All Forum Posts by: Aaron Francl

@Kyle Baer "ask-hole" is a new one, haha, but that's hilarious. Any reason why you're not buying your first deal in your own area?

I'd absolutely look in my own backyard first to buy as an owner-occupant bc you'll need less capital vs. buying investments at a distance, which is what I assume you're referencing here? Not only that, you'll likely know your area better and can learn easier with how to run your property than you can vs. long distance. If you can house hack a small multifamily with a residential loan, that would be my advice, and how I, and many other investors get their start.

If, let's say, your home market(s) are too costly then that's when you can take your focus into outside markets.

Here is a good article on neighborhood classifications:

https://realwealth.com/learn/c...

Quote from @Paloma Carmen:

Hi @Aaron Francl, thank you for the response. Your input is greatly appreciated! Also, what is Blanco Road like? My house would be close by and I hear that there are some nice restaurants down there. 

You got it. Blanco is a main North/South road, I use it all the time in that area. Yes, it does have a few restaurants off it including some great taco spots off Blanco & Hildebrand.

As far as investments, nearness to Blanco is good. That’s starting to creep into Alta Vista, and you’re off the western highway portion of the neighborhood a bit.  

Hey @Paloma Carmen - I sent you a PM.

I own and manage my own 4 unit in Beacon. To your point, proximity to highway is something to monitor and I typically would like to stay south of Hildebrand as well. You won’t quite pay Alta Vista prices for the asset, and also to your point, yes, you’ll see a lot of buildings being fixed up around Beacon.

The tenant base is usually young professionals or sometimes students and I have not had more than a week here or there of vacancy in years. 

Great pocket to invest! Best of luck on a smooth transaction for you! 

Robert,

My team, The Moorhead Team, has an open house flip property this Saturday and Sunday. Purchase to sale was all done in house with the work done via our team’s contractor - I’d love to have you stop by and view the work and we can talk about some strategies and areas to target with you! 

- Aaron  
 

Good for you @Urpi Arriola! Rather than asking "how do I make my property work for me/cashflow?" you just found a way. 

Congrats on your ingenuity!  

Interesting @Urpi Arriola 

I haven't heard of anyone running a rent by the room MTR strategy. How are you structuring that up front and are these folks possibly from the same company, group, etc.? 

@Andrew Pakchoian I think it's more important to know current market cycles than it is to look back at specific snapshots of time. Call it an impending downturn, a correction, etc. (please don't misuse "crash"), but sure, prices will not be what they've been recently in the last few years nor will they ever return to 10 years ago. It's one of those phrases that we use to help people contextualize this sort of dynamic: "ask folks that bought 20-30 years ago if they're happy they bought real estate?" I'd wager you get a lot of "yes." Between debt paydown, tax benefits, depreciation, possibly forced and natural appreciation - there are a myriad of ways you win in this business by holding an asset over time. 

Now how to achieve a cashflowing rentals currently is a whole other subject. It will take a lot of patience, offers, time and likely some creativity and capital but it is possible. 

I'd be happy to speak with you further when you're ready to jump in. 

Congrats @Megan Stoner & big assist to @Jordan Moorhead!

Great topic @Jesus Santoyo

I can absolutely understand that as well. I bought two properties inside a fairly short window and I've been itching to take down another soon. That fear of stagnation can be a real thing. 

I think what you're asking is something that every single investor should not only keep in mind but actively discuss. You hear these crazy stories about people expanding rapidly, scaling, growing, etc. and while those stories are cool for podcasts, that sort of rapid rise isn't for everyone nor should it be thought of as the norm in this business. 

Always, always, always keep your "big why" front and center in both big and small decisions you make. If you have idle capital or equity and you've established a strong team and systematized your portfolio, then growth discussions should be happening. The thing most people don't want to hear is "it just depends" but it's often the best answer for most real estate related questions. Follow the numbers and your gut and more times than not, the right answer is within your grasp.

@Kelsey Cole You've gotten a few pieces of great advice here, and I do agree, it's fantastic that you're looking into this from not only your perspective but trying to see from seller's point of view. You have a seller in potential need here, but likely not distress - those are very different animals. Now if the property has some deferred maintenance, cap ex items, etc. that changes your narrative a bit.

The good news is if you end up, let's just say $10k off of one another, when you run your numbers you're not going to see much difference in your monthly payment. Now, if the deal is razor thin on margins for you and $10k off of your ideal price makes it a bad deal for you, may be best to pass. If you pass, take your learnings and move forward and continue to follow the methodology that got you to this point bc it will get you a great result! 

Keep us updated on how this turns out and best of luck to you.  

And I love @Jordan Woolf's question, I am absolutely stealing that one.