All Forum Posts by: Toben B.

Put some renters in there and season it for six months. Most banks will give you 70-75% of appraised value. 

Just beware the appraisers are all over the map - high and low on what a property is really worth. 

I own 4 duplexes but not in TX. Mine are all relatively low end inexpensive housing so they won't compare to a really nice high end duplex. 

The rent vs purchase price is pretty decent although my experience has been that my duplexes always lose money in year 1 and start producing cash in year 2+. So be aware of this going in. For some reason things break a lot more in the first year I own them.  

Are they 1 or 2 bedroom units? Are they at market price? A duplex generally gets a little lower rent than a freestanding house unless it is really nice. 

Do all the utilities have separate meters for each tenant?

In my experience the duplexes have higher headaches, higher turnover and higher profits than my single family homes.  If you are driving from Allen to Garland all the time, factor in how long it will take to get there because I have to run by my duplexes a lot. It got so bad that I finally handed all my duplexes off to a property manager and manage the single family houses myself because of the difference in workloads. 

I am not scared of big dogs if your insurance will cover a German Shepard, but they will ruin the carpet and wood floors every time.  I usually put ceramic or porcelain tile in the whole house and then big dogs are no problem.  In fact it makes it harder for the tenants to leave as it is generally hard for them to find a place willing to rent to them.  Also get a bigger deposit as the dog may ruin some doors by scratching. Check with your insurance company though as a lot of companies explicitly state they wont cover several dog breeds and German Shepherds are usually on the list. 

Duplexes are great for cash flow after the first year, but go into them knowing they require more maintenance than single family. 

Hello,

After looking at hotel and RV park prices near my local state fair grounds, I wonder if I can get above market rents by targeting exhibitors/conventioners for these events? 

The hotel/RV prices skyrocket around these events and always sell out. 

I am wondering if I can get huge rents via airb2b or some other website if I am right across the street from the fair grounds. 

The site is always full of conventions and special events year round so I would not be limited to the fair weeks. 

Anyone have experience with this?

Thanks! 

Hello,

I have a house we are getting ready to sell and an acquaintance offered to pay cash.

This is in Oklahoma where we pay doc stamps and I can calculate that cost, but what other fees will there be to sell a $95K home for cash? 

Can I do this without a title company?

Thanks

Hello,

Most commercial properties including multifamily are posted with pro-forma statements and unreasonable asking prices.  You can usually get the actuals, but brokers seem offended when you suggest the price should be a lot lower. 

Is there a generic expectation that they will easily take 30-40% off list or some other ballpark number?

It would be good to hear from brokers as well. 

Thanks!

What is an appropriate escrow amount to place a $1.75M multifamily property under contract?

Obviously, I want as low as possible. The Broker suggested $25K which I can do, but I would prefer to offer $10K as it will likely be tied up for a few months.

Thank you,

Toben

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What Cap Rates are you seeing right now?

I know real estate is local and I am in Oklahoma, but I want to see what everyone is getting right now. 

Thanks,

Toben

Can anyone recommend a good insurance agent for multifamily commercial in Oklahoma?

So far I have people who want a part of the deal. No one wants to just loan me money.