All Forum Posts by: Michael Mendez

Quote from @Michael Mendez:

Quote from @Brett Whaley:

Not sure my questions came across with requesting a connection, so I will post here. Are Lubbock SFR turning monthly profit with the higher interest rates? How is appreciation going in the city? With the influx of luxury apartments, are SFR staying unoccupied for long periods? Does it seem as though sellers are willing to negotiate, or are posted prices generally firm? Is there any depreciation left to claim on some of the older homes for sale?

Is there anything you feel is important to know about the market I am not asking?  Any help is appreciated.  Apologies for the laundry list of questions.

I am kicking around the idea of starting investing there soon vs waiting for some period of time vs eliminating Lubbock as a potential area due to apartments taking up too much of the market share.

 my rental's property tax has gone up, but it's not been a problem to increase rent. I still see alot of potential, caprock district is my favorite place so far. 

 If you don't mind me asking, what price range are your rentals and the rent cost?  Who are your typical renters (students vs families vs other)?

Not sure my questions came across with requesting a connection, so I will post here. Are Lubbock SFR turning monthly profit with the higher interest rates? How is appreciation going in the city? With the influx of luxury apartments, are SFR staying unoccupied for long periods? Does it seem as though sellers are willing to negotiate, or are posted prices generally firm? Is there any depreciation left to claim on some of the older homes for sale?

Is there anything you feel is important to know about the market I am not asking?  Any help is appreciated.  Apologies for the laundry list of questions.

I am kicking around the idea of starting investing there soon vs waiting for some period of time vs eliminating Lubbock as a potential area due to apartments taking up too much of the market share.

Lubbock STR All-Stars!

Just reaching out to ask a couple of questions. I am an instructor pilot in the US Navy and will be ending my time in service soon. My wife is from Lubbock and we will be moving back there as our home base once we get out. I wanted to reach out and see if there are any dedicated STR investors in the Lubbock area to connect with. I would love to take you to lunch and pick your brain about the local market/your experience and success and see if there is any advice you may have to offer someone looking to make a start. My wife and I have a couple of properties already in Jacksonville, FL and love the STR model and are looking to grow and expand. Thank you so much for your time!

Billy Knox 

BP Heros,

Looking for a CPA for tax planning and general accounting. Would prefer the Lubbock area but that is not a deal breaker. Particularly interested in someone who has experience with Short-Term Rentals. Anyone have any personal recommendation worth reaching out to?

Thank you!

Jesus, my wife and I have been active in Midland/Odessa for 2 years - 4 flips plus 3 SF rentals. Midland is overall nicer but discovered that we like the blue collar get-to-work vibe of Odessa. 

The Market:

If you invest in Odessa, you will be violating one big principle - Don't invest in single industry areas. If there is only one economic driver, then the region is prone to boom/bust cycles. And since the mid-1970's, that is exactly what has happened in Midland/Odessa. Energy industry gets hot and then it gets cold. HOWEVER, my non-expert read is that we have 5-15 years of good times in west Texas. The oil fields and pipelines and refineries have the extraction and distribution capacity to deliver products (oil and natural gas) that are and will continue to be in demand. And ground is broken for a new refinery west of Odessa. Even though a ton of rental units and new SF have been added in the last two years, there is demand for more, especially on the lower end of the market. We will bring another rental online in a few weeks and will likely add more.

NOTE: You can get a really good deal on older pre-1960 properties, but be very careful. The minerals in the water eat up galvanized supply line and cast iron waste lines, so units with copper and plastic will avoid a lot of expensive repairs.  And make sure you are have confident in you insurance company - hail storms are a real thing.  

Rich

Hey Micheal!  Thanks for reply!  It's in Arnett Benson. On 1st pl.  Does that makeba difference?

Jaime

I'm here in Lubbock and the part of town could be a difference for me. As an investor I only like to invest in certain areas. Depending on what the location is could be the big difference for the rent here.

