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All Forum Posts by: Antonio Cucciniello

Antonio Cucciniello has started 16 posts and replied 512 times.

Post: I have no idea where to start

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Quote from @Owen J Titus:

Most people who I ask about this subject with a general understanding keep leading me around in a circle I have no idea where to look or where to start is there any good tips on where to start


 1. Set a goal - why are you investing in real estate. End up with something like: I want to be making $10,000 in cash flow every month in 10 years from now.

2. Use that goal to pick a strategy: If you want cash flow pick rentals, if you want to make more active income do flipping or wholesaling.

3. Pick a location based on data: Find a city that you can invest that actually makes it easier for you to find homes that will be profitable

4. Get funding: Call up a bank and get preapproved

5. Look at properties and analyze them. Rental Income - Expenses = Profit. The ones that generate at least $150/month in profit go for

6. Make an Offer 

Repeat 5 and 6 until you get one. 

Post: Need Help Moving Foward...

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Quote from @Kyle Fielder:

My wife and I own a small business and rent a store front in our town. We were approached by our landlord with an offer to buy his property. The property includes 4 store fronts, including ours and 6 apartments above the store fronts. We have talked to our accountant and he advised us not to buy the property under our current llc and apply for a new one. The problem I'm having with that is the few banks I've called want the new llc to have been in business for certain amount of time or that they don't give loans for that sort of business. This is the first time my wife and I have done something like this and we need help moving forward  or some helpful tips. Could anyone recommend what kind of loan to get, the right questions to ask, or which bank would be the best. Also, he said he would think about seller financing but he would rather us get a loan. Any suggestions or advice will be greatly appreciated. 


Eliott Said this already above but DSCR loans are what you might be looking for here, the challenge might be finding a lender that will give you decent terms on a 10 unit mixed property.

Post: How Much Leverage is Overleveraged?

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Quote from @Mike Dymski:

Buy in locations where there is zero chance of extended periods of vacancy and you will never have to worry about leverage.


I get what you are saying I think that will definitely minimize the downside but also price is a big factor in that location

Post: How Much Leverage is Overleveraged?

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Quote from @Joe Scaparra:

@Antonio Cucciniello, leverage can be a good thing but also can be very bad.  When I think of leverage, I think in terms of personal use and then the business or investment usage.  

Personal side: most mortgage lenders, tell you that exceeding 35% debt to income starts highlighting concern.  On the personal side, wants and emotions drive decisions.  Business/Investment side should follow policy or logic and weed out wants and desires.  Since we are on a Real Estate Investing website, lets concentrate on the Investment side of things.

My rental portfolio consist mostly of duplexes. Leverage has NEVER been an issue as they have all cash flowed positive DAY ONE! Meaning that they are self-sufficient and can survive on their own regardless of my personal life. Because my duplexes are not demanding top tier rent then there is little risk to default from not being able to rent my units, which is the life blood of rental income......being able to consistently have occupied property, producing predictable, reliable, steady income. Not requiring Top tier rent, meaning I am not having to do crazy innovations to make the property cash flow......like STR, or minimum 30 day rental or rent by the room. Although these are GREAT strategies they carry far more risk during an economic downturn than say long term tenants paying $1500 per month here in Austin. In other words, If your duplex rents out for a $1 per month, then the economic environment matters not. Somewhere between $1 and XX amount you should be able to find a renter in any economic environment. For Austin, I would say the top amount is about $1500, but for Bryan College Station it would be more like $800 per month.

Lastly, as a guide ask yourself this question:  If I lost my job would my rental portfolio be in jeopardy.  If the answer is yes then you are overage leveraged.  That might be the case of your personal residence and in most cases that is the risk people are willing to assume, but for your rental portfolio you want to feel secure that in a downturn you are not coming out of pocket to keep your properties afloat.  The double whammy comes when you lose your personal job and that income was need for both personal and investment property.  

