All Forum Posts by: Pete Harper

@William Hughes I bet not a lot of people even know where Sulphur Springs is. Lol

I face a similar problem where I live. Just not a lot of investors in these small east Texas markets.

Here are a couple suggestions. You can set up Zillow searches based on zip code and property type. Zillow will give you daily updates if anything new is listed on MLS. I've purchased a 4-plex and duplex this way. Search on the county website for multifamily properties. In the advanced search use the multifamily property code and you can pull a list of every multifamily property in the county. I did this last year and sent yellow letters to all the listings ( less than 30, fewer if you account for owners with multiple properties). We purchased a 12 unit complex off-market last year.

Are there any REI meetups in South Dallas? We are about an hour and a half south of town on I45 but I'm willing to drive.

@Fernando M.

My property is a 4-plex with a common floorplan. I looked up all the recent sales and tax records for similar properties in the same neighborhood. I summarized in a letter and sent in to tax adjuster. I think I was dinged because of recent purchase.

I’ve taken similar approach on other properties and have almost always won. I hear bell county is tough.

This year I’m thinking of hiring O’Conner and associates to protest for me.

@John Morgan

That was going to be my follow up question. I was looking at using O’Conner. They sent me a packet and I was reading through the material this morning. Thanks

@Mike Hanna

Have you ever used a tax protest service? There are several that advertise that there fee is half your reduced tax savings.

Bell county has raised my appraisal for the third straight year. I protested myself last year and lost. I had comps and everything.

Bell county Texas Appraisal District has raised our taxes on a fourplex for the third straight year. I protested last year but was not successful in getting a reduction. I’ve seen adds for companies that specialize in tax protests. I would like to hear any experiences both good and bad.

Thank you

@Greg H. I've been to a couple of these auctions looking for a good deal. We found a unicorn in Bell County. Newer 4BR in a nicer neighborhood. It only needed light reno. Back taxes were $35k. Bidding started at $35k. I stayed in until $125k, then the pros jumped in. I can't remember the final price. ARV was $250k.

@Jim Cummings I believe you are referring to the sheriffs tax auction. The auction is held on the first Tuesday of the month on the courthouse steps. The better properties are almost always pulled off the list at the 11th hour. Homeowner comes up with a couple hundred bucks to buy some more time. You’ll see the same property listed again at the next auction only to get pulled off again.

What is left are abandoned properties. Usually owner has died with no relatives to settle the estate. Eventually taxes go unpaid long enough the property goes to auction.

@Chris Alford

Hypothetical. Let's assume you are looking for a 2/1 duplex. Assume after light renovations, paint, flooring and light fixtures the units rent for $700/ month. That's $1400/month Cashflow. A 1% deal would be $140k ARV.

I would be a little careful overshooting the mark on renovations. To qualify to rent a $700 apartment you need to make 3X rent or $2100/month. That works out to over $13/hr. A person working min-wage job is not going to qualify. It will take two people. Don’t pour a lot of money into renovations thinking you are going to get that back in rent. You are not going to find renters able to pay $800-900 for a 2BR no matter how nice you make it.

@Chris Alford

I’ve had good success with 2/1 in rural east Texas. Typically these units rent quickly for $600-$700. Here is some suggestions on how to confirm market rent. First look what similar units are renting for on Zillow, FB market place and Craig’s list. Smaller markets really don’t show up on Apartments dot com.

Second is to call your local housing authority. Ask for the HUD voucher rate for properties similar to yours. I've found they are super helpful with landlords as there is a shortage of units. I would consider the HUD rate to be the bottom of the market. If something is renting for less than HUD then there is something wrong. Either the property is way under market or it is a complete dump and doesn't qualify for HUD. You don't have to use HUD if you don't want to. I mainly see then as a good benchmark.

Now that you have a good idea of rents you can more accurately underwrite the deal. I once underwrote a six unit 3/1 based on HUD rents. Unfortunately I didn't get the deal because of flakey seller.