All Forum Posts by: Ethan Yuan

To provide some additional context. I am focusing only on SFH and small MF. I have the MLS documents from past deals. I'm hoping to forgo getting a lawyer and just use these standard docs since they're very straightforward. Curious to see what everybody's past experiences are. Any advice would be appreciated.

Hi all,

For all the folks that buy off-market deals without the use of RE agents, what forms do you use to execute the deal? I've always used a realtors who provides the MLS standard documents for the offer, third party financing, etc. Are those forms still usable and binding if you use have a realtors? My properties are in Texas and attorneys are not a necessity to close (and I have never needed lawyers). Do you typically use lawyers to help with the paperwork?

Hi Greg,

I'm suspecting like most people, this seller priced the these properties more for speculative appreciation than actual NOI and $/sq ft. They are located in a convenient location that is expected to grow and appreciate in the upcoming years.

Thanks everybody for the feedback!  

Thanks John. You definitely confirmed a lot of concerns that I suspected. These homes are from the 1950s but have been recently renovated which I'm assuming is why he's selling for 200k each. But as you stated definitely way too high compared to the rent. I suspect this is where he is using comps to set the price for each house and the expected appreciation for the Carrollton area.

I appreciate your insight on this. 

Hi Aaron,

Thanks for pointing that out Their listing price is definitely high. I'm guessing you were taking 2% of 200K for each house? Looking at their 2018 financials, it looks like the appraised value for each house was approximately 70K per home if using the 2% rule. I'm guessing that's the difference in our cap rates. 

Hi all,

I would like some feedback on this deal where the seller is selling his portfolio of 12 SFH all located along one street in the Dallas/FW area. All numbers are based of financial provided by the seller for past 12 months. All units are 850 sq ft. I admit the cap rate is a bit low and their listing price is high however, it is located in a good area. 20 mins away from downtown Dallas, with good future potential appreciation at the current Dallas growth rate.

Listing price - 2.4M (negotiable)

Gross Income - $16,670/month. 206,304/year

Vacancy - 10%

Expenses (repairs, taxes, utilities, insurance) - $27,314

NOI - $148,223

Cap rate - 6.18%

Considering these are SFH, would you still use ROI and cap rate or determine price based of comps. Would like to hear everybody's feedback. Thanks.

I'm interested in hear more about where ya'll think what you think about the current appreciation/rent trends and the best areas. In recent years, Dallas has turned from a cash flow city into a equity city with the influx of people moving to Dallas because of jobs. I feel the price of houses has increased significantly more than rent prices. Most rent prices are around .06%-.09% of listing price. (And this isn't the northern suburbs). I find it is hard to get a 10% cap rate on most houses on the MLS. I've seen Garland and Mesquite mentioned. Where else do you look at and how are you finding these houses? Are these off market?

Hi all,

I’ve noticed it is common practice for investors to buy a property, get rid of the existing tenants, renovate the property, and increase the rent. My question: what is the process of removing tenants and how long does the overall process take?
If you bought the property in the middle of a Tenant’s year/multi-year long lease, do you have to honor it until the lease is up? I’m assuming the tenant will have to sign a new lease with you, would you make the length the lease the same as the remainder of they’re previous lease? Do you have to wait to do the renovation after they’re lease is up and move out?

Thanks

Hi everybody,

I recently found a listing for small mobile home park in my neighborhood. The park has 12 mobile homes, 1 SFH, and 1 duplex. The park is for sale for $800k and one of the mobile home park vacant is a 2/2 and the landlord is asking for $1,100 a month.

The numbers on the mobile home park makes a lot of sense. I have traditionally only invested in SFH and currently exploring small multi-families. Would love some insight on what you look for a good mobile home park in addition to just the numbers. What are some good lessons learned and what to expect (pain points) compared to SFH? Any advice of managing mobile home parks and how it is different to SFHs?

Thanks.

Hi,

I am looking to start a LLC in Texas but would like some additional information and resources. Does anybody have a good registered agent in Dallas, TX. Thanks.