All Forum Posts by: Joe Scaparra

@Steve Tom,  You have a good question.  If I read your question right, tenant cost to repair property  exceeded deposit.  Can I use the Pet deposit to help cover the cost.  I would say yes, you either take it from the pet deposit or send them a bill for  the remaining cost of repairs.  One could also logically conclude that pet hairs contributed to the clogged air filters ect.

Now for the future, may I recommend you Quit Charging a pet deposit!  Instead Charge a non-refundable PET FEE!  I charge $300 per pet.  Most if not all apartment complexes charge a NON-REFUNDABLE PET FEE, and some also charge a monthly pet rent.

Hold Up, NOT SO FAST!  First let me say I am not a lawyer so this is for informational only!

However, let's review the facts.  Walk thru completed but expectations were not met.  Landlord took more than 30 days to give a detail report of the deposit.  Yes in this case the landlord opens himself up to 3X penalty!  However, if the landlord sent a check for the balance AND the tenant CASHED the check, I think that might be deemed acceptance of the return of deposit.  IF so the judge may dismiss the case.  However, if in fact the tenant has not taken possession of the balance of the deposit then the landlord will be held to the 3 X penalty.  This is also predicated on the tenant providing an address to the landlord in writing as to where to send the deposit.   The 30 day requirement does not begin until the landlord has received the forwarding address from the tenant in writing.

@Abiola Bakare, Hi!  It is difficult to give you sound advice without knowing much about you.  I would recommend you use the profile page BP.  It will allow you to tell everyone a little about yourself, your real estate experience, your Goals and Why you invest in real estate.  If you need an example, go to my profile page.

With that knowledge, I can then give you better direction as to where, what and how to invest with real estate. I don't have a good understanding of your desires or what you are seeking. What are your priorities in terms of capital appreciation vs cash flow. What type of properties are you seeking; SFH, Condos, Townhomes, Duplexes, 3/4 plex, ect.

I certainly have my bias and would love to sit down with you if you are in the Austin area or possibly a phone call. Usually my time spent with newbies last a minimum of 1-2 hours on our first meeting (either in person or on the phone). I mentor several people, mostly those who are just starting out. It is most important that you have a clear understanding of the type property and the strategy you want to use (FLIP, LONG TERM BUY AND HOLD, STR, MTR).

My specialty is helping people come up with a goal and their why.  I am a CASH FLOW priority investor.   My ultimate focus is not how can I get you rich quickly but rather, wealthy over time.  I am 68 yrs old (semi-retired).  My end game is to show you a path to financial independence, whether that be at 45 yrs old or 70 yr old.  If this is something that interest you, then I think I could be a good resource for you. 

Lastly and before you think I am going to sell you a training program that cost thousands of dollars.  I am not!!!  Nor am I going to try and make a commission selling you real estate or lending you money.  I am neither a real estate agent or mortgage lender.  I have no conflict of interest.  This gives me the opportunity to tell it like I see it.  Some of my advice you might quickly embrace, some of it you might not want to hear it........I don't know but if you want to build wealth, my advice might be helpful.  

My advice comes with the cost of a cup of coffee or lunch.  Unfortunately, usually when people get something for free they don't value it.  I like providing some guidance, it is up to you to embrace it or not.   Cheers.

@Ryan Edwards, Howdy and welcome to BP.  I am a local investor, check out my profile.  I am neither a real estate agent nor am I a lender.  However, I am an O'ld Fart that has some experience in small multi-family investments.  

I would be happy to sit down with you and impart some of my knowledge that I think you will find helpful. I mentor several people and I spill my guts for the cost of a cup of coffee.  If this sounds interesting to you, hit me up with a direct message and we can set up a meeting.  

Also, I recommend using your profile page to tell us more about YOU and your goals and desires concerning real estate investing. Cheers.

Hi Floris,

I have been investing in Central Texas for 25 years. Can give you some of my wisdom over the last 25 years but I am better at talking than typing.  If you want to do coffee or lunch let me know. 

I am neither a realtor or lender nor do I have a thousand dollar training program to sell you.  

What I do have is extensive investment experience (look at my profile).  What's in it for me?

Feedom, to tell you what I know without any conflict of interest.  Why?  Just because I like giving back.  I am a 68 yr old fart that likes to bloviate.  Most people find my bloviating worth hearing. Hit me up for coffee if you want.  Cheers!

Great question!  Since you ultimately want to make this an investment property, would you select this property if you had plenty of money and was going to use it as investment real estate from the get go?  

At the current time you are negative $1000 a month.  That is fairly frugal for living in Austin.  Good for you!  I would rather you find a property for which you could live in and still produce some income.   Like maybe a duplex.  However, that may cost more than you're able to handle.  So I will stay with your current question on this property.  

You need to improve your situation if you change your situation.  You are $1000 negative now, if you are willing to rent out a room while you live in the townhome and you are only out of pocket a $1000-$1200 then I think the move is worth considering.  

I don't like any investment property that has HOA or condo association fees. They eat into your cash flow. Cash Flow is KING! Don't let anyone tell you otherwise!!!!

I could go on for several hours with you on this question but I don't like to type as much as I like to talk.  If you want to grab coffee or lunch I can sit down with you and give you STRAIGHT unbiased advice.  You see, I am not a realtor nor a lender so I have nothing to gain.  Nor do I have a training program that will cost you thousand of wasted dollars.  I am just a 68 old fart that like to give back so if you want some of my 25 years of wisdom investing in properties then hit me up with a direct message.  

There are very few, good buying opportunities in the Austin metro-plex for pure investors.  If you live there and are currently renting, then there still is a pathway to house hack say a duplex and better your situation.  However, if you have money and are looking to buy investment property there are many, many better places to invest than Austin.  Cheers!

I know this is going to come out a overt critical but I know of no other way.

You bought the property in 2017 or 2018? That was 5 to 6 years ago!!!!  You are negative cash flow and you seem to fully rely on your property manager.   Looking back did you know your were going to be negative and did you not grow your rent to keep up with taxes the last 5-6 years?

The one glaring issue for me is that you have a property manager! If I am new to REI and I am after Cash Flow, I am going to eliminate out going flow as much as possible, especially if I am in a NEGATIVE cash flow situation. If you're renting for $2000 a month you could save yourself about $200 per month right there!

I have a property that I may be willing to let someone use arbitrage.  Would be willing to hear their spell.  

East Austin 2 bedroom 1 bath duplex.  One unit considered.

I am sorry to tell you but replacing an appliance for a duplex rental is not that big of an obstacle.  AC issues, roof leak issues, slab leaks, are more daunting to overcome when low on funds.

You are playing Russian Roulette if you start out owning investment real estate with no reserves at all.  Probably should try and delay your buy for 6 months if you can with the seller and save $1000 a month or get a side hustle.  

When you were a baby, you learned to crawl before you walked and you walked before you learned to run.  Same  for investment real estate, reserves are a must before you lay down the deposit.  Cheers.