All Forum Posts by: Bret Blackburn

All 4 are within 20-25 min, mostly due to me live outside the city limits

I’m not concerned with Due on Sale clause, but rather concerned with the Title policy. Any feedback on this concern?

We’ve experienced a tremendous amount of appreciation here in the north Texas market. I’ve been contemplating taking advantage of this and doing a cash out Refi on 2 of my properties. I would go with a Heloc, but Heloc on investment property in TX isn’t an option. I would utilize the funds to acquire additional properties when the time is right and an opportunity presents itself. Things have been to crazy to buy and deals are there, but harder to come by. Cash offers have been the best option. What factors would you consider when deciding to pull cash out of your buy and hold properties to purchase additional buy and hold rentals? Thank you for any feedback

I have since checked into a few items. There will be some repairs when the current tenants move out. Mostly paint and carpet due to owner occupying before the current tenants. Our market in Fort Worth has been pretty hot over the last 2 years and finding deals is tough. The deal would still produce about 40% ROI which is better than most deals in my area, That is due mostly because I would buy with my HELOC and refi out at a later date and not have to be out of pocket much $$. I appreciate everyone's feedback.

I still havent made a decision

I could be wrong, but I don't know if the title company will issue title on a property with a sheriffs deed or during a redemption period. I've been looking into this in my home state of Texas and have run up against this issue. I'd be happy to hear any other responses.

Would you guys not buy a house as a rental if the previous owners smoked in? I was just factoring in extra dollars to pay for eliminating the smell

These are all great points and what I was concerned with. It's a deal that would cash flow ok once I raised the rents. But that would be after the current tenants move out and I would have to address some repairs. I know that is a reality with any home. I viewed the deal as a wash or neg cash flow the first year, but flowing after that. I was somewhat ok with that due to the low or no money down. What had me worried is the tiny crawl space under the house if any plumbing or P&B foundation repairs had to made or the AC drain probably doesn't comply with code. I feel it limits my exit if I had to sell down the road Thanks again for all your replies

I have that I'm dragging my feet on a little. I got a lead on a property in a neighborhood I've been working. It's 3/2 1320 sqft home that was redone about 10 years ago. The market value for this home is around $135k-$145k and the rental value for this home is $1/ft and rising. The owner was going to list with a realtor but I was able to talk him into selling to me directly for about $25k less than he was going to list. After taking a look at the house, I can see he did some DIY fixes when he redid. Not sure how up to code that might be. Plus, I couldn't find access to the crawl space and am not sure how much space is under there. I'm trying to clarify those things before moving forward. I would be purchasing cash and Refi out similar to BRRR strategy. My question is, would you go ahead with the deal with little money down if then cash flow would be only $1500 or less for the first year or so? The returns are great on paper. But is that worth it to deal with landlording and possible repairs for small return?

For those of you who transfer your properties into your LLC, do you have any concerns with the chance your title policy doesn't transfer with the property to another entity?

Robin Boyer Hey Robin- I would describe an "off market deal" as a something that is not currently listed on the MLS. It could be something you come across word of mouth through another friend, investor, etc. I have also found them when speaking with neighbors in areas that I have looked at a listed property or just scoping out a neighborhood that I have interest in.