All Forum Posts by: James Wilson

I think what has contributed most to my growth between my first investment and most recent is staying committed to the process. I put a marble in a jar each time I underwrite a deal and when the jar started overflowing is when my investing confidence really started to grow.

Old Capital is a mortgage broker based out of DFW. We help our clients that are under contract to purchase multifamily properties secure the right financing for their transaction. We have a lot of long-term relationships with banks and lenders and put a professional presentation together to shop the deal for the best rates and terms. A mortgage broker can easily go to 50 different banks by doing the upfront work whereas that would be a lot of work for an individual under contract.   

@Doug Spence thanks! I use Plushy Host which created the listing, interacts with guests, and schedules the cleanings. I will use the strategy again when I can reuse the VA loan, which is when I cash out refi in the future.

@Bruce Lynn interesting, I thought if it is your primary residence you are allowed? There are a lot of listings in the area. 

@David Pere thanks! I try to spread the word to other military members as best I can.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fort Worth.

Purchase price: $475,000

Purchased an up down duplex within walking distance of Texas Christian University. Each unit is 3 bedrooms, 2 bathrooms and 1,100 square feet. The bottom is fully furnished and is listed on Airbnb.

What made you interested in investing in this type of deal?

I was interested in househacking and buying more real estate. Since I planned to live in the top unit I was able to use the VA loan with no money down.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS during the summer. Negotiations were minimal since the house was built in 2003 it was in good shape. I was able to get the refrigerators, washers and dryers to stay. The seller had bought the duplex in February and put about $30K into it including a new roof. It sat empty for months because college students were staying home due to COVID. I have another Airbnb in the area so I came in with the intention of living upstairs and listing the bottom on Airbnb.

How did you finance this deal?

VA loan with no money down.

How did you add value to the deal?

The bottom unit was rent ready with brand new appliances so I quickly furnished it and listed it on Airbnb. I painted the top unit and added vinyl plank flooring and new appliances.

What was the outcome?

The outcome was it booked out for the month of November within 3 days of listing. The area is in high demand for short term rentals. The monthly cash flow from the short term rental comes pretty close to covering the mortgage. Once I move out of the top unit and list it the monthly cash flow should be well over $2k per month.

Lessons learned? Challenges?

One lesson learned is to not close late in the month. If you close in the first week of the month the mortgage is not due until the following month. If you close on the 1st it is almost like you get a free month. There was a train that I could hear that I did not anticipate. It bothered me at first when there was nothing in the units, but no guests have complained and it does not bother me anymore, but I would be more aware of annoyances in the future.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dana Hinson with Benchmark Mortgage and Mary Brown with Better Homes and Gardens.

I recently attended an event where the guest speaker was Ryan Wehner from Wehner Multifamily, LLC. They are popular in the DFW area: http://www.wehnermultifamily.com/

I agree with @Ben Leybovich that it will be hard to get 5 star service on a 3 start budget so to speak.

Ryan had some great insights during the presentation on how it is a human business so you will need to manage expectations sometimes and work through the issues. 

@Collin Schwartz Thank you for sharing your story, very inspiring. Love the hustle!

@Jeremy W. so far Proper has been good. The terms seem to be pretty good for the price. They require to get another agent for flood insurance though. 

Thank you all for responding. It is interesting learning about the insurance of short term vacation rentals. I think a lot of people are using Airbnb under a regular homeowner's insurance and they might be denied claims. Between CBIZ and Proper we should have adequate coverage. Thanks again!