All Forum Posts by: James W.

I thought the zoning was the tough part of MF building (Du/tri/quadplex). Are you getting things re-zoned?

2016 (or perhaps 2015) I replaced a bunch of roofs. Hadn't replaced any others since 2003, so not noticing a big pickup. 

Texas real estate can have good cash flow, albeit with high property taxes--you just have to build that in when you're buying. 

Hi,

I own a bit of property in DFW, and have owned in Houston in the past. If San Antonio is like the rest of Texas, it will have low property prices and high property taxes.

If you are in good enough financial shape to look at becoming a landlord, there is a good chance that somewhere you want to live will not be a good rental property. In your situation, I would consider (a) doing what one of the other former military folks did, buy a fixer upper to sell and then take those proceeds for a good rental (b) get a nice duplex which is not quite as nice as the full SFH you would like, but then move into the SFH you want in a couple of years after the duplex is throwing off enough cash (after property tax) to do what you want.

I have contested property taxes with some, but not complete, success over the years. It's worth doing as they increase taxes on you, and yes, if you have a below market purchase, you can basically reset to your purchase price for the first year. The taxing authority may or may not move it up after that...

Best of luck!

I've challenged 10-15 appraisals personally, and Houston has (IIRC) an i-file/online settlement system where they will ask you for evidence of value. It's reasonable to ask for the below market close value, but not the other stuff--they will just tell you that those repairs were included in your purchase price.

Hi,

A couple of things that have shown up in my DFW properties:

1-Foundation. Typically under 20 years not such a problem, so likely fine.

2-Major increases in property taxes. I've had some properties go from 93K to 140K appraisals in 2-3 years. Find out what the tax # is based on for the current property (ie it may well be taxed at 90K or something). Be ready to efile a challenge to the city/state when they appraise next year.

3-Property management costs. When something breaks are you going to have a local property manager? They also (typically) help place tenants and collect rents. May not be such an issue for you with one house, but I would see about getting some contractors lined up.

4-Tenants cut the lawn? Confirm that is in the lease, because if not that can be a material expense for the property vs. your CF.

Otherwise, good luck. In my experience, the first two years of a property never work out as planned, so your home warranty can help with some of that--might be worth renewing next year too if you don't have any additional reserve. 

@Ronald Rohde it is an 8 plex, non owner occupied. 

Howdy Folks,

I own a number of properties in the DFW area, and wanted to have my single member LLC receive rents and make payments for all of the properties I own. I do not have a Texas real estate sales or brokers license. Are any of the members doing that, and have you had any issues with this? Is there a good way to do this?

Note: I'm not doing this to limit liability, just to simplify a somewhat messy reporting approach.

Howdy Folks,

I'm close to doing an FSBO deal where I seller finance to cover a 15% difference in the cash the buyer has on hand vs the minimum I'm willing to do on the property. Any suggestions on a Texas based lawyer to execute the sales contract and the promissory note? I'm fine doing the business draft of it, just figuring out what the penalties for non-payment and what is legal in Texas--I don't need a ton of experience, but would prefer someone who is not just fresh out of law school.

@Ryan Pozzi it depends on what your goals are. So, step one, have a plan.

The further down you move your expenses, the more quickly you can accelerate your accumulation.

I'm approaching 50 and am fortunate enough to be in a pretty good place--unlike several of the approaches you read on here, I haven't stretched to buy a property with no money down, haven't bought fixer-uppers but instead bought everything with 25-30% down, generally with fannie mae compliant 30 year fixed loans. I don't buy things that won't cash flow and I'm selling the one non-compliant one to reduce my overall net leverage and pay off one or two in their entirety.

On a personal basis, I'd say the older you get, the less net leverage (cash in bank or t-bills plus money owed) you should probably carry, as you are more resistant to market cycles that way. YMMV.

I've done this, living in Japan and buying. A few key things:

1-Your taxes will be a big deal--make sure they are done properly, and only buy after that years are done or if you can finish before April 15 (despite the fact you are overseas and have an automatic extension).

2-There are a few people who are especially good at this within banks, in my experience. Find one (PM me if you want a couple of recommendations).

3-Figure out what US address you will work with for the mortgage company--there will be stuff after signing that you want.

4-The power of attorney might work--depends on the state. I had to do one in person that I did not expect over the last several years.

5-Do you have enough cash for 25-30% down? You are much likely to get that with "hmm, you're abroad, we want to take most of the risk out."

Anyway, good luck--been there and done that.