All Forum Posts by: Marian Smith

If I were investing in a condo anywhere I would ask what rents are in nearby apartment complexes, how my condo would compare to those apartments when I put it up for rent and how well could I weather competing with apartments offering two months free rent, etc when that time comes…and it may or may not but it has in the past.  Location really matters with a condo because that is all you get over a house further out, well, pool, exterior maintenance but you pay for that in hoa fees.  But there are some nice condos.  Old real estate addage is condos last to rise and first to fall…so you may be able to get a reasonably good deal especially if the airbnbust is real and there are more investors selling than people willing to buy at the cost 7% mortgages put property at nowdays.

Thanks @Greg H.  Amarillo, actually.  1960’s build, nice area, but a family trade thing I never particularly wanted.  But I was thinking the same thing…and very pleased to know someone with your breadth of experience concurred.  And thanks to all for responding.  May actually be a win-win…the best kind of deal.  

Unsolicited phone call offering to buy a condo I own 500 miles away in Texas panhandle. Price is probably above market, 17k down finance 75k @ 3.8% 35 yr amortization. 3 year balloon. Also offered cash at 30k less. Tenant occupied through Nov. 2023. Buyer is a newly formed LLC out of Houston, so even farther away. Is this just someone betting big on inflation? I know cold calling is how a lot of investors buy but how could this go bad? using a TREC 1-4 contract so hard to scam there. I am leery because it is such a small deal…just 1 small 1 bedroom unit…and not a great a deal unless maybe you are local and have a use for it…walk to community college. Condo bylaws prevent airbnb usage, so not that. Thanks for any insight…just feels too good to be true.

I just posted a house in Round Rock just off I35/Toll45 on facebook fsbo that would make a great house hack. The second floor is a 350 sqft attic conversion and the stairwell to it could fairly easily be made to be a separate entrance. Although I believe you'd need to keep an interior door access to the upstairs as the house is zoned single family. You hear of ADU's but attic space is another possibility with older houses without all the trusses. And now days you can insulate the ceiling with foam.

Also, I would be wary of your loan terms and the risk of deeding triggering a loan due notice.

If you can qualify, then you can afford the payments without tenants,  that’s good.  Are you also committed to living in Dallas for the next few years?  And Dallas is big, so if you lose your job are there a lot of potential employers in the area?  
Buying can be a great decision.  If you are looking at buying as an investment, just remember that location is of utmost importance and also that you make your money when you buy.  Don’t settle for a house because it is cheap and you can close at the end of your lease, better to wait for a good/great location and spend some money buying out of your lease to make it work.  Good luck!

I often hear people recommend a cpa for taxes but never have I read of one instance where a cpa added much value imo. There isn't a lot of flexibility in reporting your income or expenses.  Pretty cut and dry.  You have to keep up with the receipts, etc.  That is the main hassle.  Businesses are just income and expenses.  If you read a tax guide like lassiters...and rentals are treated in about a page...follow that and/or the irs publications then you know what can be used as expenses...basically everything for a rental that costs money and you have a receipt.  The difference between maintenance and repair can be a gray area and the amount you can write off in one year is something to keep in mind.  vs depreciate.   All the tax software will keep track of your depreciation...and that is explained in a few sentences in Lassiter or in one of the irs pubs.  If you are wary of being audited and want cps backup I guess that makes sense.  My returns look about the same year after year with turnovers showing a little less income and more maintenance expense.

You could also pull up a simple warranty deed from your county and use it for a template...maybe use an electronic source like Gale through the library to get instructions on how and why a deed says what it does.  The heading format can be slightly different per county but the rest is the same.  It's a bit of typing to create one from scratch...lawyers just fill in the blanks, well their paralegals do, so not too expensive to go that route.

Are they good tenants or would you prefer they leave when their lease is up?  Do you want them to remove and take the seat when they leave?  

That may very well be the case.  Crashes, at least in stocks, tend to be panic driven.  The fed targeting housing costs has indeed halted appreciation nationwide and housing prices are likely to plateau or drift down even in markets with low supply and a growing job base.  Not seeing widespread panic or distressed selling in Austin's future.  Rents may go down but a lot of landlords with long term tenants are renting below market anyway.  New entrants probably didn't cashflow from the get go, but if they can put 25% down in the Austin market they likely have a few options going forward...we are not Memphis.