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All Forum Posts by: Arron Paulino

Arron Paulino has started 53 posts and replied 214 times.

Post: Real Estate Investing Reset Button Has Been Pushed

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Marco Padilla:

Hello,

It's great to see that you've been on a real estate investing journey for a few years now, learning from both the ups and downs along the way. As you plan to reset and pursue your goal of attaining $5,000/month in positive cash flow with decent liquidity, partnering with other investors could be a valuable option to consider.

There's a famous quote that says, "If you want to travel fast, travel alone; however, if you want to travel far, travel in a group." By partnering with other investors, you can leverage their knowledge, resources, and experiences to help you achieve your financial goals more efficiently.

Here are a few potential benefits of partnering with others:

  1. Increased Capital: Partnering allows you to pool financial resources, giving you a stronger position to pursue larger investments and potentially increase your positive cash flow.
  2. Shared Expertise: Collaborating with experienced investors who have achieved similar goals can provide valuable guidance and insights. They can help navigate challenges, identify market opportunities, and offer sound advice based on their own successes and failures.
  3. Risk Mitigation: Sharing the risk with other investors can reduce your exposure and help protect your assets. By spreading the risk across multiple parties, you can minimize the impact of any individual investment setbacks.
  4. Expanded Network: Partnering provides access to a broader network of contacts, which can lead to new opportunities and potential deals. The connections of your partners, combined with your own network, can open doors to beneficial collaborations and increased deal flow.

When considering partnership opportunities, look for investors who share your goals, values, and investment strategies. Networking within real estate investment clubs, attending industry conferences, and engaging with online forums can help you connect with like-minded individuals.

Apart from partnerships, continue focusing on education and self-improvement. Learn from your past experiences and adapt your strategies accordingly. Consider exploring opportunities in markets that align with your investment goals and offer decent potential for positive cash flow. Researching and understanding market trends, rental demand, and economic indicators can inform your investment decisions.

Keep refining your business operations and systems as you scale your portfolio. Strive to build a strong team of professionals, including property managers, contractors, and advisers, to help support and streamline your investment efforts.

Remember, achieving financial freedom takes time, dedication, and smart decision-making. Leveraging the expertise and resources of others in a partnership can help you achieve your goals more efficiently and maximize your chances of success.

Best regards,


 Thanks for sharing your input on connecting with investor partners. I really think this is the way to go so I can scale more efficiently. Connecting with the right investors and not just anyone is where I should focus my attention. 

Post: Beginner looking for advice

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Nick Johnson:
Quote from @Arron Paulino:
Quote from @Nick Johnson:

Hello everyone,

I have been looking to get into real estate for sometime and finally want to take the next step and secure my first property. Over the last few months I’ve been trying my best to learn as much as I can to gain knowledge in the business and help me make good decisions. 

My first issue is I live in a HCOL area (NY) and investing locally seems like numbers are not worth it. I’d have to spend big money on a downpayment and most properties won’t even cash flow enough to make it a good deal.  

I am now trying to learn as much as I can about investing out of state. I finished reading long distance real estate which was very helpful in showing that it is feasible to buy properties out of state. 

I have a good full time w2 job so coming up with a down payment is not an issue. I just am having issues feeling confident in an out of state market that I have no clue will be good. 

I’m looking for advice on what I should be doing to get where I need to be. So far I’ve read long distance real estate, rental property investing and abcs of real estate. I’m also reading forum posts and listening to the bigger pockets podcast when I can. 

My goal is to buy my first rental property this year, preferably a duplex and would like to get to a point where I feel confident to put my money down and make my first deal. I currently am not a homeowner so this would be my first property all together. 

Thank you for the help. 


Happy to see you're getting into this game! It's honestly been a big learning experience for me just diving in and ironing out things as I went. I was like you and educated myself beforehand but you can only go so far until you dive in.

Sounds like you'd go for a house hack since you'd like a duplex first. You can apply for an FHA loan as a first time homebuyer to use your down payment money to get a property in your area and rent out the other half to get your firsthand experience. This is probably your preferred option. Maybe even think of moving to another city/state if you are comfortable with doing that unless you like living in your area.

In terms of out of state, try to find a landlord friendly state. You sound like me starting out and hope for the best man!

Thanks for the response !

I am stuck living in my current area due to my job so moving isn’t an option. I am actually looking at potential house hacks in my area but I guess I’m kind of picky that if I did go that route I would eventually want it to be my family home in the future so I wouldn’t just pick any house to do that. If I did an FHA loan and paid little down, the mortgage payments would be insanely high right? I feel like that wouldn’t make sense especially since the rent wouldn’t even cover half the payment if I were putting 20% down. 

