All Forum Posts by: Richard Helppie-Schmieder

With a Fannie backed mortgage- all they care about is your income vs debt. With a commercial/portfolio lender- cap rates are taken into consideration through their DSCR. Similar functions, but not the same.

@Travis Fairbairn Need to force that appreciation! Time to start landscaping and laying tile.

@Ben Morand The best education comes from doing it. So go ahead and do it, you will learn so much more about real estate as a whole rather than sitting on the sidelines. It's a small price to pay for education "if" it doesn't work out. If it does, then even better.

Hi @Richard W., what are you needing exactly? Submitting permits to the city is really just submitting 2 copies of your framing, foundation, electrical, plumbing and HVAC plans. There really is nothing to it. 

I follow a few keywords here on the forums, and one of them is "Dallas". Just in the Dallas market alone, I see new investors seeking out advice, information and pursuing the unicorn duplex around 5 times a month (I can't imagine how many times this goes on across the site). I understand, it seems like a sexy play to live in one side and rent out the other with a sweet FHA loan to add the cherry on top, but let me make a strong case against it.

Duplexes are not a part of new zoning- In most cities around DFW, duplexes were built a long time ago when Southlake and Celina were farm towns with populations less than 100. Now with the outward growth of suburbia, cities are opting out of allowing any type of duplex to 4-plex housing. I believe this lack of supply makes it one of the most competitive markets.

Duplexes are traded between investors- These properties are so competitive to purchase as an owner occupant. Typically, duplexes are traded between investors, and investors can usually pay more. Well capitalized investors aren't bound by Fannie/Freddie guidelines either, and we have alot of those types of investors here in DFW. As well as this, investors usually want a deal (buy side) or they want more than the property is worth or they might as well continue to hold it (sell side).

Duplexes lack appreciation- Many times, we see duplex streets rather than neighborhoods here in the area. I can speak for Grapevine, Denton, Dallas and Richardson that many of these duplex communities are smack in the middle of a SFH neighborhood. Many times of which you see the SFH historical appreciation way higher than a duplex. I think this is attributed to my point above as well as the fact that investment properties are not as well kept as owner occupant homes so the street usually looks terrible compared to the rest of the community.

Instead, opt-in for the dual-income single family home strategy. Turn your mother-in-law suite into an Airbnb. Find a home with a back apartment. Finish out the basement (Ft. Worth has a bunch) and get that second stream of income. All of this while enjoying the better appreciation, easier acquisition and quick exits of a single family home while still maintaining the high cashflows. Is anyone out there doing these strategies or can convince me a duplex is a better investment?

@Derek Gold A lot of people are experiencing the same thing. If you were the tenant, how would you want to be treated in this situation with the water heater not working?

As for the plant, kiss it goodbye! From my experience, I used to have tenants maintain lawn/landscape, but after a season of none of my homes being taken care of that has since changed. I add the cost as an additional cost to the tenants for the 9 months it is needed down here at $75-$100/month. I explain this on my pre-approval document before even showing them the house so the expectations are clear. They get a nice lawn, I have peace of mind. Its a good learning experience that's for sure!

@Travis Fairbairn RUN AWAY! Some companies do it well with stock market triggers that allow them to break the lease, but soo many people lack the sophistication or knowledge to keep risk low when leasing multiple properties. I can connect you with someone who knows a lot about this stuff. Text me.

@Nicki Shelton I wish there was a certain size requirement, but there really isnt. For some house hacks I have done in the past, the most important thing for me is a layout requirement.

Hey @Account Closed if you shoot me a DM, we can schedule a quick call. Thanks!

Hi @Randall E Collins. Shoot me a PM with the address and I can quickly let you know if I buy there. Maybe we can make a win-win out of this. I am always looking to expand my portfolio.