5 Steps to Fix & Flip Houses The Right Way

Posted on December 17, 2021January 14, 2022 by author

Deciding to purchase a home as an investment property is one of the most important financial decisions in a lifetime. Whether you’re a seasoned investor or a newbie, flipping houses can be a little scary. But it doesn’t have to be! With over 12 years of property management experience, we have learned a few things over the years. Here are five steps to fix and flip houses the right way.

1. Create Your Budgets

Before even shopping for a home, you need to create your budgets. One budget should estimate how much it will cost to purchase the home and close on it. The next budget should account for the renovation. When it comes to budgeting, it’s always better to overestimate and have more money than less. If it’s your first time fixing and flipping, a professional contractor should be your first stop to get accurate pricing. When you work with TALK Property Management, we can help you find credible contractors.

2. Find Fix & Flip Properties

Now that you’ve done the beginning research, you’ll want to continue finding outdated properties to remodel. It requires a particular skill to find these undervalued opportunities, evaluate them, and manage them, so they’re completed on time and within budget. We can handle remodeling on your behalf when you choose TALK Property Management to help you on your fix and flip journey. The secret to finding a good fix and flip property is to find off-market homes and homeowners who are highly motivated to sell. As your REALTOR®, we can help you find these covert opportunities.

3. Make the Right Offer at the Right Price

The price you pay for your property will determine the profit you’ll make when you sell in the future. So if you overpay, it’s likely you won’t make any profit at all. If it’s in good condition, it means you’ll have to do less work. If it’s in bad shape, you can make a fair offer that’s under the market value as you’ll need to put in more time and money to fix it up. It could mean you could have a lower offer accepted. Essentially, the better the condition, the closer you’ll want to pay to market price, and the worse the state it’s in, then the less you want to offer.

4. Hire Contractors & Begin Remodeling

After closing, the property is yours and ready to be broken down and brought back to life! Don’t make the newbie mistake of trying to tackle everything by yourself. An investor is only as successful as their team, and part of your team is your remodeling crew.

In an ideal remodel, you’ll finish remodeling the property in five or fewer weeks. Again, timing is crucial because the longer you hold onto a property, the more it will cost. Because, as the famous saying goes, “time is money.” Make sure your time and money are going to a credible and efficient contractor, so get several quotes.

5. Market & Sell Your Fix & Flip Property

Now that the property is remodeled, it’s ready to go live! Any good REALTOR® will tell you that marketing is essential if you want your property to sell. That’s why you can’t skimp out on marketing your newly renovated place. With TALK Property Management, we run a Comparable Market Analysis to get you a fair rent price based on the current market trends and photograph your property for advertising on social media, the Multiple Listing Service, and our website.

Contact us today if you’re ready to buy your next investment property or need help creating a plan! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

5 Decor Hacks To Brighten Your Home This Winter

Posted on November 19, 2021 by author

Winter is approaching, and you may find yourself spending more time inside with earlier sunsets and longer nights. Here are five decor hacks to help make your home brighter and cozier this winter.

Decor Hack #1: Paint Walls Bright and Warm

For a quick change, consider repainting one of the walls in a room you tend to hang out the most in, like the living room or kitchen. A neutral color with warm undertones will create a bright and cozy atmosphere in the area, and a vibrant color will help uplift a space while also looking great year-round.

Decor Hack #2: Incorporate Live Plants

Bringing some greenery into your home will add color and life to a room. Some of the health benefits of owning plants are lower blood pressure and reduced anxiety. Start with easy-to-care-for house plants that will most likely survive all year long, like a Chinese Evergreen, ZZ Plant, Moth Orchid, and Snake Plant.

Decor Hack #3: Change Light Bulbs

There’s no way around it–winter means less sunlight and colder weather. To counteract the lack of light and warmth, try LED lights. They’ll make your home bright and sunny, and these bulbs emit the most light while using the least amount of energy. Soft white LED lights will brighten the room without an intense contrast.

