All Forum Posts by: Brian Mathews

If you're looking in Austin. You aren't going to find anything for $20K unless it's completely destroyed, most lots around here are $30K. In that price range, you might look around Taylor, but you'll attract a lower end tenant. I've found some in Round Rock for $70Kish. But need a fair amount of work. Most at least $10K. Follow up with the wholesalers. Contact some realtors. You might call some property managers. They have owners who are broke and barely making it and you might be able to work a deal with one of them so they can get out.

Your weather is fairly similiar to ours here in central Texas. Maybe a little colder. I'd honestly probably stay with natural gas for being the cheapest right now. Switching to electric is going to require a fairly significant electrical upgrade to go from 120 volt 20 amp to 240 volt 50 amp depending on how much heat you put in, I'm guessing around 10KW which pulls 50 amps. So it will probably be a wash on install of gas vs. install of electric. The equipment to buy is only about $300 more for a gas system vs. an all electric. Wire for 50 amps is gonna run you $2/ft, plus new breakers, disconnects, miscellaneous materials and labor to do all that. I'd think I would keep it as is for simplicity. People like gas heating as well and they will save a few $$$ in the wintertime on their electric. Depending on your rates, my heating bill runs $50 month on gas in the wintertime on an all gas house. Just my 2 cents.

Just make sure all the subs have proper insurance to cover any accidents. Don't hire them without proof. You can get their insurance company to send over proof. I have a few clients that require me to send them over insurance before I work for them.

I looked into the IRA route and might still go that way. It just seems like such a pita to deal with everything. I might look into it in the fall, very busy with business right now. Maybe look into a way to build funds to buy something outright in a year or so?

I'm not sure of "new" military. But 20-25 years ago they had something called barracks where a person could live. If you have a family obviously that is out of the question. But maybe he's single. Sometimes you need to sacrifice a little for what will come down the road. It's like a person owner-occupying an apartment in something they own. Obviously, not a long term situation. But temporary. Especially with Javier since it looks as if he's planning on moving a lot.

It sounds to me if you are very anxious to own real estate. That is where people make mistakes. Are you planning on retiring in the military or is this just a few year thing? Either way. I'd live on post, which I think is cheaper and save up some $$$ to get a really good deal. I know a lot of people won't agree, but I personally don't think long distance landlording isn't a good idea. I would want the ability to drive by my place and look at it every once in a while. I've been called by several out of state property owners through the years (in a cleaning/handyman business I used to own), to go by their property and look at it and take some pictures. Don't rush into anything you will regret, take your time. If it doesn't happen where you're at, it doesn't. You don't want a hungry albatross around your neck and you're forced to short sale in a few years. Remember you make money when you buy.

I think your first sentence of the original post sums this up. Most money making sites are scams, if not all of them. The only way to make money I've seen that is successful is that of working at something. Which is usually a job. Even real estate invesing is a job. No short cut to riches unless you win the lottery or your family leaves it to you. If you think you're gonna drive around, find a few commercial properties that aren't listed yet, tell this guy about them, then get a check in the mail every month. You are delusional. Finding these commercial properties with no connections will be very hard. You can cold call a bunch of owners, hoping they will talk to you. But when they find out you have no experience, likely that will be the end of the conversation. Your first order of business will be to get these connections and education on real estate. Maybe get a job at real estate office, apartment comlex, construction company, title office. The list is endless. Join a real estate investing club or meeting. I'm sure you can find somebody on here that can suggest one in our area. Take some classes at a local community college or get your real estate license. Read articles and posts on here.

What's the guys name or company? I'd be wary. Probably need to hire a lawyer to look over any documents. Otherwise you'll be signing documents that were prepared by his lawyer for his purposes. If he asks for money, I'd tell them to fly away. If you have free time on your hands. Why not get a job in the industry, get some experience and thereby some funds?

I guess it really depends on how much you can charge for rent for all of those. By converting another apartment, you will be increasing the value of the property. Have you checked with local codes regarding chopping downstairs in half and making 2? It might prove to be pretty expensive to add another kitchen and a huge hassle dealing with local codes to accomplish this. You might have to do a lot of upgrading all throughout.

You listen to Dave R. too. So you know his advice about buying rentals. Which I don't completely agree with. Your plan is similar to mine. Just keep in mind that it will sit vacant for a month or 2 at a time sometimes. Repairs will come up. You will need a new $1500-$4000 a/c repair, which I'm an hvac guy, so I run into broke owners of rental properties all the time. The garbage disposal will go out, they will take out the garage door. You will need a new roof, etc... Keep cash reserves for that. If you can do repairs yourself, that is the best way. If you can't, it's gonna get costly. I used to do repairs on rentals in a previous business I owned, I know what goes out and how much it costs. Home warranty's suck and won't cover much. They will find ways to get out of paying such as its maintenance or lack thereof. As long as you have a couple of grand in reserves to carry you for a year or 2 until you can get enough cash saved up from your cashflow. You'll be ok. My goal is to turn my house into rental I live in now. Have $3000-$5000 saved for repairs to just this house and cover any issues that might arise until I can get that amount accumulated in cash from renting of the house. Then move onto next one.