All Forum Posts by: Kathy Scott

Welcome!

Congratulations, Joseph! Aggieland is home to me as well. It is a great place to be! 

I'm happy to help answer any questions about real estate investing in College Station.

Hi Drew,

Before I became a real estate broker and started my own brokerage, I worked for a company that "flipped" apartment communities throughout the country. My primary focus was flipping buildings in College Station. I learned much about where money was well spent and financial formulas. 

Whenever we could add washers/dryers, we would opt to do so. The goal was often to phase out the laundry rooms with rented equipment. 

DIG DEEP into the rental agreements with companies like Coinmach. The sales pitch is appealing, with the company setting up the new equipment, servicing the equipment, and splitting out the profits; however, the commitment is LONG! It is ten years long, with a 1-year termination notice in writing before the ten years are up. The company I worked for had attorneys try to get the communities out of the contracts, and they can not be broken!

I have worked with owners trying to sell or purchase multi-family properties and those types of agreements transfer with the property. Consider how that might effect the future sale of a property.

The real estate agent or broker who is helping you buy a multi-family property should understand the pros and cons and help guide you through the process of where your money is best spent regarding washers/dryers. The value of the property, the quality of tenants, and your long term goals with the property are all factors as well.

Wishing you the best and I am happy to help if needed.

Kathy Scott

Hi Grant!

Congratulations on your investment purchase! That is exciting! I manage property in B/CS and would be happy to answer any of your questions along the way. Cheers!

Hi Malek

You may have already done this, but I would check with the city of College Station and make sure that the duplex is in an area that allows short-term rentals. Most multi-family streets are allowed, but there are a few duplexes in some areas that are restricted. 

I manage around 800 long-term rentals, but personally own 4 short-term rentals in College Station. I really enjoy the sort term rental business and have had great experiences with the guests. 

The biggest expense for me is cleaning. Besides owning the real estate brokerage, I own a cleaning company, and the supervisor does a fantastic job managing the preparation and cleaning of the properties. I am happy to connect you with the supervisor if you are interested.

Best wishes with your new venture!

Kathy

Derek, the registration for long-term rentals is easy in College Station. There is a one-time fee to register the property and you must confirm ownership and management of the property each year. The STR process is more detailed and includes an inspection process.

I own several STR in College Station and Bryan as well as manage a few others for clients. Several of our furnished homes in College Station are not in the area where STR are allowed by the city. We have had great success leasing the furnished properties for close to STR rates with longer lease terms, such as 6 to 12 months. We have the tenants pay their own utilities, also. By the time you charge a premium rate for the furnished home, factor not having to pay for utilities, cable, internet, and cleaning, your net rental income is close to the net rental income of a STR.

Investment Info:

Single-family residence buy & hold investment in College Station.

Dollhouse STR is located next to the new College Station Police Department, Central Park, and is walking distance to Wolf Pen Creek Park/Amphitheater. Two miles to TAMU. This 2-story, 3 bedroom, 2 bath home has been completely remodeled. Shiplap walls bring farmhouse charm to every room. The kitchen and bathrooms have black leathered granite countertops. Brushed gold and black fixtures throughout the home tie together the modern farmhouse charm. The furniture is solid, nice, and comfortable.

What made you interested in investing in this type of deal?

College Station, TX has strict restrictions against full-time single-family home vacation rentals. This particular home is located within 2 miles of Texas A&M University on a street that allows non-owner-occupied vacation rentals. After purchasing this property, comparable homes sales went up by 50K, making this a low risk investment to remodel and turn into a "themed" vacation rental. Vacation rental done right can bring 2 to 3 times the rental revenue.

How did you find this deal and how did you negotiate it?

I found this property listed on our local Bryan College Station Multiple Listing Service. It had been on the market for some time and was in need of updating.

How did you finance this deal?

This property was listed on the MLS. As a broker/buyer I made an offer to the seller through the listing agent. I offered 10% down and asked for owner financing over 12 years at 3.5% interest rate. The seller agreed and sold me this property along with another property that he was wanting to unload. The seller was interested in earning interest and he had no mortgage on the properties. I was interested in the lower down payment with competitive interest rates. The properties needed remodeling.

Investment Info:

Single-family residence buy & hold investment in College Station.

This darling dollhouse vacation rental is located next to the new College Station Police Department, Central Park, and is walking distance to Wolf Pen Creek Park/Amphitheater. To boost, it is two miles to Texas A&M University and a few blocks from the bus route. This two-story, 3 bedroom, 2 bath home has been completely remodeled. Shiplap walls bring farmhouse charm to every room. The kitchen and bathrooms have black leathered granite countertops. Brushed gold and black fixtures throughout the home tie together the modern farmhouse charm. The furniture is solid, nice, and comfortable. This vacation rental easily sleeps 8 people.

What made you interested in investing in this type of deal?

College Station, TX has strict restrictions against full-time single-family home vacation rentals. This particular home is located within 2 miles of Texas A&M University on a street that allows non-owner-occupied vacation rentals. After purchasing this property, comparable homes sales went up by 50K, making this a low risk investment to remodel and turn into a "themed" vacation rental. Vacation rental done right can bring 2 to 3 times the rental revenue.

How did you find this deal and how did you negotiate it?

I found this property listed on our local Bryan College Station Multiple Listing Service. It had been on the market for some time and was in need of updating.

How did you finance this deal?

This property was listed on the MLS. As a broker/buyer I made an offer to the seller through the listing agent. I offered 10% down and asked for owner financing over 12 years at 3.5% interest rate. The seller agreed and sold me this property along with another property that he was wanting to unload. The seller was interested in earning interest and he had no mortgage on the properties. I was interested in the lower down payment with competitive interest rates. The properties needed remodeling.

David, the property was not off market. The seller wanted more than we thought it was worth. We waited until she reduced the price and then made our offer. It was probably worth more to us than most people, because it's located next door to another property where we were building a home. None-the-less, it still turned out to be a good return for us. We paid $136,000, put 50K into it. Last year, it brought 36K in gross rent. After expenses, the return for 2020 was 17%.