All Forum Posts by: Darwin Crawford

Hey there BP!

First off, thank you all for being such a great forum - I've learned a ton, found a great job, and expanded my rental portfolio, all with the help of this site.  So, hats off to you all.  

This post is a combo of advise and guidance that I need.  So far, I've done all my investing locally, mostly due to self-managing, and "lifestyle choice".  

However, through my new job, I continue to come across some SMOKING deals on rentals, and lately, they have been in and around the St. Louis area.  The one in question now is $6K purchase, rented for $500/month, with a good stable tenant who pays on time and via money order.  

However, as a self-manager, I really, really need to find someone good that I can trust and talk to about the area.  I'm happy to pay above market rate for management that is on point, as I know firsthand how important it is.  Poorly managed rentals are about as fun as root canals.  

So - can anyone out there answer the following?

1) Great manager in St. Louis, ZIP codes right now are 63120 and 63112 where the cheap stuff is popping up.  Names?  PM me if they don't let us post contact info. 

2) Stories - good or bad, about LL'ing in St. Louis, and where to avoid/seek/etc.  

3) What are people paying for cap rates?  Here in AZ 10-caps and below are common, I know Wisconsin uses the 2% rule, but haven't heard any in STL.  Is this a decent deal in the area?  

4) Anything else you think I'm missing, just shout!

Cheers, and happy REI-ing! (if that's a word...?)

 - darwin

Oh-  and I forgot to mention - there is now a software program called PlanGrid, which is amazing, and will allow you to "out-organize" all your construction crews, and ultimately make you money.  Don't work for them, just know of them and they do a great job.

I think that ultimately it boils down to the investor, and what their respective skillset is. for example, I came into REI from construction, both as a hands-on guy, and then later in management and procurement.

I use what I know to try and hit the best blend of DIY and hire-it-out.  Certain tasks I simply refuse to do, mostly because local markets dictate they are stupid cheap.  Drywall, paint, masonry, and landscaping are the front-runners in this.  

I don't do my own plumbing because of 2 things - 1 is liability, and 2 is that I have a good friend who owns a plumbing company.  This is a personal situation, so you have to know where you are.  

I was a welder at one point, and still have my truck-mounted rig and truck, and honestly, I enjoy Arc-time immensely.  Coupled with the fact that welders make really good money, I do my own welding, and try to incorporate steel work into all my properties.  I also like that steel is pretty hard to damage, even for the dumbest tenants.   

Electrical, same deal - not licensed, but I know enough to wire a whole house pretty easily, and electricians aren't cheap.  I permit all my work, and my insurance company is fine with it as long as the city and utility inspectors sign off on it.  

Construction is a series of yes/no questions, and a TON of organization.  It's detailed work, especially the management, and can be either very efficient and make you money, or wind up costing you a LOT.  

If you're willing to pay for learning (which is how you have to think of your mistakes, and you will make them, trust me) then I say go ahead, local laws notwithstanding.  

In my world, which is landlording, its been immensely helpful from a property management standpoint, because every time a tenant does something stupid, I get to engineer my way around their stupidity, and the creative part is fun for me.  

So, to wrap up this long-winded reply, I'd say that you are the best judge of it.  

@Trevor Shettron - if you're ever in scottsdale, I owe you a cold beverage of your choice.

@Trevor Shettron - Thank you!  I'll give her a call.  

Anyone have some Houston contacts?

Hi everyone!

Hope all is well in real-estate world.  I am calling in some help on this forum to see if any of you can recommend a good, wholesaler-friendly title company in Houston TX, or Oklahoma City, or preferably both.  Specifically, someone who is familiar with a double-close. 

Many thanks in advance for any help you can offer!  Even more thanks if you have a person in particular that I can contact.  

Best,

 - Darwin

Re: granite/quartz.  the only way i've found to save money has been this:  Buy a slab from some yard directly, with cash, and negotiate it down.  

Cutting - have them fork it in the back of your truck (if you don't own a truck, this whole post is pointless) and take it to a local water-jet shop for cutting and shaping.  You'll need PRECISE measurements, and will have to give their CAD guy a few bucks for setting up the machine.  

They can cut stone typically up to 3" thick with the new 94K machines, so you're good to go.  

then, pick up the pieces, tote them in, and glue them down.  

All in all, probably not worth it on granite.  too competitive and cheap, especially in charleston where half the city is in RE/construction.  

Chris,

I live in scottsdale, and am looking at some as well.  Could you be a little more specific as to what you are targeting.  I've found a few that are out of my reach, and would gladly pass them along.  

Because I'm still fairly new at the multi-family game, I'm looking for smaller stuff, which usually isn't passive, but I've seen some larger complexes pop up from time to time that might be.  

Cap rates here tend to be lower because of the price of land in Scottsdale, but with some digging, I'm convinced they can be found.

@Garrick Oconnell - sent you a PM back, thanks for reaching out.  

@Manolo D. - unsure what you mean by "Buzzed" in regards to cap rates.  Typically, I bid out the construction portion of each project like anything else, and I either pay myself at market rate less 10%, or take equivalent equity in the property.  So far, working alone, I've simply paid myself and my subs like any other project, but of course, I wind up doing some things for "free"....nature of owning property i guess.  

@Lee Scarlett - chemical strippers are one example, yes.  There are some citrus based products which will work OK, but they still require scraping, wiping, and make a heck of a mess.  

My preferred method of dealing with concrete is a grinder with a diamond wheel and a vacuum attachment.  Doing a room takes about 45 minutes to an hour, and will leave you a fresh concrete surface that can be sealed, or preferably, epoxy coated for a good looking, basically bombproof floor.  Lots of local rental places also rent diamond polishers by the hour or the day.  Worthwhile investment in my book.  

If you do go the chemical route, make sure you have good gloves, a respirator, glasses (a splash or drop in your eye will be a memorable experience) and a strong back.  

Acetone is the wrong chemical for adhesives, a better (and usually) cheaper option is MEK, or Methyl-Ethyl-Ketone.  Don't get it on your hands, and it'll eat most plastics as well.  Goof-Off works on small areas, but it's expensive.  

Overall, if its just one room, I'd grind it down and epoxy over it, and have a 10+ year floor for my rental that would look great with area rugs.