All Forum Posts by: Caleb West

What about having parents sign as guarantor versus co-signing? It at least pushes the financial fallback onto the guardians. I’m not super familiar with this method but it was used on my college home back when I was in college.

I agree parents can be a PIA but in the few instances my college rentals have had negative situations, the parents were the most reasonable of the bunch. When you inform them what Johnny has been doing away from home their whole mentality might change.

I can recommend a PM - they've done me a good job and have kept my units rented pretty well.  

The rental market isn't bad in Lubbock. There is a large number of rental properties around the Texas Tech campus that seem to be staying vacant. I've tried to keep my focus on more unique or niche properties that cash flow well and it's paid off well for me so far. I haven't had any trouble renting my homes out but the cash flow gives me some cushion. 

@Mason Moreland

Thanks for the note. Would love to connect here in Midland. 

I am currently keeping my focus in Lubbock. Wrapped up 2 deals in the first year (3 total doors with tenants until next summer) and have taken a few months off. Had a few major capital expenses and bad tenants that are being worked through right now. Nothing too unexpected and my PMs in Lubbock did a top notch job handling. I keep my eyes out for deals in Midland but haven't pulled the trigger between cost of entry and attempting to keep some diversification since my W-2 job is oil/gas related which closely matches housing market in Midland. 

Good morning Adam, I'd second what Mike has said. It's cyclical so have a tolerance for that. I currently am not investing in Midland but keep up with local trends for the most part. There are certain areas in Midland that I feel you can cash flow great right now and still keep rented at a decreased rate in low oil price environments. Cost of entry in Midland is pretty high right now compared to other areas of Texas. 

@Morgan Madill

I ended up purchasing a primary residence fairly soon after I graduated college. I think it depends on a number of factors. Do you have credit built up already and means for some form of down payment/closing costs? That’s going to weigh into the original plan. But fairly easy to see where you stand on pre-approval with a few talks with a lender.

On the purchasing power side, you should be able to report the rental income from the 2-3 other units and ideally your base income has increased between now and when you want to purchase the second unit as well as your student loans gone down.

I’d run the numbers on debt service for your property now with current additional debt over current income. And then run additional numbers based on where you expect to be in X years when you want to go after 2nd property. With what’s left of student loans, any new debt, property debt over income sources.

I don't have a lot of experience with DTI ratios but unless your situation changes a lot from now to then it should be forecastable.

Caleb

@Stephen Robertson

@Jarrod Frankum

Thanks for the quick responses.

It’s not in Tech Terrace, but it is nearby with quite a few non-college neighbors which I didn’t feel would be an issue if the tenants were responsible. I can easily add on lawn care for minimal costs if it keeps the house orderly. And I’m fully prepared to do that.

Now that I’ve received a letter, the perceived struggle now becomes getting back in good graces with all stakeholders as well as handling the issue with the city. I’m hoping that at least 2 and maybe all of the tenants leave Lubbock for the summer which would help with any future complaints through the start of next school year.

I’m curious at what lengths the city goes to to handle the issue now that it’s realized. If I can keep the yard kept and noise down, will it all just be ok? Or will they still pursue the issue even after the real problems are solved.

I am a long distance investor with a few doors in Lubbock, TX.

Has anybody ran into trouble with the “No more than 2 unrelated persons living together” code that Lubbock has? If so, what was the outcome? I know this code isn’t specific to Lubbock and very common.

I inherited a set of tenants in a rental property near Texas Tech. Since then, I have received now three letters from the city. The first was a few months back and due to the yard not being maintained and some rubbish along back alley. The second and third were this last week. The second was a similar letter to the first and I have since found out that the previous owner was handling the yard and that wasn’t specified on the lease I took over. The third letter was in regards to the no more than 2 unrelated persons rule. I am working with the PM now with handling the issue and plan to discuss with the city tomorrow.

Note: Property management did not change after the ownership change.

I am looking for recommendations for contractors in Midland, TX. Looking to get estimates for a pretty large scale home remodel with the potential for a small addition to the existing structure. I know contractors have been tough to come by in Midland. Any help is appreciated! 

Thanks for sharing, Chris! Great job and awesome lessons. I too am beginning to invest in Lubbock (mostly passive) and would love to chat someday. Currently own a SFR and working on getting #2 under contract as I type.

Caleb

Thanks @Cassi Justiz! I am currently under contract with the PM who the seller was using. They came well recommended as well but will keep that in mind if I ever look for a change. 

Caleb