All Forum Posts by: Zachary Ware

I would advise you to do it slowly. I minor increase each year is a lot easier to stomach than a 20% increase though it does depend on your circumstances. If your taxes go up by $2400 in a year and you need to increase your rent by $200 make sure comps are in the same range, and be prepared to find a new tenant. 

It really depends on who perspective you are looking through. As an investor, you should value the property based on your current target return. If you have certain IRR metrics or $/unit/month, etc. But make sure to consider that an appraisal will value anything with 2-4 units based on sales comparables. You can also get an appraisal to add a 216 form in the appraisal which will provide their opinion of market rent but the value will be derived from comparables. If the deal works for your target returns, then I would move forward. Of course, you should still look at comparable properties to make sure they aren't drastically different than what you are paying. If the property appraises for much less than you are buying for, a lender will often use the appraised value for LTV, not the purchase price.

Hey Trevor,

I do not think this is the worst idea and can provide a range of rents you can get but seems like too much work when there are better options. If you post and get a lot of responses then you know its too cheap. If you post and get no responses, you know it is too expensive. Then will need to try and find a sweet spot in between. I would echo others that looking at comps and getting rent reports from third-party sites will be much quicker and likely more accurate. 

Best of luck! 

Congratulations! Glad to see the Non-QM lenders coming in for the rescue.

 Great idea. I have met many experienced flippers at local meetups here in ATX. 

I am really paying attention to the possibility of rising taxes and property insurance here in Texas. These seem to eat into the profits of so many deals right now. I am seeing property taxes being the biggest expense by 2x on properties I am looking to self-manage.

Hey Wilma,

I would advise to work with some brokers. You might have trouble finding ones that concentrate on this size as many will be agents looking at 1-2 and multifamily brokers will be looking at larger deals. But if you can find a few and let them know what your buy box is, they will be able to supply you with up-to-date market information. You might have good luck connecting with some agents through the "Build Your Team". I am currently reading the "Best Ever Apartment Syndication Book by Joe Fairless" and there is a great recommendation to underwrite 200 properties in your target market to help gain insights on the market and find potential sellers. You can put a spin on this and analyze recent sales. This may be more time intensive than working with a broker but will provide you with a lot of insights and even possibly some owners who are looking to sell. Another way to get accurate cap rates would be to speak with property managers in the area. They will have good insights on cap rates and also can help you get good ideas for what assumptions you should be underwriting. 

Goodluck and I hope this helps! 

Hey Conner,

Are you looking to invest in TX or any specific markets?

I agree with others here. Do not rush into investing until you have built a strong base. You should have a great handle on your own finances before you start to handle the finances of a business. Paying off bad debt, especially credit cards can be on the the best returns you can get. Building your credit, paying off debt, and gaining confidence by handling your own finances will go a long way once you do start buying properties.

Truly the 8th wonder of the world.