All Forum Posts by: Fouad J.

@Jason Bott,

Please PM me the information too, I'm looking to get coverage on 2 properties in the same condo complex that I plan on renovating then renting.

All,

I have a townhouse property with large commercial style windows on the front (Think 18ft H x 12ft W). These are large aluminum frames, like you'd find in store fronts. I don't have a pic, but here's an example:

http://media-cache-ec0.pinimg.com/736x/7b/e5/03/7b...

The problem is that when it rains, the windows leak from the bottom of the frames into the house. It's not a rapid flood, just enough to get the window sill damp.

I'm having a hard time finding qualified window companies to work on them. All the companies I've dealt with in the past are good with residential style windows, but when I tell them about these, the say they don't have any experience with them. I've tried 5 already, so I decided to try my luck here.

Does anyone have a good commercial style/store front window glass companies they deal with in Dallas/Ft Worth area?

Thanks,

Fouad

Thanks for the info guys, this has been helpful. I just ended an auction being the highest bidder but I didn't get an automated counter offer, just an email saying the bid on the property was unsuccessful. When you guys got the emails with the counter offers, were they in addition to the notification that your bid was unsuccessful? i.e. Did you get 2 emails or 1?

@Joe Fairless & @Joseph Catalano ... The idea intrigues me, and I must admit that I really didn't consider it as I felt I didn't have enough experience to go for an apartment complex, even a small one. I'll research some more and give it some serious thought.

@Mark Ferguson , yes, I considered closing costs/taxes. I didn't consider maintenance and reserves.

@John D. , cash flow ended up less than $400/m on all 3 options. 

Anyway, options 1 & 2 are now off the table as the main two condos I was looking at went under contract yesterday/today. As for the house, I finally got to see it and wow, lets just say the price is for the land and not the house, definitely not rent-able at the rates I need to make this profitable.

Basically, back to self education and research. Thanks to everyone's feedback and analysis. It made my first post here very educational and painless.

@Mike Gennaro , did you mean good or bad choice? Would love to hear the reasons too. I'm a beginner at this and have only had 3 deals under my belt. 

Thanks Willson, good point. I'll keep that in mind as I analyze the deals.

I think I just answered my own question with this calculator:

http://www.biggerpockets.com/files/user/Mister4clo...

Thanks Wendell De Guzman!!! Seems like option 2 is the winner.

It made me realize my total cash flow is actually less than I was expecting as I wasn't putting in reserves/maintenance, especially on property #3.

Feel free to comment anyway, as I would appreciate the feedback.

Just to clarify ... The 3 scenarios are options that are available right now.

I've been thinking about this as I continue my journey in real-estate investing, and I welcome input from the seasoned investors on here.

Basically, say you have $100k in cash available to you for investment and you're looking to establish an ongoing monthly renting income. Do you:

a) Use the $100k to buy a rundown/foreclosed condo around $80k, then renovate for rental around $10~20k, to end up with about $400~$500 net in pocket monthly (after taxes, HOA...etc). A year later refinance to get your money out (assuming 15% profit from appreciation) and repeat the process to upgrade to bigger property/better rental income. Assume the rental income is enough to cover the refinanced

b) Use the $100k as down payment on a loan to buy 2~3 rundown/foreclosed condos for around $300k ($60k down) then renovate all for rental with the leftover $30~40k, assuming you end up with about $600~$700 net in pocket monthly. This time, wait till renters move out then sell each to get your money out and repeat the process.

c) Use the $100k as down payment on a loan to buy a larger house for around $350k ($70k) then renovate for rental using leftover $30k, assuming you end up with about $800~$1000 net in pocket monthly. Again, wait till renters move out then sell to get your money out (+$50k profit from appreciation) and repeat the process.

I know it's long and has a lot of numbers, but I'm looking for advise regarding the pros/cons of each. As for background, I'm in the Dallas-Fort Worth Metroplex and all 3 scenarios are a possibility.