All Forum Posts by: Darlene Tyson

I have been on Baselane for a couple months now. Let me just lead with EXCELLENT customer service. Good transaction accounting. I like that you can setup different virtual accounts for security deposit let's say, or to separately ledger cash collected through a rent to own contract. Although Baselane is hard at work to deliver them, a few key features are still lacking, among them outbound wires from your account. May not sound like a big deal but i tried to create the account under my biz and purchase a sub-to through the account, and lack of outbound wire was a killer for me. Rental collection seems easy. Tenant portal. Can keep track of different tenants. But doesn't have any property advertising, prospective tenant applications/screening, or any of that side of the business.  All in all, so far, I'd give them a 4 out of 5 for the features they DO support. Hope this helps somebody else.

Being debt averse is smart in my mind, too, but not all that popular here on BP.  Already you've received advice to google blanket loans (gag) and to learn the difference between good debt and bad debt.  That has it's truths, but most on here have broken 'risk meters' I have found. Wise and strategic leverage has its place and is a very personal decision.  Blind fear of it is not the way to go either.  Find your happy medium!

Welcome to BP @Darlene Tyson!  Glad to have you!

Investment of any kind is all about risk management. Nothing at all wrong with being conservative, but if you try to completely avoid risk you will most likely not achieve a very good return. There are a ton of ways to manage risk, but to illustrate I will share my favorite method below (not saying this is the only way to go, just trying to illustrate):

Buy a distressed property (that doesn't qualify for financing) for all cash. This can be done at auction at the courthouse steps, for example. Buying a property like this all cash means that you eliminate competition from any retail buyers, and get a discount accordingly, but the risk is that the house needs work. So, you work with a title company to validate that the property has clear title with no tax liens, etc. ... that risk has now been reduced. How much will that work cost? You are in construction, so you should be able to estimate those costs ... if your worse case repair costs plus your purchase costs put you in at significantly under comparable retail sales, you can mitigate that risk and earn yourself some equity. Plus, if you gut the place to the studs and build it back, you'll know that everything is in tip-top shape to turn it into a rental, even more so than with buying a 5 year old turnkey property and you're into it for far less than that property would cost. So then you fix the property and rent it out. You have a great newly remodeled house in a nice neighborhood that will likely attract good tenants, and you screen them to validate income, credit history, references, etc. You've now mitigated the risk of getting a bad tenant.  Rent it for a year ... now, you know you have a solid property, you know after a year you have a solid tenant, you know how much the operating expenses and rental income are, you've taken much off those unknowns and risks off the table, so you can now safely cash out refinance it to a level you know will cash flow (since you've validated the numbers), and can take that cash onto the next deal. There's a system for buying one rental house per year, mitigating your investment risks all along the way. Get the idea?

Originally posted by @Darlene Tyson:

Originally posted by @Michael Lee:

Originally posted by @Darlene Tyson:

Howdy!  We own one investment property in College Station, TX (CS), home of Texas A&M University 'Gig 'Em.  We currently have both our college students and one renter in that 3 br, 2 bath home.  It is in an area that is growing and where I believe we will attract young families or college students once our children graduate.  I would like to acquire a few more (at least 2) additional properties in College Station for the rental income to have options regarding the 9 to 5 once our children graduate.  

I'm here to learn more about the best way to acquire profitable properties but I'm very debt adverse, how to learn more about my desired market and managing properties (or hiring that out).  So basically I want to learn A-Z for buy and holds.

   Hello and welcome to BP!  Location of the property is probably number one.  You are in a good town.  You might do best around the school.  Just stay close to town.  I am 59 years old and I was born and raised in Dallas Texas.  I have been in the construction business since I was 17.  I went to college and got a business degree that emphasized real estate.  Right after I graduated I got a broker license.  Regardless of what I had I stayed in construction.  I closed a few deals for other people.  My Dad was in real estate for about 40 years and I learned a little bit from him.  I found BP about 6 months ago and I am still trying to decide what to do.  I am 59 years old and luckily I have been married to a woman who is a computer programmer and has been saving money for about 25 years. If you think I can help you please contact me at any time.  Always do the numbers and make sure that they are real.  Pick a Team that you can trusts and do make sure they have experience and local.  Good luck!

Thanks for reaching out Michael.  I've been blessed with a great spouse also so we share that in common.  Being in construction and in Texas I do have a question.  As part of my guidelines for what to invest in, I'm thinking I should only consider homes 5 years old or less considering I want to buy and hold.  The though is that it will allow me to own the home for a while before having problems like foundation problems, replacing roofs, A/C units and the like.  Knowing construction in Texas, is that sound judgement or am I limiting my choices too much and should consider home a little older?

 I am glad that you got back to me.  If you want be in luck, make sure you keep a reserve.  I think if you look at a home it is good to buy a house that is older just make sure you know what to expect.  The older it is the bigger the contingency line.  Make sure it has some sort of cash flow.  You did not tell me if you are planning on hacking or have a financing letter.   It is probably wise to do so and get one.  It will help you offer faster and give you a little confidence.  Always do the numbers and make sure they are real.  Feel good about it before you make an offer.  Trust your gut.  Good luck!

@Darlene Tyson welcome to BP!

Being debt averse is a bold strategy ... what kind of debt are you trying to avoid?  Debt in general? Debt in your name?  High interested debt?

Howdy Darlene, and welcome to BP! College Station is a great market. Rents are strong, and for the most part, Aggies tend to be more respectful of the properties than other campus communities. The most important thing is to find the right deals. I tend to agree with you on buying new construction. You can both maximize rents and minimize cap ex. If you get into the right neighborhoods, new construction will also appreciate more quickly than other properties.

I also would suggest finding an excellent property manager, that fits your personality. I can recommend a few in town if you would like. While they do consume some of your profit, a good manager can prevent all kinds of problems, will maximize rental income, and will handle all the headaches.

I would love to meet you and your family next time your in town. Let me know if I can help y'all in any way, shape, or form.

Best wishes & Gig Em!

Tyler Bradfield
C/o 2014

Welcome ,owning property in a college town can very profitable the risk is of course college students can tear up the property .I have noticed rentals in college towns can get great rent and still be in bad shape kids don't care for them it is the location .

My son is at college renting basically renting a dump with 4 other students paying top dollar, the house is close to the Engineering building he walks to class.