All Forum Posts by: Jerry Bankhead

Interested in talking / meeting with some flippers in the Central Texas Area       Sold a building in Waco with closing date of June 9 will have nice settlement ...  I have ideas for my next move and looking for someone to work with thats in the Temple, Belton, Waco, Killeen area.

Temple Investor as well .  Welcome to the world of the landlords .  I Currently own a duplex in Waco "Baylor Bubble" and looking to do more.  There is a Temple Real Estate Investors group meeting on the 2nd Thursday of every month at the Cotton Patch Cafe in the Temple Mall. Great way to start networking and meet people involved in all aspects of real estate.  

Duplex in the Baylor Bubble in Waco ---  both units have appliances, including washer and dryer, supplied and soon going to upgrade when i do some simple upgrades the kitchenettes. Definitely not top end but mid-range stainless appliances seem to step up that wow factor when a tenant comes to see the place.  

Heck, being that my tenants are college students I am thinking of doing basic furniture as well as an incentive to prospective tenants to reduce some of the stress of having to buy furniture before move in

Originally posted by @Will Gaston:

@Jerry Bankhead Couldn't agree more on renting single rooms and/or individual leases. What a nightmare that can be. This also places you in the crossfire of any/all roommate issues. 

Spoiler alert: These are a routine occurrence with emotional 18-22 year olds.

Thats no Joke...  although the occupants renting in the one unit from me have been great tenants for the last three years have been great. Actually going to be sad to see them go in May. 

Referencing one of your earlier posts, you mentioned you have the water in your name and re-bill the tenants for it. Hows is that going.. currently my tenants pay all the bills but I am wanting to get a HELOC on the duplex. I have my eye on a couple of small places that I am interested in for Air BnB.

My bank will not do HELOC on properties i do not occupy, but will do it if the water or other utilities are in my name. Apparently, if i can show that I pay the utilities, I can show on the application that I occupy the place and they will grant the HELOC. So i am thinking of changing the utilities to my name, adjusting rents in the next Leasing cycle, and just making the rents All Bills Paid.
 

Looking to meet people (investors, flippers, contractors) who are familiar with the Waco area specifically around Baylor University. Currently own duplex there and looking to do more ( flip or possibly Air BnB)

@Patty Capson

Currently leases will have to stay in place. Write a clear notice to all tenants and have them sign, even go as far as sending another copy through certified mail, a letter stating your intentions to make changes to the lease, and the proposed changes.

Jerry

@Trent VanHorn

I have a duplex at Baylor University In Waco, Tx. Personally I would advise against single room rents unless there is an over abundance of individuals looking for single rooms. I tried this with one unit it is a 4bd/4bath. The first person to rent the room had a unique look and personality about them. When the others came to look at the room, many times they were scared away just by this persons personality. That person was the only tenant for about 5 months. Needless to say I lost 1,000s and that persona had a 4bd/4bath apartment for a quarter of the cost.

The other unit had 4 tenants and when they notified the property manager that one was moving out, the other 3 started looking for a smaller place when they were told that they had a deadline before the property manager would be looking for someone to move into the other room. They offered to absorb the added cost rather than have a stranger placed there. These tenants have been there for 3 years and that’s when I relapsed the single room leases were not for me.

Personally I will never do single rooms again. My units have a set price. I don’t care if there is one person alone or 4 people, I still get the same price.

Jerry.

Originally posted by @Margaret Buoncora:

I’m in a position this year where the groups are becoming harder to come by due to the increase in apartment style complexes being built. I’m thinking of possibly renting individual rooms to students but would probably lose the summer months. My only other option is moving to families but of course the rent is less lucrative. Has anyone chosen one option over the otherin a similar situation and how did it work out? 

I would advise against renting single rooms simply because a new tenants first impressions of the people living in the other rooms will be biggest deciding factor as to whether they sign a lease or not. I have a duplex at Baylor University Waco Tx. 4bd/4bath each unit.  property manager talked me into doing this with one unit. The first person she leased to had a very unique look to them and from then on it was difficult to rent the other three rooms. For 6 months that person had a 4bd/4bath apartment for a 1/4 of the cost. Me on the other hand lost 1,000s in rental income over that 6 months. Now, I am losing again because the 4 leases in place don't terminate at the same time, so getting back to an empty unit where i can go back to a single lease is going to cost me in rental income as well.

That been a learning experience I don't want to do again. Just my $ .02 . .. Hope this helps.

Jerry

 

Thanks all for the feed back. Yes I am currently reading the land lord laws for the state of Texas and have reached out to the city of Waco for their laws/regulations if any. Law can't teach techniques and ideas, that's where bigger pockets forums comes in handy. Also, I have an inspection and walk through schedule for this Friday. Introduction binder is a good idea. I will get one put together to pass along to the current tenants. Still nervous but very excited for our new adventure Jerry

Hello I am Jerry currently living in Elgin Tx, but my hometown is in Mcgregor Tx. I recently had an offer accepted on a 4 bed 4 bath (each side) duplex 4 blocks from Baylor University. The duplex is currently 100% occupied by students. Their current lease is one year in length and ends in May 2017. They all have expressed desire to continue to lease for the next year - May 2018. 

This is all so new to me..

The current lease - Should it be nulled when we close and have the tenants fill out all new paperwork and new leases to cover until May 2017 when their current lease ends, or just honor the current lease until the end, Have new leases and applications ready to go so in May, all tenants sign new leases with us as new owners/landlords. 

Also, the security deposits that have been paid the current (soon to be previous) owners. The current owners are obligated to pass any/all security deposits collect onto us to hold until the end of the current lease right, since we will be closing on the sale prior to the end of the current lease ?    

Thanks in advance for all the help that i will constantly be asking for in the next couple of months while I begin this new adventure.

Jerry