All Forum Posts by: Tony Hernandez

Thanks @Shawn Thom. What REI meetings do you go to? The Dallas one looks to be in Irving which is too far for me. What is a "burn out" class?

Thanks @Todd Plambeck. Are there any groups near us here in Collin county? I'm definitely interested in going somewhere where people are talking about the area and what they are able to do. As a newbie myself, just being around folks will help me with the lingo and what's working well around here, things being as hot as they are.

Thanks @Lauren Lockett Same to you.

Hi BP,

After reading the ultimate beginners guide (awesome resource by the way josh and Brandon), I've moved forward with commitment and doing something. I posted on Facebook to all my friends that I was going to start a REI business (commitment) and started telling my personal network in my target market (do something) that I want to help people who think they need to get out of their house and don't want to put it on the market for whatever reason.

My goal is to help folks who have few options on their home and don't have time, energy, etc. to sell retail. Those that do have the time to sell retail I will refer to my agent. The market here is hot and people should get the most out of it they can, in my opinion (this helps me build trust and credibility).

The question I have is, what do I do if I get a deal where I can get the property at a good price (read below retail) and they need to close in less than a week? I'm not a cash buyer. I have a friend with cash but I don't want to involve friends and family in my first deals to protect this relationship?

So what world be good strategies to acquire such a deal?

http://www.dallasreig.com Dallas reig

Anyone here go-to these meetings? Their website looks like I might walk into a sales pitch.

Welcome to BP and DFW, Seth. Check out the podcast. I can't stop listening!

Thanks @Brandon Turner. I'm enjoying all the podcasts and the UBG!

Anyone else here working in the dallas, richardson, allen, mckinney, dfw area? How would I connect with those folks?

Hi BP,

I found this site when I emailed our company email list asking for advice on being a new landlord. Someone recommended I check out BP and I'm glad I did.

My wife and I have 9 kids, 5 we brought into the world and the other 4 are a sibling group from foster care. I am very blessed with my current job but after we adopt the 4 kids we will have to make up the shortfall from the government subsides we'll lose. I've dreamed of owning real estate as an investment since college and I think now is the time.

We've owned several houses that we've lived in and fixed up for our needs and wants. When we've gone to sell them we've been blessed with great returns. So we're thinking we might do OK with fipping.

My realtor and friend recently told me about a duplex he was listing. I got interested and put an offer. My real estate dream has always been to get passive income through rent houses so I was excited that I was actually at a stage in life where I could afford to buy one. 

But then I found BP. I used the rental calculator and realized that I would be tying up my money in something that might only get 6.5% ROI. I talked to a friend of mine who has owned rentals as well as posted the deal on BP. The consensus was that this deal wasn't that great. It was hard to sign the paper that terminated the contract but I'm feeling better about it the more time I spend on BP.

So i'm looking for looking education and wisdom. We're not sure if we'll pursue flipping or buy and hold but it will be somewhere in the north Dallas or Collin county areas.

Thanks,

Tony

Thanks for the input. There isn't any immediate equity. I would be speculating on anything in the future. Also the taxes are based on an appraisal of $120k so I would probably see my taxes go up after the next tax appraisal. They are 2 bed 2 bath units and they are selling at market price with backup offers. A bit too hot for my first go. 

But I did get to spend my own money to buy the seller an inspection! :-)

thanks everyone for the input. I decided to poss on this deal. I still have a lot to learn and I didn't want to tie up my precious capital in a small returning deal.

Sorry for the spam. I posted to the wrong forum and I don't know how to move a post. I've reposted this in the deal analysis forum. 

Hi all,

I'm very excited to be a new member here.

I'm into the option period of a duplex in Garland, tx. The 2 units are platted separately so I have to get 2 separate loans and do 2 separate closings. The good thing about this is that I can sell one off if I want to later but for now I have to get 2 of everything.

Here is the deal just for one unit (the details are the same for both):

• Purchase price: $95,000
• No repairs needed (current owner is taking care of the big things found in the inspection)
• Current tenant pays $925/month
• Assuming 5% vacancy and CapEx
• Assuming 8% repairs
• Insurance is $95/month
• Taxes are $153/month

With a conventional loan of 25% down and a rate of 4.38% here is what the calculator gives me:

• NOI: $6,128.48
• Monthly Cash Flow: $154.97
• Total Cash Needed: $28,590
• COC ROI: 6.5%
• Pro Forma Cap: 6.14%
• Purchase Cap: 6.45%
• 50% rule monthly cash flow: $106.76
• Income-Expense Ratio (2% Rule): 0.93%
• Total Initial Equity: $23,750.00
• Gross Rent Multiplier: 8.56
• Debt Coverage Ratio: 1.44%

Is this a good deal?

Also, one of the units was remodeled with new floors and appliances but is currently vacant. Seller had a tenant that wanted to move in for $1049/month but they would be bringing a german shepard. I'm not a fan of those dogs. I've seen what they can do. Not something I want on my first rental property. So I asked them not to do that. But maybe its a good sign on what rents could be?

The other unit that is occupied could use some updating when the tenant leaves but I don't have to. And the current tenant owns the fridge so I will likely need to buy a new one.

Thanks everyone!