All Forum Posts by: Cary O.

We have a similar property and initially had the renters responsible for maintaining the lawn. Some renters do not have prior experience with home/lawn maintenance, so unfortunately, the lawn care can be lacking, even though they are good tenants otherwise. We experienced this with prior tenants and received notices from our HOA due to the lack of adequate lawn care, and we forwarded the HOA notices to the tenants. Our tenants receive the HOA rules/regulations upon prior to or upon move-in. We have been fortunate to have good tenants that take care of the issue once notified. For the most recent lease, we increased the rent for both appreciation and to include all lawn maintenance which we have arranged. That way, we can avoid the notices from the HOA and avoid having to nag the tenants to keep the yard maintained. We think it is worth it to save the time and potential headache.

On your lease agreement, you can write in/select electronic deposit as the method of rent payment. Write in the bank account information that rent payments should be deposited into. It's much easier than dealing with collecting actual checks, and minimizes the excuse of "it got lost in the mail". 

Both, max out annual Roth contributions and contribute to 401K to get the company match - it's free money. Then live below your means and save for the next potential RE investment(s). 

We were quoted between 4.25% and 4.75% for conventional 30 yr loan with 25% down for SFH rental property within the past 2 weeks by a few different mortgage lenders. As @Stephanie P. posted, connect with a local mortgage lender that you can call up anytime and run your scenarios to get some quotes when you are lucky enough to find a potential investment property. Many factors can impact the rates, but it helps to "have a guy" to get info and see how you can make the investment happen. 

Filing/forming an LLC is quite simple in Texas. You can do all of it online through the Texas Secretary of State website. You will need to first do a name search to verify that the name is available. Then select a registered agent. Many of the registered agent services will file the LLC for you for a small fee. You will receive confirmation / certificates of formation within 1-2 business days if you file online. If you do a little research, you will probably be able to file an LLC on your own. However, going it alone or using registered agent services will not give you the guidance and advice that a knowledgeable CPA or Real estate Attorney can provide when needed. You will probably want a CPA and real estate attorney anyway as part of your support team as well as lenders, real estate agent, contractors, etc.

Hi Grant, 

Only you know what is best for you and what you want to do. Personally, I am glad that I pursued higher education with multiple college degrees. I was fortunate to have employers that helped pay for some of my college education as well. I searched and found a University job, which means that I was a University employee, and thus eligible for employee benefits including tuition discounts. That saved a significant portion of my tuition costs at the time. You may even be able to find employers that are willing to help pay for some of your student loans as part of your total compensation/benefits package per each year worked with a signed commitment agreement. 

The higher education is an investment in yourself.  In my experience, those that finished college and obtained their degree often show a higher level of critical thinking/analysis, discipline, and professionalism. Not always, but more often than not. 

If you have the means to jump into real estate investing now, go for it! The earlier you start, the better off you'll be in the long run. Best of luck to you!

Thanks @Andrew Bayarena . We are fortunate to be in one of the hottest real estate markets in the country. 

@ Jonathan Twombly

As a relatively new real estate investor (and yes, it does sound strange to call myself one), my most challenging hurdle was the fear of the unknown. I've head it preached on BP, "you don't know what you don't know". Fortunately, with all of the resources on the BP website and podcasts, I am less fearful of the unknown as the tools on the site help you be able to better predict/project the future. Being able to analyze the deal and knowing how to analyze it truly helps take some of the fear out of the equation. Whenever I see a potential rental property, I have started running through the numbers for ROI, COC, NOI, CF, etc. It is solidifying the knowledge so that I can better recognize a good deal quickly and screen those out for closer analysis. I know I'll be better prepared when the right deal comes along.

Jonathon, you are absolutely right on target that you as an investor needs to be laser focused on what type of deal that you are looking for. It also helps to write down what a good deal looks like for you and what criteria that includes. For example, looking for a SFH 3/2/2 less than 1800 sq ft and newer than 1970 with minimum CF of $200/mo, COC >8%, CR >6%, Total ROI >20%. I would just caution that you don't get stuck in the "paralysis by analysis" phase and just take the jump if the numbers make sense for you.

@ Krystallin Baker

We love the DFW area, and yes, it's a great place to live. Check out the Clear Fork development next time you are in Fort Worth. Lots of new upscale shops and restaurants. We'll be visiting the Aspen / Snowmass, CO area in a couple of months. Would love any recommendations on things to do while we are visiting. 

Thanks for the well wishes!

@ Bill Regan, 

Thanks for the welcome and the well wishes! I am truly grateful for the Bigger Pockets community and all of the support it provides. Best wishes to you in Florida!