All Forum Posts by: Doug Spartz

I've really enjoyed this discussion thread.  This past month I acquired a 5plex that has a half acre of vacant land associated with it.  I'm debating what to do with it.  The property is 18 minutes to the Galveston seawall, near Texas City.  I'm considering RV slots ( for Snowbirds, vacationers, and refinery/turnaround workers), MH pads, cabins, etc.  If I go with the slots or pads, I could buy my own RVs (never considered them before reading this thread) or MHs over time.  Thoughts?  Has anyone tried converting shipping containers (not sure it makes sense vs. used RVs or MHs) or tried any of the Chinese portable buildings advertised on Alibaba and Amazon?  I could envision using them to build a two story complex for under $25k a unit new vs what an existing complex runs.

@Michael Lovell Thanks, I assume you mean baseboard heating?  Would that likely run at least $1k a unit considering materials and installation (including additional circuits) in 4 rooms? My concern with a heating only solution is I don't believe in Houston there will be any possibility of return on the investment.  If I provide cooling, I can raise the rents by at least 15% to 20% to recover the cost.  There would be no such payback on heating only.

@Josue Guzman My view is it is a cost vs. return question.  Today, my units rent for $500/mo with the tenant providing their own heat/cooling.  I don't worry about theft or repairs.  Adding central A/C with heat will likely run $5k to $6k a unit.  Rents will increase but I would rather invest the money into a additional property.

I just received the results from the occupancy inspection of my triplex in Houston.  The most significant issue noted is a requirement that "...heating facilities capable of maintaining a room temperature of 70 degrees..." be provided.  The triplex was built in 1963 without air conditioning or heating.  Since then window units have been supplied by the tenenats.  Each unit has  2 bedrooms and is 700 SF in size.  Standalone heaters are not an option.  I'm looking for advice on how others have met this requirement in Houston.  I see only two real options: upgrade to central air and heat or provide multiple heating/cooling windows units per apartment.  Both are expensive and the latter is a theft/maintenance headache.  Any other suggestions?

@Mike Short here is a link to my previous comments on LU.  http://www.biggerpockets.com/forums/92/topics/1318...

@Account Closed - If you haven't read the Section 8 Bible, I would recommend it.  So far I have not chosen to go Sec8 with my triplex in NE Houston given the inspections and other issues associated with the program but I have been tempted.  My only experience with a PM was not one I want to repeat so I handle it myself.  Be patient and don't give up!

Mo,

I would never buy a property without an inspection.  Without an inspection you have no idea as to what surprises might be in store.  Walking the units is also important, but unless you are also an experienced general contractor or engineer, you are likely to miss a number of things.  Yes, you are purchasing the income stream, but knowledge is power.  When I purchased my Class C/D triplex, I was not going to crawl through the overhead looking at the plumbing.  Based on the inspection, I had parts replaced to prevent leaks and water damage.

I have 4 houses and 3 apartments in Houston and have never used a real estate agent.  I normally use the Greensheet and a sign in the yard.  Generally 1 to 2 weeks in the Greensheet is all that is needed.  Since the middle of last year I have also started using Postlets.  The Greensheet runs me about $15 per week for a single distribution area and I get responses from both the hard copy edition and the their website.  I also use their website along with HAR and Rentometer to figure out rent comps.  

I have 7 units I own and rent in the Houston area with rents ranging from $500 to $1200/mo.  I even have one just south of this listing in Katy off of Clay road.  In addition to all the excellent suggestions already provided, you should consider advertisting in the Greensheet.  It normally costs me $15 for an ad covering one distribution area for a week.  These days the Greensheet provides both a hardcopy newspaper style circular and an online ad.  I get queries from both.  From my experience I get more traffic from the Greensheet then any other source, though I cover my bets with Postlets and a sign in the yard.

I normally hand deliver my notice to vacate letter.  If I use certified mail, return receipt, what day do I consider it delivered so I can start the countdown?  I have had cases where the tenant never picks up certified mail and I would hate to wait until it is returned as undelivered.

Thanks for the help,

Doug 

Shevaughn,

I use Paul Hodge - http://cigarcpa.com/#about

Michael Plaks is also active in the RE area http://www.michaelplaks.com/

Doug