All Forum Posts by: Michael W. McCord

@Jay Hurst I say not much equity because after closing costs and 6% commissions to the buyers and sellers agents, there isn't much the seller will be getting in the transaction. If there are any surprises like liens or something else that will deteriorate the value of the house, then the seller may have to bring money to the closing table which is a non-starter them since they are financially strapped.

@Chris Seveney Yes it's an owner occupied house. That is what I was thinking of doing is giving a loan in 2nd lien position. That is why I asked my original question. Are there any pitfalls or gotchas to doing this given the seller's shallow equity position I explained to Jay?

Any advice other an finding a good RE attorney?

Hi, I have a nice house in Richardson TX under contract and when I contacted lender to assume the VA loan, I found out that the seller is behind about $40k on the loan and needs to be brought current before the assumption process can begin. It's a great deal for a $477k loan at 2.3% interest and house is in good shape and contracted price is $625k. Seller cannot come up with money to bring loan current and owes $506k. They found a hard money lender but he is charging an insane $150 per day to lend that $40k which would rack up $10-15k interest during the 45-60 day VA assumption process. My question is how risky is it for me to pay the $40k to bring loan current before closing and how can I mitigate risk? Was thinking I could do a title search on property to find any other liens that would be senior to mine. There isn't much equity the seller has in the house so seems risky to put a 2nd lien on the house. Are there any other gotchas or pitfalls I should be aware of? Would really like to score this house but seems fraught with risk.

That price range will get you a house in a C-class neighborhood at best in Dallas. That comes with it's own set of challenges especially from the other side of the world. Tread carefully!

Fellow El Paso investor here. Welcome!

Hi, I'm using a GP in El Paso for the first time and in the middle of a renovation so am a little hesitant to recommend him formally since he hasn't completed the job yet but so far am very happy with his performance. He's communicative and honest and reasonably priced which can be hard to find in a GP.

El Paso cash flows beautifully with minimum down payment and has plenty of choices. Appreciation though is somewhat lacking.

I noticed no one responded about El Paso on your list. I just moved here and bought my first SFR with a detached ADU and currently renovating to rent out. El Paso is a very different animal from the rest of Texas in that there isn't crazy high appreciation here so the rents allow for solid cash flow if that is what you're looking for. And unlike other markets it's close enough to San Diego to drive in one day.

Garland has some pretty onerous rules for STRs and even requires a license and inspections at every lease turnover for LTRs which has put me off investing in the Garland/Mesquite market period.

https://www.garlandtx.gov/DocumentCenter/View/15034/STR-Info...

Welcome David! I'm moving to the El Paso area end of this month. Would love to connect at some point.

Hey I'll be moving to El Paso next month so would love to connect this fall.