All Forum Posts by: Tim Watts

Thanks Allan.  I did not type my post out well... I was aiming to be all in at 40k... so 10-15k in repairs.  You put it well.... too much can go wrong to settle for less.  If I aim at 12%, even a rent increase would not offset the expenses enough to hit 12%.

I could use some help in thinking through a rental property.

Duplex: both units are 2/1... 1920's yrblt.  Asking price is $40k but might get it for $28k (negotiating).  Some deferred maintenance (paint, roof, interior work when tenants move out). With repairs... lets say $40k into it?

I don't see appreciation in this neighborhood.  Near a university but on the edge where the neighborhood starts going downhill.  A C or C- area.

Numbers:

• Total gross rent is $700 / month... I think this could be at least $800/month, but evaluating based on what it is.
• Taxes and Insurance $110/mo
• Utilities $80 / mo
• management fees $50/mo (8% management... not to mention leasing fees that I put into the vacancy number)
• repairs $140 / mo. (old building is going to need repairs... is 20% too high?)
• vacancy $130 / mo (I did one month plus the leasing costs)

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• Cash flow $190/ mo if there is no mortgage.

I would really like to BRRRR my rentals... so with a mortgage, it drops down to about $30/mo.  Which is no good

My conclusion: This could be ok if I can get the rents up... but still not a great deal... and I don't like betting on ifs. 

Do you agree?  If I could get it for even less, is there a price point it does become worth it?  Seems to me that rent level and the expenses make this a weak deal.  What thoughts do you have?

Welcome to BP.  There is a lot to research, so start with larger categories and then deep deeper dives as you need more information.  

Listen to the BP podcast.  It gives a broad perspective over many areas, and will introduce you to new ideas.

Start with researching the types of real estate investing and figure out the kind that meets your needs and your budget.

Once you get a feel for the kind of real estate investing you want to do, talk to people, read books, and dive deeper into the subject.

Analyze properties as often as you can.  You might want to get on a real estate agents list of newly listed properties, and you can run numbers on them for practice.  The more you look at properties, and number, you will begin to understand what a good deal is.  You will also discover what you need to learn more about.

Get your finances in order.

Make a plan and do research to help you develop the steps.

Network and start making connections with people in the business.

Key... start taking action. Don't over-research!

Key #2... don't wait until you have all the answers, you will learn as you go.  Learn what you need to take the first couple of steps.  Find people you can go to for answers, and dig in.

Good luck!

Tim

Welcome to BP! 

Hi, I've been investing in DFW for a couple of years and am looking to start working in Topeka.  It is my hometown and I have a lot of family there.  I'm looking for a way to get back home more often:)  

I'm looking for a real estate agent referral that works with investors.  I need to ask some questions about parts of the city and need someone I can reach out to when I get a lead. 

Goal: rentals, flips, and wholesaling single family homes.

I appreciate your help.

Tim Watts

Welcome!  I'm originally from Topeka and my family are still there.  I'm currently down in Fort Worth, TX... so we have a similar path:)  Good luck with the learning.  Keep reaching out for answers.

@Asem 

The truly best way to get away from all contact is to pay a manager to do everything. If you can't do that, then find a standardized process.

There is a great book called Landlording on Autopilot by mike butler.  I checked it out at the library and liked it so much I went a bought a copy so I could go through in more detail and take notes/dog ear the heck out of it.  It was huge for me in looking at how to rent properties like a business.  I don't agree with everything he said, but it was a real help with the question you asked. 

One thing we did was require all maintenance requested emailed in.  I would take those and pass them on to a vendor that would schedule the appointment directly with the tenant, call me with updates or approval to do the repair, and send me the bill.  The other thing was even before you rent it to set expectations about what they should do... training the tenant on how to be a good tenant. 

Hope that helps and is a good start.

Welcome to Bigger Pockets!  The metroplex is huge... while you learn about real estate and the buy and hold strategy, start finding the place you want to target and also start to learn about that area.  Dig in and learn, but make sure you start taking steps that move you forward towards you goal.

Welcome to DFW! Look forward to seeing you around.

-Tim

Texture in general seems to be going out.  Pop-corn as others have said... way out.  if you have a lot of patches and it is not a high end flip, you could do a knock down and they are selling ok here in DFW.  Texture covers some bumpy walls.  If you can, then go flat.