All Forum Posts by: Drex Tanner

@Drex Tanner You local city should have a variance process that you can apply for.  You would need to apply for any all variance to the code that you need to gain approval to sub-divide the land.  You may need to hire an architect or other planning type to research what local zoning regulations you will need a variance approval for.  Once you have determined what variances you need, apply for them with what ever supporting data you can gather.  The local city staff will only tell you what the current zoning regulations are, as they typically are not allowed to tell you otherwise. In my area, I have received variances for lot size being too small, insufficient off-street parking and insufficient structure elevation (all different projects), so they can been done.

If you are unable to subdivide, I would not proceed with the project.  There are would be issues with multiple dwellings on the the same lot and you may not even be able to get permits to build two separate dwellings, especially if the lot is not zoned for multifamily.  You would be building something that may not be marketable or sellable in the future.

Step 1- verify that your local zoning regulations will allow an ADU

@Drex Tanner I'm going to try and not come off super negative on this, but the reality is that most are bad.  What classifies one as good in your eyes versus one that is bad?

It used to be where the good wholesalers would do a lot of the legwork for you.  They would take pictures, put numbers together, some would even do a scope of work and not go above the 70% rule.  Today its guys or gals just throwing up a non descript ad on Craigslist with no pictures, very little information and no real way of contact them except through the CL email system.  Half the time you don't hear back from these folks for days only for them to tell you they "sold" the property before you emailed but they can add you to their list for the next one.  

I just sat down with a wholesaler last week that does a good volume of deals.  They are moving properties now with purchase and repair around the 75% number.  They require a $5,000 non refundable deposit and no inspections so for someone out of state like you that's going to be fairly challenging model to work with. 

From my experience it's just trial and error and getting on lists.  Some care to learn your criteria and others don't because they just want to build a list and shoot off emails.  I've received email alerts for probably over 1,000 wholesale properties since I started investing and I've purchased fewer than 5 of them.  It's very rare that model works for us.  Good luck.

What is your definition of good and what is your tolerance for risk? Those really determine your investment strategy. Getting 12% as mailbox money on private lending with equity behind you is a much better scenario than trying to get 20% on a fix and flip where you have to do a ton of work. It comes down to your individual preference and how much $ you have. The more you have the more passive and less risk you typically become

$75k will get you some great fixer uppers in B- and C neighborhoods in San Antonio. Anything like that will require you to pay cash or hard money, since banks won't lend on properties like that. Just make sure to walk the houses before buying them, you want to make sure there are no huge foundation problems (this is common in SA) or other problems like mold that may mess with your returns.