All Forum Posts by: Will Pritchett

^ This is the best comment I've read in a while.

I agree that 3 years without investing is wasted time.  Also, those tax-free gains are gold with owner-occupied houses.  Or you can keep it as a rental when you move to God's country. (just kidding, Houston)

@Shanair Mills We have had success renting houses in the area around 1604 and 90.  I haven't bought new for this purpose.  I look for an opportunity to create value by improving neglected properties that I can buy at a discount.  This is more difficult from a distance but not impossible.  Our houses inside and outside 1604 from 90 to Potranco have always had plenty of applicants.  We have great tenants.  Hope this helps a little.

Best of luck to you!

@Josiah Sia some great advice has already been given here. The heloc is an awesome option. And you don’t have to be paid off entirely to use it.

In regards to the initial question; I bought my first few rentals needing cosmetic rehab, using traditional down payments. A few years later I refinanced them and pulled all my down payment money out plus some equity from appreciation. I considered this a slow BRRRR. It worked great. Best of luck!

@Jessica C Molloy I have a great lender who understands investment property loans. PM is you want her info. We have seasoned for six months. Generally that's the rule I've heard regarding conventional loans lately. BRRRR works. Even when not perfect, we have purchased property with way less capital than we would have with a traditional purchase.

We don't have one source but we're on a lot of wholesale mailing lists. We do some marketing too. We like a lot of areas of town for sfr rentals. Preferably working class neighborhoods. One story over two. Small 3/1 or 3/2 over large with same room count. ARV under 160k or so. We find great long-term tenants in these types of areas.

I hope this helps a bit. Definitely would suggest you have some reserves before doing any strategy. But we like buy and holds in San Antonio. Best of luck!

@Nathan Gruetzmacher I think Victoria might be an interesting market. I would assume less competition than in San Antonio. I agree that this is a marginal deal. But I would make the offer you are willing to pay or you’ll never know. And I’m not a big fan of getting in the habit of swinging hammers. Sometimes it’s just false economy when finding a good contractor would cost a little more but get cash flowing sooner.

Good luck getting started!!

@Diana Frasier will you be living in San Antonio too? We have great tenants and have found that after developing systems; it takes very little time to self manage. I can turn a wrench but I never do on rentals. We always hire the labor out. If you aren’t interested in management yourself, I’d hire a company but I think people overestimate what all it entails. Screening on the front end is critical. But there are tons of tools available for that.

Best of luck

@Lucas Lopez I agree that Alamo REIA is another good place to learn and network. Also check meetup.com and Rick Pozos' and Seth Teel's (both on BP) meetups. As far as estimating, it does get easier with experience. I agree that hiring a contractor may be helpful to start. Counting screws is probably not the best use of your time. I make estimates and factor in a margin of error of 15 percent.

Some people use a price per square foot based on level of rehab. This could be something like ten dollars per square foot for cosmetics up to 30 plus if systems like AC, roof, or foundation are being done. These are example numbers only. BP has a book on estimating rehab costs. Might be a good place to start.

Best of luck.

We've done both in the past.  When I need to make a fast offer, I will skip the inspection.  I am usually offering low enough to cover any unforeseen issues.  We like to use a laser level to get an idea of foundation settling etc. and we are pretty thorough but by no means to the level of detail of a licensed inspector.  If the foundation is off much, I may get a foundation bid before making an offer.  These can be costly repairs.  If we plan on foundation, we offer assuming broken plumbing.  

Best of luck.

@Account Closed I recommend attending all the networking events that you can to meet the independent wholesalers in town. Check out Alamo REIA and all the groups on meetup.com. Best of luck!

Hello @Brant J., where are you looking? Are you looking at MLS deals? What price points? The deals are tougher to find but they are out there. I'd keep looking at real estate but it's not for everyone. Are you analyzing deals with cash purchase figures or using leverage?

Do you like rentals or owner finance or flips?  We like rentals in working class neighborhoods.  Let me know if I can help.  Best of luck.