All Forum Posts by: Aaron Francl

Welcome @Elvin Flores! 

Getting started with small multifamily is how I started investing as well. It can be a lot to digest at first but finding the right team can take a lot of the pressure and learning curve off of your plate. As far as advice, for newer folks, it's usually best to zero in on a particular strategy as soon as you outline your immediate and longer term goals. Same thought process really applies to any market you invest in as well and that's just zero in on the submarkets. Once you do, you'll really understand what constitutes "deals." 

Feel free to reach out if you'd like to connect. Our team (@Jordan Moorhead & I) typically has a monthly meetup where we discuss all things real estate investing, we'd love to have you attend our next one.

Aaron

@Saundra Martinez welcome!

@Jordan Moorhead and I are due for our next San Antonio RE investor meetup here soon, feel free to shoot me a note to connect and I'll get you details once we line that up. 

As either an agent or an investor, I think you hit the nail and it's that: (1) you want to build your resources/team/contacts (2) especially in the beginning, you'll typically want to make sure to choose a path and/or a specific discipline that meets your goals to avoid shiny object syndrome and info overload. Really all the above can come over time but most importantly, step away from the learning from time to time and take actionable steps. 

Good luck to you!

@Brian Willie Yes, Jefferson is a good area. I had some clients close on a duplex there years ago and you’ll see some concentrations of small multifamily properties in that pocket. There are some nice streets around the high school and the Monticello/Woodlawn Lake areas (depending on the street) are great as well. If I were a tenant, I’d rent there. And if I had an opportunity to buy, I’d buy there.

And yes @Jordan Moorhead that reply is just a bit on the robotic side haha. 

@Terence Crafton House hack where you want to be, like others have mentioned. I got my start here in SA with a 4plex house hack in Beacon Hill as well. I think every investor reaches a point where they know enough and they're comfortable to finally take action. Sounds like that may be where you're at, which is a good place to be! Keep taking incremental steps, like you're doing by posting here. 

Again, the most critical thing is to decide if you like it here, then you can invest here - SA is a great place to live and invest. If not, just make sure you understand the neighborhoods/submarkets, etc. for the market you do ultimately choose. 

Once you push through that barrier: reach out to a lender and make sure you work with an agent that has done what you want to do! 

Best advice for any new investor is to just find ways to keep taking those small steps to your goals. It can seem daunting to look at what you want the end result to be, so find ways to gain some confidence with just identifying a place to start, accomplish that, then tackle the next step.

Happy to connect if you'd like and best of luck!

Aaron

@Selby Johnson I would echo @Jordan Moorhead and I wouldn't necessarily not push forward just due to the circumstances you mention.

This sounds like an off-market opportunity, so, take your time, do all the due diligence you need and make sure you understand the cost associated with fixes. Finally, as importantly as cost, make sure you have a clear picture of the ARV (after repair value).

I'd be happy to share with you a great inspector I work with often. Make sure they have the building's systems (electrical, plumbing) operational when you do inspect or walk the property. If you think it warrants serious consideration, it's also worth paying a contractor to walk through with you to help you evaluate and price out the work you need.

Good luck!

Good advice @Mitch Messer

Xueling, that's a good start he mentioned. I think it's important to have the terms make sense for attracting would be buyers/investors. 

I'm working on a deal now for a seller finance arrangement for a client that really doesn't pencil out after a relatively short lowered interest rate offered by the seller. Deal doesn't make a lot of sense even with the down payment + lowered rate and general terms for remainder of the deal after the balloon is due. 

Follow the proper protocol first, but make sure it makes sense on what you're offering! Like Mitch, said, sometimes it's just still not a good deal. 

Make it one and good luck!  

Hey Kristine, 

I think you've already found out an important lesson, and you got it for free - and that is there's no quick and easy way to become an investor overnight. Anyone selling you that bag of goods...you did the right thing. 

As you found out, there are those out there that take advantage of new folks' lack of knowledge and try to profit from it with a quick and easy solution. I know when I started out the idea of investing felt very overwhelming and I know that can be the case for a lot of folks. That being said, the truth is most investors I know and work with are self-educated mostly via books, podcasts, meetups, networking, etc. That can absolutely be the case for you too so please don't let this discourage you or extinguish your fire early. 

You're in the right place (BP forums) and doing the right things (posting and interacting with the community) so feel good about that and continue to push yourself to take incremental steps.  

If you'd like to connect on San Antonio specifically, feel free to reach out! 

Hey @Ashley Dixon great question. 

I guess, first question is, how are you planning to purchase? Owner-occupant vs. an investment purchase can greatly impact your monthly cashflow prospects. 

Now for your question(s): cashflow is more of a present to near-present focus while appreciation is more of a castoff into the future projection, in theory. Now, the right buy can do both, but to your point, it's possible there could be sacrifices made for one over the other for a time. Your appetite for how you'd like that ratio to trend will depend on your finances, etc. 

Focusing more on the appreciation portion, that can be a challenge to project. A lot of factors can impact that, but to simplify, focus on targeting desired pockets that have a finite amount of geography and you'll highly likely enjoy ample appreciation over time. 

Now back to cashflow, small multifamily may present better for you or the ability to add doors to a lot. That being said, anything you can buy under market will create a healthy margin for you in the beginning. If you can check that purchase box off, great. From there, I'd also make sure I targeted a neighborhood where you have a clear line of sight on how to push your property position up, to achieve top of the market rents (again focus on margin). Again, you'll need to pull a few levers to create cashflow, especially with a SFH, but it's possible.

Shoot me a note if you'd like to connect!

Hey @Ruben Beraza congrats on taking this initiative to start your journey. 

I've lived in all 3 of the markets you mentioned and I will say, I'm enjoying my time here in San Antonio far more than the others! A lot of your choice will come down to some personal preferences, lifestyle and pace choice and, as others mentioned, financing. Entry price varies quite a bit for these 3 markets and a lender will help you narrow from the financing standpoint. 

I also started with a house hack multifamily as my first purchase as well. It's a great way to go. I think you hit the nail on the head when you mentioned looking to "value add." I think most investors and agents familiar with this market will tell you that to win right now, you really want to find ways to add value. A lot of folks sit on the sidelines right now, running numbers with market rents, and their potential PITI and stop there. Whichever market you choose, you've already got the right mindset!

Feel free to reach out to me if you'd like to connect more on San Antonio. 

Best of luck!

Hey @Dallas Ward I think most anyone can identify with that at some point, you're not alone. 

I would agree with you that you'll want to help yourself by putting the pieces of your team together. You can only know so much on your own, especially an out of market investor. Even experienced investors are better served to lean on others' experience and knowledge so name shame there whatsoever in leaning on others.

Best thing you can do is really drill into your goals, both short term and long term, and identify a vehicle to get you there. San Antonio is a great market but any reason why you don't want to purchase in your local area via an owner-occupant loan? That's usually the best way to start. However, if you're set on San Antonio, there are plenty of great reasons why this market is a good one to invest in remotely. 

As far as books: 
David Greene's "Long Distance RE Investing" is obviously a great start for some core principles. Can't go wrong with "The Millionaire RE Investor" either for general thought processes. As far as further reading, that sort of depends on your situation/experience/goals that will help folks with further recommendations for you.

Best of luck!