All Forum Posts by: Rod Zahavi

@Account Closed I have a Canadian company that helps people invest in the US real estate market. We've had great success with investors as far away as Israel, and we've also set up transactions for investors in the US. We'd be happy to talk about your goals and see what makes the most sense. Many commenters have noted the need for someone familiar with taxes and structuring to ensure your investment reaches its full potential. It's very possible to get cash flow and appreciation, but as a foreign landlord you'll want local knowledge in the market.

One benefit that a property manager provides is experience vetting applicants. As a new landlord it's hard to know what to look for in an applicant's history and what questions to ask. You may want to get a property manager at the beginning so that you can learn how to handle the application process and leasing of the property. Tenant disputes would be another area where having a property manager to learn from would be nice. Once you've seen an experienced pro deal with these situations you'll be much better prepared to deal with them yourself.

-Rod Zahavi

Better Coast Capital

@Kolton Lynch We help foreign clients invest in Texas real estate. It helps to have a network in place. I'd be happy to answer any questions you have.

-Rod Zahavi

Better Coast Capital

It's good to see some discussion about higher quality properties. I've been helping clients invest in good neighbourhoods in the Dallas/Fort Worth area for several years through my company, Better Coast Capital. Quality schools and solid growth in middle class employment are two of the major factors we consider when looking at new developments to invest in. Our target tenants are families moving to the area for a stable job who may not have the money for a down payment. With prices in the $140-190k range we are still able to make these properties cash flow. Appreciation also ends up making up a large portion of the return.

Our clients pay a higher price for a brand new property in a desirable area. But in return they get lower maintenance costs (because the homes are still under warranty) and the ability to be more picky when selecting a tenant. All this adds up to longer leases, better quality tenants that don't cause problems, and fewer unexpected repair expenses. Our clients are often buying from afar, so the ease of this kind of ownership is very attractive.

Everyone should pick a strategy they are comfortable with. Our strategy would sound crazy for someone who wants to spend time on a daily basis managing their properties. But for our clients, who are more interested in wealth protection and easy management these properties make a lot of sense.

@Tyler Smith I help clients in similar situations to you find and set up turnkey rentals in North Texas. Many investors are priced out of their home markets, particularly in our area (we are based in Vancouver which has seen a similar price increase to Seattle). Like @Jay Hinrichs said, going for the low-end of the market comes with huge management problems that are difficult to deal with as a remote landlord. At Better Coast we find properties that are new constructions in new developments. While that does mean the investment takes more cash up front, we find there are many benefits. For example, in the construction phase the floor plan and finishes can be tailored to a rental use: durable finishes with broad appeal. Or inexpensive upgrades can be added to make the units stand out in the rental market. The result is top of market rental rates and higher quality tenants, which can make all the difference in the long term success of your investment.

Feel free to reach out if you have any questions and good luck!

Rod Zahavi

Better Coast Capital

@Jonathan Studdard: At Better Coast Capital, we facilitate investments of SFR and duplex properties for our clients. By working with developers from the start, we are able to secure great pricing and make sure the units are "tenant proof" rentals. Currently we are offering duplexes in a Dallas-Fort Worth area development that are cash flow positive. If you're interested in seeing how our units pencil out, we'd be happy to show you a pro forma. That may give you a good idea of what you can afford and the kind of cashflow you can expect. Feel free to reach out in a direct message.

At Better Coast we are big fans of new construction when it comes to rentals. For one thing, you get brand new appliances that won't require maintenance and replacement for years. You also usually get a warranty with a new construction, so you can pass on repairs to the builder for up to ten years, in some areas. Not only do these benefits mean you'll spend less time answering calls from your tenants about the furnace being on the fritz, you'll also be able to forecast and plan your expenses better. For example, you won't need a cash reserve of $4k on hand in case you do get that call about the furnace.

New constructions also give you the option to customize your floor plan and interior to the needs of a rental. You may want to make some upgrades that you know will set your unit apart from other units in your area, like granite counters, to allow you to charge a higher rent. Or, you may want to select more durable flooring material that can stand up to the harder use of renters.

We have two articles that address these topics on the Better Coast Blog on Biggerpockets: Buying New vs. Old addresses some of the maintenance benefits of a new construction. What Makes a Good Rental Property talks about what we at Better Coast do to customize new constructions for the rental market.

Hope those help, and feel free to reach out with any questions!

I've worked with several management companies through our projects at Better Coast Capital, and this is a list of the key factors I usually look for when selecting a new one. What do you think are the make or break points when it comes to management?

Our property manager inspects our units every 6 months, and we provide the reports to our clients. Inspections include photos of each room and exterior elevations. Our properties are located in Texas where irrigating the lawn is important to protecting the foundation, so inspections include checking that the automatic irrigation systems have not been tampered with. The 6 month inspections are written into the lease, but we also allow for inspection with 24 hours notice.

Hi from Better Coast Capital. I'm not sure we are hitting your price point, but we do have some duplexes that have been successful north of Fort Worth in Denton County. 

We don't do rehabs, we do new construction. New constructions provide a lot of benefits for investors like low maintenance, home warranty, premium rental rates, and customization for use as a rental. If you're going to have to spend $40k rehabbing something in this market, you might as well just buy new. 

Our strategy does rely on appreciation, as any good investment should, and we pick our communities with that in mind.

Our properties are cash flow positive, even with an FHA at 5%. Ultimately the real return on these units comes when the property is sold, again the newness of the property really helps get a premium price. We are currently building duplexes in Sanger for $189,500 per door, and the rent for these will be $1600-$1650 per month. We expect rents to increase due to the strong job climate and related population growth. Search "denton county economic growth" in google and it's easy to see the area has promise.

We've been successful in this area with other developments over the last several years and I'd be happy to talk about our strategy and show you pro forma analysis.

-Rod at Better Coast Capital