All Forum Posts by: Denise Mayo-Walley

Too many people read into it from a discrimination viewpoint - in my opinion. I read his question as more so from a fixed income point, not simply because they're disabled.

I do not have a lender to suggest, however I strongly doubt that a lender will consider POTENTIAL income when approving a someone for a mortgage. Even for investors the rental income must be accounted for on tax returns for 2 years to be considered income.  But I do I hope your tenants can find a way to buy the property from you since you no longer want to own the property. Best wishes!

@Raul Flores- from what I've read here on BP, the percentage of ARV you will be able to get during the refinance depends on both the lender you choose and the seasoning period. Different lenders have different terms. It appears that the longer you hold the property before refinancing, the greater the percentage of ARV you can get financed. If anyone else gets a different impression, please feel free to chime in.

BRRRR is a great strategy, and for those of us looking to use it, we're going to need to learn from each other. Good luck everyone!

@Sharon Tzib & @Paul Guilbeau - Thank you so much for the insight. Yet another reason why you have to buy right going in. If your margins are too tight you can go from cash flowing to breaking even given this trend.  I've had one rental for 3 years and the other for 2.5 years and haven't been able to increase the rent (Mission bend area). And honestly, when I look at properties for rent right now, there are plenty that are nicer than mine for the same price. Just keeping my fingers crossed and hoping that my tenants do not move any time soon.

Hey there Sharon Tzib ! Any insight on why leases would be up, but the lease price decrease. It's sort of counter-intuitive if you think about the demand. 🤔

Thank you everyone for your responses.

@William E. - It is very inspiring to know that deals can still be found on the MLS. I just need to keep my eyes open I suppose and become more knowledgeable about list price to ARV in areas other than the few I am comfortable with. It may be helpful for me to cast my net wider. I was trying to stick to SW and certain NW areas. You may not yet be a wealthy guy but it sounds like you're well on your way. Thanks for sharing your deals.

@Vijaianand Thirunageswaram - I will keep looking on the MLS and I guess I need to analyze more properties needing rehab. I have probably been assuming that since they are listed on the MLS then they likely are not going to meet my criteria as far as numbers go. No more assumptions for me. I will also get out there more and network and try some different events since they all have something to offer.

Houston certainly is a hot market with new and seasoned investors all over the place. I try not to get too discouraged by knowing that 1) if it were easy then everyone would do it & 2) when I think about it I am competing with novices like myself and giants like Houston Home Buyers, New Western, etc. I'll find my niche and keep learning more about BRRRR in the process.

Good afternoon fellow investors,

With Brandon Turner's faith in and success with the BRRRR strategy, I'm quite sure I am one of many in the Houston area considering taking the same approach to acquiring more properties. However, being willing to try it and being ABLE to pull it off are different. My main question is this - for those who have SUCCESSFULLY done so, how did you find your deal?

I certainly do not expect people to share the name or their wholesaler, but I would like to know where to focus my energy and time. 

*Did you meet your wholesaler at a networking event?

*Did you find your properties on Craigslist?

*Did you drive for dollars?

*Did you find your deal on the MLS?

*Did you do your own direct marketing? (I REALLY do not want to do this)

Like many of you, I get tons of emails everyday containing properties with over-inflated ARVs and underestimated rehab budgets that come nowhere near the ideal numbers for BRRRR. So, if majority of people did not come across their properties until getting out there and networking regularly, then I'll up my efforts to attend networking events. I just want to narrow down my approach and get moving in getting more properties!

Thanking everyone in advance for their responses! I so appreciate the BP community.

As pointed out in an earlier post, if you plan on purchasing another home in the next year, your rental income cannot be counted as INCOME until it is on tax returns for two years. So unless you can still qualify for a new loan based on being responsible for both mortgages, it could be an issue. I own 2 rental properties in 77083 and while the market may appear to be 'hot,' there are some things I have noticed. In 2.5-3 years my properties have increased in value by approx 25%, HOWEVER the market rents have barely increased at all. In 3 years I have only been able to go up on rent by $35. This situation would possibly be beneficial for selling, but not for cash flow increasing based on increasing rents over time. I'm sure there are pockets within the 77083 zip that may be better than others. Last search I did showed a lot of rentals available in 77083 - and that was just on the MLS. Many had lowered the price. Things could by the time you move. Good luck!

I agree with the previous response. BUT, make sure you watch out for flood zones and even see if any homes in neighborhoods you find yourself interested in have flooded despite not being in a flood zone. Flood maps are updated every now and then and being changed to being in a flood zone can ruin your numbers if you're forced to purchase flood insurance after purchasing. Good luck!

A $15-$20k small SUV (such as a CRV) honestly will not offer anymore room than the full-size impala. Also in that price range, you're talking about another USED car. You must decide if you think it's worth spending more money to get a car that offers less trunk space for a stroller and no more seating room - but for it to be higher off the ground. Also, the gas mileage will likely go down, leading to more expense. As a woman, I love the overused happy wife, happy life saying however I'm also sure you're wife wants financial stability for her family as well. Good luck!