Decor Hack #4: Let In Light

With what sunlight we do get during the day, embrace it with a curtain change. Sheer curtains and stylish pullbacks are great alternatives for letting in light. If there is decor blocking the window, relocate them to maximize the light.

Decor Hack #5: Add Color

Winter is known for being dark so early in the day, but it doesn’t have to be dark inside your home! Try adding pops of color with colorful throws, pillows, dish towels, or rugs. Warm colors like reds and oranges will add warmth and energy to the room.

If you need help styling your investment property this winter to sell or are wanting to buy a home, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Hot Summer Color Trends for Austin Investors

Posted on July 13, 2021 by author

If you’re looking to spruce up your home for summer or need some summer inspiration for decorating your investment property, check out these hot summer color trends from HGTV.

1. A Touch of Spring Green

Spring Green is a vibrant mix between turquoise and sea green. This color works best as an accent when surrounded by primarily neutral colors. It can be just a pop of color like pillows or larger by choosing a furniture piece with this color.

2. Regal Purple

Regal purple can easily be used all year round for decor, but it especially pops during summer. You can even incorporate outside when you use fresh lilacs or liatris to accentuate the purple in the room.

3. Blue

Blue is a great accent color as well since it can have a masculine and feminine appeal. If you don’t want to commit to painting with this color, let accessories do the job for you. A blue rug with matching pillows and accented table settings is a great option.

4. Sunny Yellow

Mimic the sun’s bright hues with a shade of daffodil to brighten up any all-white room. This color pairs great with white, black, or navy and can quickly transform a space into a cheerful room.

5. Turquoise

We already mentioned blue, but we need to mention this particular shade of blue: turquoise! This color complements mid-century modern furnishing to help give the room a retro, urban feeling. The beauty of this color is its versatility in using it by itself or toning it down with muted hues.

6. Slate-Blue

The opposite of turquoise is slate blue, and it’s also a great color for summer too! While not as bright and cheerful as its blue cousin, slate blue can represent coastal inspiration and ocean waves, making it a hot summer color style. This color works best when paired with neutral furniture and accessories.

7. Yellow Green

If you’re looking for another color to make your home pop, yellow green is the color for you! This bright color pairs well with browns and creams and can be combined with darker shades of greens as accents. Yellow green will add a whimsy, graceful touch to your room.

If you need help with your rental property, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

7 Moving and Packing Tips for An Easy Move

Posted on July 5, 2021July 5, 2021 by author

Everyone dreads moving, whether it’s down the street or across the state, but it’s something we all have to face one some point. But, it doesn’t have to be dreadful! Here are some tips and tricks to make your move easy.

1. Get rid of clutter before the move.

Make your job easier by donating or throwing away items that no longer give you joy, as Marie Kondo would say. This will make moving easier and quicker! So, before packing anything, do an inventory check and purge unused and unnecessary items. Now you have less to pack, move, and unpack!

2. Make a moving folder

Keep all your documents together in a folder to help ease any anxiety and stop stress. Have a hard copy of new addresses, rental or purchase papers, moving contracts, etc in case something happens where you can’t access them digitally.

3. Pack in advance

Ideally, you’ll know when you need to move so you can work backward from the end date and start backing early. We’re going into summer, so you could pack winter clothes now. You can also pack items like books and other once-in-a-while items. This way, there’s less stress and packing to do as the move date gets closer.

4. Book early

If you’re using moving services, renting supplies, or hiring professionals, it’s always better to book early. If you wait, you could pay a higher price or not book the service at all. This is crucial during the peak moving season.

5. Schedule services for new place before the move

Once dates are confirmed, contact your utility providers to schedule services like electricity, water, and heat for your new place. Schedule ahead of time so you can come home to a new functioning home after a long day of moving. Don’t forget to request a service stop at your old place!

