All Forum Posts by: Tricia Vitela

@Drew W.

Yes! There is the Lubbock REIA, and you can find out about those meetings at lubbockreia.com

There is also the Lubbock Real Estate Investor Group that meets at Giorgio’s downtown at 12pm on the third Tuesday of each month.

Come on down!

@Derek Brunson

Connect with local banks, establish relationships, look at commercial loans.

I've found that the 25% rule for duplexes usually only applies when I'm putting them in my personal name, not when I'm buying in an LLC. I've found local commercial options that don't require as much down.

$200K for a duplex is a decent deal. You’ll probably at least meet the 1% rule. We’ve seen some of those in NW Lubbock area, built in the early 2000s.

You could partner, but it may be more likely to be a long-term partnership over many deals. If you’re not funding, you’ll likely be expected to be the “sweat equity”.

@Doug Smith

I’m looking for the same thing for the same issue. Right now I’m weighing the Reolink Go, Arlo Go, and the Vosker Outdoor 4G. I want one with a battery pack or solar panel that runs on cellular (not WiFi) and has two way communication. Vosker doesn’t have the two way communication, but looks good otherwise.

I’d like to be able to move it from project to project during construction.

Hi, All! We have recently acquired two properties that are one block in from a fairly busy street, and we’ve had multiple issues with squatters - different people every time. The police have been great about clearing the property for us when we call, but I’d like to proactively deter squatters from even coming around. We’re about to start renovations, and I’m concerned about looting destroying our progress. What are the best strategies you’ve found to discourage breaking/entering and squatting?

@Michael Joseph Allen II I can certainly understand your SO’s concerns. Roommates would indeed reduce the amount of privacy you have. It sounds like you care deeply about your SO’s feelings, and I agree – a couple extra bucks isn’t worth losing someone over. At the end of the day, people are what’s most important. If your goal is to save or stockpile the most money, then yes, renting out the new house might be the best bet if you can leave for cheaper elsewhere (which it sounds like you are). After all, the beauty of real estate is that investors get paid in multiple ways – principal pay down, appreciation, depreciation, etc. If nothing else, it would get you into the game, which is the hardest part for most people. That said, I bought my first house in my mid-20s, and lived in it alone. I won’t lie – it was every bit as awesome as I thought it would be. The property has appreciated significantly, is now a cash-flowing rental, and has a significant amount of equity in it. That said, if I had been as financially educated then as I am now, I would have at least considered taking in a roommate, or “house hacking” in a duplex while living in one side. Not saying I would have done it, but I would have considered it. So, basically, the moral of the story is that you’re in a pretty good position either way. You’re educating yourself, which is AWESOME, and you’re way ahead of where a LOT of people are at your age. You just have to decide your goals. …and maybe talk them over with your SO too. :) As far as evaluating your cash flow, you would probably still want to account for a little bit of maintenance. While the house itself likely wouldn’t need much – tenants in nice houses can be picky. If you’re wanting professional management, 10% is about the going rate in the area. Know that taxes are higher without a homestead exemption. Assuming the property will be in your name (and not in an LLC) – you will want an umbrella insurance policy. Property management companies often require this as well, and want to be listed as additionally insured. As far as determining the going rental rate for the area, know that in Lubbock, we’re in the off-season now. Demand and rental prices typically dip around this time of year. You can get a pretty good guess of the going rate by evaluating rent prices of similar houses from places like Rentometer (or even *gasp* Zillow) and then confirm with a local property management company. Wishing you all the best in your endeavors! Feel free to reach out if you need anything else.

@Michael Joseph Allen II You’re doing fantastic! Congratulations! If it’s a 3/2, why not get 2 roommates and charge them at least $400? You’d be saving more money that way than you’d earn in cash flow, and you get all the benefits of owner-occupied property (homestead tax rates, etc).

@John Claborn my most recent deal was at 5.6%. Closed last Friday. :)

Hi Juhi! In my opinion, duplexes (small multi-family) are quickly becoming inflated in Lubbock.There are several new ones coming on the market near he areas you mentioned. Cash flow can be decent, but exit can be more difficult than with a general SFH. Both Frenship and Cooper ISD are good, but property taxes are higher in those areas, and property taxes tend to be higher in Texas anyway. I hope that helps!

Hi, Matt! We’re in Lubbock too. I came here for school and fell in love with a local. :) Sounds like you have a great, solid background and are positioned for continued success. Do you primarily invest in Lubbock, or other areas in Texas as well?

Personally, I think it’s worthwhile as a deterrent, which is hard to measure. (Unless you were verbally threatened) you may not know that someone was contemplating legal action against you, but decided against it since you’re so well protected. Many lawyers like cases they can win, and may be less likely to pursue a case against a well-protected individual. I’d rather stay out of the courts all together. Even if I won, it would likely take time, energy, and resources ($$$), that I’d rather spend elsewhere. Like the old saying goes, “It costs money to do something, and it costs money to not do something. Often, NOT doing something costs more.”