All Forum Posts by: Tamara Deering

@Jessica C Molloy

I have been analyzing deals for a client in San Antonio for the past month or so. At your price point I think a BRRR is absolutely the way to go. I'm not saying go crazy on the amount of rehab that needs to be done but there are upgrades and repairs that don't require much experience to complete because there are so many pros who do them that scare other people away. The two that come to mind here in Texas are foundations on a post and beam home and HVAC.

As for where to look in San Antonio, I'm intrigued by Denver Heights and the opportunity zones, especially for a buy and hold investor.  Keep in touch and let me know how it goes.

I would suggest looking at the neighborhood adjacent to where the hot area is now.  Typically, people get priced out of a gentrifying area quite quickly but still want the amenities of the area, if you are adjacent you may be able to catch the next hot market before it's too hot to afford. Also, if you can get a property in an area that is up and coming but needs more work than in a waiting to gentrify area buy the one in the better neighborhood, you are generally better off buying the worst house in the best neighborhood if you are looking for flip profit.  If you are going to buy and hold you can select a neighborhood that is about to hit but hasn't yet to maximize your profits.

Heat and Air Conditioning can be difficult.  You will need to insulate the space.  You also want to design the space so that it doesn't feel like a garage.  Make sure your windows and doors are adequate to provide emergency exit.  You need at least two means of exit from the space if someone will be sleeping in it.  Also, you will need a kitchenette, small appliances cost more than large ones so try and layout the space in a way that you can fit an apartment size refrigerator and a full size range in the space.  Also, if you have the ceiling height you may want to consider a sleeping loft arrangement.  Check out tiny houses on pinterest for layout ideas.

The prep work takes the longest time.  If you spend the time covering everything you don't want painted really well, including cabinets, moldings, doors, floors, etc.  You can use a paint sprayer and knock out the actual painting in a day.  It will take several hours to ensure that everything is masked off properly so you don't make a mess.  

Yes, paint makes a huge difference.  I typically do all of my own painting because I'm not pleased with the contractors I hire.  I don't use a paint sprayer and I've done enough painting that I don't have to mask but it takes a day to do a room or two.  If you have seen the work of the painters who can complete the work for less than $3,500 I would pay them.  

The company I work for does not take online payments.  Customers can be give the checking account number and routing number and pay directly but that is the extent of it.  You can use something like Venmo or Zelle if you'd like to smooth the process.  Draw payments are normally made through a wire or ACH payment.  Accounts are tracked in quickbooks.  As for background checks and credit checks you will need to go through specific companies for that.  We use Trans Union for background checks and a Creditco for credit checks.

Your first order of business it to make sure your 1 bed, 1 bath is rented.  Alternatively, have you considered moving into the 1/1 and renting the 2/1 for more rent or getting a roommate so that you don't have to get a second job?
Next, I would recommend that you start wholesaling as a way to generate cash.  Start looking at the properties in your complex, are there any rentals that are vacant?  Or units that have been for sale for a long time?  See if you can solve those owner's pain points and get a property under contract.  Once you've got a bit of cash built up you can move onto fix and flip or a brrr strategy to improve cash flow.

Best of luck to you and congratulations on your first rental property.  Way to go.

If you are planning to wholesale then I would recommend driving for dollars.  The foreclosure lists that you will find at the courthouse have already been purchased and these people are inundated with postcards, yellow letters, etc.  

What is your current living situation?  I think the absolute best way to get into real estate investing is through "house hacking" and specifically finding a house that needs updating that qualifies for a low interest loan or look for a seller financing opportunity, move in, maybe get a couple of roommates fix the place up and in two years you can sell the house and take up to $250,000 in profits tax free and buy your next place or you can keep it for a rental.