All Forum Posts by: Jason Grote

What is the expectation of sellers in WY?  In Texas, the standard earnest money when agents are involved is 1%.  However, rarely do wholesalers put a 1% earnest money on their contracts. We typically put $100 or none depending on the transaction.  We also do deals in Arkansas, where the standard is NO EM.  Obviously, we don't use any EM in Arkansas.  What are other wholesalers doing for EM in Wyoming?  I would follow their trend and maybe that will help you save some money.

With wholesaling, marketing budget is key, but also persistance and having the tools/resources to do it well.  The wholesaling market is very saturated in every market of at least 50k pop, so you have to work hard to make good money.  Good luck!

@Michael M. Our house is smaller (1600 sq ft), so it's hard for me to say what your revenue would be. I will say this, I would rather negative cash flow $100-300/month on a long term rental than positive cash flow $500 with an STR. Even with a management company, an STR is much more work plus the wear and tear with an STR is greater (typically). It's all about your comfort zone and how much attention you can give it. It wouldn't hurt to chat with a couple of management companies. I'll DM you my contact.

@Michael M.

I'm very familiar with Buda, and we currently have an STR in Buda.

I feel your pain with buying at the top of the market. If you have the resources to hold the property until the market comes back, which it likely will, it makes sense to do so. 

I will say that the STR market around Austin is not that great. Mine is in year three and it's best year was year one. Interview a couple of management companies and get their income projections, but definitely be conservative.

On the long-term rental side, I'm not exactly sure where your house is, but getting over $3,000 a month right now is for homes that are on the high end and in really nice neighborhoods. Yours may be, so if you can make your PITI in rent, then putting a tenant in the house and having the lease end at the beginning or middle of selling season could make a lot of sense. Good luck!

Nice job LaTonya.  Best of luck getting it sold!

Bryan, was is your outlook for the selling season beginning in Feb/Mar coming up?  Do you think buyers will begin hitting the market in the greater Austin area?

That would explain the jump in rents here recently, along with large tax increases.

Chris, I believe you can... there are some neighborhoods that won't allow 2 units due to deed restrictions... if you know you can build two houses in that specific hood, then I don't think putting an ADU in front is an issue. Have you tried calling the city's permitting department? They should offer some insight there.

Hey there Devin, would be happy to connect. I'm in the south Austin area. How about you? 

Hi Patty, welcome to BP! We started our STR journey this past year in May and chose to use Evolve to manage. We acquired the property on my own, but I've wondered what the process is like having them acquire and sell to you. I would be curious as well. I can say that Evolve has done a great job managing the front end of the biz for us. I basically become the manager when they arrive and am the boots on the ground for their stay. I am trying to figure out if our reviews stay with them if we decide to self-manage or if we lose them. That could be a negative.