All Forum Posts by: Wyatt Franta

@Samuel Smith I would recommend researching states with similar growth and observe the housing market from when population counts started to increase. You can google something like "(Denver, San Diego, Seattle, etc.) population growth" and it should provide you with counts from 2010 - Present. You'll be able to see when housing prices started appreciating, and where they're at currently. You can then find a census that aggregates the average home price over time and compare the correlating data points (Zillow is one source that provides that information). This will give you a an idea of Huntsville's potential market growth.

So while others may shy away from new construction because they don't know what's going to happen, you can approach your situation with relevant data to make an informed decision. Remember, Huntsville, Alabama is far from the only city/state to experience expansion on such a scale. 

At the end of the day, regardless of your findings, what @Joe Villeneuve said is correct. Either the numbers will work, or they won't. It's up to you to determine your risk appetite.

7% + APR? That seems pretty high.

I've got a broker I can connect you with in San Diego to compare rates with if you'd like his information.

Hey Michael,

Just saw something I'd like to double-check with you. The $950 in taxes, is that accurate? @ $120k assessed value, you're currently projecting a 0.79% property tax rate. Your other numbers look realistic, $3,000 in operating expenses did seem low at first, but I saw your follow-up response to @Kevin Zolea and that does seem like a fair assessment. 

Something is definitely wrong here. 10-year ownership -> gutted/incomplete work -> wants to sell off-market (possibly to save broker fees & minimize losses?)

If you know any contractors, walk the property and get experienced eyes on this thing. For the sake of having a glass half full, this seller may have encountered a minor problem that scared him and he hasn't touched the property since. But, why not sell it within that 10-year hold period? That part makes zero sense to me. He's burnt money gutting the place, and he's been keeping the fire going ever since. I'd begin asking questions like:

"Why was this home gutted & then left incomplete?" , "What were you planning to do with the property?" "What motivated you to finally try & sell this property?", etc.

@Greg Morris is more than likely correct here, but making an assumption you never follow through with verifying yourself will keep you wondering "What if?".

Good luck, I hope it's a hidden jackpot.

@Samuel Smith That would depend almost entirely on your belief in the market. Buying near new construction can increase property values as long as market demand or "Market Absorption" is there to purchase or "absorb" all of the new construction taking place, and then some. Unfortunately, I can't give you a range of costs associated with purchasing & rehabbing a property in Alabama as I'm based in CA. However, I would recommend that you bring whatever you purchase up to market standards in order to capture strong rental tenants to live/maintain the property for you until it's time to sell. 

Hey Paul,

The answer here lies within your plans in the real estate business. Anaheim has received a lot of investment dollars in A-Town, Downtown Anaheim, and into the ARTIC Metro to support the job market in & around Irvine. If you believe property values & rental prices in Anaheim will continue to rise long-term (or align with your real estate goals) because of this, and you can see yourself holding an out-of-state property, you may want to hold onto the property and rent it out.

However, if you believe the market is currently near the peak and want to consider selling the property, get a net closing sheet from a local Realtor or local title company to get an idea as to what you'll walk away with after all is said and done. 

Ultimately, there is no right or wrong answer in this situation, it comes down to what will work best for you in the end.

Hey Samuel,

I'm familiar with Huntsville. I was looking for a local investor in California several months ago when word first broke that the FBI was developing their new headquarters, plus the hefty investment in the local football program out there.  

You're going to have a tough time finding "good looking" numbers in a red hot market as everyone is willing to pay a premium to get in. Take a look at it from an alternative perspective; how is appreciation on an annual basis looking out there? Have homes jumped in price recently? A good plan may be to buy a property and play the long-term game, similar to what investors have been doing in CA for years.

If you think you can cash-flow plus generate a decent annual appreciation rate, it may be worth just buying something at a tighter initial ROI / COC.

Find every investor on the planet looking to invest in Texas and send them a message asking if they're looking for a renovation/development/flip/whatever it is deal at the moment. 

"Sure, what's the deal?"

"Address, specs, condition, price" optional: "Current market rents are ()"

Real estate is a game of endless networking. Keep whoever responds to you in a CRM database somewhere, those are the people looking for their next deal.

Good luck!

Hey Isaiah, 

I'm your neighbor in the OC area and I've been working in & out of San Diego for close to 2 years.

Although I can't help you directly without knowing more information, I can tell you that Winchester rentals within the past 6 months have the following timeframe statistics:

51.6% were rented out within 30 days,

77.4% were rented out in 45 days,

83.8% were rented out in 60 days,

100% were rented out within 120 days

DM me if I can help answer anything further for you,

And good luck!

What @Dean Carter said.

Get a Natural Hazards Disclosure (NHD) report on the property and see what's going on what that land. That trailer could possibly be built on the only 1,300 square feet of habitable land available, and the rest could be marshland. 

Also, would this deal's HBU be a fix-flip? Could you potentially purchase hold the property for the long-term until you connect with a developer looking to build in Arkansas? Land is the one commodity no one can produce more of. In CA, we've discovered just how crucial land is given how everyone needs a place to live and we're quickly running out of room.

That's just my hypothetical opinion/thought, of course.