All Forum Posts by: Aaron Francl

Good stuff @Jeremy Medina I'm planning something similar for my primary home. Keep following this path, like you're doing now, with ample due diligence and make sure you understand fully the terms of both your draw and payback periods. 

Ideally you'll be able to purchase something that can repay that HELOC initial interest period down so you're not coming out of pocket. Just be prepared to ultimately make those full payments and hopefully you'll land an asset that can either generate cashflow to take care of your monthly portions or it can be refinanced along with value adds to the property.

If you end up pulling the trigger and have a good experience please let me know!

@Brian Davis You bring up some great points. Tenant screening is one of the more important aspects of investing and you can never have enough guardrails in place to protect your assets. 

I don't have a response for "why this is not a bigger concern..." per se, I'm sure there are some PM's that could chime in here. I've never discussed civil fact-finding before, but again, more than fair to ask bc you do bring up great points. 

The social media fact-finding is absolutely a good one to deploy during screening and it's something I do as well. LinkedIn is valuable too so that you can verify job history, etc. Lastly, yes, call landlords as @Alan Asriants mentions is crucial. But I'd go a step further and call the previous landlords as well bc if they're a non-ideal tenant, a current landlord may give you a glowing recommendation to free themselves of that person! 

Hi @Kenyatta Barthelemy good for you on your start! I got into RE investing utilizing the same strategy as you're exploring. Research, study, learn all you can for now. There will be a point, unique to every investor, where you need to take action and jump in. Get comfortable with a certain degree of uncertainty but still take action. You won't know everything you'll need to up front, but if you surround yourself with resources and tools, you'll find the answers you need when you need them.

You're doing the right thing by building your network now, attending meetups and posting here! 

I actually have family in both NOLA, the Northshore area and Baton Rouge so I'm pretty familiar with those areas. I'd love to own a small multi in NOLA, so if you find some good pockets and info, you'll have to let me know!

Best of luck to you.

Hey @Sherylyn Holden - I've had some clients purchase new construction small multifamily out in that area but not for a STR strategy.

Given Converse's location and proximity to San Antonio, I suppose it could make sense for that strategy albeit not with tremendous consistency. I do think @Michael Baum raises a great question: "What would bring them to Converse, TX?" Converse seems to make more sense for LTR buy and hold, BRRRR and MTR strategies.

@Yashar Fred I really like using MySmartMove, which is affiliated with TransUnion. It's extremely user-friendly, very detailed and almost as soon as you submit it, you'll get your results for: credit history, income verification, eviction records and criminal background. 

Hi @Juan David Maldonado I just sent you a PM. I'd be happy to connect with you!

 @Nick Tarantino Exactly what Jordan said, start with a househack where you live. If it were me, even if I was ultimately going to relocate, I'd find a way to get into a househack in a market like Austin. Job growth, rent growth, etc. are all things you look for for long term appreciation. From the low down payment of an owner/occupant loan to the ability to learn more about managing a property, tenants, etc. it's a great way to educate yourself while starting your portfolio at the same time. Then, even if you do ultimately relocate as you mentioned, you have that asset for the long term play.

I'm not a lender so you will definitely need to reach out to several about the rest of your strategy. You'll also likely need to contact some small local banks or credit unions. The thing to understand about a HELOC is that while it can be a good strategy to tap into equity vs. selling an asset, you are still responsible for finding ways to pay that debt back so you'll need to devise a strategy that also allows for that.

Best of luck! 

Hey @Account Closed I can send you a contact that would be a great lender resource for you to chat with. She specializes in not only VA loans but also working with investors. Check your PM's.

@James Hamling just laid down the topic's gavel! Well said! 

And that's exactly how it should/can work. My 4 unit, I bought here in San Antonio, wasn't a great buy out of the gates in 2019. Now, it has grown in value (bc of the increased rents aka higher cashflow) by leaps and bounds since that time. 

A healthy diet of realistic expectations, patience and some work should pay off more times than not.

Great advice by @Hamp Lee III

I'd echo what he said. Normally, for a new investor, the best advice is:  stick to one type of investment strategy, learn it as best as you can and then take action. I'd still go with that advice generally but, like he mentioned, flexibility in this market is key right now. You can't "napkin math" a property on the market with current price and rents, make an offer and hope to cashflow out the gates. It will take some patience and time at least and likely some creativity and an infusion of some additional equity. 

Look hard at the property's zoning. Can you add doors after purchase, etc. Can you rent by room or do one unit as an STR/MTR plus long term rent, etc.

The ADU option is great up front. That being said, what I find challenging is that unless you plan to stay in the property as an owner occupant, that strategy may not help you long term. A use of capital to do that build may just be better used for additional buildings.

Most of your small multi's will be here in the urban core but will be older properties that may need some work, so just keep that in mind. 

Keep building out your team and doing your research as you're doing now!