Love Austin Homes Investing Blog

Can anyone recommend a way to do this low hassle, low cost?
I had heard credit unions had some good programs.

Thanks,
Ashley

ANSWER

Ashley,
Home Equity lines are a great way to tap low-cost short-term cheap money.

Wells Fargo has a great home equity line of credit program. They do not charge any fees and usually don’t even require an appraisal (they go off the adjusted tax value, provided it is sufficient).

Wells Fargo will also give you a mortgage on the home after you have completed renovations, so you can cash-out all of your funds (and perhaps take profit on the refi as well). This too is a no-points low-cost loan, and great for homes you plan to keep as rentals, or when you want to get your money out to put to work on another project.

Phill

Large profit on the table! We are completely over extended! 1920
Victorian, 2700 sq. ft. two story house, 70% refurbished. 3/3 w/large
rooms, new metal roof, all new MEP installed except for final
fixtures, original hardwoods in good shape; no need to replace.
Master bath has been enlarged and customized with travertine tile,
deep Kohler tub, etc. Neighboring houses of the same era in the
historic district are selling for $100 - $135 sq. ft. There are a five
additional lots on this 1.75 acre site ready for development. Site
has been surveyed and plans for future development approved by the
city of Bastrop. All permitting and code requirements have been met
to date. Cost to complete renovation $50K or less depending on your
skills and labor contacts. Will sell house and lot as is for $195k or
entire site for $240,000. Call Chris xxx

Answer

Chris,

Not to be picky…but…you caught my attention with “Large Profit on the Table”

If this costs $195K, and it’s going to need $50K to complete, and the cost of sales is 8% or $22K, and the cost of money is 7% or $19K (or much more), and it’s going to sell for as little as $100/ft or $270K, then it looks like this is an opportunity to lose $16K. Where is the “Large profit on the table”?

Tell us why this is a deal. Is the assumption that you are going to get top dollar for it, because it’s a top house? How so? Will $50K in additional rehab get it to a (top top dollar) $365K ARV? Are there a lot of $350K homes in this area? At 2700 feet, is this one of the smaller or larger homes in the area? Obviously bigger homes get less per foot and vice versa. Has this thing been finished out with top quality specifications? Does it have an actual historic designation, or is it just in an area with historic homes? A non-historic home is just a home, after all. Has some of it already been restored (as apposed to rehabbed) to it’s premium historic state? Historic homes can get more $$, because of their restoration and designation, but only with pain-staking restoration.

I’m looking for a deal…

Phill

I was reading on the Texas Rental Laws understanding the eviction process. Step 1) the notice to vacate I had a few questions about. It says there must be written notice that is delivered with an eye witness, certified mail with return receipt, or any other method required by law.

My question is, what if everytime you go to the property with a witness the tenant is either missing or doesn’t answer the door? What if you send certified mail and the tenant once again doesn’t answer the door to send receipt that mail was received?

I supposed one way to do it would be to change the locks on the door, forcing the tenant to get in contact with the owner for a new key, but that’s kind of like a very last option for me.

Anyone has a really successful formula for dealing with tenants who are very late on rent payments enough to warrant an eviction?

Thanks

Andrew

ANSWER

Andrew,

You can POST the notice on the door.

The last time I did this I STAPLED the notice on the door and I took a photograph of it (on the door) with a daily Newspaper and a witness, also in the picture, where the date of the Newspaper could be verified to prove the date the notice was posted.

Phill