6. Keep essentials close right before the move

The night before the move, place essentials like a change of clothes, toiletries, medicine, paperwork, etc., into a suitcase or bag that you’ll have access to in the car, cab, or plane. This way, you’ll always have essentials with you in case of a worst-case scenario.

7. Get a moving truck with a loading ramp

If you’re opting out of a moving service, then do yourself a favor and rent a truck with a ramp. It might be more expensive, but this luxury is worth every penny, especially if you’re moving furniture. It will help save time and prevent sore muscles later!

If you’re ready to move to Austin, contact me today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

10 Popular Decorating Styles for Austin Investors

Posted on June 10, 2021 by author

If you need help decorating or furnishing your property for future tenants, try one of these popular decorating styles!

Transitional

Transitional can be defined as an elegant combination of traditional and contemporary looks. Because of its simple style, it can appeal to people with different design styles. This style featured sophisticated furniture, serene hues, updated classics, and materials like marble and quartz. It works well with coastal or farmhouse styles too.

Traditional

Tradition is a blend of history, heirloom antique, rich woods, plush carpets. A traditionally designed room should feel warm and welcoming. A traditional design style will have antiques, a refined color palette, intricate architectural details, and materials like marble and wood. This style works best with these styles: rustic, coastal, or Mediterranean.

Contemporary

This style is whatever is current and new. This style is the complete opposite of traditional style because it embraces negative spaces, strong shapes, and clean lines. Contemporary style is defined by current trends and designs, open space, and minimalism. This style works best with rustic or coastal styles too.

Modern

A modern design style focuses on form and structure like smooth surfaces, glass, chrome, and black leather accents. This style has an emphasis on ample negative space, a clean color palette, and minimalism. This one works best with industrial, midcentury, and farmhouse styles.

Midcentury

This style emphasizes strong shapes and clean lines and combines the past with the present. Decorate with a midcentury style by having clean, uncluttered spaces, natural wood, graphic patterns, and organic shapes. Modern and industrial styles work best with this one.

Farmhouse

Farmhouse combines rural architecture with modern comforts by utilizing hardworking furnishings and natural materials. This style features wall paneling, sliding barn doors, natural and historic colors, and simple, functional furniture. It works best with modern, rustic, industrial, and transitional styles too.

Rustic

Rustic is inspired by Mother Nature’s woods, plains, rivers, and lakes. Popular features of this style are exposed wood beams, brick and stone, natural hues, and rugged furnishing. This style works well when combined with farmhouse, traditional, contemporary, or industrial styles.

Industrial

Industrial is usually seen in urban lofts and converted industrial spaces but can be used in a home when you use industrial finishes and decor. Typically defined as gritty, industrial is also characterized by salvaged and found elements for decor, wide-open space, exposed raw materials, and a neutral color palette. It combines well with modern, rustic, farmhouse, and midcentury styles.

Mediterranean

Just the word itself makes people think of sandy beaches and vivid oceans, and the goal is to recreate those cool and breezy or rich and warm locations in a property. Key elements of this style are a rich, earthy color palette, natural materials like wood, brick, and stone, and colorful tile. It works well with traditional and coastal styles.

Coastal

Don’t get Mediterranean confused with coastal! Coastal style is inspired by the beach and utilizes natural light, natural materials, and a casual tone. You don’t have to live by a beach to make coastal work for your property. If you decorate with coastal colors, whitewashed surfaces, bare wood floors, natural materials like linen, cotton, and wicker, you’ll get the theme across. Coastal style works well with traditional, transitional, contemporary, and Mediterranean.

If you need help with your rental property, contact me today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Austin Rental Scams on the Rise

Posted on June 9, 2021 by author

Scammers are in Austin, and they’re pretty convincing. One woman who spent weeks looking for a place to rent fell prey to a scam. The home for rent was listed on Zillow, and she emailed who she thought was the owner. They sent the deposit, dog deposit, and first month’s rent, which added up to $5,200. But when she went to meet the owner at the property, he never showed or responded.

