All Forum Posts by: Adam K.

Have a generalized plan, be flexible and make a move. Absolutes are to make sure you will cashflow based on the low end average rents for where you buy. If you over pay on the front end or over rehab on the back and need a unprecedented rent you will never get to #2. 

Buy it, fix it, rent it and figure out the next step when you get to that point. No amount of analysis, spreadsheets, or advice can layout every step in your process. Their is going to be set backs, surprises, and life events along the way. Lending guidelines constantly change and prices are moving. 

Weather, theft, neighbor hit my parked car, wrong appraisal, had a baby, material delays and discontinues, inspectors,  HOAs, neighbors, partners go awol, etc. All these things happened. 

Stay determined, motivated and find a investor who happens to be a Realtor that can push you along. I might know a few.

Il be there.

Since purchasing the property I discussed above NW has sent me over 100 deals,  maybe 200. Of those about 20 I performed in depth research on and from there maybe 3 I almost pulled the trigger on. Everyone's criteria is different and evolving.  I look at the address and the sales price from the email and then I start my process. ARV's from wholesale email leads are like serving suggestions on nutrition facts. Supported by real data, sometimes accurate but usually not realistic. New investors should familarize themselves with the IABS document and know everyone's role before entering into any contract. Bottom line is do your homework. If your not sure then get some help.

For the appraisals I have purchased and seen the appraiser used recent sales comparables for determining their opinion of value for the lender. I did not see the price of oil mentioned anywhere on the report. I think oil prices will figure into the big lenders numbers and risk tolerance before an appraisers residential   report will. When home sales slow an start selling at lower numbers then oil can be blamed.

People get excited and fall in love with houses and make big offers. With the low days on market and competition you have to go big to get a contract. That's fine if the buyer is paying cash but if it's financed and the comps didn't support the offer it should have been clear.  The agent should have advised the buyer and the selling agent could have looked at the offer a little better. I tell sellers the highest offer is worthless if it will never close.

Everything is negotiable but check on your state laws for deposits. It's not a deposit anymore if fees are automatically coming out.  If you don't like it don't sign it. Since you are already in the apartment with no immediate plans to move they have some leverage on you. Maybe ask about these fees and what has changed from the first lease if they were not included with it. 

I hear so much about Exxon and jobs but can not find any real data. 

What percentage of the all the new jobs will be filled by the massive pool of engineers and energy industry personnel that are already established and working here? A 30-60 min commute to work is pretty common for the Houston metro.

What is the average employee age, pay scale, education level and retention for the majority of the new jobs? I know of several neighborhoods very near Exxon that have had large numbers of foreclosures and are now predominately rental neighborhoods with sec 8. I don't see the recent college graduate or 6 figure veteran engineer buying or leasing in these neighborhoods.

Its funny how the radius and boundaries of neighborhoods is exponentially growing. Listings and wholesalers claim anything within 10 miles of a hot area. The Heights now extends from Washington Ave to Little York between 59 and 290.  Spring Branch is now anything north of I-10 between 610 and HWY6. Bellaire extends down to 59 south and the beltway. Humble, Jersey Village and anything outside the north beltway are now "Close to Exxon".

For my properties that I own an manage I will say this. If they meet the income, work history, rental history, and criminal background requirements than they can ask all the questions they want. It gives you the landlord the opportunity to reinforce what is written in your lease as to who is responsible for what. This "should" eliminate most phone calls. 

When the lease is singed I physically walk the property and explain what is what and what they need to do.

Examples

If a cabinet knob is loose, get a screwdriver and tighten it.

The door squeaks? Buy some WD40.

Oh you rammed the garbage can into the garage door sensor and know it doesn't open? Call the garage door repair man.

The toilets overflowing because you flushed too much paper? Turn off this knob to stop the water and unclog it with this plunger. If water keeps flowing go outside and turn off this knob. If that doesn't work call me immediately.

You see this wire coming out of the HVAC? Don't hit it with the weed whacker.

This stove top is for residential pots and pans, not 30 gallon commercial boiling pots.

Everything I cover is in the lease and specifically covered. I am continually adding items for future leases as well. Newest is swarming bees in the neighbors bushes.

Its your house now, its your responsibility unless written otherwise in the big stack of disclosures you signed at closing.

Confirm that the roof is the source of the leak and not a leaking pipe in the attic or floor space. Find out what is directly above the leak where it enters the tenant space. Could be a shower seal, drain seal, water heater/ ac component, toilet that overflowed or kids flooded the bathroom. If it is rain water penetrating through the roof and making its way to the interior space the sheetrock, insulation and framing may need replacing as well. Are any of those items part of the $850 reapair?

Never take the sellers word for anything unless its written in a contract.

Value an agents opinion based on their experience with the specific issue. If the agent has never physically done roof work, never personally purchased roof repairs, or been directly involved with a roof renovation project then they probably shouldn't offer any suggestion other than contacting a roofer. I will guess they have no obligation to pay for roof repairs unless it was in the representation agreement. Maybe it is California.

I have zero experience with pools other than swimming in them. Recently I have showed several rehab houses with pools and I tell the client I have no idea what the cost is to repair or replace anything having to do with a pool.

That will be interesting. I have been working with a few owner occupant buyers and making offers this last month. In some parts of the city Houses are selling in 1 day at historic highs and other neighborhoods have more inventory of fair market priced similar homes. If you include the unincorporated and surrounding cities the Houston metro is massive. There is just too many diverse areas for me to speculate either way.

Everything your saying is what I was saying. I was real frustrated for a few weeks but it all worked out.