All Forum Posts by: Vic Reddy

@Bueal George - I know this property in Rowlett. Rentals are very strong on Hwy 66 due to high traffic counts and proximity to Rockwall & George Bush Hwy. Rents are $20-$28/sqft NNN on Hwy 66.

Things to consider - 

1) Traffic counts ~23vpd, demographies and median income in 1-2 mile radius.

2) Dalrock Rd does not have much retail/office in this area (except near I30). Neighborhood stores like pizza store, convenience stores etc may work. Dry cleaner would be a good fit but there is one next door :(

3) Most likely you will have to renovate/re-model to suit multiple tenants. 

PM me and we can further discuss. 

@Jason Griffith - Do you plan to be an active RE agent for buying/selling for ur clients or part-time just for your investments? Do you need leads or have a good sphere of influence?

I would recommend to go with national brokerages if you are looking for training and leads in your first year. You will have monthly overhead on desk fees and your commission splits can be 50-50 to 70-30 with big brokerages. Once you are comfortable with a few transactions, you can move to a flat rate brokerage. With Flat rate brokerage, don't expect to get leads or much training. The best thing is that there is no monthly overhead and you pay a fixed fee per transaction. As the saying goes u get what u pay for :)

PM or call me and I can walk you thru all these options as I went thru the same thing few years back. Good luck !!!

Do u plan to self manage or use property management? PM can handle day to day tenant issues. Tenant lease agreements have clauses to cover issues u mentioned. I don't think there is a clear cut answer as each has pros & cons. Both SFH or MFH have issues and typically MFH cash flow better. In a strong market both appreciate and SFH have bigger buyers pool. Many of my investors started out with SFH and moved on to MFH after few years.

@Rahul Bhatt  - Is this property managed by the Seller or Property Management? I prefer properties managed by Property management as income & expenses are better documented.

Generally in the LOI, I always ask for the following before going under contract

1)  2-3yr income statement (P&L with all income & expenses)

2)  Current rent roll with monthly rent payment dates (to see late or pending rents) and  lease start/expiration dates

3) 2yrs Tax returns (K1 or Schedule E)

4) Seller Disclosure on the condition of the property with upgrades and current known issues

All these need to be signed by the Seller. 

Sometimes Sellers aren't willing to share all or some of these docs and I tend to be more cautious.

@Jeff Banky - What did you end up doing in Texarkana?

You need to provide more info. Are there any know repairs or differed maintenance items?  Is the Seller offering credit for repairs or Seller wants higher price to do repairs/upgrades?

@Asad Shaikh - We did a similar deal with a builder charging 10% fee and the listing agent only charged 4.5% listing fee (Listing agent 1.5% and Buyer agent 3%). This way you are keeping project costs low with both bringing your expertise to the table for maximum ROI

Another thing we ran into was that some Builder line items costs also had some margin and they were making way more, apart from their fees. Its better to have an idea on construction costs per line item.

Are you going to compete with national builders in the area? As a local builder you need to provide excellent finish out in the price range so that buyer wants to go with u vs a nationally known builder.

I do agree that modern finishing costs more but there are some items like Stucco vs Brick vs Stone where the price difference are minimal.  Select appropriate features in the price range and you can still build in your budget

Keep us posted on how this goes. Good luck !!!

@Juan Rosado - I saw this Duplex on MLS. I would expect rents would be ~$750-$850/month. Check this property on Trulia which show crime stats on the Map.

Schools 4 miles away do not matter much as this Duplex will feed to assigned schools.

From the photos, looks like the Seller did some rehab and is now selling AS-IS.

I would recommend to contact the listing agent or your realtor and get income statement (rent roll + expenses) for last 1-2yrs and Seller Disclosure to know the rents and current known issues. Also, check if the Seller is open to FHA loan. Generally Sellers prefer all cash on such deals to avoid lender appraisal & repairs issues.

Call the County & City and they should be able to guide u. I think  City may have to approve the new name and County tax records may have to be updated.

This is not possible in our MLS. Our MLS does not even mandate to list owners name on the listing