All Forum Posts by: Katie Neason

there is a local REI club. More than Bryan is distance to the university. The trend in town in large student houses 5/5. The primary spots are within 1.5 miles of campus and the other hot growth market right now is downtown Bryan. Like anywhere you need to know your market. Not knowing the market and your investment parameters you will find yourself in just as much trouble in college station as in Bryan.

What are you looking for ratio wise? price wise? Rent wise? Size? Age of house? College rental? family rental? I am a full time investor (renovation and infill development of single family and student rentals) and will help however I can. As far a "good property manager" there are a lot in town to pick from. TM5 is good at leasing but doesn't manage property. Kathy Scott is a good one at both.

I would use it to negotiate price. Every market is different, but we buy 2 prong houses all the time and do not ground the plugs or rewire the house because of it. We will typically add a grounded (3 prong plug) in each of the bedrooms and the living area so that it can handle the load of newer electronics.  What type wiring does the house have?  As far as whether or not you should move forward with the house depends on if the numbers work.  If the budget allows for rewiring the house move forward, if it doesn't then try to negotiate the price. If after you negotiate the price the numbers work,  buy it if it doesn't walk away. 

When I redevelop sites the first thing I do is set up a meeting with the city development/planning folks and tell them what you want to do. You should walk away with a sense of if they think what you are doing is a "good idea" and if they will support it. They will give you a sense of whether or not what you are doing has been tried before and if so why it wasn't successful. They also often know the "reputation of the HOA or neighborhood. They main thing you want is a precedent and that it ideally fits Into the city's master plan.

If that goes well, then I would call the house/neighborhood president and find out when the next meeting is and attend the meeting.  Share your idea with them. You will get a sense of how they feel about it.  Beware, people do not like change because they are scared of what they do not know. No matter how much sense it makes or how much better it will improve the neighborhood, you may run into opposition you can't over come. You can fix stupid. 

Pretty much every house in our market has granite countertops, from investor grade properties and up. But that is my market. Only way to know is to look at comps in your market and do what they do. 

The market seems to be hot all over Texas. We target a $25,000 profit, but not less than $20,000. Our ARV's typically range in the $135,000-175,000 price range.

Sarah Norman with Keller Williams. Been an agent for almost 40 years. Works with investors and is an investor. She is the agent the agents call when they have issues.

In the scope of nightmares on a flip, I would rank this one a mild one. The inspector should have caught it, but if there were rat traps and poison out, I'm a little surprised you or who ever gave you a repair bid didn't catch it. I would mark it up to experience and a better inspection next time by all.  I would be glad it wasn't a wood structure that had been burned and covered up by new Sheetrock, a termite infestation, a foundation issue where the house floor had separated from the wall, the frame structure rotted out because of vinyl siding poorly installed, a city inspector deciding it would be best if you rewired the entire house, a crack house bust at the neighbors house hitting headline news the day you lost your beautifully rehabbed house for sale, a sewer line leaking or crushed under a two story slab house. Not sure where to stop, but I do it here before I scare myself back into getting a w-2 income. I haven't been doing this all that long and have seen a lot of scary and sketchy stuff. That is why the contingency line item isn't a spot you hope you don't have to spend. It is money you know you'll spend you just don't know on what yet. 

Welcome to the business and here's to building memories! 

How long has the tenant been in the space?  If they are new to the space and they are established, why did they change locations and how long were they at the previous location? How much TI was put into the building for the tenant? In lieu of a longer lease, these answers could give you an indication of how sticky the tenant is.  What is the typical/market TI improvements for your market. Worse case type scenario (short of never being able to release the building) is that in 3 years the tenant decides to move.  It takes you a year or two, you find a replacement tenant and you have to make ready the space.  The market rate for improvements is $5/sf (in our market it is about $10 for existing professional office space). After paying 1-2 years of P&I, taxes and expenses, you now have to come up with $75,000 for tenant improvements.  Where is the money for the holding cost you incurred while it was vacant and for the tenant improvements going to come from? You may have already thought through these types of scenarios and have mitigating factors or a reserve fund set aside. I just like to try to plan for the worst and hope for the best.  I believe a person can talk themselves into or out of any investment, so rather I try to think through all the scenarios I can and have at lease 2 plans for each.    

Have you talked to the bank?  We just got approved for a similar sized commercial building in a downtown market from a portfolio lender.  The terms were 5 yr note, fixed rate note amortized over 20 years. 20% down. 4.75% 0.5% fee. They also required leases to match the term of the note (minimum of 5 years). 

Welcome @Howard Mayne. You have landed in a great spot to get energized about real estate investing. I am a flipper and small infill developer (SFR) in Bryan College Station. Where is your project in college station?