The Better Business Bureau says this is a growing trend and happening more frequently, especially in Austin, where many people are moving. Most scams require you to wire funds, so do not wire funds to anyone you haven’t personally met.

How To Identify A Rental Scam

1. They don’t want to meet you in person.

People are busy, and schedules may not coordinate for a meet-up, and that’s okay. If that’s the case, at least do a video call with the owner/landlord to know the property exists. A good landlord would want to meet you, in person or digitally, as they should know who is renting out their place.

2. They want you to move in without seeing the property.

Visit and tour the property before signing a lease or sending money to someone. It’s easy for scammers to take old listing photos from past posts and pretend they have the property. Scammers won’t have access to the inside, so if you can’t see the place or tell you to just walk around outside of it, be wary.

3. They ask for rent or a security deposit before signing a lease.

An apartment can be a scam if the property manager, landlord, or realtor asks for rent or a security deposit before signing a lease. You should never be asked to give a large sum of money before seeing or signing a lease. Application fees are normal and acceptable, but the first month’s rent or security deposit is not.

4. There’s no screening process.

A good landlord will want to know who’s renting from them and take the proper precautions to screen a tenant. Most landlords will have a screening process to make sure they screen quality tenants. So, if a tenant does not require a rental application and credit check, this is a red flag. This means the landlord doesn’t care about having a good tenant, or they’re inexperienced; both are causes to be suspicious.

If you’re a renter looking for places to rent in Austin or an investor who needs help renting out their property, contact me! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

5 Trends in Kitchen and Laundry Appliances for 2021

Posted on May 14, 2021 by author

Whether you’re renovating or an investor that just bought a place and needs to make it move-in ready for future tenants, read about the latest trend for kitchen and laundry appliances to help!

1. Steamed

LG’s newest QuadWash dishwasher utilizes steam to get the dishes clean. This specific dishwasher features a TrueSteam feature that blasts steam at the beginning of the cycle to loosen caked-on food and another steam blast at the end to reduce water spots on dishes and glassware.

Sharp’s SuperSteam built-in wall oven has superheated steam to reach 485 degrees Fahrenheit. This option lets the user brown meats, caramelize sugar, and grill food without smoke. The steam bake option is also suitable for lovers of bread. I never knew steam could do so much!

2. A Nice Night In

Many did and still opt for a nice dinner at home instead of going out, and now there are new appliances to help recreate a night out. Plum has a unique integrated wine dispenser to hold two opened bottles of wine for up to 90 days. It also uses artificial intelligence to automatically identify varieties and chills the bottle to the proper temperature.

A new ice maker can help create the perfect ice for your cocktails or mocktails. GE Profile’s Opal 2.0 is designed to fit on countertops and low enough to fit under cabinets. It makes one pound of chewable nugget ice per hour and holds up to three pounds. It even has built-in Wi-Fi, so you can set up an ice-making schedule via their app.

Signature Kitchen released a new undercounter wine refrigerator. Some features include: storing bottles at optimal humidity, protecting bottles from vibrations, temperature changes, and light exposure, and an app to manage the collection.

3. Healthy and Hygienic

Beko’s new French door refrigerator has the technology to keep the food inside healthy and hygienic with features like maintaining temperature and humidity to preserve the food longer and a natural light simulator to help fruits and vegetables retain their nutrients.

GE’s new washer has solved the age-old problem of too much moisture in the wash, which creates mildew and odors. They solved this problem by including a design to wick away water at the end of each cycle and has a venting system to pull in outside air, removing moisture from inside the door, gasket, and basket. Miele’s washers have been updated with an allergy wash and sanitize option. Talk about a clean wash!

4. More Drawers

Drawers are becoming the popular storage option now, versus storing things in a cabinet. Drawers help bring items to the front, making them easier to access. A lot of new appliances now feature a drawer option to capitalize on this growing trend. Some devices with these features are Fisher & Paykel’s Series 11 DishDrawer, Sharp’s new smart convection microwave drawer, and Signature Kitchen Suite’s dual refrigerator drawer.

