All Forum Posts by: Blake C.

While Im currently in Amarillo, my parents live in San Antonio still. SA is a great place to live and invest as well. Im not a big fan out out of town investing, but having family down there gives me an excuse to diversify to San Antonio. At some point, i see my self investing in SA, or even moving back :)

If yall know of any RE Clubs or wholesalers, my parents are looking to do some more residential or commercial investing? They aren't super computer savy, but I know they would be glad to make some live connections.

Also, my dad has been general contractor for 30+ years down there if you ever need help on the rehab side of a job. 

Go Spurs Go!

@Nadiya Lonkevych If you are looking in all the same places that other investors and buyers are looking (notably MLS) you will struggle to find a true "deal." If it was easy to make money, everyone would be doing it (thus driving the price up to no cashflow).

I don't know your area, but may be you need to keep looking for the right area for you. I wouldn't accept a property that had little/no cashflow and no/little room for CAPEX. I don't want to bank solely on appreciation or me having to move in to save my investment. Those kind of neighborhoods are great places to own something over the long-term but its hard to hold it with no cashflow.

Have you meet with any local buy and hold investors to see what their model is? I found my target area by meeting with people that had cashflowing properties. I can't find a good one in my neighborhood, but about 10 miles away cashflowing houses can be found.

Keep looking... there are deals out there. Don't settle until you find a deal with putting your dollars to action on. 

@Charlene Ball  with the market being as small as it seems, the seller has a limited audience of buyers. If he really needs to sell, you will likely be in the drivers seat on price and terms. Have you approached the seller about owner financing? 

1. Make money. Sounds obvious, but there are a lot of "deals" out there that once you crunch the numbers, they don't really make money. 

2. Don't be afraid to pass on a deal that isn't good enough, but eventually you have to pull the trigger. I have always kept people that know what they are doing around me. When i find a deal that is good, I have them look it over. When it truly is a deal, they talk me into buying it. As I have gained experience, this is becoming less critical, because I know a deal when I see one. 

3. There is a difference between investing and gambling/speculating. This goes back to number 1, but it has to make money from day one. As an investor, I am putting money into something that produces a return. If hope/luck is a significant factor in the equation, Im not really investing, Im speculating. Its okay to do that, but you need to know what you are doing. (This is my version some words by Gary Keller)

So I am doing my first rehab with a partner. Each of us have rentals, but coming together means we have to align philosophies. Im interested in seeing how you handle these situations.

1. What type of locks do you prefer? I use SmartKey and he used the Defiant pack. It costs about $60 More to smart key a house, but its a little easier in the long run. 

2. What grade & sheen paint do you use for walls? I can get Sherwin Williams 200 for $25 a gallon for eggshell. You can get some of the Olympic from Lowes for less, but I feel like it new more touch up due to holding on to stains. 

3. Dishwashers - None of my properties have one, but this is a little nicer house. It has one, but it really needs replaced. Does anyone have creative ideas on how to avoid this maintenance problem... or do you think it gets you more rent with one? Its a higher end class B property. 3/2/2 in Texas that will rent for about $975. 

4. Garbage Disposal - None of my current properties have one, but they aren't expensive to install. Ive heard from the Section 8 guys they create more work/maintenance. However, I wonder if they prevent drain clogs. Any thoughts here? 

5. How are you approaching tub/shower remodels?  In my lower class B stuff, I just do the plastic surrounds. I did a tile one in another that was Mid-class B because it was a 1 bath and I wanted it to look really nice. I thought about trying to go with that cultured marble (fake) stuff that would only have seams in the corners. I thought eliminating grout could be a way to keep things cleaner. Note this is an older house that has a window in the shower. Im planning to glass block it because matching the siding will make elimination difficult. 

6. Anyone doing the tile that looks like wood through the WHOLE house. We were planning to do $2 a foot laminate wood (mid grade stuff) in the living and bedrooms with tile in the wet areas and entry. I know that might look best, but the wood look tile might last a LONG time and wont ever get water damaged. Its a foundation so unfortunately I can't do refinish the hardwoods (my preference).  

This is most often a local thing. I have never heard of the buyer having to pay the back taxes in a situation like this. Also, two different counties in Texas I have been able to get the county to lower the taxes based off the purchase price, but I haven't always landed exactly the purchase price.  The reductions I have received have been from 120k to 89k or from 70k to 48k. These are not near as significant as 190k to 40k. Be prepared that your taxed will lower, but you might not be guaranteed to get it cut 75%. Good Luck! 

Amy Efland this really depends on how bad the walls are, what texture you have and desire, and the price range. 2k for a skim coat sounds steep unless it's a huge house. Most importantly, as an investor you have to ask, "does spending 2k here make me more than 2k via speed of sale or price?"

I had a flip that I lived in for 2 years. I turned it into a rental for a few years when we moved 5 hours away. I sold that about a year and a half ago and got serious about investing locally with the proceeds. I have looked for properties that will cash flow $150 a month with a cash on cash return of 12+%. My first two are in working class neighborhoods. I am for buying properties that rent for around 1.5+% of purchase price plus repairs needed. If I do that, the numbers tend to work. Its hard to get the 2% rule to work here, but it still cashflows nicely and you get equity pay down. I don't count on appreciation (partly because its unknown and I don't plan to sell anytime soon... may be never). Thats just bonus.

Both were purchased about 15% below ARV if you include the remodels needed into the purchase price... about 30% straight up.

My plans for the future are to seek to acquire more income producing property. I'd like to replace my income, but my nearer term goal is to make sure my wife doesn't have to go back to work. I haven't replaced her income, but without paying for daycare and the cashflow we have mad it where we can live off one income. Everyone needs something that drives them. Providing for my family drives me.

My current hinderances are capital. This is a capital intensive sport, so I am developing for strategic partnerships in the community to be able to continue to play the game (ie: Banking Relationships, Birddogging for a wholesaler, pairing up with a larger investor, helping my mentor win, ect).

@J. Martin That makes sense. No Austin is not 1k/sqft. My wides family is from there. You can get under 100 a ft. You are right about Austin. Its a little different than the rest of TX, but its more hype than anything. There is a strong mix of liberal arts and conservative southern people.

Im not sure I have any advice thats better than you hear around here. I have just been soaking up lots of info and experience through listing to people of the years, and especially the past few years through BP. When I first heard of many strategies, I never thought I would need them, but I sought to understand them anyways. I wouldn't say I am loaded with experience, but over the years I've either put to use or attempted to do many I've heard of (flip, yellow letters, buy from wholesalers, birddog a property I couldn't afford at the moment, lease-purchase, buy and hold, buy pre-market through a realtor, ect). So my advice is soak it up and put it in your tool belt. You never know when that knowledge or strategy will be useful.

When it comes to numbers, I don't have amazing success stories, but I have 3 cash flowing properties. Im not getting rich off them overnight, but they will build wealth in time. I don't factor in appreciation (we have a very consistent rate of 2-3% here). Thats the icing of the cake.

If you want to know something specific, feel free to ask, but Im not sure what you want to know.