All Forum Posts by: Brad Crumpton

Hopefully buying a package that includes a duplex and two lots on Main Street in a small/medium but very fast growing town in northeast Texas. lots are .2 and .25 acres. Each roughly 100x100 and next to one another. Zoned SFR and MFR currently but rezoning to commercial probably not a big deal.

Possible options - 

1 - build duplex or triplex on MFR lot. Re-zone SFR to Commercial and sell to re-coup my down payment. Would cash flow $500-$750 a month at current rates and rents. More down the road.

2 - re zone both to commercial and build a shopping strip with 3-4 spots. Don’t know what market rent for commercial is but I assume the building would cost quite a bit less and rent for more, but I wouldn’t be able to sell the lot to recoup costs. I have no way of knowing what business rent is in the area. 

Open to any thoughts/input. I currently only have 3 SFRs and this is all new to me. 

Quote from @Arn Cenedella:

@Brad Crumpton

Check with City building department is the easiest and best way to figure this out.

If you are using an architect, the architect should know the ADA regulations in residential construction.

 We are in the option period on the land.  Debating cancelling because we can't make houses cash flow (found out about some residential restrictions after submitting).  City folks are mostly out of the office this week.  A rough run-down would be helpful with the understanding that local restrictions might apply.  It's the best we can do on the time frame we have.

How do Disability laws (FHA mainly) apply to quadplex units? We are going to build one and the floorplans we are looking at don't even really appear to have first-floor bedrooms, so do door width and ramp requirements still apply both upstairs and downstairs? Also if each unit has individual driveway and garage (and there is no parking lot of any kind), do I need a handicapped parking space? Any other pieces I'm not thinking of?

Thanks Raymond. I'm not even so much concerned about rate - but I am concerned about the lack of communication and seemingly excessive points. I appreciate your thoughts though - sounds like the terms are good compared to market conditions right now, which is what I was wondering. Thank you for the reply

Interested in possibly switching lenders. Current lender wants $2100 in origination fees on a $135k loan. Interest rate is 3.625% for 30 years. This is non-owner-occupied and being done through personal (not business) with lots of income and excellent credit. I've asked to lower origination fees, even if that drives interest up a hair that's fine. But I can't get a response in a week...I'd like a lender who is reach-able if I have a question and who is interested in my business.

Originally posted by @Keaton M.:

@Anthony Johnson

Recessed lights are very simple to install and cost about 15-20 each from HD. They’re LED so you shouldn’t have to change them out for multiple years. They’re usually adjustable too to be either warm or cool colored light

 Do you have a link to these?  Are they wifi or do you wire them up or...?

Understood, thank you very much!

Don't know about the consulting vs real estate, but we do it via a quitclaim deed because we don't yet have enough properties for commercial lenders to work with us if the property was fully in the LLC's name. I get my lawyer to write it up and we take it to a bank to get notarized.

Originally posted by @Corby Goade:

Good advice above. We used to use Cozy as well and were very happy with it. I'd suggest you bone up on fair housing laws too- there's simple guidance in there that will keep you from being fined or sued, but it also simplifies your screening and tenant selection process. You basically develop criteria for who makes the cut or not- as soon as you get an applicant that meets your criteria, you rent to them. Easy peasy. 

That is good advice.

The article in the sticky was really good for learning how to set minimum criteria.  This is definitely not a top-class or bottom-bucket type area.  Homes start around $175k and rent starts around $1400.  We are renting for $1500 with the following requirements:

One dog allowed (no cats), no felony convictions, no evictions, income 3x rent, credit 625+, good personal & landlord references

Anything obvious that we're missing?

Also, you're the second person that "used to" use Cozy.  Should we be considering something else?

I wouldn't touch the tile.  It might look outdated, but most renters don't care.  If the existing floor is durable and in good condition, then don't spend money to replace unless the cosmetics are just hideous.

Any stand-out paint like the red needs to be painted over with a neutral.  We've got to where we just hit everything with "agreeable gray" from Behr (it's a sherwin williams color but Behr paint is better and they'll do any SW color).  It goes with browns and grays and blends with traditional and modern looks, and you never have to wonder about matching different paint colors.  

One other thing we did on both our first two is replace toilets.  You can get good new ones for $100 and nobody wants a nasty old toilet.  Just a thought.

I agree it does not look like that house needs $20k in rehab, but we haven't seen the outside either.  Wife and I are spending $20k on rehab for a house we just bought, but $12k of that is a new AC unit, new roof, new fence, and new exterior trim.  The other $8k is flooring, paint, appliances (used), fixtures, & misc inside.  Doing most of the inside work ourselves and farmed out most of the outside work.  Texas summers don't make for much fun being outside all day for a guy who is used to a desk job.