5. Varying Size

Manufacturers have finally realized that kitchens come big and small, and they finally have appliance options to fit those varying kitchen sizes. Forza has a new 48-inch gas range oven, Miele G 5000 dishwasher is 18 inches, making it perfect for smaller kitchens, Thor has a new 24-inch gas range oven, and Fisher & Paykel released a new 24-inch bottom mount refrigerator.

As you read, there are several new and up-and-coming options for kitchens and laundry rooms. But don’t let it overwhelm you! As your real estate agent, we can help you choose what appliances are suitable for your property, finances, and goals. We can help maximize the return on investment of your property. Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

What Fees Are In Closing Costs When Buying Property

Posted on April 5, 2021 by author

While everyone is most familiar with saving for a down payment when buying property, closing costs are almost just as expensive! Closing costs are the thousands of dollars spent on closing the deal when you purchase assets. They will vary depending on loans, taxes, and fees, but it is equal to about 1 to 4% of your property’s value. I’ll break down some of the fees included in closing costs.

Loan Origination Fee

The loan origination fee is what lenders charge to set up a loan. This fee will cover courier fees, underwriting fees, appraisal costs, administrative fees, and more. While it will depend on the lender, it will be close to 0.5-1% of the loan amount.

Application Fee

The application fee will cover your application process for a loan, the cost of running a credit report, and additional administrative fees. Again, it will depend on the lender, but it typically ranges from $300-$500.

Mortgage Broker Fee

Closing costs are how brokers make their money. This is why it’s crucial to research brokerages when first looking for a lender. It will vary depending on the brokerage you choose but expect it to be between 0.5% and 2.75% of your property’s purchase price.

Loan Fee

If you have a loan with the Federal Housing Administration, they will charge a premium of 1.75% of the loan amount.

Property Tax

Property taxes pay for schools, road construction, fire and police departments, and local services. These are included in closing costs, and it can be as little as $500 to as high as $8,000, based on the area and the property.

Homeowner’s Insurance

Just like buying a car, sometimes lenders will require homeowner’s insurance before closing. Depending on your coverage and premium, it can range from $800 to $1,200.

Title Search Fee

A property title search will uncover all available information about a property and is commonly performed during the closing process. Typically, the title search fee will be between $75-$200 but will fluctuate depending on your property’s value and the company you work with.

Title Insurance

Title insurance will help you from a financial loss if there are issues in the title, and it can happen at any time during the buying process. It usually costs between a couple of hundred dollars to $2,000.

If you need helping with the costs of buying property this year, contact us so we can get started! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Part One: Should I Rent Out My Home Instead of Selling?

Posted on November 9, 2020November 18, 2020 by author

Selling or renting is the age-old question for property owners, and there is no right or wrong answer. Let’s look at what the market is doing now and then discuss factors to consider to make the best choice for your situation.

The Market Now

The Central Texas housing market continues to be strong for many reasons, including our high quality of life, relatively low cost of living, and even the coronavirus pandemic.

COVID-19 has altered the way we search for homes, show homes, and buy and sell homes. It has also kept some local home sellers out of the market–those who don’t “have to” move–likely because they’re waiting for the effects of the pandemic to dwindle. That means that local demand for housing outweighs supply, so homes are selling for a higher price. This process is called a seller’s market. But, the real estate market is dynamic, and this could change at any time.

Additionally, mortgage interest rates remain at historic lows, motivating buyers to make a purchase now.

The local and national economies impact the housing market as well, so you’ll need to assess items that can increase or decrease city growth. People could be relocating for jobs, which can cause job losses and increases. Are businesses moving into the area? Are houses being fixed or abandoned? Each aspect will help you get a better understanding of where the market and economy are going.

