All Forum Posts by: Alfred Litton

Can you tell me who you use for property management?
Yes, we like the town and schools. It's just that many want to be closer to shopping.

They're both just too far out of the city to get high demand from renters. Vacancies just persist too long. People would prefer to be in WF itself. Selling is tough there. Almost bought a property in IP in 2018 but glad I was outbid. I never invested in BB due to higher taxes.

Who's your PM? Mine used to be good but is really slipping now.

Hi Nathan,

I have 4 properties all in WF proper. I can tell you that now is NOT a great time to sell. I have one up for sale (2029 Gloria Ln), and it's cold as ice out there right now. Every realtor in town is talking about how things fell off a cliff in March.

If it were me, I'd probably sell the one in Holliday and the one in Iowa Park. You're going to find it very tough to sell single bath homes right now. I think the one you've got on Parklane and the Burkburnett properties are probably fine, but over time, you might want to cycle out of the others for the most part. Gonna be tough to tell right now, though, and I can sell you that from experience!

I"m familiar with Wichita Falls and have been an investor there for several years. You won't find many duplexes or quads there at all. Very thin market, and what's there rarely are quality properties and rarely come on the market. WF is really a sfh market.

@John Humphrey  I really know nothing about Section 8, but the 4 sfhs I have in WF are all 3/2 and from 1100-1300 sf in B-class neighborhoods, and I rent those for $1100-$1250. They are mostly in the SW part of town, which is an attractive area for rental properties to be in.  $1274/mo for such a property seems kinda high to me, but maybe others with more experience with Section 8 can enlighten me.

Do be aware that your property taxes and insurance are going to on top of that. Together, those would be about $4000/yr. (I know. I own 4 homes in WF, so I'm very aware of the insurance and tax rates.) So that's going to put you at $1030 for PITI. Take 10% off your $1274 for management, and you're only clearing $116/mo. That seems mighty thin to me for something that is that cheap. I know WF very, very well. Section 8 housing that is going for $100K is potentially going to be in rough shape, in a rough neighborhood and have little appreciation potential. If the water heater goes out, for example, that's a year's worth of profit gone.

Best of luck to you, but I'd be a hard pass on this. I need bigger margins than that to justify the risk.

Thanks so much to all of you! This is very helpful.

Hi Folks,

Hope to hear advice on possibly doing a cash out refi on one of our rentals here in Texas. Looking to pull out funds to pay off the last of my daughter's tuition. Anyone have any information on the following?

--Are 75% LTV loans possible right now?

--What sort of reserve requirements are out there?

--Rates and points at the present time?

--How long to close?

If you have any info on what things are looking like out there, especially with these sorts of questions, please let me know. If you're a broker, please DM me.

Alfred

@Wynn Williams  Dang, brother! That DOES sound high. I live up north of Denton, and $3200 is what I pay on my $700K primary residence. Definitely look around.

 This is happening everywhere, I'm afraid. My personal residence shot up 25%!!  

I invest in WF as well and am dreading my insurance renewal notices in March.  I will say that you are far better off with a broker. Mine is David Call in Denton with Ryan Everett Insurance. Always gets me the best rates and coverage. Doesn't matter that he's not in WF proper. He's telling me, though, that everything is up about 20% this year, so you're not alone.