All Forum Posts by: Account Closed

Jeremy VanBussum, Warranty Deed will save you headaches later on.

Some good areas in the DFW region include: Plano, Allen, McKinney, Frisco... all of which are growing in population. I iam currently invested in McKinney, and the rents to cost are phenomenal. I tend to stay in the areas listed due to their close proximity to me.

I can't speak to the managers, as I don't use them. I figure whatever headache is worth holding onto the 10-15% fee they tend to charge. You, being from Austin, will probably want a manager instead of driving the 4 hours each way up here... LOL, good luck, and PM me if you want to discuss some further assistance.

It probably is in Dallas too...

Christian,

The way Section 8 works here in Dallas, or at least how the ladies at the HUD office explained it to me is:
Aide is based on the need; single parents receive more than a single person
The more children, the greater the aide
The aide amount is based on HUD's FMR (fair market rents), which uses a calculation the includes bedroom count. This is why a single mother with 2 kids would get more than a single elderly person. More kids requires more rooms.

Most of my former tenants did not qualify for the full 100% of the FMR for the houses I had. Most were at either 80% or 90%. The deal I made with them (verbally) was this: I didn't charge them the difference in the rent if they kept up the property. If there was a problem, they were to call me immediately. They couldn't have anyone move in without my permission, or the deal was broken. Now, I was lucky with the tenants I had. None of them really messed up the properties. Their children did draw on the walls, but who cares, its just paint. They knew, if they screwed up, they were going to have to pay me all the missing back rent, or I would go to HUD and report them for non-payment. As for damages, HUD paid for 50% of anything outside of normal wear and tear, as long as I agreed to re-list the property for Section 8.

I am looking at doing section 8 again, and I will follow my golden rules for section 8:

Use the local churches to the property: Offer the preacher a church donation for helping you find a "truly deserving" tenant.

I only rented to single mothers: I am adopted, so I guess I have a soft spot for single mothers, they also tend to be better tenants.

I only hire locals to keep up with the landscaping: It shows that I am helping out the local community.

I do quarterly inspections, but always randomize them: I never went on the same day twice... I ensured I was only required to give a 24 hour notice.

I drive by the property at least 1 time per month.

I helped the neighbors.... This is huge!!! I would have my lawn guy take care of the yard next door or across the street... In return, I would request they contact me if they see anything going on... This is great to ensure drug dealers aren't living in the house!

Good luck, and let me know if you have any questions!!

Welcome Srinivas Aluri, I am in McKinney. If you need some help, just shout buddy!

The reason for a Nevada LLC is because of the ease of creating a series LLC, or carrying LLCs under one main LLC. This has started to become easier to do in many states, so you may want to look into what Illinois has for creating that structure. *********** is correct in the foreign LLC registration if you have an out of state LLC. He is also right if the purpose is tax related. What type of investing do you plan on doing? If you are buying and holding, you "may" consider a series LLC for each property; however, you have to look at the cost and weigh the benefits. Depending on how you are going to be operating, it may make more sense to just take out a large enough umbrella insurance policy. These are typically less expensive than forming an LLC, and they "could" provide you with the coverage you need. You just have to make sure all of your ducks are in a row. Good luck to you!!

Zadokkolee Aguillard

Welcome from another Texan Brother. I too am in McKinney! I am a buy and hold guy, but I have been thinking about trying my hand at the wholesale side of things as well. My best advice for you... Read Bigger Pockets forums, set up keyword alerts, and ask questions! I also recently downloaded all of the podcasts BP has produced, and I listen to them on my way to work and then back home. Lots of great information is put out in them! Let's connect, maybe grab some coffee or something, and see how we can help each other out. There is so much to learn, so why go at it alone? We will see you around!

Back in my Sec 8 days, I loved going to the local churches in the area of Dallas I used to rent in. I would offer the preachers 25% of one months rent as a donation to the church if he found me a good "deserving" tenant. For the 5 years I held the houses, I only had 1 go south, and that wasn't the tenant, it was her baby daddy who thought I was trying to hook up with her... As I was replacing a water heater nonetheless... I was also good at keeping the HUD office fed with donuts delivered from the local donut shop, listing my company's name as the sender. That got me a lot of great tenants, and made my life easier when it came to dealing with the office personnel. Food is the business tool for success!

$7,000? Wow! Even when I flipped my home from my personal residence into a rental, I think I paid $500, which covered touch up paint, light bulbs, professional cleaning, and a welcome gift for my new tenants. I also won't accept 1 year leases... My minimum is 2 year, max is 3 year.

Now, when I was doing Section 8 housing, my costs were WAY bigger, I spent like $1,200 after this horrible tenant vacated... Ok, I am being sarcastic here, but my point is, I won't put any money into a rental that I won't get out of it. I am also a buy and hold guy in North Texas, so my experience may be different than your friend's... Or he is like Greg B. and Joe B. where he doesn't want you competing for his tenants!!! LOL

I don't know about other landlords, but the only expenses I cover, outside of the standard Principal, Interest, Taxes, Insurance (PITI) are landscaping, HOA, and home warranty. After it is all said and done, I clear about $350/month. Because of my conservative nature, I leave that money in the bank. Another way I make money is putting the deposits into a decent rate CD, right now I am pulling 3%. This works two different ways, one, I don't have to worry about "finding" the deposit money to give back to the tenants when they are ready to move out, and two, I am earning money for doing nothing (which really makes me feel good).