All Forum Posts by: Jeremy Keeler

@Aaron Bihl That's good to know, you can't beat actually living there for proof it's a nice area. Thanks!

@Jarred Donalson

Yeah I think you're right. Home values have been skyrocketing in that area in the past decade, I don't think folks would move to an area with high crimes. I can see with my own eyes that most of the area is pretty nice. Frankly my street is probably the sketchiest looking and it's pretty quiet.

So I signed up for the pro version of Neighboorhood Scout about three months ago in an attempt to get an accurate data set for neighborhoods I was not personally knowledgeable about. It seems pretty thorough and I had assumed it was accurate.
So currently, we are under contract on our first buy and hold in the Northside of San Antonio in an area called the "Deco District". Our project is in the rougher part of the district, but houses very nearby are appraising very high and it is considered to be a trendy part of town. You can see dozens or rehabs that have been done as well as dozens ongoing less than half a mile away. Everything is roses essentially, there is a nice grocery store and a Starbucks about half a mile down the street. And while the neighboorhood appears to half a 50/50 mix of poverty and wealth, you can tell the area is gentrifying rapidly. Plus my wife grew up there 30 years ago and marvels at how nice it's becoming.
So tonight out of curiosity, I run the address tonight in Neighboorhood Scout to see what they say. It gets an 8 out of 100 for murder! A 6 out of 100 for rape and is considered one of the most dangerous neighborhoods in the city!! I've driven that neighboorhood half a dozen times now and while I might not want to live there now, I could see myself living there in two or three years.

So my question is, how accurate is Neighboorhood Scout? How much of their data is sourced from historical records?
This part of the city was ravaged with gang violence back in the '90s, but there is no sign of that now. 

Am I making a mistake buying here?

Some pics of the exterior and interior.

Thoughts on cost are welcome. This property is located in South Texas.

It was a very rough estimate based on about 9 photos.
The bid does seem quite high, especially compared to what I've seen done for way less on these forums.
I should also mention that this property is about 3 hours from where I live, so if we win the bid, then I can get inside for a close look.

Hello all,

So after several years of doing studying and research and getting my ducks in a row, we are now finally making offers on properties that we want to BRRRR. We are using our HELOC and hopefully an HML to leverage our funds. The issue we keep running into is rehab cost. On many of these properties, we get a handful of pictures or sometimes one! So we are going in blind as a bat and only relying on ARV comps to determine value. We are getting outbid by folks that are either stupid or are way more experienced than we are and know something we don't.
We just put in a bid last night on a HUD foreclosure that's listed at 80K with ARV at 179K. It's in a rapidly growing area where vacancy is around 1.5 to 4% depending on what you read. The shocker was the rough estimate we got from a contractor for the repair cost, 55K!

When you factor in the cost to buy, the cost to repair, the cost of HML interest, HML points fees, inspectors, draw fees, surveys, builders risk insurance, homeowner non-occupied insurance, brokers fees, and closing cost, this stellar deal becomes a loser costing us 25K out of pocket after refinancing!

Last night I kept asking myself and my wife what I was missing? How is it a house with an ARV of nearly +100K over list is going to cost us money? What are we missing?

Now I know it's possible that we could shave maybe 10-15K off of the rehab costs once the contractors get an up-close look at it, but that still leaves us in negative territory.

I'm at a loss and a bit discouraged. We find out in about an hour if we are the highest bidders.

So, the other day I did something I've never done before, I made a purchase because of a Facebook add!
I guess I'm proof those ads work!

I've been attending real estate investor meetings since last spring but never had a business card to pass around. I was more of a lurker!

So a couple of weeks ago I see an ad on Facebook for a company called Moo.com that does stationary and business cards etcetera.

They said they made ultra high-end cards, with extra high-quality print and paper. I'm a sucker for a sharp business card, so I went through their little designer on the site and made some business cards. They are VERY expensive, for 37 bucks I only got 100 cards. But dang, if these aren't the nicest business cards I've ever seen! Plus I got the plain jane versions, they have ultra luxe paper that is even more expensive. I plan on handing these out to contractors and other investors. Folks that I want to purchase from with get cheaper scaled back cards. BP needs to partner up with these guys so we can get a discount!

I'm no expert, but the cash you're saving by dropping the note that has the MIP can be applied to paying down the new note. That's one way to think of it, the other way is, (You) aren't paying down the note, your tenants are. Getting rid of the MIP is just a way of increasing your cash flow. Unless you just want to pay the property off so you can get maximum cash flow, paying a tiny bit more on interest doesn't affect you that much.

My 2 cents.

I probably wouldn't do business with the guy just so I wouldn't have to hear him talk. But, that being said, if you only plan on dealing with contractors that you have no issues with, prepare for a lonely existence.
This guy ran his mouth so you got a sneak peek into his mind, but if he hadn't, you'd probably have already hired him.

I know folks that refuse to do business with people that voted for Trump because they think everyone that voted for him hates blacks, browns or whatever isn't white. In turn, these people are always struggling to find people to do business with.

Would you do business with an abortionist? How about a Trump campaign organizer? Or a vocal socialist that hates the United States? The list goes on and on.

I guess you need to draw a line in the sand that you refuse to cross, and then avoid really getting to know your contractors.