All Forum Posts by: David Light

Create a reserve account with some cushion to help cover payments if needed. Also over time you'll learn your typical vacancy rates and personal risk tolerance. If you buy the right houses the likelihood of all your units being empty at one time is probably low. We've been fortunate to have vacancy less than 1% since 2014.

We do regular refinances to take our cash out and buy another one when we have enough equity that it makes sense. 

Is this still available?

Has anyone heard about another apartment complex coming to Wylie in Abilene? Curious to hear what you think about how that will impact Wylie rentals.

If you search the forums there are loads of threads on this topic.

what @Russ Smith said. open house style. nothing better. 

thanks for all the feedback!

The property has a tenant now that is paying 1650 hence the low repairs as the house is in good shape.

That being said I think I'll keep my eyes open for better deals. I typically like something that needs some work and can become a BRRRR. This isn't fitting that mold.

I'm running the numbers on a single family rental in the Houston,TX area. Seems like an OK deal but interested in any feedback. Here are the details:

Purchase Price: 163,200

Repairs: 5,000 (Tile repairs, paint and 3,500 of foundation work)

ARV: 190,000

Rent: 1,650/month

HOA: 200/year

I'm thinking about purchasing as a rental for a year or two and then selling. It has a current tenant at 1,650/month that's planning to move out in the spring when they buy a house, they're month to month. The seller is in some financial trouble and looking to get rid of the house quickly. 

I can get financing for 80% at 5% interest so would put down 32,620 of my own money. With an expense ratio of 40% of rent I'm getting 8.3% cash on cash return after repairs. Is this good for the Houston area? I use 40% as I manage my properties and have been able to manage costs at this level for the past few years which have included a few roofs etc. on other houses so feel good about that number.

Any feedback is appreciated!

Thanks guys! cheers to zero down time.

Yesterday we completed a turnaround for one of our SFR's. I got the keys from the old tenant at 4pm and gave them to the new tenant at 6:30pm. 0 Down Time.

To make this happen we started talking to the tenant early in the month. We confirmed they were not renewing their lease and they'd be out on June 30th. We listed the property for rent and lined up 4-5 showings all for the same time on a weekend. This limited tenant disruption but also got the applicants to see there was lots of interest. We received three applications and thankfully one of them was well qualified and checked out. 

Two weeks before move out I confirmed they were still on track for the 30th and lined up the house cleaners and carpet cleaners. House at 9am and carpet at 1pm (we use a company that guarantees dry carpet in an hour or less after cleaning) on the 30th. 

Two days before the tenant said they still had stuff in the house and couldn't be out on the 30th. This is when you gently stay firm and see if you get a response. I told them we'd be coming in on the 30th, didn't waiver, and they made it happen, thankfully.

When we arrived on the morning of the 30th we found a very clean house, they even replaced some of the broken blinds so they wouldn't be charged for them. I met the old tenants at 4 for the final walkthrough, changed the a/c filter, screwed in a vent that had fallen and did paint touchups from 4-6 and met the new tenant at 6:30. 

The new tenant was very excited and is moving in today! The only way this was possible is by taking bits of information from BP about managing effectively, reducing downtime and vetting tenants. It all came together to make a successful turnaround with two happy tenants. Thanks BP!