All Forum Posts by: Poem Turner

@Account Closed I know at least one lender in the Austin market who does high asset-low doc loans. DM me and I'll give you his contact. He may be able to point you to someone in DFW.

Welcome to Texas! 

II know an excellent lender that works with bank statement programs. PM me and I can share his info.

Cheers!

Brendon, you make a good point that depending on the area, the "live for free" model can be more challenging to achieve. There are areas just outside Austin that might support that better, or in a different area. Liberty Hill has some great duplex options among others.

Other considerations are your FHA options. Have you connected with a loan officer yet? To the best of my knowledge the current FHA limits look something like this:
SFH- $362k
Duplex - $462k
Triplex - $558k
Quad - $694k

@Justin Grant Just a couple of thoughts. 

1. The communities outside of Austin are great purchases; especially for cash-flowing rentals. Hutto homes appreciated at 9% last year. No, it's not the 17% that "downtown Austin" appreciated at, but the average sales price in Hutto was $220k-ish instead of $621k-ish, so consider what works for your budget.

2. Everyone has their own tolerances, but 6.5% CapEx + 3% for repairs seems high. With a foreclosure, budget in an amount to bring back up to speed, and you can probably bump your CapEx down by half.

3. Vacancy in those areas usually ranges from 4-8%, maybe higher depending on the time of year (now-March). Be sure and have one analysis for forecasting, but go back and see what the real numbers are after a year.

4. You will pay something for utilities while you're fixing it up, and while it's on the market. Maybe only a couple hundred dollars, but it does count. I don't know of many areas in Hutto that have no HOA, but if you've got one, awesome!

5. Insurance at $90/month sounds high on a property the type you're talking about. I strongly advise you to shop around. $650-700/yr or $55-60/month sounds more reasonable. I'm happy to share some names of agents with you if you want.

6. 10% property mgmt is absurd! I can connect you with a more reasonable place, or, honestly, you shouldn't be afraid to tackle it yourself. All you need is a phone and a few contacts. With one property, why pay someone to make a half dozen phone calls a year on your behalf?

Good luck!

@Bruce Mac. This is a great season to pick up properties for your goals.  I specialize in working with investors, particularly out of state. I'd love to chat with you before you come and meet up next week to talk and show you a couple of areas. If you're patient we can definitely find something that will work for you!

Often, I find tenants are more interested in proximity to a school, even if it is moderate. Any neighborhood with an elementary or middle school in or adjacent is almost guaranteed to rent out quickly.

Luke, welcome! There's a meeting of a new REI group (mostly from BP) next Thursday. Join us if you can! PM me and I can share the link to the meetup page.

@Account Closed One strategy I use for my clients here in similar situations is to keep an eye on properties that match your criteria that have been pending for 4 weeks. Occasionally finding will fall through, or the buyers can't proceed for various reasons. I've been able to snatch a few houses before they even go back on the market just by reaching out to the agent and asking if the transaction still looks like it's going to close. Ask your NY agent to try that.

I agree Austin is inflated at the moment. But there are still deals to be had in the outlying areas (Leander, Liberty Hill, Hutto, Jarrell). Depending on where you work, those can be great options.

@Adam L - First of all, thank you for your service!

I don't want to tell you how to spend your money, but I would encourage you to do PLENTY of research on LU before deciding to go that route. All of the "knowledge" they "allow" you to "buy" is available for free here on BP, through other investors, and in books. 

I do know of a small MFR deal that I can DM you about. Well managed, great resumes, and a good fit for while you're overseas!

Poem

I've had great success with hydroxyl generators. They take a little longer, but are less destructive to plastics, window seals, etc. Very cost effective considering your bang for the buck!

Good luck!