All Forum Posts by: John Chapman

It sounds like you definitely have grounds for going back to the seller and asking for concessions.  (I'd rather do any work myself rather than trust a seller to do the repairs).  I'm not in your area so I really can't comment on the significance of all the repairs or what it takes to fix them.  (We don't even have basements here in Dallas.)  However,  I can say that (1) most things can be fixed if you throw enough money at the; (2) assuming that repairs do not exceed value, there is probably some number that this deal makes sense; (3) turnkey (with the exception of a few reputable companies) is never real and usually bs; (4) home inspectors suck and will terrify you, they literally exist to scare the hell out of you with very little knowledge  (in my experience they are experts at pointing out cracked outlet covers, but miss things like leaky roofs and structural issues.)  Bottom line, I would see what can be done to make the deal work (get estimates, talk to contractors, etc.).  At the very least, you'll get some education from the process.

In terms of minimizing your costs during due diligence, one way to do that is to get someone who know construction and/or investing to walk the homes with you.  (After you get them under contract, don't want to waste their time.)  Beyond that, a lot of it just comes from experience, which I promise will come much faster than you think if you stick with it.

@Kerry Baird, man that totally sucks.  I've had the same thing happen a bunch of times in long term rentals, and it's never at an opportune time.  The nice thing is that once you pex your lines and get them out from under the slab, you'l never have to worry about them again.  Not sure why they'd have to go through the slab if they move everything above ground.  Good luck!

@Yaldho Manoj, I'm sorry but this question is way too broad.  The short answer is that you can make money in DFW using almost any strategy (much like many, many other markets)  Also, asking what are is best for investing is too vague.  "Investing" means many different things to many different people and DFW is enormous.  I think you'll get better information if you tighten up your question(s) and ask for more specific information.

I get why, as a practical matter, your client doesn't want to rent to roommates.  If he or she has been doing this for any length of time, then your client probably recognizes that the odds of them staying for an extended period of time is low.  Roommates fight, dissolve their relationship, move on, etc.  By its nature, a true roommate relationship is often intended to be temporary.  Moreover, multiple payors just has more potential for headaches.  All of that being said, as echoed above, I'd be careful about making that a disqualifying criteria. As @Jerel Ehlert says, I think you could set yourself up for a familial status/marital status claim of discrimination.  (I"m not sure I'd go as far on the national origin/racial stuff, but in this world, who knows?)  Bottom line, don't disqualify them automatically for it.
   

I generally go commercial quality granite (not that much more expensive than laminates and they last a very long time) Also, if you're refinancing in the near future, they give you a bang for the buck on the appraisal. (Assuming this is SFR and not multi)

Oh yeah, this is pretty common stuff and happens all of the time.  Bunch of options depending on situation.  Use a snake to cut them, put root killer down drain, or, if none of those work because there's too much, then you dig down and replace the section of the pipe where they are getting in.  To figure out your options, you really need to know what kind of sewer line you have (guessing not PVC) and camera the line.  

@Account Closed, I'm always looking for the tenants who I think will stay the longest and not cause undue damage to the home.  I am also looking for people who are respectful (i.e. good chemistry on the phone, do what they say they're going to do, fully complete applications, etc.)  If they are complaining or asking for upgrades right off the bat, I generally don't want them.   In the end, it's somewhat of a crapshoot as people's circumstances can change on a dime.  If I really can't decide, then I usually just do first in. (They are usually the most enthusiastic anyway.)

Yeah, not sure how you pull that one off without looking bad.  You've advertised it for that price and people have applied for it at that price.  

I've mis-priced like that before (sometimes on purpose, sometimes not.)  I just console myself with the fact that it rented quickly and I have a great pool of tenants to choose from.  Often, I've found it's better to take a little less and have a great selection of long terms tenants.  Pick the best and move on.  

@Joe Splitrock I think you nailed it.  I don't think the people I'm thinking of are scammers, so much as cringe-inducing self-promoters.  They are very slick and get right up to the line.  (I'll say again I think you guys do a good job of moderating, particularly as to scammers)  I don't see a way around giving them latitude as you're just censoring if you just start booting them or taking down their posts, and that's a whole other can of worms.  These posters are more annoying than anything else and I don't think there's anything to do about it, other than, as you say, challenge them in the forums.  

@Jeff C., Yep, there are definitely some cringeworthy threads going on.  I think BP does an overall good job of keeping the marketing in marketplace, but you can tell a lot of these posters are  pushing it right to the line.  There's one in particular right now who, if you accept his boasting, is approaching Buffett-like heights of investing yet still somehow manages to find time to write all of his self-promoting posts while adding almost zero value in terms of content.  It's like only he has the secret sauce and supernatural insight and the only logical conclusion is to see if you can offer him money and hopefully he will let you invest with him.  Pass.