All Forum Posts by: Jennifer Ryan

Thank you Derrick. I didn't think to look for a discussion board.

I anticipate that all of us are going to get some late rents and we'll need to be open to working with our tenants by allowing more time, temporarily canceling late fees and maybe by temporarily dropping the monthly rent for a month or two. 

My worry is long term. The aftermath. Clearly we're headed for a big recession unless something changes quickly.  Aside from the temporary shut down for hospitality type workers, Trade Shows are closed, manufacturing is on hold, products cant get sold etc. I hate to even think about it but on the other side, we could see a housing downturn like 2008.  

Just my 2-Cents.

BTW, at some point the rents could come down but my equity shouldn't. I'd just sell then if need be. 

I hear you Raman. It is really hard to find the “Deal” in DFW but yes, you can make money on rentals, just not necessarily by way of the monthly cash-flow that you’re looking for; at least not immediately, but by the appreciation of the value & of the equity buildup.

The beauty of the Buy & Hold or Rental in DFW is that property values keep going up due to a housing shortage here and (unless, this Corona fear drives us into a recession…) I don’t see the shortage letting up anytime soon. DFW is the fastest growing area in the entire country right now.

Here's a look at my equity story on just 2 of my properties. I bought one in 2010 and one in 2015 from the auction using the BRRRR method. Right now the combined equity for them is a little over $180k. I can cash-out refinance them again and buy another property if I want to.

Let's say I didn't buy them using the BRRRR method, as I suspect you're not. I'd still have that equity, I just wouldn't have had my original cash back in order to buy other properties during the interim.

As to the rent, honestly I’ve NEVER seen the 50% that you mentioned. I’m ok with $200-300 a month cash flow, (after rehab) in the beginning because rents have steadily increased in the area too since 2010 so my initial cash flow improves over time.

(Granted, on your first rental, the idea that you might only have returned $2,000 in profit after a year is hard to swallow but as you accumulate more rentals, and the rents rise, it becomes easier especially when you factor in the appreciation.)

Just my 2-cents worth.

Good luck in your investment endeavors!

Jennifer Ryan (Jenn)

Investment Info:

Single-family residence buy & hold investment in Alvarado.

Purchase price: $72,000

SFR that I bought from an online auction with only a drive by to view. Luckily, the property was in remarkable condition needing only the basics; paint, flooring, cleaning, etc.

How did you finance this deal?

I paid cash for it & a year later got a mortgage against it getting all of my investment, including repair money back!

What was the outcome?

Property has always cash-flowed and the equity is almost double my original investment.

Corey,

Try going to a Texas mortgage company. I haven't had any problems doing a cash-out refi. as long as the property is not in an LLC and new loan is for 70-75% of current Appraised value (leaving 25-30% equity in the loan.) Of course you've got to have good credit etc., and you've got to show rental income.

FYI,   in Texas you can only do a HELOC (Home Equity Line of Credit) on your Primary residence.

Hi @Ankur Agarwal

I recommend Patrick Sullivan w American Residential Inspections (out of Mansfield) He's found on Google or go to TREC (Texas Real Estate Commission) to get his contact info.

He's super thorough & straight forward. (He's got a 4.9 on Homeadvisor)  Used him back when I was a practicing agent & he still does all my investment properties. Please tell him Jenn Ryan said to call him. 

Happy Investing!

Hi Alex.

I had a tub and the surrounding tile refinished (by a professional.) It went from pink to a crisp white and was beautiful.

Though some will say that you can do it yourself, I don’t recommend it.  Make sure the company has been in business a long time and that they do the acid etching prior to the spraying.

You can have the sink done too but honestly, I think a few bucks more for a new one will give a better impression.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $69,790
Cash invested: $31,800

I purchased a run down 3-2.1-2, 1980's 2 story directly from the HUD auction site online & I did nearly all of the rehab work myself! It has been an exceptional investment! It's only been vacant 1-2 months since completion & has only had 2 different long-term tenants. The current market value is around $180-$190k.

What made you interested in investing in this type of deal?

It was right after the housing market fell, I'd been a Realtor for a few years & I was selling a lot of HUD homes to clients so I knew how to navigate the auction. I'd always wanted to buy & "fix-up" houses ever since I remodeled my first house when I was in my late 20's but I never had any money. My Mom inherited some and my biggest cheerleader became my backer. I was terrified but I was off to the races.

How did you find this deal and how did you negotiate it?

Access to the MLS was super helpful during the housing crisis. I'd been keeping my eye out when this one came up for auction. I bid all cash and got lucky. I was so freaked when I got the property that I didn't go see it for a week. True story.

How did you finance this deal?

I paid cash and then after it was leased I refinanced it on a 20 year note, getting almost all my cash back out of it plus I'm paying down the principal by $417 a month! I guess you could say I accidentally did the BRRRR method without knowing it.

How did you add value to the deal?

True sweat equity; mine & sometimes my teens & hubby's too. Anything in need of repair or refreshing got addressed. I bondowed the dents in the front door, scraped popcorn ceilings, trimmed the trees, replaced the floors (with luxury vinyl plank long before it was the fad.) I added crown & a light rails to the entry level cabinets in the kitchen, I even used appliance paint to spray the yellow brass ceiling fans to a nice bedroom worthy white.

What was the outcome?

Luckily, my tenants love it & take care of the place.

Lessons learned? Challenges?

I spent way too much via holding costs trying to save money doing it all myself when in the long run, had I hired out some or most of it, I could have had it rented several months earlier. My biggest challenge is my reluctance to raise the rent..