All Forum Posts by: Roque Miranda

Like @Matthew Paul says, the Contractor should always provide a State-specific Contract - for his own sake if nothing else. If you want to waste time getting it reviewed by your own attorney, go ahead....

As a matter of fact, if a GC does not have a decent contract, that would be reason enough for me to look further....

Good afternoon @Roque Miranda, 

Id like to take a look at what you end up with in terms of #rehab contractor agreement or contract. 

Probably too late for these 2 duplexes currently in rehab, but going forward Ill probably need something more solid,.

Thanks!

Sara

Hello everyone, 

I am looking to purchase my first investment property this year and am having some trouble deciding on a market. I know to look for areas that are landlord friendly, have population/job growth, limited seasonal/environmental issues, high rent/price ratio, and areas within my budget (under $200Kish). However, my issues run into seeing a few markets that look good and then I can't seem to finalize my decision on which is better or where to really focus my time searching. So far I've been interested in Cleveland, Columbus, Birmingham, and Memphis. 

Am I missing anything in my criteria? Does anyone have a system they use to filter through the endless available markets and narrow down your options to something a bit more manageable? Any words of wisdom are welcomed too!

Hey Roque, 

To safeguard your interests effectively, I recommend consulting with a lawyer to draft one for you. The last thing you want is to inadvertently overlook or forget crucial details, potentially leading to complications down the road.

The contractor usually provides the customer with a contract 

 If you decide Birmingham is a market you would like to join I can assist you. I started out 20+ years ago appraising then transitioned to investing. I have an agent license as well.

A couple of things about Alabama in general

Be wary of wholesalers. They typically pay too much for their deals, especially if they are wholesaling from out of state for the same reason you stated...prices are all over the place. One of the reason prices are all over the place is many local investors/turnkey providers sell to OOS investors above retail at the 1% rule. The local investors are buying for the lower prices then selling to OOS investors and/or holding for their own portfolio. That will have a lot to do with the discrepancy you are seeing in price.

Treat every market you go to with the same principle as the game monopoly. Every city will have a St Charles Place & a Boardwalk. An easy thing you can do is google street view maps. If you're interested in a property, pull up the street view & drive around the area from your computer. You will get an idea of the area, are the yards cut? how many houses are in good condition? etc. It's always a good idea to visit a city before you pull the trigger to purchase your first property. It's equally important to work with honest people that will be transparent. There's a lot of money on the line in RE. At times, it makes people do less than ethical things.

Section 8 in Alabama is easy. It's good you have a meeting scheduled to learn about the program. You will find out, the approval as a landlord is easy. You find a property you want to rent, get the voucher from the participant & send it to the housing authority. They will give you a new landlord package at that time & approve you upon receiving it. You always want a participant the housing authority pays 100% of the rent. It can be difficult to collect tenant portions at times. The rent from the housing authority will be a direct deposit on the first of every month. Every house that is approved will need to meet FHA guidelines. Make sure your contractors are familiar with FHA guidelines, section 8 inspections, & the housing authority inspectors. It will make your life much easier.

Additionally, have your lender ready before you buy. Have a back up lender as well. The price point for section 8 rentals is lower than many lenders allow. Do not get stuck holding because you can't refinance if the value comes in less than their threshold. Most lenders are looking for at least $80k to finance/refinance. 

Finally, have your PM screened, double screened, & triple screened before you sign a management agreement. Many investors lose money due to the PM. Check reviews online, etc., to see how far down the rabbit hole they are willing to go. It's also a good idea to randomly call to see how responsive they are on a regular basis not when they are trying to get your business. 

If you have any other questions, feel free to reach out

Hey Roque - 

The BiggerPockets community can definitely help ya. Let me ask a few more questions that if you expand on will make the trip one of the most valuable investing trips you've made to date. 

1. Have you identified any particular neighborhoods or types of properties in Montgomery that you're considering?

2. What specific aspects of Montgomery's real estate market are you most interested in for your BRRRR investments? Have you thought about Birmingham, Alabama as an investment market? Birmingham has been one of the fastest-appreciating cities in the South

3. What kind of local resources or experts are you hoping to connect with during your visit?

4. Are there any challenges or concerns you have about investing in Montgomery that you'd like advice on?

5. Could you share what steps you've already taken in your BRRRR journey so far, and what your next steps are after visiting Montgomery?

 Awesome!! Would love to connect with you as I am originally from the area and can point you in the right direction with refis/buy and holds. 

Hi Roque - Montgomery is a great spot. If you have time, Huntsville might be worth to explore as well. Is this going to be your frist BRRRR?