All Forum Posts by: Taylor Dasch

For me, it really depends on how the property has been taken care of and how well it was initially built. You can definitely tell when an older property is falling apart, but IMO there is a gray area of when it can be salvaged at a decent price and when it cant.  I just purchased a property that was 70 years old and aside from one part in the dining room it is structurally sound. However, the plumbing and electrical is likely outdated so put that into your cost.  I ran electrical and pluming in mine and dont anticipate any huge expenses in the next 5 years.  

Hey Eliott, I am a realtor here in Temple. My take on Temple is that it provides a good balance between cash flow and appreciation. The hospital is the main economic driver in Temple, this makes it a great market for STR. Obviously cheaper properties wont appreciate as much. But for my goals ( to retire in 5 years) It works out perfectly, I will cash flow and use that $ to acquire more properties, then in 5-8 years refinance them and hand them over to property management. I am not too worried about appreciation but the few properties I have have appreciated well. I do believe Temple has better appreciation than Killeen or HH. I analyze a lot of deals here in Temple so feel free to message me any time. I could always use some tips as a newer REA as well!

Well, it meets the 1% rule which is very uncommon these days, depending on your market. What would you have to do to the property to get the 900/month? How is the location? Is it near a major economic driver in your market? You could always give AirBnb a try. I spoke with a lady who had a 2/1 by a hospital in Temple yesterday, she purchased the property for 85k and is renting it to travel nurses for 2800/month!!! She obviously had to fix it up quite a bit, but that is a great return. Duplexes are also hard to come by here, knowing nothing about the condition of the property, I think you could definitely make it work with those numbers if it doesnt need a full rehab. What are your concerns with the refinancing? Have you done your ARV #s for it? A lot of variables here but depending on your age, my opinion is to just jump in. You will probably go wrong somewhere but there is a lot of wiggle room in real estate IMO. BUT for your first project dont try to take on a full gut and rehab. There is too much risk IMO if you dont know what your doing. Just my advice. Hope you get the deal!!

Sorry maybe I misread- $900 per side or $900 total? If its 900 total Id definitely do some more research to see what kind of value add you can do, that may not be a great deal.

Wow you are in beast mode! I cant imagine managing 12 on my own.  I know Brandon Turner has a book out on property management, that would be a great place to start. If she is serious about it, and depending on her timeline, it is probably best to get first hand experience by working at a property management company. She can develop her skills while you acquire more properties and be ready to hit the ground running in a year or so!

Yes definitely. Start with your vision of where you want to be - this was my biggest mistake- THEN create your goals to support your vision. Research your top 10 markets that will support your goals and analyze 10-15 deals in each one at least. Find yourself a good Real Estate Agent in that market and jump in once you are familiar. You will probably make a ton of mistakes along the way like I have, but its worth it to gain the knowledge. I still dont know everything about my market, but I am comfortable with the properties that I buy and that has taken a lot of stress out of my life lol. Also the biggest thing that I have noticed, is that if you know the market well, you can offer whatever your top price would be to get the deal, while newer cautious investors will sit on the sidelines analyzing the deal and never make an offer. That is a huge advantage!

Yes, I just found out that a broker in my market is also an advisor/consultant.  There are likely plenty out there, however be sure to take your time and find a really good one. Do some research and make sure they have experience doing what you want to do and can guide you every step of the way.  Also while your doing research on advisors, research the market you want to invest in, this will put you ahead of about 50% of other investors!

Is the credit card payment more than the increase on your mortgage with the cash out refi? The lenders just look at DTI so I dont think it matters if the payment is on a credit or a mortgage. I hate credit card debt because it is so high interest, so personally I would cash out refi to get rid of it if that was my only option. If you use the cash out refinance for the next deal, you will still run into DTI issues either way it seems. Im not an expert in lending at all lol. IMO cash out refi almost always make sense if you are putting the cash into another property and will still cash flow on the property that is being refinanced. In your situation it may be better to wait or if the deal is really good, use another form of financing so you dont miss out but that definitely carries more risk if your unable to refinance it.

Typically when you do a cash out refinance you can only cash out at 75% LTV, so yes you would most likely need the 25% down. However, the 25% comes from the value that you added to the property and anything above that will be cash that goes in your pocket. You wouldnt need any cash aside from reserves when you refinance.

3 properties with partial cash flow is generally the better idea. Run the numbers and you will see that your cash on cash return will be much better with spreading the money out and using leverage rather than buying cash.  All cash is safer though and many recommend to buy with cash to make your offer more appealing, fix the property then refinance and repeat which would also work!

Yes you are already on the right path, cold calling the cash buyers list on propstream as well as your local FB investor page would be my top two choices. It helps to have a deal ready to go so that you can show them you are serious.  As far as wholesalers, I have found a lot in the local investor page, I get deals periodically from one who cold called me trying to buy my property, but thats about all I have. People wi