All Forum Posts by: Kevin Coco-Senyszyn

These are great numbers! What were you looking for when looking into this deal? I'm curious about what it takes to make new construction work! @Dan Powers

I'm curious about how you decided on Beaumont. Typically for out-of-state investors, larger markets with more stable job and housing markets tend to be less risky. Smaller local markets are harder to nail down accurate ARVs and find reliable trade labor.

Regarding managing general contractors, I've heard some horror stories from our owners who have worked with GCs they've never met. If you're going to manage a GC, make sure to meet them in person and avoid paying for the entire job upfront (typically for smaller jobs, you will pay half upfront, and half at the end). Research the licensing requirements and know the right questions to ask during the vetting process. Make sure you're working with a reputable business and double check they have insurance. It's also a good idea to have a third party, such as a realtor, visit the property to ensure the work is being done diligently and on time.

I have an excellent contact for work in North Texas. If you decide to undertake a BRRRR project here, I'd be happy to connect you with them. Alexandra Feinberg with DFW Landlord Services does incredible work and is very professional.

Ginnie, I typically like to see 1% for earnest money. I.e., for a $250k house, $2,500 of earnest money, with a reasonable option amount. If you're really serious about a deal, putting down more earnest money may make the difference between you and another offer. At the same time, if something goes sideways with your deal, you may end up losing that money. 

North Texas has a lot of opportunities for finding cash flow-positive deals. Many of the issues that eat away at cash flow come from not having reliable boots on the ground. You don't want to have to fly back and forth all the time when problems arise. 

Quote from @Kiana Kelly:

I never responded to this, but thank you for your input. I ended up declining both offers and created a small Youtube channel for our property. It only has 4 videos. One of the property and three of our model units. I have found this to be very, very cheap and a nice touch when emailing prospects. Thank you for reminding me to skip the flashy stuff and focus on the return.

Some other options are marketing through Facebook ads or using syndication software to send out across the internet. MLS works well, and you find qualified leads, but you do end up having to pay a large commission to other realtors. 

If anything, this shows your Realtor has experience. You can always go back to them and ask for similar credentials and references to make sure they are who they say they are. More than likely, they will provide you everything you ask for, which may ease your concerns about them using your information for something fraudulent. 

For the pets, I would take a look at what specific breeds of pets won't be covered by insurance companies if there is any liability or damage that arises. As @Joe Scaparra said, you'll be cutting out 70% of your potential renters if you don't allow pets at all. 

Some PM companies have access to more powerful screening tools that can be used to verify income streams. If you're accepting paystubs from your applicants, just be sure that they are legitimate. It's easy to create fraudulent paystubs and we see them pop up all the time. 

Call the city, be the neighborhood watch. In some of the neighborhoods where we manage multiple properties, we've found that taking the initiative to report incidents and engage the authorities has led to significant improvements. Over the course of a year or two, you can make a noticeable impact on the quality of life not only for you but for your neighbors, which could then make your property more valuable to rent and eventually sell. If you feel unsafe or uncomfortable at home, try to make your home more secure. Try to make your home more valuable with one small step at a time. 

Quote from @Nicole Gullotti:

Hi Dylan, I just started my search in Fort Worth as well with basically the same criteria as you listed. I'm working with 2 agents that were both referred to me and have been really great. They suggested I look into the South Side and Fairmount. Hope that helps!

 Be careful where you look on South Side. Property values and rental quality varies from street to street. You may find that similar properties on opposite sides of I35 are not similar investments. I recommend having your agent drive the area when looking for those appreciation "hot spots." Fairmount will likely do very well in the next 10 years. 

@Jeremy Schaeffer, If you're seeking mortgage lenders, I highly recommend reaching out to @Andrew Postell. He is a highly experienced mortgage lender and investor who has helped many of our clients.