All Forum Posts by: Brendon Brooks

@Andrew Haney

I currently live in Houston. It's a massive city, but there's a lot of different areas of the metro that offer variety depending on what type community and lifestyle your looking for.

Austin is a very hot market right now, and probably will be for awhile. It's crazy how much it has changed and grown over the last 10yrs. It's a little too crazy and busy for my taste, and I feel that the city's roads and infrastructure still has a lot of catching up to do to handle the population growth. Property values have risen drastically there too.

@Christian Barthelemy

Hi Christian, I'm with an active multifamily investing group looking for 18-50 units (value add plays) in the Houston metro area and I would love added on your deal list. Thank you.

@Wale Lawal

I really appreciate the reply and the information!

@Fady Habib

I would say it has different blocks that range from B to C+. They're mostly 1970-1980's brick ranches with a few early 90's builds on certain blocks. Great for cosmetic rehabs. Strong blue collar demographics.

@Jonathan Rodriguez

Nice! It's a great way to make some extra money part-time and you will learn a tremendous amount about REI and make great connections that will launch your trajectory.

@Jonathan Rodriguez

Hi Jonathan, I just started wholesaling in Houston and I've made some great progress. I have one potential deal in the works. I've also been able to line up a few cash buyers to market my deals to.

Are you looking to do this part-time or full-time?

@Wale Lawal

Hi Wale, what list did you or acquisition team use to target this deal or what gave you all the impression it would be a good wholesale deal? What was their actual motivation to sell? Thanks for sharing this deal and any further info you can!

@Fady Habib

Hi Fady, I've been targeting off market deals in the 77373 zip code, which is a great rental market. This zip code has deals with ARV's in the $165-185k range. I'm looking to secure them around $110-125k, which would mostly need cosmetic rehabs.

I'm not sure of any B/C areas in the Houston area that would have an ARV in the $120k range, those would mostly likely be rough low C/D areas.

@Anthony Surach

Best place to start is driving for dollars to identify ugly distressed homes and either knock on doors or leave notes.

You can write down a list and skip trace them as well.

You can also pull lists from various different sources for distressed and or high equity owners and or absentee owners.

It won't be easy, but plan to make a lot of calls before you get any deals.

What city are you located and what city are you targeting?

@Emily K.

I had two rental arbitrage AirBnB properties (yes I had permission from the landlord to do so). He was very interested in seeing how his properties would perform as STR's. So basically he got a free consultation on how his properties did by allowing us to rent them and put them on AirBnB. He also received a very fair rent and his properties were always show ready with us taking such great care of them and them being cleaned and touched up regularly.

So for two and half years it was very viable and mutually beneficial. However, then COVID happened and we had about 3-4 months with no revenue all while we continued to pay the rents. And we also had one AirBnB property that we owned that we had to make mortgage payments on while it was sitting empty for 3-4 months. So with the 3 properties running dry for 3-4 months our reserves were wiped clean. Thankfully we weren't like a lot of people I know that spent it as quickly as it came in. We survived and eventually ended up not renewing our leases on the arbitrage properties just with all of the uncertainty over the past year and potentially next year.

All this is to say that it is a viable business model, however you may have more challenges with the current state of affairs to get a landlord on board with the risk. Also, be sure to keep plenty of reserves for when the stuff hits the fan.