All Forum Posts by: Cristian Vences

You should be expecting to pay around a $1000 for a dumpster drop off and pick up. Most likely a handful less. One thing to note that some are 8ft tall meaning it will be difficult to load when you have the doors shut and need to throw things over head into the dumpster. If we don't have a large machine then I stick to the 6ft tall one. I thinks 30 yds . 

In Houston TX we see about the same price range. But I would just go with the 40 yard.  They fill up quicker than you think. But also depends on your dumping style. I think the 40 yard is 8 foot tall. So you can't just throw things over easily. 30 yard is 6 foot I believe but don't quote me on that. 

Hey Brad. Well thought out and explained! $150K is a good budget for a really good deal! Might suggest the court house steps if you're up for that. 

Make sure you can refi after the home is finished. Don't over look this step!! Otherwise you might just be a flipper!

Have you considered marketing to sellers yourself directly? Would highly recommend it. Way more return from $5k in letters than $5k in reno!

If you feel your cash is too low for a deal you've come across then consider a seller finance deal. Give the seller of a distressed property lots of cash down (displaying you mean business), interest only payments until you get your money back from the refi.

I don't like this strategy because the bank probably won't qualify you until you have the funds in your account and won't like using the rental income to qualify you paying your monthly payment.

I'm not saying this is impossible but a pretty difficult one. High risk. High reward. Good luck!

My criteria down here in Houston is $200 per door. Most small multi-families can reach that (not the really new ones though). But I wouldn't expect anything to pay your entire living expense.

We are seeing between .5-.7 RTP here in Houston and I think Conroe is around .8 RTP. Check out Dave Meyer's cash map on this site.

Feel free to DM me if you want to chat further!

I personally use tenant cloud. I management my rental unit here in Houston using it. It has free ACH transfers and has a lot of what you need on it. Feel free to DM me if you want to chat more about Houston rentals! @Varouj Asdourian

Hey Key,

I started house hacking back in March 2020. See my earlier posts about that.

Somethings to consider (which could be just over thinking)

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Small multifamily homes don't often appreciate as much if at all. We live in a weird time these days and of course small multi families are appreciating.

This is a concern because often your money will stay tied in your property where as a nice appreciating single family will be a nice little bank for you to pull out from say 5-10 years from now.

This means your small multi family better cash flow off the bat. At least when you rent all units. At least $200 per door because you will not be seeing this money later (in a normal market). Cash on cash return is something you should measure and aim high (10-12%) if you're using a lot of your cash.

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Another thing. Where are you going to buy this property. I am a big preacher of marketing yourself and finding a deal. Go on to HAR find where there are neighborhoods of small multi families and then go get a list and market. This will take time. Likely 3+ months even 6+ months. Chances are these are absentee owners with tenant occupancy. Good thing for you because you are likely able to move in immediately. This point is side tracking a bit. But what I am trying to get at is find a deal if you have time and some sense to market to sellers. If not your going to have a hard time finding good cash flowing properties because you are basically limited to retail small multi families. Try to BRRRR if you have the time.

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Another thing. Tenant cloud. Its the property management software that I use. I recommend it because it virtually free ( some minor one time costs). There are probably better software out there. One thing I don't like is how tenant cloud handles contracts. It took me hours setting that part up! Also don't use an agent to list your property. Rent linx is your friend. Post to everywhere for free for your first listing. Save yourself the ~$500 bucks. This leads me to tenant screening. Read Brandon book on managing rentals. Should get you up to speed on tenant screening. 600+ credit score, 3x the rent in income in gross. Show the tenants the property so you know who they are. Check out the car they came in. Don't let them apply before you meet them.

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Last thing. Rehab/repair. Depending on the condition of the property, you will likely encounter some rehab before you rent. Rehab it nice. Attract nicer tenants. Rehab it ugly. Attract uglier clients. Your rehab will either set you up for nice long cash flow or bankrupt your savings. My fence has fallen in three places on my duplex and it wasn't bad but would've liked a more heads up on it.

Good luck dude! Congrats on graduating. 

I would not recommend new construction for any investment property.

Go to strategy if you have like $50,000 is to find a turn key property that cash flows at least $200 dollars a month and gives you 8% cash on cash return. (Brandon says 20% cash on cash is a home run). This strategy has the least risk and least reward.

Next would be to rehab and rent. Same thing as above but you want to aim way higher than 8% for your cash on cash return. e.g. $100,000 distressed property. $40,000 rehab. $28,000 down payment (20%) for purchase and rehab loan. ARV rent is $1,400. Your cash flow is $500 ($6,000 annual). Thus you have a 21.4% cash on cash return (6,000/28,000).

I think there is more fundamental research you might want to do. Don't let your realtor make you buy something that really isn't an investment!

@Joe Gonzalez Very well put. Do you have any scripts you prefer?

@Sarah Castor I won't answer for Joe but here are some examples

Proactive: Cold Calling, Door Knocking.

Reactive: Post cards, Facebook posts

Would highly recommend watching this! 

Keep in mind that you might not be able to qualify for a favorable interest rate with a huge personal loan! But that won't stop you from getting a refinance. Talk to a refinance lender prior to moving forward