Quote from @Jaime Lewis:

Quote from @Tyler Haanen:

In addition to what Nathan posted above, I would say that your rent seems very low for I presume a 2/1 SFR. Even without knowing the area, this seems low, but maybe I am wrong. Regardless of your numbers, you're not cash flowing after the refinance so I wouldn't want to get into this one as a buy and hold. Perhaps it would be better looked at as a flip?
another comment on repairs they do seem quite low, what do you expect to repair? If you have to replace a roof, already that doubles your budget (10-15k in my area).

Give us more information and others can provide you more insight. Good luck!

Okay, so I had this long email typed out and I lost it.  :-(
A little more info
This is in Lubbock TX- in a college town where Texas Tech is

The current market value of the home is $89,500- They are wanting to sell for $75K but I will not go that high.  I am thinking $65K at the very most.  I know the current owners bought the home 3 years ago for $59K and have installed a new roof.  

The house is close to campus but is in a questionable part of town.  I am pretty sure they are trying to clean it up as I am seeing quite a few rundown cheaper homes for sale looking for people to invest and flip.  Mostly wholesalers.

With a quick check on home depot for some inexpensive fixes, this was my reno budget.  Remember, I have never done this before so could be totally out of line and probably am.  Which is why I am posting here on a Saturday. :-)

New windows: $3K
New laminate to look like quartz kitchen counters: $1K
Kitchen Backsplash: $800
Replacing only the face of the cabinets and drawers in the kitchen: $1,500
New bath vanity with sink: $500
New bathtub: $500
Bath Backsplash and floor tile: $1K
New vinyl flooring for 800sq ft: $4K
Taking out the old window units and adding 3 zone mini split: $4K
Painting 800 sq ft house: they said it has recently been painted but... $3K
Unexpected "stuff": $5K
Total: $20,300

New rental worksheet: https://www.biggerpockets.com/...
I will probably have to borrow money from family to get this going or... can I get a personal loan and then refi this property?  I can get a personal loan quickly for a wholesaler but not sure how it works about paying for a house with it and then refinancing a house from a personal loan...

Looks like a Fix & Flip wouldn't be a good idea.  I know the people paid $59K 3 years ago and replaced the roof so doubt they would take less for what they paid... https://www.biggerpockets.com/...

AirBB analyzer said I could probably get about $21K annually if I did STR. The occupancy rate there is 54%, with an average nightly rate of $152. They said Gross annual would be $29K but I am pretty sure my annual costs would be more than 8,000 with rent, utilities, and totally furnishing an AirBB. BUT... after the first year or so maybe there could be a profit. Then long-term selling the house is where more would be made. Or am I crazy thinking that?

My daughter is in Lubbock for at least the next 4 to 6 years- she's going for biochem and plans to apply to medical school or pharmacy school there so she could help with the management- If I don't put her in it.  

I know this is A LOT, and I appreciate y'all looking at this for me.  It would be my very first deal, and I am so damn scared but so excited at the same time.  Don't want to miss out on something great, but don't want to make a stupid decision because I just want to buy something either.  

Does the additional info help in your analysis at all or do you still both feel the same?  Bad deal?

THANK YOU!!!!!!!

Jaime

Hi! 

My name is Jesse, and I am currently living in The Bay Area,California. I lived in the lubbock area years ago and still have many friends who live there.

Ive never been a homeowner, let alone an investor. I have no idea where to start or who to talk to,in order to gain more knowledge on the subject of investing in real estate. 

I do know that the housing market is much more affordable than here in the bay area,and that lubbock is a growing economy and I am interested in learning more if anyone can point me in the right direction, it would be greatly appreciated. Thank you in advance!!

All great suggestions. You may want to consider Abilene and Lubbock as well, both university towns and relatively affordable. 

Looking to get recommendations for property managers in Lubbock, TX who have experience working with investors. Thanks!