All Forum Posts by: Matt Stricklen

Welcome and good luck! What part of town are you wanting to be in?

as an FHA, you will live in this one, or no? Do you refinance out of the FHA later so you can do FHA on another? How much does the low down payment hurt your cash flow? ( I ask myself these questions all the time about potentially doing another FHA, so any insight is greatly appreciated.)

The much hyped new BP Insights analysis dinged Plano, and TX in general for worst performing rent growth.

"...Florida dominated the top performers, Texas represents 40% of the most troubled markets from a rent price perspective."

https://www.biggerpockets.com/insights/articles/best-and-worst-markets-year-to-date-rental-growth

your thoughts?

" CoreLogic's Market Risk Indicator predicts 125 metro areas have at least a 75 percent probability of price decline by May 2021 and prices are expected to retreat in every state."

There's a wealth of good insight in this Austin forum, and I'm eager to hear some reactions. Does this cause anyone to try to time some future acquisitions?

http://www.mortgagenewsdaily.com/07072020_corelogic_hpi.asp

of course the article has penultimate paragraph syndrome, where they equivocate at the end. 

Yes- I try to hold to that as closely as I can. I'm not going to think it's a deal and I'm going to move on to something else if it's not pretty close. This is especially true in my green status with rehabs- I know I've got to leave margin for error in estimating my rehab costs, so I can't afford to overpay for acquiring the property.  

I think a lot of opportunities are missed when people wait for what might happen. Be sure you are getting a full picture of what is happening now and seeing how you can deploy a strategy that works for the is rather than the might. 

I hear you about wanting the revolving line, but consider: if you pull out cash on a refi you'll probably be getting a better rate on the original property, and if you use that money to BRRRR, you can have that revolving line with yourself instead of the bank.

Networking with many agents, wholesalers and property managers. Driving those neighborhoods, or having someone on your team with boots on the ground to drive them on your behalf. 

I think this can vary greatly based on the renters not only in a particular city or zip code, but right down to a neighborhood.

Generally speaking, most investor convo around this is still thinking in terms of a nuclear family and it is possible to find places where that is not your demographic. In the areas I'm investing in, hipsters returning to urban cores and looking for something akin to the condo vibe without the condo fees are buying 2/2 and 2/1s.

With that said, a 3 bedroom place is certainly going to give more options than a 1 or 2. I get great cash flow out of my 2bed 2 bath duplex, usually with younger couples as tenants. But as babies start to grow and multiply, that nice family has to seek something larger.

I also anticipate that I'm going to be marketing that 3rd bedroom on my current rehab as a home office now that many more people are working from home.

as to your heuristics,

pick your area

pick a sq ft range eg 1000-1300 sq ft

get an agent to compile a couple years' worth of sold data - in spreadsheet form that you can sort.depending on your local MLS rules, you may be able to do this yourself on Redfin.

with a little practice, you'll be able to find the properties that sold " as is" then went back on market after flip.

look for the ones that added bedrooms or bathrooms to the existing square footage.then look at those that flipped without changing the room count. Compare the sold price per square foot on the 2bed versus 3 bed. Then you'll have an idea for what adding that 3rd bed is worth in your target area. 

man that post was too long. Sorry.

Id be happy to email you a copy of a spreadsheet for an area I've looked at to practice with.