All Forum Posts by: Adriel Hsu

I'm doubtful that we will be seeing any heavily discounted deals.  The low interest rates as others have said, as well as strong collections during COVID have owners still wanting top dollar.  The most you can do is stay in front of brokers so when deal flow does pickup, you have a shot. 

Don't expect to buy anything half off. I think at most it will be a slight dip in price if any, unless of course you find a mom and pop unorganized complex that are tired.  If your target is that 30-60 range, I would just market to those smaller apartments directly as there are a higher proportion of mom and pop owners in that category.

Price solves all issues.  Keep lowering it every 2 weeks. I've had to learn that the hard way myself a few times.  From the looks of it, the quickest and cheapest thing to do is to upgrade all the bedroom light fixtures. They look like generic, builder grade, 2010 fixtures.  Find some more modern brushed nickel flushmount LED's that are around $30-$40.  Costco had some nice ones on sale for $17 a few months back.

Besides that, anything else would be pricier. The tan bathroom tile could use some updating very mid 2000's look. The kitchen counters are not my taste with that cabinet color scheme.  Switching out bathroom tiles would cost around $3000.  New quartz countertops and tiled backsplash would be ~$3000 as well.  But if that can help you sell for another $10,000 and quick, could be worth it.

It seems like cashflow is your concern. I would look for stable cash-flow markets that are more resistant to downturns.

I have rentals in the Beaumont - Port Arthur, TX area that I found to be a great cashflow market.  Very insulated pocket that was not affected much in 2008 and barely any effects now during covid.  The only downside is don't expect much appreciation.

I regularly see ~1.5% deals in the C class areas.  

I have a 4plex i am about to sell in Beaumont to upgrade to a 20-unit if you are interested. 

This will be tough, but defintiely doable.

I suggest visiting the market at least once before deciding to flip there. Know the desirable neighborhoods.

Find a realtor that will run accurate comps for you. Most tend to over estimate ARV

Rehab costs vary by market. Find a GC since you'll be out of state, but just realize you will definitely be paying a hefty premium having someone else manage your rehab vs sourcing your own subs. Be prepared to hire and fire numerous contractors until you find a good fit.

Having a boots on the ground you can trust is really the only way to ensure it runs smoothly.  Preferably a third party with no conflicting interest like a realtor/contractor.

If you are looking specifically for Class C value add, those markets you listed with ? should be between $55,000 - $80,000 per door

@Kai W. If you're closer to Bissonnet and 610 it is a good area, more towards Sharpstown/Chinatown not as desirable.

The thing is, townhomes don't really appreciate as much in value as a SFR. Make sure it cashflows enough to cover emergencies if your play is longterm appreciation

I'm 28 years old.

I mainly flip and wholesale, but for the rental portfolio I have a 14-unit a 32-unit apartment complex. Also have 2 single family rentals (one was really just a flip that couldn't sell lol).  

Following. I have a WY LLC but I had to register in Texas. The Property is owned under a Texas LLC, but my ownership of that Texas LLC is the Wyoming LLC

Hey Josh!

Congrats on starting the journey! 

SETX is a great market for both flips and cash flow rentals as I do both here.

Adriel

@Jesus Garcia I get deals all the time in beaumont. Amazing cash flow market. Little to no appreciation however.