Storage units vary in price but total revenue was:

2016 - $10,873

2017 - $9,177

Asking price is $350,000 and cap appears to be 11+%. Buyer is very honest with expenses, as far as I can tell, and has just renovated the two bottom units.

Also, I'd like to know based on y'all's experience and wisdom, would it be better to live in one unit for 1yr and finance as FHA, or stick with commercial lending with a 15yr 5.5% app amortized to 25 yrs?

Hey guys, could y'all enlighten me on some areas around Texas that would be a steady market for multifamily (5-50)? I'm trying to avoid the city centers where I couldn't really afford to swim but would love to get more familiar with some strong suburbs around the state. I'm currently living in the Beaumont area and there isn't a lot of multifamily to pursue.

 I have 3 different people wanting to sign a contract on the purchase of my property.

Good afternoon, fellow BPers.

Very green investor here in an interesting situation with selling my own property. Short version of a long story: I was in Harvey, house flooded, we were insured, have people coming out of every nook and cranny trying to buy the 5 acres my home is on. Home is 0 value and I will not be repairing.

Fast forward to today: insurance adjuster letter arrived and they will be paying an amount larger than my mortgage pay off, but I have several people begging me to sign a contract. Here's my question: what wording (if any) needs to be in the contract for the buyer and myself to be protected assuming the insurance company renigs and doesn't pay their proposed amount? OR what needs to be in the contract that legally says "this deal is contingent on the insurance company paying the mortgage company off". Or does the basic contract wording already infer this with the job of the title company?