All Forum Posts by: Chris Wolfe

We are heavily focused in the Austin market and we've seen a 20%+ decrease in prices from May 2022.  It doesnt appear to be stopping as well.  We've got about 8 homes on the market, priced at or better than competition and they are still not moving.  Not sure how much is interest rate related, and how much is people reading headlines related, but inventory is not moving at all right now.  Eventually we will see some great opportunity for buying, but not sure how much more down we have to go. 

Two steps - 1.)  Keep all your permitting perfect and clean/up to date.  2.)  If she gets harassing, spend a few hundred to have an attorney draft a letter stating you will sue for damages if she continues unreasonable being a karen (in other legal terms).  Offer your personal number, if there is ever a real issue you are more than willing to address immediately.  Other than that, you run a business and she needs to mind hers.

Dont forget the difference between 2008 and now is that people (most) dont NEED to sell.  In 2008 there was a flood of inventory because loans adjusted as prices dropped.  People couldnt afford the adjustment, didnt have any equity, and lost their home to foreclosure causing a wave of inventory.   Right now, (most) people have fixed rate loans at LOW interest rates.  They will simply take their house off the market and stay put instead of selling at a discount and having to go get another loan at a higher rate for a new property. I'm already seeing this happen in multiple markets we are in.  Yes we've dropped 15% and we probably have another 15% to go.  But simple supply and demand is going to keep this from turning into 2008.

Hello!  I have some opportunities in the Yucatan Penninsula but am hearing everyone purchases in cash and there is no financing available, especially for foreigners.  I find this so hard to believe, but can anyone share their insights?

Austin is an Appreciation/Depreciation play right now.  Rents are finally ticking up, so unless you get a unicorn deal you can expect to be neg cash flow for a few years, but after a while you will have (probably) gained a lot of appreciation and tax benefit and then rents will have picked up to flip the equation the other way.  

I have purchased several rentals over the year that have lost $200-400/mo but now 3-4 years later they are double or more in value and cash flowing $200-400/month.  The same will likely be true over the next 5 year period (In Austin specifically, not every market)

I've got 18 listings on airbnb in 2 states/5 markets.  Here is what you should do immediately:

1-  Pay for professional photography ($150-250) 

2-  Spend $1,000 on curating the space with plants, wall art, decor

3-  Fire management - You can easily manage 1 listing yourself as long as A.)  You have a good cleaner and handyman (Find on next door, facebook, etc)  

4- Supply soap, shampoo, tp etc.  This isnt 1985.  Mini soaps, shampoos, bulk tp are dirt cheap on amazon.  Have them shipped direclty to your cleaner as you are alerted supplies are low.

These 3 things should greatly help your listing and return.  And the cost is NOTHING when you consider the cash on cash return of being booked another 5-7 nights/month.

Here are some of my listings that are similar and they are booked at least 25+ nights/month:

https://www.airbnb.com/rooms/5...

https://www.airbnb.com/rooms/5...

https://www.airbnb.com/rooms/4...

It seems pretty common that houses in Austin (older parts of town) have title and heirship issues.  I've had a few (amazing) deals that havent been able to get closed because of heirship issues.  

We've now got a deal in contract that has heirship issues, that can probably be solved with an action to quiet title.  Supposedly there is a family of distant cousins that filed a probate against this property 2 years ago.  They were the family of the previous seller to my seller to who is selling to me.  This probate action was never completed and they are unable to be found.  The problem is if we take title to the property (as of now I cant get Chicago Title to issue title insurance) and they come back and contest our title to it.  It's a great deal right next to downtown so its worth spending the legal money on but I need a good attorney who deals with real estate title in Austin and fully understands it.  Or if any BP members have some good understanding and ideas they can share that would really be great.  Any advice, help or referrals very appreciated!  Please respond on thread or DM me.  Thanks team!!!

Write a check with both of their names on it and let them figure it out on Maury

I appreciate the insights.  Definitely have to rethink on these.  I'll do some more research on the areas.  I just figure either take $60k equity now, or grow the $60k equity, even with smaller amounts of appreciation, depreciation and principle pay down and get the cash flow to help subsidize some of the break even rentals we hold in high value high appreciation areas.

Hey BP Team!

Looking to get some weigh in from some experienced buy and hold investors on this....

To give some context - I flip/build homes and keep as many as I can, mostly higher quality homes in good areas.  I've currently got a portfolio of 45 properties in Austin TXD  I'm tapering off of buying rentals only because I need to preserve money and because I want to build more liquidity in general rather than just equity.  

I have these 2 deals and am just wondering your take and what you would do...

Deal #1 - Tampa FL Duplex (3/1 house with an attached 1/1 apartment) - Purchase price plus minor rehab/loan fees/temp financing fees (interior paint of 3/1, changing some light fixtures, some minor cleanup) I will be all in at $125k. Value is $180-190k. Gross rents are $1,700/mo. If I do a 30 year loan at the $125k my PITI is right around $1,050 so it will cash flow $650/mo. This would be with no money down, but my reservation is its not in a great area. THe place is well done, newer cabinets, tile floors, block construction, dual pane windows, etc. But still when you consider cap x, the occasional eviction, etc the $650/mo cash flow can get wiped out quickly. Would you keep this deal because of its cash flow with no money into it? Or turn it and make a quick 60k+.

Deal #2 - Tampa FL 2/1 800 feet.  Purchase $100k, rehab for rent ready is $40k.  Value is $200k.  Same situation, would cash flow about $250/mo with no money into the deal.

My only fear is I dont want to load up on C class property rentals because of all the drama that comes with it, and lower levels of appreciation and ongoing maintaince, but at the same time it seems foolish to walk away from cash flowing rentals with no money into them.  Thoughts??

-CW