All Forum Posts by: Antonio Esquivel

Pretty much everyone else covered what I was going to say. I started the very same way, bought a house and moved in 2-3 friends. You cant go wrong with someone else paying the mortgage! Good Luck!

 I have a feeling that prices will continue to rise due to all the towns flooding nearby. 

Either option is fine. One thing you want to keep in mind is that banks will count any mortgages you have against you when you apply for your 2nd property. So if you two are approved for a mortgage of $200k lets say, and you use 100K for the first property, your next property can only be 100k. Banks will only start counting rental income after you have 2 years of history on your taxes. I only say this because I had a friend use the BRRRR strategy but then couldn't get approved for a 2nd property due to his debt to income ratio.

What gets me about that apartment complex is that most people were forced out by city officials no questions asked. Instead of just penalizing, making the landlord fix issues or move people out within a certain timeline, they force everyone out all at once and make a bad situation even worse. 

As far as I know, you cannot deduct tools. Unless the property is a commercial property (at least 5 units) with a maintenance shop then you might be able to deduct tools I believe. I am not a tax expert. 

Great advice!I want to add to this as well. If you are looking for bank financing after you buy a negative cash flow property it will make it tougher as well. Banks will look at your negative cash flow and deduct it from your income- thus hurting your debt to income ratio. 

If you really think you can make it with appreciation ask yourself how high must the property go up to make it worth your time? Say the property goes up 10k in 2 years. After expenses, was it worth it? Maybe, maybe not. What if it went up 50K in two years? Maybe then it would make more sense. Study the market and see how much the area has gone up every year for the past 4 or 5 years. Also look at current trends-are there more employers moving in? ect. 

I personally love Austin and have some family there. Keep Austin Weird!

I take a Dave Ramsey approach when it comes to personal finance. No CC debt, auto payments, student loans etc.  It makes life a little easier in case something goes wrong.

However, when it comes to real estate I finance. I am trying to build wealth as fast as possible and saving up cash to buy property is not my best option. If someone else is going to pay my mortgage I can take a little bit of risk!

I use Allstate for everything. In my experience they have a very competitive rate for SFH. I bundle landlord, home, auto and an umbrella policy with them.

Be conservative on your numbers. This includes mortgage payments and projected rents. Then when you start advertising rents be aggressive and start high. Make sure to get a good lease and try to get 1 month deposit. If you have any questions I'm a realtor/investor in Omaha and happy to help.

So as I've been running the numbers, it seems like everything for sale would have a lower RoE. Granted its asking price but still, I'm not sure I could match or get close to what I have been getting before. Appreciate your input!