All Forum Posts by: Jeff Lee

Howdy BPers -

I'm looking to combine ranch land with STR cabins in central/east-central Texas. Does anyone have any experience with buying acreage below market value, rehabbing ranch land, or have financing tips for acreage + construction?

I realize there are a lot of non-traditional moving parts to this project, such as: Where can off-market ranches or acreage be found? At what point is it more cost efficient to buy "nice" land (e.g. for cattle or hay production) rather than buy cheaper mesquite/cedar/cactus infested land and try to rehab it? In other words, how can we apply BRRRR to ranch land?

Tags: Ranch, Farm, Cattle, Cow, Acreage, Acre, Agriculture, Cabin, Brenham, College Station, Somerville, Navasota, La Grange, Giddings, Bastrop, Schulenburg

**UPDATE** So I asked the PM to cancel the contract and they complied with minimal fanfare. Their SOP actually seems pretty easy and straightforward - they will create a lease addendum to reflect the new PM/security deposit holder (me). After that, I should have the tenant for the rest of the term, about 11 months. I honestly plan on selling and doing a 1031 with this property next summer, so the fair housing considerations for marketing and new tenants is moot (although I would probably outsource that bit to a realtor if I needed to).

Congrats @Kane Griffin! La Porte seems to be heating up in terms of price and rent appreciation. Any other info you can share with us on this one?

I'm at averaging ~ $135/door, 75% LTV, 30 yr fixed, AFTER accounting for pro forma expenses (repair/capex, management, turnover, vacancy) on a property in Channelview and another in Atascocita. As has been mentioned, the cash flow isn't really the exciting part about real estate, the effect on the balance sheet is.

Please PM me if planning to attend, as we will be limiting attendance due to COVID.

Meetup for investors in the Humble/Atascocita/Kingwood area.

Hi @Dallin Huso,

Welcome to BP!

It really depends on who you are, what your strengths and weaknesses are, and where you are in terms of your own financial situation, networks, ability to handle stress, fear, etc. For *most* people, the best bet is to get into a small rental and scale up from there. Buy one or two or three, jump to small multifamily, build your systems, and scale up. That being said, there are people out there, like Grant Cardone, that simply cannot and should not start slowly. Only you can figure out if you are in that rare company and need to jump straight into multifamily syndication. 

@Martin Neal I totally get that. I’m curious how many people would put together a deal with multiple small investors and how much of a hassle people perceive that to be.

The Grand Parkway (99) currently ends at 59/69 but the next phase is under construction. It will stretch east for a while and then cut south between Huffman and Dayton and tie in around Baytown. We're already seeing a good bit of preparation in Huffman and Crosby with roads widening and new neighborhoods springing up. I imagine Dayton should see some growth soon as well, with more accessibility to the ship channel coming soon.

Congrats, Jeff! I've seen a couple of these oddball SMF in/around Baytown pop up from time to time and have always wondered about the tenants that might inhabit a $600-900/mo unit. Cash flow looks great! Probably too early to tell, but any thoughts on the types of tenants for these properties?