This is one reason I LOVE duplex investing so much. When bought right they sustain themselves. What I am finding now is that a few smart first time investors are looking to buy duplexes over SFH. I think that makes a lot of sense. If you buy a duplex and lose your job or have to move to another city for a job you are not forced to sell your property. Simply move out and rent the other side out. A duplex has far better chance of covering expenses that a similar cost SFH. Cheers.


 Great post Joe and I think that if you didn't refi many of your duplexes at the top of the market in Austin would you have any problems (I am in Austin too!)

Post: Real Estate Meetups Austin

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310

@Victor Steffen runs one I have been to a few times and yes also @Jordan Moorhead been to one of his as well! Both were great.

Post: How Much Leverage is Overleveraged?

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Quote from @JD Martin:

It's a personal question with a personal answer. If you have a job making $10k per month clear and only need half of that to live, you could have $5k worth of mortgages on your rentals, maybe worth 80% of their value, and might be just fine with that percent because you can cover all the mortgages with your W2. On the other hand, if rental income is your only income, you might be uncomfortable with some/any leverage. 

I am leveraged at about 28% of my total portfolio. I started off buying homes for cash only and never got around to harvesting the equity out of all of them, so I have a bunch of them without notes. I feel pretty comfortable at that level because I could have over 50% vacancy rate across all my properties and still be making money (not much!), and I have several sources of independent income outside of my rentals. I might be a little more conservative than most people on here, but if you listened to my podcast (in my signature) you'll know I also lost over $100k before, which can make you think about it if you come from a poor slob, blue-collar background like me. 


 Yeah that is definitely way less than I feel most people I speak to, that is 100%.

Post: How Much Leverage is Overleveraged?

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310

As some people think a crash is coming alot of experienced investors who have been through crashes are saying "don't be over leveraged." But no one gives a percent of leverage that is healthy, or how much cash you should have if you have X properties etc. So, what's over leveraged mean for you?

Post: Picking a Market To Wholesale (Competitive vs Less Competitive)

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Originally posted by @Que Tran:

Hi Antonio! You're not crazy ;)  Just dive right in. You know Scranton is your favorite!  Plus you already know a great property manager, so there is nothing to be scared of here.  No to alot of appreciation, but yes to cash flow.  We've got some smaller deals lining up. Back back and visit.

Hahah thanks Que I definitely do that is for sure. I am thinking about starting there as well!

Post: Picking a Market To Wholesale (Competitive vs Less Competitive)

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310
Originally posted by @Ray Danishyar:

To be honest I get a lot of business in New York for a few reasons. 1. High taxes in Long Island (in bad times it makes people noT be able to afford their mortgages) 2. Appreciation is high average home price in long island is about 500k 3. There is alot of equity because there is rarely new communities here. all that is a recipe for great off market deals. Let me know if you have other questions. 

 So your play is just buying houses discounted to get equity? 

Post: Picking a Market To Wholesale (Competitive vs Less Competitive)

Antonio Cucciniello
Pro Member
Posted
  • Investor
  • Austin, TX
  • Posts 531
  • Votes 310

Hey Everyone I have been stuck on this for a while and looking for some feedback.

I live in Austin, but am an investor in a few different markets. I am primarily here to learn how to find off market deals for myself rather than doing it from a wholesaler. I am finding properties for myself as a rental (BRRRR) first and then whatever I can't buy I will wholesale.

Since I am here I figured I would try to find properties here in Austin. I sent about 4K texts and haven't gotten a single lead. Tons of the properties here are overpriced and won't work for rentals but also, the competition is through the roof.

There are other markets I invest in are significantly smaller (60K or lower in terms of houses on prop stream). The other markets are little rock, ar, akron, oh, scranton, pa, and muncie, in. All good cash flowing markets, but not as much appreciation. I am afraid of picking these smaller markets, I won't have enough supply to get enough deals and I will need to focus on multiple markets, but that will split my focus.

Am I crazy for trying to wholesale in Austin? Or do you think it would be better to start in a less competitive market, learn how its done then try to break into a more competitive market? Any insights help. Thank you!