All Forum Posts by: Ron Flatt

As pointed out by many folks above, there are many of points of view.  Yes, I believe owning your home is great, for a number of reasons.  1st) Rent should pass your payment amount in pretty easily.   2nd)  A home shows many lenders more stability.  3rd)  I have refinanced my home, where the payment is still comfortable but I am using my equity to buy other properties.  4th)  For many of us it gives peace of mind, ( 3 of my 4 siblings have there homes paid off completely).  I use to feel I was really broke if I did not own some livestock also, now I buy my steak from the meat market.  However Peace of Mind is worth something.  

I plan on keeping my home mortgaged, yes I keep enough insurance on me, so my wife can pay off the home and most of my rentals if something happens to me, for her peace of mind.  

hard to find,  but there are still owner financing with a 10% down and with good interest rate.

buy them where they can afford a PM.  Self manage as long as you want, but when it comes time to let the PM step in,  it has been budgeted for.  

I still self manage,  but realize at some point my time is better spent on other other endeavors.

I do not know about other places, but Texas and Oklahoma you can still get good returns for your money.  

Let me know if you are interested in Central Texas or Oklahoma City

Inherited Tenants:  I have inherited tenants several times with low rents.  I let them know up front that will be going up on rents, but give them a 6 month notice.  I raise the rents usually $30 on the first raise.  I remind them 30 days before also.  I continue to raise every 6 months until it gets to market.  

Usually the properties are in rough shape, so as I go up on rent they are seeing improvements on their units. If a unit goes vacant, I do the full rehab and lease it out at market.  

I am a firm believer in making sure that a property cash flows.

Nope, Not a turnkey, I made my own turnkey.  I bought, fixed it and now I rented it.  

I am a buy and hold investor generally.  The houses, I get rent ready and rent while waiting for the redemption period to expire.  Lots -  I clean up and sell after the shorter redemption period on Owner financing.  Land- I either lease it out or run a few cows on it until redemption period is over.  There is always a way.  

My attorney said the ways around the redemption period were more costly than just waiting.  

In Houston, you may have too much invested.  I go to counties where I do not have as much competition and are close to home.  

Tax Sales can be a great experience and lucrative.  You can also be bit in the behind.  

Follow me or pm and we can discuss them more.  I always welcome fresh ideas and sometimes I can even answer a question or two.  

The other bad thing about tax sales, you have to decide where you are going.  I was after 4 properties on the 2 of January, when I arrived all for had been pulled from sale.  Well Maybe next month.  

Good luck

The Flatt

Be very careful, trying to circumvent the Tax Sale.  

I tried to get a piece of property in Navarro County.  The lady was behind on taxes and was going to be in the Tax Sale.  I offered her $5K and I was going to clear taxes, she was eager to jump at the deal.

Fortunately, I went to the County Clerk and found other problems, I was not going to be able to get clean title.  The property did bring more than I was willing to give, but I could have wound up with a house without clean title.  

I like the Sheriff's Deed, after 2 years I have been able to get title insurance for any sale.  

Sheriff sales have been great to me.  Over half of my rentals came from tax sales.  Usually they need plenty of work, but it has worked for me.  

Different states may be different.  

The seller should be willing to let you look through the apartments, without causing stress to the tenants.  I have done this by driving up in my work truck, ladders in the back and accompanying the seller with a yellow tablet.  The tenants usually think they are going to get a new paint job.  I feel around windows, etc but get a decent look.  

You can see a lot with just a walk through.  I still would but a contingency on the radiator and boiler and if unsure of roof.  Most other items you will be able to handle and account for.  

You got a great tip on offering a good down stroke if he wants to back the paper.  Owner financing opens you up to more deals.