All Forum Posts by: Josue Vargas

CapEx: Like some said before, take in consideration the condition of the properties when you fist acquired it. Mechanical stuff breaks if no proper maintenance is provided. I will go beyond that, mechanical systems can break without notice even with regular maintenance, is the nature of the beast.

One mistake most of us make is to underestimate CapEx. You will learn this with experience. Looking at the tags and plates of mechanical equipment when you are under contract on a property. Calling your sub to look at the HVAC or roof, etc. Not relying on the general inspection report of someone who is not specialized in any areas. My experience is the general inspector most likely will refer to a specialist if they find something wrong with a system (they are covering their "assets"), ultimately is you who are paying for the new roof or new heater, HVAC, etc.

Call your specialists if you know of any systems that are dated or in need of attention before making an offer.  

@Syed Naqvi Overall I would say I agree with @Steve K..  

Analyze the deals very well, if they will yield what you expect now, chances are they will do very well in the future.  

Speculation is bad, so know someone who is doing this for a long time in your targeting area and listen to them specially if you are new to the area or new to REI. Not all places are equal and some areas are more susceptible to market change than others.

Vinyl planks if possible.  

I recently removed all carpets on bedrooms and installed vinyl planks.  They look good and mimic hardwood very well, less expensive, easy to install, maintenance, etc. for the price.  I expect the areas with vinyl floors will last longer than the hardwood floors (still to be seen).  Get the ones with distress look, it will hide most of the wear and scratches, etc.  

The only issue I have with tile is the grout specially in properties where tenant has minors and pets.  I have to hire a grout cleaning company every two years or so.  Even if the grout is sealed, the tenants do not care enough to clean the mess in a timely manner, the stuff in it will stain the grout and with the chemicals and pressure wash the seal will fade/go away.  

In San Antonio, I know a very good contractor.  He installed the vinyl floors on one of my properties.  His parents won a flooring company (wholesales) and he gets very good prices for the materials.  PM if you like more info. 

I would not even spend time for advice here, It's a conversation you will need to have with your insurance company and figure out the rest.  

Bitches, I'm coming for you!  A WANTED  sign!  With their face masks on, take a picture with your cameras and print out and post on every single pole in your neighborhood (if its allowed).  It should not be illegal since you are not showing their faces, you just don't know who they are.  I'm sure they will recognize themselves in the pic.  But just in case take advice from the local PD.  

If people can't afford buying, then the market will change on the other direction. And I think we are at almost the top of affordability, if not very close. Only a fool will predict a 12 month in a REI market. Who knows what the outer factors will be within that term (Government power)?

Assuming you did not performed an inspection with them at move-in, next time you are in the property do a thorough inspection with them on the property before it goes beyond reach (I would do ASAP).  

As you learn more, some people are more particular with things than others, specially the first two months after moving in.  They are getting use to the property.  Is typical.  What is not typical is the yelling on the phone.  

Before you have reasonable cause of terminating their contact, try to work with them, avoid telephone conversations, try to communicate with them first via text.  Get some leverage, for example, safety lights: They wanted, they were not in place when they moved in.  Split the cost, lights stay with property, they feel safe, win-win.  Dumpster another story, you said you were about to take care of the rubbish.  Should not be a problem for you, I assume.  

I would suggest, be sure you are terminating them because of a breach in the contract.  

I respectfully agree with @Dustin Allen here.  He explained the question @Corbett Brasington has. He is asking what is the role of an Agent between when he finds "qualifying leads" and "closing the leads". He was not asking if he should get into an agreement with an Agent or not. In my opinion and to answer his question, no, the agent is not just there for contract negotiations. Like Dustin said, the Agent can provide great value to the transaction, he will represent you, can give you advice and opinion, he will not be an intermediary. However, commissions are always negotiated. I'm positive you can negotiate commission with the Agent given you find the deal etc.  Title companies have their roles in the transaction, unfortunately they can not give you advices and opinions.

There is one thing about taxes, they will go UP and most likely never down.  

My experience is they will not look into what you have done with your property in the inside or outside, unless you have a new mortgage loan/refi or a permit for construction or do something that triggers substantive difference of the value of the property (land and/or improvements).

It may take less than one year after you buy for the tax assessor to value your property at recent sales comps, or it can be dormant for several years.  Government typically have a lag and really depends on the area your property is located.  The Government will not send an appraiser to your property to see if you have remodel it etc.  Most of the appraised value of the property are coming from comps on the general area by recent sales and not what you have or not done to that specific property.  Things they look are type of property, SQFT, age, B/B/garage, type of construction, land area, pools, etc. in general terms.

However, expect taxes to go up, and if you feel the tax assessed value is unfair, you can always protest your taxes and discuss with the office and hopefully negotiate.  

75% of the time is a hard NO.  25% of the time is yes, with some more language in the lease/contract.  Have your attorney look at this and help you how can you protect yourself if you need to evict or terminate the lease for example.  Like other said escrow account is a good alternative to protect you from commingling or conversion of funds. 

The other side is why do they want to do this?  Bad credit happens for a numerous of reason as we know.  But why would I take this tenant with poor credit score and willing to put down $16K vs a better qualified tenant with way better credit score and paying rent every month?  I don't know the specifics, but a better tenant sounds in fact a better option to me.