All Forum Posts by: Robert Grunnah

Hey BP Fam - I'm looking to purchase a SFR near Downtown SLC for my periodic use in winter (big skier) and summer (escaping Texas heat and hiking); but it needs to generate income as an STR when I'm not there. It does not have to pay for itself entirely per se, but it should cover at least a big chunk of debt service.

Budget is $500k-$700k(ish), and I want to be walkable to good restaurants / public transit / other amenities. I think it's going to have to be 9th and 9th area, Sugar House, or something similar. Looking for the most progressive, LGBT-Friendly, close to University, ethnic restaurants, etc.

Don't really care about the age of the building; charm is key. I can spend some money doing cosmetic fix up but a major fixer isn't in the cards given my lack of trades knowledge there.

Ideas on neighborhoods? And if you're a HIGHLY experienced real estate agent, preferably with investment experience and know the areas that I am looking for very well, also feel free to reach out.

Cheers

Can't wait! Looking forward to meeting everyone, and will share details on my single family renovation projects in Newburgh.

Haha, @Nathan Adair, that is the best side by side comparison of what $2.895M buys you between two US markets I've ever seen. Kudos.

As absurd as it would be to spend that kind of money for a small ranch in Palo Alto, I can't imagine the OKC buyer will ever see a return on his investment, either.

Still, quite amusing and (horrifying)!

I've been flipping now for almost 15 years in and around Austin, Texas. We've built our business up to 30+ renovated flips per year and have moved into Dallas and soon San Antonio.

90% of our deals come through direct mail (and our budget will hit $200,000 in 2018). Sometimes we find a deal through a referral or MLS, but it's rare.

Question to those who do similar or more volume: Realistically, how can we up our game beyond direct mail, which we've essentially saturated?

Wholesalers' deals are too thin for us, and we've tried Pay Per Click and Organic search rankings (expensive with little practical return). I've never had anyone place bandit signs, advertise on radio or billboards, etc, and I've never cultivated other real estate newbies to see who wants to go bird hunt for me. I suppose we could do some or all of these things.

We want to do 100 flips a year without working with wholesalers, but we need to find another vector to owners who are motivated.

Anyone have recommendations?

Address: 7508 Marble Ridge Dr

Built 2001, 2742 Square Feet (largest footprint in the subdivision), 4 Bedrooms 3 Bathrooms

Needs cosmetics; we saw no major mechanical or other issues. Do your own due dilligence.

Would make a good rental property; maybe not enough meat on the bone for a flip.

Realtors - property is actually still listed with a different Realtor on MLS as "TEMPORARILY OFF MARKET" - see details there.

Must close with Debbie Hernandez @ Midtown Title at 3009 N Lamar no later than November 28th. $210,000 OBO - CASH OR HARD MONEY ONLY; BUYER PAYS 100% of CLOSING COSTS except Pro-Rata 2017 Taxes.

OPEN HOUSE THIS FRIDAY FROM 1PM TO 2PM; RSVP WITH ME.

Hi Bigger Pockets SA -

I've done 1,000 1-4 unit flips over the past 15 years in Austin and am opening an office in San Antonio in coming months. We're going to be doing both turn fix and flip and assembling a large portfolio of 1-4 unit properties in a REIT / Fund style vehicle.

I'm looking to make connections with investors, Realtors, and wholesalers locally who I might be able to partner with and certainly learn more about the market.

Thank You.

@Mike Mcgregor Indeed, I bought a house in the Town of Newburgh (admittedly not the City) but live there during the week, and between both the City and the town of Newburgh, the energy of change and progress is palpable. 

You should open an advertising agency here! .. Feel free to reach out any time and we can grab lunch. I was just as SUNY New Paltz last week at a presentation from Riverkeeper and Zephyr Teachout.

@Aaron Gordy I actually realized pretty soon after moving to Brooklyn that investing in the City itself would not be feasible. Starter apartments in Manhattan are $1.2M for a 1 bedroom right now, so that's kind of ridiculous unless you're a very wealthy person.

I found a really cool area in the Hudson Valley about 55 miles North of the City - these cities are called Newburgh and Beacon. Prices are far more affordable than in the City (think a single family for $250k-$350k), and as an investor, I could pick up distressed 1880's buildings for next to nothing - $30k. The catch is they're completely gutted and need everything. I don't know if Bigger Pockets (I'm brand new here) allows you to post links, so I'll just say Google this: "44 Carson Ave Newburgh" to see the Zillow listing for one of my remodels up here. I'll make far far less profit on that project than I will on a flip in Texas, but it's a whole different animal and more satisfying in a different way, since we're helping to change a blighted and economically depressed area.

Anyway - yeah - let's all stay in touch. I've realized at this point in my career that real estate isn't a zero sum game, and there are opportunities for all of us to collaborate and take part in a bigger overall game.

@Aaron Gordy Heya Aaron - thank you for the kind words.. I should point out that even though I live in New York, my brokerage firm Castle Hill Investments is still the most active duplex and fourplex broker in Austin. It's run by agent Adrienne Laosa, who does a fabulous job.

I also own and operate SellYourHouse.biz which flips SFRs and duplexes in Austin, Round Rock (and Dallas). We flipped about 35 properties last year and have 12 that we're either buying, renovating, or have for sale currently. I'm focusing on the flip business right now because frankly, I cannot begin to understand small residential property values in Austin right now. How anyone gets those to cash flow at those prices doesn't make sense. Flipping allows me to get in and out quickly, and even though I'm taxed at regular income (vs. the far more favorable long term cap gains + depreciation benefits) it still "feels" safer right now.

I will be a hold buyer again when values decline and there are bona fide value plays. People always forget this, but Austin has always been a fairly boom and bust market, and that's not going to change now. Baseline valuations are and will remain higher, but there will still be dramatic swings and values to be had the next time real estate falls out of favor for whatever reason.

P.S. I paid ~ $200k each for 14 of the duplexes in the 1400 block of Cinnamon Path (in 78704) in 2008. I sold them in 2012 or so, but had I held on to them to today, I would have seen at least a $4M profit. So I feel ya. The lesson I learned is that though it's never a bad thing to take a profit, the real wealth is built over time with patient money, by investors who live frugally and don't need to cash in their investments to fund stupid things like nightclubs. It also helps to buy during a major recession with a lot of foreclosures AND it helps to buy in an area that is likely to see a massive run-up in values in coming years. But you can't force either of these factors, unfortunately. We'll just have to wait patiently for the next opportunity and then seize it.