All Forum Posts by: Pete Harper

Chad, we recently purchased a 4-plex in Killeen that is working out well for us. Like any area Killeen has its good an bad areas. We looked at a number of D-class properties before we figured out the better areas. Since you are local I would suggest you do some drive by appraisals to get a feel for the area.  Trulia also has crime maps that seem fairly accurate. You will be amazed how one or two streets over makes a huge difference. 

I’ve attended several Texas Tax Sales. One thing that I’ve noticed is all the better properties are withdrawn at the 11th hour. I’m getting a little frustrated, we do all the due diligence, drive by inspection, research owner, liens and etc. At first I thought it was homeowners scraping together funds to avoid foreclosure. Then on today’s sale I saw three properties all cleared at the last minute. I know it wasn’t a homeowner because they are deceased.

What I think is happening is investors are reaching out to the homeowners in pre-foreclosure and paying the taxes. What if I were to offer to pay the delinquent taxes and give the homeowner $10,000 cash? Anyone try this strategy or something similar?

This would be a win-win, homeowner gets cash for a property they were going to loose anyway, I get a good property at a discount price.

Have you considered offering cash for keys?  Tell the Tennant you will give them $500 cash to move. Don’t pay them until the property is vacant and you have taken possession. Change the locks immediately. 

Regards, Pete

Caleb, I’m a little surprised you skipped over Round Rock. Is there a reason why?  I would think proximity to Dell and other Austin employers would be a big plus. 

@R. Quinn Another point on protecting your investment. I was able to get an insurance policy on the property during the redemption period. Should the property burn down I could collect full replacement value on the home.

@R. Quinn In Texas you are allowed to do necessary repairs in order to protect your investment during the redemption period. If the owner decides to redeem the property you are able to collect the cost of the repairs plus 25%. For example I purchased as home at Sheriffs Tax auction. The roof was bad with water damage to the ceiling. I was able to replace the roof to prevent further water damage. These roof repair costs would be repaid should the owner decide to redeem. However if I replaced Sheetrock or did other renovations to the interior of the home these costs would not be recoverable.

Check you local laws.

Dan, we went through this with my daughter. Texas has strict residency requirements for college tuition. Best to do your homework before you buy.

http://www.thecb.state.tx.us/reports/PDF/9054.PDF?CFID=75314517&CFTOKEN=13839274

Killeen market rate is $550 to $650 for a 2 bed 1.5 bath apartment. We recently purchased a 4-plex for $205k with 75% financing that is cash flowing nicely. Prices are going up as investors from Austin move North.

@Clint Shelley

I’ve been working with Caltrans for over a year now. We have been making progress towards permanent right of way. Unfortunately the records from the ‘40s are not great. Through their internal investigation Caltrans determined the only reason they have kept the old roadway was to provide access to the adjacent properties. The 2nd land owner is using the same roadway to access a Well.

The next step for Caltrans was to survey all the departments to confirm the roadway was “surplus”. That is when the 2nd land owner raised his concern with my having access. I had been using the gate for the past seven years when he changed the lock on me. I shared my lease agreement with Caltrans as proof I had access and he agreed to share lock again. Separately he escalated to Caltrans and we’ve been stalled for six months.

I will PM you a detailed drawing.

@Katie Lepore Santa Clara County