All Forum Posts by: Mark Sewell

Michael thanks for doing this.  Just downloaded and I will definately study it.

I love it.

Remember there are two parts to this formula.  Earn more and spend less.  Most of us are here to figure out how to earn more, but .... 

If you aren't earning more (yet), then you gotta figure out how to reduce your financial footprint.  Get smaller.  

You just need to figure how to earn enough - at least in the short term.  You can figure how to earn more as you go.

@Adam D Rinehart is probably a good guy to participate in this discussion.

There are plenty of non-QM options out there now also, to get you a refi.  Rates a little higher than the government backed stuff but still OK.  If you don't have a W2 gig and cannot document all your income, then you still have options.  Just ask about seasoning - those might be only 90 days or you might be limited to just your original purchase price + documented improvements.

Well I am out of the lending game now, but the guys at Jet Lending can get you sorted.  They are not hard to find.

Don't be afraid of putting a little bit of cash in your deal.  Just don't get all enamored with an ugly deal that you will regret the next morning.  That's the real value that HM lenders bring - they will generally try to talk you out of doing something dumb.

Stefan, I agree about Texas.  It is a function of limited supply and steady demand (some would say increasing demand).  However, in order for this market to become overvalued, there would need to be a quick influx of supply.  Maybe you have some insights I don't have, but I don't see a big wave of new construction going on out there.  Certainly nothing like it was before 2008.

What I do see is that the lower price points (the ones that worked so nicely for our BRRRR investors here) are getting snapped up at prices way higher than they were before. It was tough before to find a good cash-flowing 3/2 around Houston, and now it's just insane. I think the crappy little 3/2 that local Houston investors used to buy for rental houses are probably borderline flip projects now.

I think @Chris Hopper could provide a few good contacts.

@Chess White I have a couple names/numbers to share with you.  I'll reach out by message.

My understanding is that it is a lifetime guarantee - IF they are still in business.  But they only redo the levelling work, you'll have some other little items that will need to be fixed later (doors won't close, windows, cracks in corners, etc) and that stuff won't be covered.

Garage conversions are probably the most common example of this in Houston - not to say you cannot do add-on structures in areas that are unrestricted (no HOA). You will still need to get permits for that.

BUT I caution you that you might not get the full price per sq. foot that you have in the main house.  Eg., if you have a 1500 sf house that is valued at $110 per sf, then your 400 sf add-on probably isn't going to result in a full 1900 sf house valued at $110 sf. 

I think if you can add some space, it will help a little bit with increasing your rental rates.  That becomes a cost-benefit math problem.

I think if you can add some space AND in the process create a second unit, with a separate entrance, that you can rent out separately from the rest of the main house, then you could potentially be on to something that really moves the needle.