All Forum Posts by: Lucas Hunt

Afternoon BP Fam, wanted to hear your opinion on a rental property. My friend is going to supply the money for the down payment. I will bring $0 of my own money. But, I will be finding/negotiating the deal, listing the property for rent, screening tenants, and handling all maintenance myself. I will essentially be managing the entire property/collecting rent and my friend will not have to lift a finger. 

Curious how others have split the ownership of the investment property on situations like this? Is a 50% - 50% split fair? 

Hello BP Fam, I have a client that is in search of a mid term rental (3-6 months) here in Dallas. Ideally, he would like to be 10-15 minutes from downtown in the $1500-$2500/mo price range. My client is single, has no pets, no kids, and will need a washer/dryer/fridge. Does anyone have any properties available that is close to this criteria? Thanks in advance!

Hello BP Fam, I've liquidated a few of my brokerage accounts to add some more rental properties to my arsenal. I'm looking to purchase 10-15 new-build single family homes (250k-$300k range) as long term holds. It would be preferable for all of them to be in the same general area of DFW. 

All of my current rentals were purchased from Lennar up in Princeton, and recently Lennar has stopped selling to investors here. Does anyone have any thoughts or ideas on the BUILDERS and cities/subdivisions that I could target? Really need a builder that is investor friendly in the price range noted above.

Thanks in advance!

Stan, on my Dallas rentals for every 20 inquires I got maybe 1 would fill out my RentRedi app. Think thats just the nature of the beast. I think the RentRedi app is a good filter. Helps you find renters that are serious. 

Hi Cristin, for this sort of thing I use a smart phone app called Thumbtack (it's basically Uber for any sort of contractor). Just type the line of work that you need into the app along with your zip code and you will have several contractors at your fingertips. They usually get back to you within an hour and most of the time I'm able to get the work done same day. Hope this helps :)

How much construction/rehab knowledge do you have? If you have a considerable amount of expertise, then by all means, do a flip for your first swing in the real estate game. If you don't have much construction/rehab knowledge, I'd recommend investing locally into something like a house hack, or a new single family home in north of Dallas (ex. Princeton). That way you can understand local pricing/demand/tenant base along with grasping the mechanics of a real estate transaction. 

$50,000 would be plenty for a 3.5% down FHA loan (ie. househack a duplex/triplex), or a $200,000 single family via an investment property loan.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $229,000
Cash invested: $45,800

New build in the growing area of Princeton, TX

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

Familiarity. This is the second new build I've purchased and negotiated against a builder

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

A knowledgeable realtor that knew the area very well. We negotiated 15k in closing cost credits along with a washer/dryer and fridge

How did you finance this deal?

30 year conventional note

How did you add value to the deal?

No renovations needed.

What was the outcome?

N/a

Lessons learned? Challenges?

Builders are willing to break even or even lose money on a home nowadays. I am going to target new builds in the future because the seller has less of an emotional tie to the property.

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

N/a

Hello BP Community - seeking some advice as I am screening tenants for a property of mine in Dallas. On paper, they look like they would be a great fit (credit score is above 600, paystubs verify 3x rent, bank statements check out, their employers/supervisors verify good standing etc). I called the current landlord and my only hiccup is that the current landlord does not keep a ledger. The current landlord said "We do not keep a ledger, but they paid us on time and the same day every month."

Not sure if this is a red flag. I am probably being overcautious after having to evict a tenant this summer.

I have the sense that their current landlord operates as an independent. Could their "word" be just as good as an official copy of a ledger?

@dmitriy thank you!

@Brendan Meehan not necessarily. I did purchase some loan points though in order to "buy" the rate down. got it to 5.625% (this was in January)