All Forum Posts by: Nate Barbee

Brad Gibson Thanks Brad, I will give him a shout in the morning!

@Tyler Hodgson Thanks for the feedback. I do have a base salary, but most of my W2 earnings will result from commission/bonuses. My previous position in Oil & Gas was strictly salary which made financing a bit easier. 

Hey BP, I'm looking for in-house refinance options on two separate properties. One condo in Dallas (rate/term), and one SFR in Midland, TX (cash-out refi). I have 6 doors in my portfolio, all occupied and cash flowing. Just switched industries and moved to Dallas area to work for mortgage lender, we only do Fannie/Freddie loans. The industry change would more than likely require an in-house loan to accept my W2 income. Any banks, lenders or specific contacts would be greatly appreciated. Also looking to set up lending relationships for future purchases. Thank you, Nate Barbee

Andrew Schafer I am also not from the area, but the returns in Midland are outperforming my properties in the Dallas/Fort Worth area. Midland seems to be more of a buy and hold for cash flow play. Not an appreciation play.

Jason Hirko Good point, many homeowners in Midland were here before the boom and are used to the feast or famine market cycles. Stable economy with a very favorable break even point for oil and gas operators compared to other areas of the US. I found a home in Midland at the end of 2016 that is generating great cash flow and rented very quickly. Great place to invest especially with the WTI hovering around $50/bbl. I think rental prices will start to rise a bit now that operators are feeling more confident.

Hey BP, I've been looking at properties on auction.com and keeping track of bids and sales prices these past couple of weeks. There's a few properties I'm researching to possibly submit a bid. I'm a buy and hold investor looking to expand portfolio. No financing available with this type of transaction, prepping for cash purchase. Anyone used auction.com to make a purchase? What did you run into and what background info should I be looking for?

Gunnar F. Did you ever find a solution? I have a high end condo in Dallas as well that I was thinking of furnishing for a corporate rental.

Christian McGlade I bought my first SFR about 30 miles east of Dallas in February of 2013 for $85,900. I'm still holding that property and it is currently generating $1,375/month in rent. Homes in that neighborhood are now selling for $140k+ on the low end. While I was working in Oil & Gas in west Texas (Midland) in 2016, I noticed the margins were disappearing in DFW and found better returns in places other than DFW. Property taxes are very high yes, but still seeing opportunity in sub markets that don't have investors crawling all over each other to get minimal returns. It's honestly quite confusing to say the least, home prices are skyrocketing while income and wages are staying relatively constant. I find myself cringing when I hear of friends overpaying for their first home and leveraging themselves to the max, even if it's their primary residence. I just moved back to the Dallas area two weeks ago, so I'm still trying to grasp what's going on. Maybe I'm missing something here but I see cranes and new construction everywhere I turn in the metroplex. Be it a great economy with a strong foundation, I don't believe I'll buy anything here until there's some sort of correction in the market. Good luck to you man! Nate Barbee

@Lance Mosby Good choice Lance. I'm from the Dallas area but have been working in oil & gas (west Texas) almost 4 years. I started out as a roughneck working 28 days on and 14 days off. Now I'm on the production side with a more favorable schedule and can work on deals throughout the day.

I'm with you on the passive income, buy and hold is a good recipe to fit oil & gas schedules especially when you're in remote locations. This was the route I chose. 

Hiring a property manager is a solid move, but I chose to self manage 4 of my properties in DFW while living/working in Midland, TX an average of 24 days per month. This really helped my ability to outsource and manage contractors from a distance. Now I have a foundation and a set of standards I expect from my property manager when issues occur or the turnaround on getting a quality tenant in place that will save you tons on the backend. 

My advice to you would be NOT to overthink the process beyond closing on a great deal. Choose a market, zone in and get a great deal. Keep the management side in mind with your hectic schedule and circumstances, but don't let that part get in your way. Hope this helps.

Facebook is the ultimate background check. My recipe is to check Facebook/social media the moment they schedule an appointment to view property. Rants via Facebook status seems to be a viable reason to head for the hills. Mysmartmove.com is a great way to screen tenants. It's very efficient and even gives you opinion based on background to accept or decline.