All Forum Posts by: Andres Murillo

Birmingham and Montgomery in AL are great options—plenty of solid homes in solid neighborhoods with good cash flow on the market. Connect with the right investment agent (*cough*me*cough*) and get some completely renovated, easy-start SFRs for that investment. Whichever agent you choose (*cough*me*cough*) can help you connect with the right kind of property manager. Many of these working-class neighborhoods will do better with local management vs national brands. There are plenty of tenants that are tech-savvy enough to work with the online portals of national PMs, but local managers are critical in the case that your tenant prefers to pay in person or mail their check to a physical location nearby. 

I agree with @Mason Liu on this. The only pros who will be replaced are those that fail to incorporate AI into their work. This has been true about every technological change in the industry - those who fail or refuse to adapt lose while those who embrace new tech win.

Quote from @Carlos Ptriawan:

Quote from @Andres Murillo:

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below. 

The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

 This is about correct in 2023. I guess in 2018 the picture is slightly different :)

One other way of illustrating this is create comparison chart based on ZHI.

 I try to update it as I find trends in the feedback. 

 Yes, I did. I just needed a way to capture all the feedback I was getting and figured this was the best way. I don't claim it to be a perfect tool, but it's been a great conversation starter for individual investors. 

I'm helping CA investors invest in states like GA, NC, FL, TX, AL, and (believe it or not) CA. Over the past 5 years OH, MO, TN, and IL have also been popular. It really all depends on what you're looking for. I'll drop my "Markets Matrix" photo below. 

The point of the Matrix is meant to describe "WHY are investors choosing X market?". This isn't meant to be an all-encompassing final verdict. But really just feedback from what I've noticed when working with investors and PE funds.

1. Make sure your lease move-out date is clearly stated. Using CAR forms makes this easier.

2. Make sure to give proper notice of non-renewal. For any tenant who's been in a unit less than a year you need to provide 30 day's notice, if a tenant has been in for more than a year you have to provide 60 day's notice, and if a tenant is on section 8 you'll need to provide 90 day's notice. 

3. Depending on your plan after 6 months the process can be much easier. For example, if you plan to personally move in or have a family member move in after the lease you'll be in a better position to end the lease. 

4. Obviously speak with an attorney because I'm not an attorney lol. 

1. Does zoning allow for the exit strategies you talked about?

2. What's the current tenant status?

3. Are the sellers willing to sell it for 25-50% less than currently listed?

4. Do you have the network necessary to shop this deal to?

5. Question for the listing agent - "Why hasn't it sold yet? Have there been good offers? Has it fallen out due to major issues?

6. Are you looking at this as a house hack for yourself?

Yup! "Wine Country" Temecula is subject to Riverside County rules, not the City of Temecula. Licensing verification is a huge piece of the puzzle. Riverside County is actually voting in September about whether or not to continue a moratorium on STR permits in "Wine Country". The boundary for wine country is Butterfield Stage Rd. In-town properties lease for far less than proper Wine Country rentals. Several areas that people think are "banned" from STR use have opportunities.

Anaheim is another great example. I offered on a single-family home in Anaheim with the goal of STR. We lost to over a dozen other offers back in early 2023. This property sat in an unincorporated part of the city, meaning the Anaheim city rules didn't apply. The property was subject to Orange County STR rules, which meant we were good to launch just 5 minutes from Disney. Awesome deal that we missed but nonetheless an example of knowing where to look and what questions to ask.

1000% go to college/university. 

Your degree proves you can accomplish something.

The network you can build can be worth 100x the cost of your education in the long run. 

Interacting with people with different perspectives and from different backgrounds is incredibly valuable when you consider how much of it you'll do in the future. 

Orlando has over 1,600 listings on Zillow as of writing this post. There are hundreds to thousands of investors searching there as well. The numbers won't ever GIVE you a deal if you just look at with the simple approach you described. You have to get to inventory faster (off-market or extremely experienced investment agent), approach inventory differently (offer less than asking or find properties that need work), and/or adjust your expectations (cash flow, growth and tax benefits). 

I'm working with "growth-focused" investors putting 30-50% down on properties today to account for the lack of cash flow. This makes a ton of sense in growth markets where properties require little to no work before renting. These properties might only produce a couple of hundred dollars a month in cash flow, but they're in safe neighborhoods with high demand. These will appreciate and hold value better than any other investment out there today. 

I'm working with "cash flow focused" investors who are expanding into different markets or strategies in order to accomplish their cash flow goals. Markets like Birmingham, Houston, or Greensboro are some of the higher cash flow areas clients are looking for. STRs are the top strategy for my clients who are maximizing cash flow while remaining in extreme growth markets. "Niche neighborhoods" or "weekend getaway destinations" of major metros can produce high cap rate STRs. I'm working with a client offering on a duplex in Torrance CA at a 9% cap and 2 blocks from SoFi Stadium (niche neighborhood) and another who recently bought a single-family home in Temecula CA with a 9% cap 5 minutes to wineries (weekend getaway destination). 

In short, yes, people are buying. Happy to connect and explore your options even more. I'll PM you.