All Forum Posts by: Adam Pond

Hi all,

I'm a newer real estate investor in the San Antonio/Seguin area who is looking for my second property. As a newer investor, I've opted to house hack & STR my first property to save up money. My next property I'm currently looking at is only $120,000 and is 4 bedrooms which I plan to house hack & STR as well. I've been getting into these properties with 3.5% owner-occupied with the one year requirement. My question is with new lower rates, should I try to lock in something in a better neighborhood for more? I have a steady income that will more than cover the mortgage. So I've calculated I can go up to around $250,000 without being too over-leveraged. Should I go bigger for better cashflow and possibly appreciation? Thanks in advance for any replies!

We have had some pretty decent appreciation in the last couple months. It is not entirely a cash flow play as it has been difficult to find many properties that even meet the "1% rule". Although it has been pretty stable as far getting renters even though it is generally mostly D to C class neighborhoods. Feel free to contact me if you have any other questions.

I also used Five Star Title to purchase my first investment property in Seguin, TX. Very reliable and will definitely continue to use them! 

I just started on my RE journey as well, so I am in no way an expert. With that disclaimer, if they're already under the impression that you're the landlord, maintain that degree of separation by suggesting that you are not the sole/main decision maker. Surely you have friends or family or mentors that you rely on to help you. They will make the rent check to you because you're the acting owner, but any problems arising (especially when it comes time to raise rates) will not directly anchor to an image of you high-rolling in Vegas whilst sinisterly rubbing your hands together. 

Maybe it's those quite impressive dance moves. (Referencing your profile pic). You're intimidating them all away! Haha

Hello, curious if this event is still reoccurring or if there are any other meetups currently taking place in the Austin area. Thank you!

This is a semi-introduction, semi-question I haven't been able to find information on. Perhaps I need to up my Google game!

Hi there, My name is Adam Pond and my brother, Matthew and I are budding Real Estate Investors in the Austin & San Antonio markets. We'll be BRRRR'ing as many Single Family homes as we can handle and I am eternally grateful to the BiggerPockets community as a freaking awesome resource! Before I found this community I had little to no idea what the word "Equity" even meant! I've learned so much and gained so much confidence to make that leap! I believe I've clocked 100+ hours or so on the podcasts so far. Now on to the question:

Our first offer has been accepted at 142,000. Woohoo! The estimated ARV is 174,000 per comps in the area. Well, this particular property wouldn't technically be considered a BRRRR considering we won't be Reno'ing it. It has recently been renovated by the previous owner. We're currently working with a lender to obtain an FHA loan with 3.5% down. But that means the ominous PMI. Gasp! So that'll be approximately 1% a.k.a. $118/month. Now I'm aware that the lender does an appraisal on purchase mortgage. But my question is this - On the appraisal coming back at ~174,000, will the PMI fall-off be factored at 113,600 (80% LTV on 142,000) or would the PMI fall-off be factored at 139,200 (80% LTV at 174,000)? Would we be required to refinance to receive a new mortgage at 174,000 in order to shed PMI immediately or does it automatically fall off based on the new FMV? Also hypothetically, the appraisal comes in at only 160,000 and the 80% LTV is 128,000. Is it possible or even worth it to pay 14,000 additional (142k-128k=14k) to get us below that PMI immediately?

Anybody who can answer this, know that I am very grateful for any and all help. And you are A.W.E.S.O.M.E !!

Warmly, 

- Adam