All Forum Posts by: David Shapiro

Great tips @Michele Fischer

@Megan Aldridge I would do upfront Pet Fee and Pet Deposit.

Instead of $25/mo charge $300 upfront pet fee. That way if for whatever reason they don't stay through their lease you end up with a little more money. In addition get another $200-$300 pet deposit.

It's different from state to state but just because it's labeled "Pet Deposit" doesn't mean you need to use it on pet specific damage. You can also use the regular security deposit towards pet damage. If you have a month's rent + $250 pet deposit +$250-300 pet fee you'll probably be ok. Pets (or humans) can always do more damage than that but the market in your area may not bear much more.

I agree that if the numbers work you should keep it. Seems like a good excuse to get your first rental property.

Welcome to BP and Austin @Jennifer Kennedy!

There are several good meetups in town and lots of great people!
I agree with Nasar and I'm also happy to share what I've found as well.

Good ideas from James and Gonz.

@Edward Carlin Taking advantage of owner occupant loan programs is a great idea. Just make sure it's a good investment if you aren't living there. I like to run my numbers as if I'm renting out all of the units and consider myself a really good tenant :)
If managing the property yourself is a concern you can always hire a property manager, but I think it's a good learning experience to do at first, and nobody else will care for your interest like you will. There are a lot of technology tools these days that make it easier, like Cozy.co.
I would still put Property Management fees in your calculations and essentially you'll be paying yourself for operating the units until you decide to outsource it... and don't forget vacancy.
Have fun with it!

Welcome to Austin!

@Jim Robertson I went through one in Austin a couple years ago. It's pretty quick. I remember posting a couple notices. I hired a property manager to handle some of the things I didn't have time for and she sent the damage overage to collections. She might have charged me $250-500 to handle it, I don't recall. I did show up after 30 or so days when the constable knocked on the door and made them vacate.

Welcome @Matthew Vitlin!

Since @Guy Gimenez introduced the idea, I'll second it and recommend the event he hosts in South Austin. Search meetup for "Partnering to Prosperity".

@Chris Leininger did you get an offer in on W Wind Trl the 2nd time around?

I agree with @Andrew Campbell that most properties I've seen recently won't cash flow from the onset. When I say cash flow I include vacancy, estimated repairs, management fees, etc. With this specific fourplex if you've walked it you know it's a project. Add the additional time, capital, and risk to renovate and I'm not sure why people are offering 260k. By my estimation they're cost to get this renovated and leased up will be about market value. If I'm going through that hassle I want some serious equity.

Yes. I haven't spoken to my FNMA lender about specifics because I don't have a property in the pipeline that fits my criteria as a place I would live, but as my life situation changes I might move and I'm confident I'd be able to get another owner occupied loan. As mentioned above there are portfolio lenders who don't need to stick to FNMA guidelines because the keep the loan on their books. Under 10 loans there are at least those two options without getting creative (seller financing, private money, etc.).

@Nazz Wang has some really great points. It's hard to know where you'll be and what your desires will be even 5 years from now. You know what you want now for yourself in 5 years, but things change so in 5 years that may be quite different. I agree with her that it's great you are starting young.

Take it one step at a time, get your first one and make sure it has solid positive cash flow then take it from there. I'd be happy to talk further over the phone, I'll connect with you.