Lastly, rent prices have increased over the years, with an increase in Millennials and Baby Boomers demanding affordable rental housing. But, this is a trend that could change now due to the economy.

What to Consider

Do you want to be a landlord?

Managing a property is a time consuming and challenging job. Consider if you have a team to help you, like a handyman or real estate agent, or do you need to hire them? Ask yourself if you have the time and effort to screen tenants or if you’re willing to hire a third party to do so.

It’s essential to factor in where you’ll be living. If you’re out of state, you’ll need a property manager. If you’re staying local, then you need to know what that requires. Not only will you need the time, effort, and cash to be a landlord, you’ll need to be knowledgeable in the local, state, and fair housing laws.

Read my owner’s resource for “5 Things You Should Know Before Becoming a Landlord”.

Are you buying another property while renting the other?

To get a second mortgage, lenders will consider rental income, usually up to 75%, to be counted as income sources. But, with low mortgage interest rates, this might be the time to refinance and pay an even lower mortgage payment.

Will home values increase in your area?

While it’s impossible to predict the market, it’s smart to follow it to see where your home’s value could be in a few years. Suppose you expect the market to work in your favor in a few years and increase the value. In that case, you might want to consider renting it now and selling later to take advantage of the appreciation. Conversely, if you think this is the best the market will do for your house, then sell now.

To calculate the potential return on your investment property, you’ll need to know your cash flow and equity. To read an example, read my investor resource “How to Calculate the Potential Return on Your Investment Property.”

A cost market analysis (CMA) will help you answer what your house is worth right now. It will also help you understand the current housing market and the price of other similar properties. Get a full CMS explanation here.

This is part one of a two-part series. In the next blog, I’ll share the specific costs of renting and selling. Check back in December for part 2!

When is it Time to Hire an Austin Property Manager? | Cost Versus Return

Posted on May 20, 2020May 20, 2020 by author

Investing in Austin real estate is a great way to earn additional income. Once you’ve purchased a rental home, made any repairs necessary to ensure it’s safe and up to code, and secured renters, managing one or two homes can be simple for the experienced investor. But as your portfolio grows, managing more than a couple of properties or expanding your investment area can be overwhelming. When is it time to hire a professional to manage your Austin rental property?

If you are managing properties, you are most likely looking for the highest return on investment and watching your costs carefully. Balancing costs with investment takes careful consideration, and property management companies are both a cost and an investment. Here are factors to consider when determining when to hire an Austin property manager:

Time Versus Money

Rental homes require attention, attention involves time, and your time is valuable. It’s easy to recognize that managing one or two properties requires less attention than working with three, four, or more units. If you have the time but not the money, managing your own rental homes makes the most sense. If you have the money but not the time, hiring a professional should be on your to-do list.

Time Equals Money | Expanding Your Portfolio

The time it takes to manage multiple properties is time you can spend focusing on other ventures including a separate profession, searching for new rental properties, or higher-level management tasks. Instead of taking urgent calls, answering tenant questions, screening renters, or fixing toilets, your time can be spent expanding your portfolio, marketing, or networking. If your time is more valuable spent elsewhere, hire someone to take those management tasks off your plate, and increase the quality of your output.

Expanding Beyond Your Current Geographic Location

Investing in Austin could be where you start, but if your sights start to focus further outside the city limits, your expertise, capability, and desire to travel may start to wane. Diversifying your portfolio is a smart investment but also requires diversification in management to help subsidize your knowledge base, maintain properties, and balance your time. Expanding geographically would be a time to hire a professional.
Managing properties in Austin can be a lucrative business, but the best landlords and investors understand balancing costs, time, and knowledge. If you are managing multiple properties, are overwhelmed with management tasks, or considering expanding your portfolio, it’s time to hire a professional property manager. Contact Dona Brown, Talk Property Management, for a local Austin perspective that can help you navigate the area’s investment real estate market, manage your property with experienced ease, and set you on a course for success. 512-721-1094.