All Forum Posts by: James Polk

Welcome to BP Frank.  I have thought about tax lien investing.  Hope that it works out well for you.

Hi Reden,

How did the RAL training go for you?  Did you get your RAL business opened?  I am actively looking to remodel or build a 8 to 10 RAL in the Houston area.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $250,000
Cash invested: $75,000

7 bedroom Padsplit property at 93% occupancy

What made you interested in investing in this type of deal?

Cashflow

How did you find this deal and how did you negotiate it?

Wholesaler that I managed his airbnb.

How did you finance this deal?

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

How did you add value to the deal?

changed a 5/2.5 into a 7/4

What was the outcome?

Turned out great it is my favorite padsplit remodel

Lessons learned? Challenges?

Wish I had remodeled the space that is the dining room into an extra room to improve cashflow.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NA

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $250,000
Cash invested: $75,000

7 bedroom Padsplit property at 93% occupancy

What made you interested in investing in this type of deal?

Cashflow

How did you find this deal and how did you negotiate it?

Wholesaler that I managed his airbnb.

How did you finance this deal?

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

How did you add value to the deal?

changed a 5/2.5 into a 7/4

What was the outcome?

Turned out great it is my favorite padsplit remodel

Lessons learned? Challenges?

Wish I had remodeled the space that is the dining room into an extra room to improve cashflow.

@Michael Yu

@Michael Yu

Hi Michael,

I am a local Houston investor, a financial advisor, and i worked as a GC several years. We have 5 rentals and 3 of them my wife manages as STRs. My net cashflow increase on going to STR has been about 600 to 800. It is a lot of work getting them setup. It has been enjoyable. I would suggest 2 strategies:

1) Run it as a STR, i think conservatively on a good rehab i could gross $3500 in the heights. That should have you cashflow positive.

2) Sell it. Those are flip numbers. 135k + 30k (holding and closing costs on 420k)=185k. 430k-185k=245k. Purchase four 250k houses with a 20% down loan. You'll ahppreciate on 1million real estate and it will cashflow better than a 300k loan in the heights.

I would be interested in seeing the property. Sounds like a deal to me. You can pm or connect with me.

James Polk

Open a llc and put it in the llc name. It only costs 309 and run it like a business.  It is a business.  It can help limit your personal liability if a tenant or someone sues you.  They have to sue the llc first and assuming you didn't run the business like your personal finances the only asset at risk should be what the llc owns.  You can more efficiently keep expenses separate.  You can always add your wife to the llc or not(she will get half the stuff if you leave, it is usally cheaper to keep her)  If you need help or have questions pm me.

Welcome Wesley.  What area are you buying in? How did you find your deals? Good job getting started so fast.

I'd recommend Ethan.

I have a potential probate deal in Houston. The customer needs to probate her father's house and has been paying the taxes since 2008. There are 2 other out of state siblings that may have a claim. The father's will says to leave it to her but the only witness to the will may be dead.

Should i get this deal under contract with the customer now or wait till i help her do the probate?

Ben, I have bought maybe 5 duplexes over the 11 years i have invested.  I will be building a couple duplexes this year.  Yes they can be decent cashflow deals when you can get them.