Do you think OOS as a first investment is too risky? The only market I see thrown around is Columbus and feel like I’m late to that party. 

Makes sense. Maybe find somewhere not too far away from work in the suburban area/outskirts to avoid the big city prices. Yes, you'll be paying mostly interest rather than principal paydown starting out with the FHA loan hence the better play for you on paper but maybe not on the monthly.

It's not too risky so long as you pick your market(s) and do your numbers right. Yeah I was late to that city too when I started, but doesn't mean you can't make a play there. Just more fish in that pond is all so it'll take more time if you're okay with that. I too was hesitant going out of state, but I put my foot on the gas and started to make some moves. Even in my OOS market in Memphis, I'm still struggling to find something so it's been tough to move the needle. I understand how all the numbers work to make sense and it just has been more a being patient game when getting another property.

Post: Starting Out - Looking for Advice

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Jennifer Haje:

Hi Im a licensed Realtor and a RE Transaction Coordinator in New Jersey.  Looking to expand my Real Estate Portfolio and get into RE Investing.  Looking for Guidance and a Mentor.

Have a great day!

Hi Jennifer! First, I think you need to define what exactly you're looking to get out of all of this. Are you looking to invest in your state or invest out of state? Leave your W2 or just get some side income/diversify your investing portfolio? I'd attend your local REIAs if you're looking for an in-person mentor to guide you. You can find one via meetup.com and/or local Facebook groups. Keep educating yourself before you dive in so you can really set your standards and not get your hopes too high up. I'm telling you this from my experience as I was high with my expectations and really humbled myself getting to where I am now. I've gotten some rentals under my belt on my own, but nothing worth quitting my job for yet although this is my personal goal. Hope for the best and always open to chat!

Post: 25 Year Old with 500K in liquid Cash. Wanting to build duplex - all the way to quad

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Jacob Hancock:
Hi everyone,
I have a chunk of money I am wanting to put into real estate. I am wanting to get some advice on what to do. I do not currently own any investment real estate.

My question is, with the cash that I have what would be the best route to go? Duplex, triplex, or even quadplex?
*how much is the costs to build each of these?
                    - ideally I would like to do two bed two bath or maybe even one. not opposed to 3 bed two bath.
I would like to build new.
-I have good connections with a local contractor that could do it. Mind you on these I would use mini splits.

secondly, would you recommend a barndomenium style, brick with vinyl siding, or all vinyl?
Im not scared to leverage but on my first investment I would like to do half down to limit risk and build more knowledge before I started leveraging more.

any tips or ideas are most certainly welcome. Thank you so much guys.

Best,
Jake



 I just have to say very impressive to have accumulated $500k by 25 years old. Congrats man! All the best. I'm curious how you got to that level. I'd honestly say keep doing whatever it is you're doing as real estate can work too but keep your expectations low when starting. I'd leverage those funds to multiple cashflowing assets rather than just one property to spread out your wealth.

Post: Beginner looking for advice

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Nick Johnson:

Hello everyone,

I have been looking to get into real estate for sometime and finally want to take the next step and secure my first property. Over the last few months I’ve been trying my best to learn as much as I can to gain knowledge in the business and help me make good decisions. 

My first issue is I live in a HCOL area (NY) and investing locally seems like numbers are not worth it. I’d have to spend big money on a downpayment and most properties won’t even cash flow enough to make it a good deal.  

I am now trying to learn as much as I can about investing out of state. I finished reading long distance real estate which was very helpful in showing that it is feasible to buy properties out of state. 

I have a good full time w2 job so coming up with a down payment is not an issue. I just am having issues feeling confident in an out of state market that I have no clue will be good. 

I’m looking for advice on what I should be doing to get where I need to be. So far I’ve read long distance real estate, rental property investing and abcs of real estate. I’m also reading forum posts and listening to the bigger pockets podcast when I can. 

My goal is to buy my first rental property this year, preferably a duplex and would like to get to a point where I feel confident to put my money down and make my first deal. I currently am not a homeowner so this would be my first property all together. 

Thank you for the help. 


Happy to see you're getting into this game! It's honestly been a big learning experience for me just diving in and ironing out things as I went. I was like you and educated myself beforehand but you can only go so far until you dive in.

Sounds like you'd go for a house hack since you'd like a duplex first. You can apply for an FHA loan as a first time homebuyer to use your down payment money to get a property in your area and rent out the other half to get your firsthand experience. This is probably your preferred option. Maybe even think of moving to another city/state if you are comfortable with doing that unless you like living in your area.

In terms of out of state, try to find a landlord friendly state. You sound like me starting out and hope for the best man!

