All Forum Posts by: Dave Chapa

Many years ago, I was checking out an electrical issue that one of the tenants called in. While there I went into the closet to reset the beaker, I open the door, leaned in to reset a breaker and was done. However, there was a shoe rack on the door that I didn't pay much attention to until I was closing the door, right in front of my face was an ad**t toy. WOH! too close for comfort! Just sitting in the top of the shoe rack in one of the pockets.

I haired a management co, they can deal with the toys. :-p

Another time I was showing a friend one of my properties, we went after lunch, both dressed up still from work. He also owns a sizable restate portfolio. One of the tenets called in earlier about a clog in sink. I thought, while there I could look to see if it was an easy fix, it was, he and I fix it and left. Later while taking with him, we came to the retaliation of how much money was in that apartment, both him and I, just to fix a clogged sink, lol, we both laugh about it. So, I haired a management co. If it's nothing major, I don't go to any of my properties. I pay someone to take care, and to maintain my properties. It’s not an ego thing, it’s just that my time is more valuable that a $60 clog sink, lol, lessen learned.

If you are running one unit, you really don't need anything but Excel or QB. Our management co uses AppFolio. We used, in the pass, Building and Rentec. Expect to spend $35+ for any type of small rental management software. And, even if you find a cheap program, they usually start going up in price as they develop and add more features.

There are plenty of way to manage 1 to 3 units that don't require management SW. I have two friend that run all their properties in Excel and QB. Not the most efficient way, but it woks for them.



 

@Marlia Stone What is your long term goal? Every property I have bought has ALWAYS had issues. One property was budgeted 40k renovation, however cost 55k. Another property budgeted 85K, cost me 125k, out of pocket.

In the short term it can be overwhelming, you lose sleep, you worry about other hidden issues popping up, you second guess your decision to buy the property (buyer's remorse).

So, what happen to the two property I listed above?

The first one appraised for 38k over what we estimated when the work was finished, and now is worth 77% more than what I have into it, and cash flows very well.

The second property has doubled in price and is a cash cow. 

So, what is your long term goal? What is the after repair value? Do you have the staying power to hold and finish the project?
What will the numbers look like 2 years from now?

Only you can answer these questions.

I'm in a different position in life where cash flow is not as important that equity capture. For you it may be different.

Don't give up without a fight :).

Originally posted by @Yakir Sheli:

hi, 

i guess you are right,

it is difficult to find those numbers on mls, maybe someone can refer me to a local wholesaler in Houston area?

There are group meet ups hosted by local mortgage broker firms that will have wholesalers and many others attending. PM me and I will send you two that I know. It's a great way to get started in the area.

Welcome to Houston.
You will be hard pressed to find any properties at that price.

I had HCAD call me directly on two of my properties, months after closing. I told them I will not disclose the price.

All my properties are protested. So, I don't worry about HCAD when looking at properties. I just make sure that my numbers include a realistic tax rates.  

@Patrick Terrebonne Congrats! You are now off the sidelines and working your way to financial freedom.

Yes, the numbers make sense.

I negotiated one month on my SFH, and 1/2 on my MF, with my PM.

@Karl Anthony Pass them like a hot potato.

With that fee, they better be handling everything. 

Update: My management co received funds on all but one that applied. The one we have not received funding, has been approved, so it's just a waiting game for the funds to be deposited.