All Forum Posts by: Dave Chapa

@Alex Varner  I was in a similar situation with one of my properties. We removed the carport and didn’t rebuild. The cost vs appraisal was not worth the money to rebuild.

@Jodi Gauthier Katy is hot, and nothing stays on the market for long under the 200k price range. 

@Mark Sewell We have had a very low vacancy rate with our apartment in Old Town Katy in the past 2 years and, rents are still holding strong.

When dealing with 2-4 units, the expenses are more manageable than 5+ and, utilities are often covered by renters, like a SFH. We have a tri-plex, not in the location you are asking, but it's comparable.

- Capital Improvement (this number depends on age, last renovated, years left on roof and A/C) I estimate $100+ a month because it's in great shape and has a lot of life left on the A/Cs and Roof.

- Insurance (depends on the $ amount and location, replacement or loan coverage) We pay $1,300 no flood, replacement.

- Management Fees (8% to 10%)

- Repairs (depends on the age, last renovated, years left on roof and A/C)We have had 0 repairs after take over, it's been 11 months.

- Lawn Care ($50 to $150 per month)

- Vacancy Rate (it can vary depending on how you run the property and location)

- HOA (I try to avoid HOAs) 250 to 800

I have evaluated numerous deals with 5 different wholesalers and haven’t found one property that fits our criteria (I haven’t dealt with NWAH). Not that we believe they bring no value, I have friends that bought several properties from wholesalers. However, the numbers just don’t work for the criteria we have set.

We’re not buying real-estate just to turn a dollar.

@Yaping Zhang Local banks and mortgage brokers, I use both. What are your goals?

There are several networking meetups (free) that are hosted by lenders/mortgage brokers. This is one of many great way to network and meet like minded people.

We are close to our family and friends so we share about our RE life and, offer to help if they ever want to start investing. 

A couple of my younger brothers had made negative comments about our success however, my older brother who is financially sound is very encouraging. The funny thing is, if I was in my younger brother's shoes I would be all over the offer of someone willing to help me get into RE investing. They have ask questions and, one even called and wanted to learn but never followed through.  

With the people I work with I keep it to a minimum. 

I'm glad it worked out for you @Carly M. There are good PMs out there, unfortunately though, there seems to be more bad than good PMs. Don't let this discourage you from using a PM, but use this as a learning experience.

PM me, we have a really good PM.

My wife and I have been moving slow and steady, so, about 1 to 2 offers a year. We have been able to find and buy very nice cash flowing properties over the last 3 years.