Post: Real Estate Investing Experience in Memphis, TN

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Michael Smythe:

@Arron Paulino if you want to fix & flip remotely, it seems the most sense would be to try it in a market you already know - Memphis.

The learning curve in other markets may COST you a lot of money!

Regarding rentals, as @Stephen Akindona mentioned, buying turnkey doesn't net you a lot of cashflow or equity. Buying a property in Memphis to flip, may actually show you a better way to buy rentals.

Like @Travis Biziorek, we help investors in the Detroit market do it the right way. Neither of us over-hypes to cover up realities! 

We don't recommend turnkey here as not aware of any Detroit area trustworthy turnkey providers. 

What we prefer is helping our clients acquire properties that need work, and then we get them RentReady and rent them out. You then know what's been done and what hasn't.

Let us know what else we can help with.


Thanks Mike! I've been doing the BRRRR strategy and it's worked. Just when the expected capex comes up it eats into the gains I had so it's almost like I said a neutral effect in obtaining and maintaining positive cash flow. Not to mention when I cash out, the interest rate isn't the same as a few years back where it has almost doubled to where I barely breakeven on these newly attained properties.

It seems to be that I need a higher number of units to make it more likely to get the numbers I'd like to see in terms of my goal of ~$5,000/month net cash flow. Maybe I should start diving into multifamily, but not sure if Memphis is the market for it although it can be. I just have seen more success with single family in my opinion.

Post: Real Estate Investing Experience in Memphis, TN

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Stephen Akindona:

@Arron Paulino I am of course very biased as I live and invest in Memphis. @Travis Biziorek is absolutely right. If you are trying to get cashflow, you will need scale. It also is important how you are buying. If you have 8 doors in Memphis and you purchased them all turnkey, then it's no surprise to me that the cash flow isn't where you hoped. If you are buying properties here and doing minimal repairs, just enough to get them rented, then the maintenance will eat all the potential cash flow. I am not making any snap judgements here, but how you purchase is a pretty significant piece of the puzzle. All of my rentals were distressed assets that I completely and throughly renovated. We don't leave any differed maintenance. For the first 4-5 years I really don't experience much maintenance on my properties. 


I think I am in scale mode and am wondering how to effectively go about doing this. Right now, I've just been handling things financially on my own without any other lenders aside from the refinance part of the BRRRR. By doing this exit strategy, I was able to get these distressed properties to rent ready condition. I think the expected maintenance issues (plumbing, HVAC, and the like) really ate into cash flow that I developed over time and has kept me at a plateau-like position. Any tips on improving the game plan?

Post: Real Estate Demand Letter

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Stephen Akindona:

@Arron Paulino man hate to hear you had a rough go with some unscrupulous folks. I am here in Memphis if you ever need some help checking things out or verifying work etc. let me know I'd be happy to help!


 Thanks for being available!

Post: Real Estate Demand Letter

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @AJ Singh:

@Arron Paulino

I know we think ca rentals don’t make sense. But there are still counties who still yield nice market rents. I have better success with my local ca rentals in appreciation and rental yields than in my oos portfoli

 I’d like to learn more about where you invest in CA. I’ll reach out

Post: Real Estate Investing Experience in Memphis, TN

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Travis Biziorek:
Quote from @Arron Paulino:
Quote from @Travis Biziorek:

Hey Arron, how many doors do you have in Memphis? It takes some time for the cash flow to build to anything significant and you'll need more doors in these lower cost markets.

I was actually living in Walnut Creek until 2017 when we relocated to Detroit Metro. My wife started investing in real estate there (in Detroit proper) in 2019, built a 12-door portfolio, and then moved back to CA in 2022. I'm in the Central Coast now.

The cash flow is significant for us at ~$16,000 gross rents/mo and about half of that profit. But I was strategic about where we purchased and did BRRRR's.

I'm still investing in Detroit (picking up a duplex this wee) but also building an ADU here at my primary.

Happy to discuss what you've been doing and where there might be holes in your plan, ways to improve, or if you just need to stay the course.

I don't love the fix-and-flip model in these kinds of markets. There's just not a ton of margin, and IMO not worth the hassle. Shoot me a DM if you want to talk more.


Hey Travis! I currently have eight doors in Memphis. I will liquidating two of them, possibly three, to regain capital to venture into another market. I agree and I'm thinking I'll need at least double my doors to see some significance.

Your "hometown" is not too far from me! I am actually interested in investing in the Detroit area and would like to learn more. I'll send you a message and get connected.

That's the goal I'd like to get to as well in terms of rent per month. I'll be reaching out!


 Sounds good, man! If you're ever in this neck of the woods, happy to get together too.


 That sounds great. I sent you a message!