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All Forum Posts by: Jennifer Ryan

Jennifer Ryan has started 2 posts and replied 78 times.

Post: Texas Winter Freeze: Questions

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

I hope this helps. This was just addressed in an Email from the Texas Association of Realtors. (I've copied and pasted below from the email I received Saturday.)

What Are Landlords’ Responsibilities for Habitability After Weather Events?

A landlord must repair a condition if a tenant gives notice of a condition, the tenant is not delinquent in rent payment, and the condition materially affects health or safety of the tenant or is due to the landlord’s failure to supply hot water at a minimum temperature of 120 degrees Fahrenheit. Given recent weather, lack of heating as well as a lack of hot water supply would materially affect the health and safety of tenants.

There is a presumption that seven days is a reasonable time to make repairs.

Casualty Loss

  • If the damage is covered in an insurance policy as an insured casualty loss, the timeline to start making the repairs does not start until the landlord receives the insurance proceeds.
  • If the damage is so great that the property is totally uninhabitable, either the tenant or landlord can terminate the lease by giving written notice prior to the completion of repairs. The tenant would be entitled to a prorated refund of rent from the date the tenant moves out.
  • If the damage renders the property partially unusable, the tenant is entitled to a reduction of rent in an amount proportionate to the extent the property is unusable. The tenant and landlord can negotiate a reduction in rent, but if the landlord will not cooperate or the parties can’t agree, the tenant may seek a judgment from a county or district court.

What if the Property Insurance Does Not Cover Such Weather Storms Under Casualty Loss?

  • Though there is a presumption that seven days is a reasonable time to make repairs, the severity and nature of the condition and the reasonable availability of materials, labor, and of utilities from a utility company must be considered per the Property Code.
  • To prevent tenants from making their own repairs and deducting the cost from the rent, the landlord should deliver to the tenant an affidavit, signed and sworn to under oath by the landlord or property manager, summarizing the reasons for the delay and the diligent efforts made by the landlord up to the date of the affidavit to get the repairs done. The affidavit must state facts showing that the landlord has made and is making diligent efforts to repair the condition, and it must contain dates, names, addresses, and telephone numbers of contractors, suppliers, and repairmen contacted by the owner. The affidavit allows a delay up to 30 days.

Relocation Requirements

  • Nothing in the Property Code or the Texas REALTORS® Residential Lease states that the landlord is required to pay for hotel expenses during repairs, even if the condition being repaired materially affects health and safety of an ordinary tenant.
  • If the property is totally unusable for residential purposes because of a natural disaster such as an extended freeze, a landlord that allows a tenant to move to another rental unit owned by the landlord may not require the tenant to execute a lease for a term longer than the term remaining on the tenant’s lease on the date the premises was rendered unusable.

Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While Texas REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

Post: is building a room in the attic in crease the value of my home>

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

Good clarification Alex. Adding to it... Keep in mind that there is a minimum ceiling height that can be counted as sq. footage too. (See below)

From, "The International Residential Code" (IRC)
A minimum ceiling height of 7 feet, and if there is a sloped ceiling, then a minimum of 50% of ceiling must be a minimum of 7 feet high

Post: Option Period - # of Days and amount?

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

Sellers are usually open to extending the "Option Period" once you're under contract. (Unless they've accepted a back-up contract for a better offer or they think a better one is coming in...)

Also, call your inspectors & get them tentatively lined up if you can.

Post: is building a room in the attic in crease the value of my home>

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

Sounds like you’re keeping this property long term? If so, you’re already renting “by the room” so you know what they rent for. If you’re in a high demand area just make sure you can recoup your money spent for the addition in a short amount of time. Say 3-5 years.

If you’re planning on selling though, I doubt the numbers would make sense but a Realtor could run the comps for Sold properties nearby with that number of bedrooms and baths to be sure. Just offer to give them a couple of hundred for their time.

Post: Texas Property Code Question

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

I'm a CYA girl and always on the lookout for Murphy’s Law. I’d pick up an inexpensive pre-hung exterior door from someplace like Second's and Surplus for $300-$400 and install it. You'll sleep better.

Post: Thoughts on Rentals and Flips in Cleburne, TX

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

I've had good success in Cleburn flipping houses. They seem to sell as fast as they do in Arlington. Also Alvarado. Demand is very high there for both rental's and resales.

Post: Question on Objection to title policy and survey (section 6D)

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

Thanks Steve. I should have been more precise but I try to keep my replies simple. If a buyer passes all the contractual  deadlines, & then backs out, they will most certainly lose their earnest money and they could be sued for specific performance by the seller. Keep in mind, I am not an attorney but I've been a Texas realtor for 14 years. 

Post: Question on Objection to title policy and survey (section 6D)

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

Hi Peter, 

Basically, the "Objection Period"  is one of the 32 plus, "Buyer's out" on a Texas 1-4. It's not really meant as a remedy to the objection. It's designed to give you an out for something that you want to do with the property as a owner occupied. Say you planned to raise chickens or have 5 dogs and it wasn't permitted... It gives you a chance to change your mind even after the "Option period " is up. If you're in doubt as to the easements, you can ask to extend the closing date so you can do some research.

Hope this clarifies it a bit.

Post: I Need Your Help! HELOC Question Appraisal

Jennifer RyanPosted
  • Flipper/Rehabber
  • Arlington, TX
  • Posts 78
  • Votes 58

You might call your lender & ask. I recently did a HELOC thru a credit union on my primary & the appraiser did come inside.

Originally posted by @Rohan Gangar:

Hi Aaron, so what should I aim for in Texas? I live in the DFW metroplex and was looking to find a cashflow deal!

Hi Rohan,

I live in DFW too. As you've noticed, the 1% rule doesn't work here. (I think due to property taxes versus state income tax and DFW's low inventory.)

I typically count on cash-flowing $200-$300 a month. It's tight when you only own one property but as you accumulate properties and rents gradually increase, it gets easier. (But, & I stress, You MUST HAVE Back-up Funds to carry you through!) 

My nutshell history... My first deal was 10 years ago. I paid cash, rehabbed & rented it. I refinanced it about a year in, getting back most of my cash and cash-flowing roughly $200 a month. I bought another property. Sold it for a profit, then another. (I flip houses on the side until I build up enough to purchase another rental property.) Then I bought my 2nd rental…

That 1st house’s rent slowly increased so it’s now cash-flowing about $670 a month but, it also has $130,000 equity from appreciation! BTW, I need to cash-out refinance it again and use that money to buy another property. 

By flipping, then re-investing in long-term holds, I now own 4 single family lease properties (w/ handsome equity) & a duplex on top of my personal residence.