All Forum Posts by: Aaron Francl

@Edward Zachary Samperio

Check your messages. Sounds like you'll be relocating here and potentially looking to house hack? Happy to discuss some ideas and options with you.

Hi Frank, 

Foundation work is so common here that I often tell people it's a "when not if" for this city. A lot of the central city sub-markets are older homes on pier and beam systems. This can be shimmed relatively easily over time (in theory). You'll see slabs further to the outer rings of town, such as @Sherylyn Holden referred to. Slab is a different process altogether to address issues with and we have many companies here that specialize in that; just be careful they don't talk you into their highest end offerings. 

You'll see those two systems here, mainly. Sometimes you'll see a continuous beam system, which I've been told by a great inspector is really ideal. 

It's not uncommon for homes here to move due to our dry and wet periods of weather. You're starting out the right way by educating yourself, next you'll want to: make sure you do your due diligence during any inspections/option periods & find yourself a good foundation expert to consult (PM me in case you need that). Lastly, I'd always budget to have proper water channeling figured into any property you do ultimately buy.

Good luck! 

Hi @Nagarjuna Kalavagunta - welcome!

I'm happy to provide you a little insight into the areas you mentioned. 

Generally speaking, those are all areas that should be targeted by investors. The 35 corridor would absolutely be an area I'd focus on. Given the lack of inventory and increased competition for assets in both San Antonio and Austin, investor activity has been consistent in the areas you mentioned due to necessity and price points vs. the larger cities (SA & Austin).  

As for anything specific for you, there are a lot of variables that exist between the two types of assets you mentioned. What are your short term and long term goals for this purchase? Those insights will help guide you to your answer.

Shoot me a message if you'd like to connect further and best of luck to you in your search!

@Niles George I utilize the Thumbtack app a lot for my property's jobs and I've been able to build up a network of solid and reliable folks. It never hurts to stop at your local Home Depot or Lowe's contractor desk, when they're not swamped, and see if they have any contractors they will recommend to you. 

Quote from @Frank Lin:

Anyone with foundation issues after the foundation have been repaired? Seems like San Antonio is notorious for foundation issues. Just wondering if it's possible to repair foundation issues after it has already been repaired in the past and how hard is it.  How common is it in San Antonio to do it a 2nd time? Thanks

Hey Frank, yes, to your question - it is common. 

How long ago was the work done and what sort of foundation is it?

San Antonio’s soil gets extremely dry and can crack in the summer. Then, when you have a rainy period, as we’ve had of late, you’ll start to see issues pop up. I remember periods of time driving the city this year and seemed like every few houses, someone had foundation work being done.

Make sure you have a good gutter system to divert water from the property skirting and proper drainage, no pooling around the house, etc. 

Hopefully you’re just dealing with some small shimming work and your foundation repair company has some semblance of warranty terms for their work.

Best of luck. 

Quote from @John Martinez:

I am new here of course and super excited about learning more. I have been steadily listening to the Bigger Pockets podcast and reading. I made it a personal goal to buy my 1st Investment property by the end of this year, I am unsure which type of property but I think to begin building capital, I will purchase a flip. I would love to hear some of your first buys if you have made some or what you are planning on doing for your first investment? 

Hey John, welcome to the community! Absolutely continue to network and educate yourself as much as possible.I’d advise a few things based on your note above. First, drill into the type of asset you want. A single family building purchase vs multifamily vs commercial are all unique and nuanced unto themselves. Each type will vary greatly in terms of how you purchase, rehab and ultimately manage each asset. Which meets your goals and falls within your comfort zone? Then narrow and focus your learning + networking there so you know precisely what level of capital you’re saving for.  

Second, I know flips and BRRRR are talked about constantly here and elsewhere. That being said, in terms of a first time purchase, there are very few new investors (myself included when I started!) that should be venturing into those waters. In my opinion, there are just too variables to consider for these strategies. Once you have a solid team, streamlined processes/systems and a really reliable general contractor, then, at that point, by all means jump in. There are other ways to start your investing journey that won't pose the risk to you of a heavy rehab dependent project.

Happy to discuss further if you’d like! 

Best of luck.

Hey Anuja! My advice here would be a small mindset shift and switch to thinking in terms “how can I make a property cashflow…” vs. “how can I find?”

Given all the conditions you mentioned, the likelihood of any property just sitting there ready to cashflow positive can be challenging at best.

That being said - making a property cashflow positive can most definitely happen! Improving floor plan, maximizing zoning, adding units, upgrading finishes, etc. all are solid ways to achieve this. If you have the grit to enter the bidding fray and a willingness to get creative with how you operate and upgrade your asset, you’ll be happy with the result.

Best of luck! 

Quote from @Nathaniel Ziomek:

Quote from @Aaron Francl:

Hi Thomas! Sounds like a plan. 203k loans in such a competitive market may present a challenge for you. There are conventional products you can get that only requires 5% down without the hoops a seller needs to jump through with the 203k. This is what I did for my first house hack purchase and depending on your chosen neighborhood/area it should be a viable option for you all as well. 

Hard to say what 2023 in SA will look like other than more expensive at this rate! I’d advise learning the submarkets and getting comfortable with those, start piecing together a trusted local team all while you learn from afar. Start making connections now and prepare yourself for the grind that is the current search for buyers. Best of luck to you! 

 Hey Aaron, so you bought your househack with a 5% down a conventional loan? Are there conventional products where you can wrap the costs of the rehab into the mortgage?

Not to my knowledge on loan products such as that. However I’m not a loan professional, so it’s possible someone has a loan product like that out there! 

Given Thomas’s statement of a “light rehab,” the loan decisions would all just depend on someone’s definition of that concept. There’s a myriad of reasons why I’d go this route over 203k including: availability of approved contractors, complexity for a new investor and just plain competitiveness in finding a desirable building vs cash and traditional loan buyers.

Hi Thomas! Sounds like a plan. 203k loans in such a competitive market may present a challenge for you. There are conventional products you can get that only requires 5% down without the hoops a seller needs to jump through with the 203k. This is what I did for my first house hack purchase and depending on your chosen neighborhood/area it should be a viable option for you all as well. 

Hard to say what 2023 in SA will look like other than more expensive at this rate! I’d advise learning the submarkets and getting comfortable with those, start piecing together a trusted local team all while you learn from afar. Start making connections now and prepare yourself for the grind that is the current search for buyers. Best of luck to you! 

@Evan Tuuk There you go. Yes, I've heard him and James Dainard (good follow on Instagram) both discuss BRRRR as an advanced strategy. But you nailed it. As long as you're finding something that is not turnkey and you can add value to but be comfortable still leaving some in your deal, you'll still well ahead of the game.

Good luck to you.