All Forum Posts by: Conrad Metzenberg

I'm very interested in buying a SFR in San Antonio. This will be my first OOS deal so I'm looking to put together a strong team. Please reach out, I'd love to chat and analyze your deals.

What I’m looking for:

Class B or B- tenants
Properties under $130k
SFR's 3/2, no bigger than 4/3
I’ve been advised to target S. San Antonio but good numbers can steer me to other areas.

Thanks,

-Conrad

2 Votes

San Antonio, Texas

then i'm doing it right. @Alexander Felice Thanks.

1 Vote

Originally posted by @Alexander Felice:

I do BRRRR long distance. It's really easy when you have great people in place.

Building a great team though is an ongoing process. I still fire people, I still have to vet and find replacements, build those relationships, build confidence in my team that I can make them money consistently, etc.

Pound pavement. I recommend messaging people in that area every single day until you have some great friendships established. Ground game cannot be understated. Buying houses is easy, having them managed without you being there is entirely dependent on the people you've put in place.

I recommend finding a city first, committing to that city then building a team around your strategy.

Hi Alex. Any tips on building a team and vetting people from a far? I've been messaging people in markets that i'm interested in based off of their posts or others recommendations on BP. How are you doing it?

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I'm reading David Greene's Long distance real estate investing right now. If you haven't already read it, I suggest it.

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Pavan, ADUs can't legally be rented out on a short term basis in CA (less than 31 days).

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I've been running the numbers on adding and ADU on to my primary residence. My goal is to add on to my section of the house and have the rental income from the ADU cover the cost of the project. Does anyone have any tips for me on this? I know these ADU's are a fairly new thing.

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This has all been very helpful. I'm definitely rethinking where and what I need to be looking at. I probably need to focus on areas around big cities, probably ones that us millennials like. Focus more on equity building than cap rate.

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Originally posted by @Jeff Minc:

Hi @Conrad Metzenberg

I'm in a very similar situation to yours and have been asking the same questions. Here's my quick backstory and experience.

I own a Townhouse/Condo here in Santa Barbara that I bought about 3 1/2 years ago that has roughly 200K in equity that I think I want to pull out for a rehab project here in SB or to buy more cash flow units out of area.

About 2 years ago I bought a 4 unit condo complex and a duplex in Bakersfield. Good cash flow and good cap rates at the time (~7 and 6 caps respectively). Good tenants with the exception of one nightmare that I had to take to court to evict and is still costing me money in legal fees almost a year later due to the unfavorable laws in CA. That being said, the other 5 units have been great with steady cash flow and very little hassle. I hired a property management company that is low cost (40-60 bucks a unit monthly ) but I am not totally satisfied with their service so I might be changing management. All that being said it has been an overall good investment and I am happy to own them.

At the moment my partner and I are looking for either a quick fix n flip here in town, or due to this market being so competitive we have begun looking out of state to some of the sub markets surrounding Portland. We like the appreciation potential there mixed with decent cash flow and my partner is very familiar with the area. I actually have been interested in Dallas for a while but I don't have any contacts in the area and no real feel for the city.

We should talk more. PM'd

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@Bryce Wong. I couldn't really tell you how many homes I look at day with any accuracy, maybe 10-20. I've been using zillow to just look at areas i'm interested and then looking at craigslist rents in the same areas to determine P/E ratios. What do you use? I'm pretty picky with whom I partner with as I plan to buy and hold for long periods of time. If possible i rather be on my own, at a minimum 51% ownership.

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@Jay Hinrichs, great point on the HELOC. My plan would be use it for purchasing only, then refi with a conventional and take most (maybe even all) the Heloc money out of the equation. I've heard this is easier said than done, i'll have to consult with lenders.
As far as selling my house, no way. Right now I have to live in SB and I can't rent for how cheap my mortgage is.

Now with regards to all the love for CA REI; yes, it's historically done very well. With regards to current math, what part of CA are we talking about? Where are the double digit cap rates? Also, sticker price is really important to me because I don't want to put all my eggs in one basket if I don't have to. I'm looking at 300k and under. So with my available cash and equity and the above two factors mentioned, CA doesn't really look that appealing (not including the central valley).

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All Forum Posts by: Conrad Metzenberg

Conrad Metzenberg has started 11 posts and replied 77 times.

Post: OOS investor looking for SFRs in San Antonio and bis partners

Post: How to BRRRR from Afar

Post: How to BRRRR from Afar

Post: How to BRRRR from Afar

Post: California accessory dwelling unit addition

Post: California accessory dwelling unit addition

Post: So what would the pros do in situation.

Post: So what would the pros do in situation.

Post: So what would the pros do in situation.

Post: So what would the pros do in situation.