New to RE and looking for advice

[Skylair Richter]

Hello San Antonio BP community!

I'm new to the community and to RE in general. I've been spending the past month educating myself on real estate and found this place from recommendations on YouTube and from reading Brandon Turner's book on RE Investing. RE has always been something that I've been interested in and have found fascinating, but after getting married at the end of last year, I am really starting to buckle down and educate myself so that I can help provide a better life for my family and future kids.

Right now, I'm really interested in house hacking, but will spend the next few months continuing to educate myself. Around summertime is when I will really start looking into properties as my current lease ends in November and the ideal situation would be to have a multi-family property lined up to buy around the time my lease runs out. Then I can move into one of the units in the MFH and rent out the others as an introduction to rental management.

My question to those more experienced is what are your tips or things that I should start looking into that someone new to this wouldn't think of?

Thanks,
Skylair

[Seth Teel]

@Skylair Richter

House hacking is a great way to get into RE investing.  My first purchase in 2000 was a duplex and I house hacked in duplexes until the end of 2014.  Even the new home I am renovating for myself will have a 900sf apartment we plan to use as a short-term rental.    

Things to think about:  

San Antonio does not have an abundance of small multi-family property.  This creates a high demand for these types of properties.  It also limits the areas you'll find them.  Yes, there are some duplexes and four-plexes in the suburbs, but the majority are in the City's urban core.  You an your wife will need to identify areas where you are comfortable living before beginning your search.  

Many small multi-family in SA do not have the property zoning.  This will make it difficult getting financing, so make sure 1) it has the proper zoning designation or 2) The property's multi-family status predated the 2001 Unified Development Code (UDC) adoption.  

Metering can be another issue. Do you want your units to have separate meters or have rents to include utilities? Adding a second electrical meter can be a PITA, you'll need to get an address assignment from the City approved, then you will have to jump through a bunch of hoops with CPS. I am going through this right now with a client. Water is usually covered by the owner, as adding a second meter has an astronomical impact fee + the cost of installation. I have yet to see a good ROI on adding a second water meter.

Likely the first thing you want to do, and doing it now is not too early, is talk with a mortgage broker about your buying power.  Also, engaging a mortgage broker now will also allow you time to fix any blemishes on your credit.  This will also help determine location of your purchase.  

If you have any more questions, feel free to reach out via DM.

Good luck!