All Forum Posts by: Mason Moreland

That's a big one Klint. Been there done that, don't recommend it. Only thing I'd ever rent to a friend is insured equipment or something I don't mind losing haha.

- Never, ever, ever, cave on a tenant's sob story if it means reducing rent/they miss payments. Empathize, but follow your contract. Same concept as the guy who tries to buy your car with "I can get you $200 today and pick it up and I swear I'll bring you the other $8,000 on Friday!" Never happens. Had a great deal for a buy-and-hold SFR get destroyed and not pay for months which went from 5 digits in the black to break-even/in the red. Had significant tenant damages due to neglect and tenant non-payment.

- The gut feeling you have on a prospective tenant is usually right, if they are downright obnoxious at first, they will be for the next 1-10 years. Had one that made some ridiculous requests during the prospect period and continued to be a headache, asking for things FAR outside the scope of a landlord regularly and taking up hours of time on the phone. Not worth the rent.

Looks like it requires you to be a full-time resident per the code (silly). Read up on the codes carefully, there may be a loophole there where it allows an "operator" to be the one who lives there full-time. You may look for a situation where you can purchase a home that has a back house/separate housing where you can rent to one person long-term to "operate" the short-term rental and use the other as the short-term. This would hedge your cashflow risks as well.

Alternatively, buy there, live there, and lobby to get it changed/run for city council. I can't stand restrictive city ordinances like that! Their loss.

@Adam Engleman not yet! Right now, I am the property management team here.

@Dalton Eschberger Wreck 'Em!! I really like the Lubbock market, but I'm biased. I'm in Midland and the returns can be AWESOME, but it is hard to find that great deal and when things bust it can burn you. Lubbock is sort of on it's own island and being a college, agricultural, and professional town it has some unique bonuses for the investor. It even benefits a bit when oil and gas is hot. Lots of options. 

Matt Moreland is my brother and business partner, definitely a great resource and a nice dude!

Part of that price point is where the property is located in town as well. Generally C-class properties and much lower property values and rents around there. Go drive around the neighborhood and you’ll see why (if you haven’t already).

@Monica P. approximately $.60/sqft/mo

Following! Interested to hear from firsthand experience then, we used rental rates from 2014 to base our investment decisions/debt coverage decisions here.

Meant to tag @Adam Engleman whoops haha

@Mike Evans

It’s good, but only if you are 1,000% sure you are getting in below market price and have set parameters for getting back out while things aren’t crashed.

We cashflow like crazy, but waited for a screaming good deal. Most deals aren't on MLS, particularly with multi family. Most potential multi's and SFRs that are below market here are rehab or D-class of late. Best method I've found is to pound the pavement and look around in person.

While you can find excellent deals on occasion and cashflow like crazy, it is really still a small town type of place and being there and having the personal connections goes a long way here. Just objectively, I would say look elsewhere in TX for more stable rent prices and more stable home values. 

High oil price means more activity, means more people, means more expendable $, means more demand, means higher rents. Low prices mean less activity, less people, less expendable cash, less demand, lower rents. You WILL track with the price of oil and amount of O&G activity out here.

Best places for A- and B-class SFR are north of I-20 business (except for D-class SFR), North/East of Andrews Highway/191, and west of Big Spring/Lamesa Highway. Under appreciated area is the southwest part of town inside the loop B-class and C-class SFR.

I think Lubbock has more long term and equity potential, and we have invested heavily there in the last couple years. We may get out of Midland soon, but only if opportunities with higher cashflow present themselves in other markets or industries.