All Forum Posts by: Hunter Peterson

I own a duplex and I'd like to switch which unit reads Unit A and which reads Unit B so that they read A to B, left to right. Is there any legal record of which unit is which with the city, state, postal service, etc., that would prevent me from literally just switching the physical letters on my doors and mailboxes? None of the utility meters on the side of the property or on the sidewalk read A or B. 

Thanks for the help!

@Wesley W. @Steve DellaPelle thanks for your insights. I'm looking forward to seeing the reality side of REI rather than the analysis/projection side!

When calculating cash flow, you hear a lot about how much you should budget for various reserves (7% for vacancy, 10% for property management, 5% for cap ex, etc. etc.). My understanding is that you're calculating a percentage of your rental income. However, this assumes that your rent is fairly steady from month to month. 

Assuming I have the opportunity to raise the total current rents on my duplex ($3000) up to about $4,000 by improving the property and marketing correctly, what number am I taking a percentage of when calculating these reserves? Cap ex and maintenance won't go up if I'm taking in $4k a month instead of $3k. They will likely go down if anything. Property management will likely increase and vacancy will hold constant. 

I realize I'll need to factor in the cost of the improvements that will lead to this increased rental income, but just looking for opinions from folks who may have run into this in the real world and how you've adjusted your reserves accordingly. 

Thanks!

@Andrew Postell I really appreciate the detailed information. Just sent you a follow up message.

Callum Ross I do currently work in Dallas, with my main proximity needs being Downtown, Addison, and the airports. So I’m ruling out Fort Worth and east of DFW airports in terms of my personal residence, but am definitely interested in investment opportunities and building my network and knowledge there.

Bart H. I really like the idea of approaching a fixer duplex like a live in flip SFR. More time to renovate and more flexibility and cash flow opportunity upon sale. I understand FHA qualification and buyer acceptance are unlikely. Do you have any suggestions of local lenders?

Matt Millard thanks for the advice. I’m interested in northwest of Dallas as well (Lewisville, The Colony, Little Elm) do you have any insight on those markets that you’d be willing to share?

Maurice D. That’s an excellent idea. I really like that strategy for the extra cash flow potential when and if I move out.

@Ryan Blake @Kenneth McKeown @Ronald Rohde much appreciated. Do you suggest anywhere to start searching for multi-family fixers in a decent neighborhood north of Dallas? It seems like the market is tough out there unless you go way north or certain pockets between Dallas and Fort Worth. 

Are most updated Plano/Frisco SRF's not cash flowing? It seems like there are enough properties build in the 80s and 90s that could earn much higher rents with updated flooring/kitchen/bath set ups. Clicking through Zillow it looks like an older 3/2 in Plano earns about $1,700 a month while the same house that looks great can get up to $2,500 (very rough numbers)

@Ronald Rohde thank you for the reply. I'd like to look at multi-family as part of my rental investing plan, but this would be a strategy for my primary residence and I'd be looking for a SFR.

When looking from the eyes of a renter in DFW, I see a big gap in rents between a “dated” home and updated homes of the same type/neighborhood. My thought is that turning a dated home into an updated home and living in it for 1-2 years with a 203K loan is a great alternative to either renting or buying with a conventional 20% down loan for my primary residence.