All Forum Posts by: Kyle Varga

Thanks for responding Jason. All of my investments are in Texas. From my experience with other construction projects and some research I've found its Purchase, Hire an engineer and surveyor to write up a proposed subdivide that I will then have to get approved from the city/county depending on the lot. Hire and manage a contractor(s) to install utilities and roads. Get final approval from the city/county and start selling/building the lots. Am I missing anything? Are there any hidden costs that maybe someone who's never done developing wouldn't know?

I found some acreage in Texas that I would like to develop. Does anyone have any experience doing this? I would be grateful to pick someone's brain and see if this is something I should invest in or if I should stick to my lane of BRRRing homes. 

My plan would be to buy, subdivide, sell some lots to give me the funds to start building homes from the ground up. 

@Matt Friesz I had similar process not too long ago. But as I was micromanaging the finish work I listed for sale and for rent at a crazy high rent that would modivate me not to sell. Ended up renting with a $1200+ month cash flow after I refinanced. Took 6 months longer then it was planned but it worked out in the end. Good luck we have all been there and know the pain. You will get through it in the end.

@John Ringgold 10% late fee after required grace period plus 1% per day on current owed balance. Some states won't let you charge this high but I've never had a problem.

$100 notice fee - used for lease violations giving a 3 day etc.

Attach any HOA regulations and stipulate any fees, fines etc that are charged by the HOA other then dues will be charged to the tenant ledger.

@Carl Mathis, that is close to the standard line used in most leases I've seen. Deposits are only used for expenses at move out.

@Zach Shahan yes the loan has to be paid back. The goal here is to pull out available cash to do your next deal.

I'll be honest, when I purchased the property, I expected it to rent for around $2000 a month. It's in a nice HOA on the northeast side of town. Large 5 bedroom home. The only reason I even tried for $2495 + $50 for having a pet. was a few comps were at or higher and weren't remodeled, so I went for it. Guess the market liked my remodel because it went fairly quickly for being on the higher end. I have another rental in the same zip code going for $1600 that I will have to increase this next renewal cycle.

To be honest I find all of my deals on the MLS. I just submit a ton of offers till something bites. I have found deals all over but I work on the Eastside because I have a good maintenance guy on that side of town.

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $136,000
Cash invested: $43,402

Purchase, full remodel. Rented for $2545 per month refinanced. The downside of 6 months before I earn all my cash back.

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

This is my long term strategy. A few more of these and I can quit my day job.

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

Made offers on multiple properties till someone accepted the numbers I needed.

How did you finance this deal?

Hard money of 102K Used my HELOC for the remainder.

How did you add value to the deal?

Complete remodel including open concept kitchen and living upgraded baths and cosmetics on the exterior.

What was the outcome?

The appraisal came in a little lower than I had hoped. But the cash flow was nearly $500 more than I had anticipated.

Lessons learned? Challenges?

Stop hiring individual contractors. Took way longer than it should have to complete the remodel.

 Hi Satyam,

This was my first out of state, I actually went down and did most of the work myself. I don't have a property manager I currently Use Tenanatcloud.com (not the best but good for the price) software to manage my rentals. I am a property manager so the process was easy for me even out of state. Starting rent was $1500, it's now at $1550. I don't increase rents much when I have good tenants, just enough to cover any increases in taxes and insurance.