All Forum Posts by: Diego Hernandez

Looking for other new investors interested in analyzing & looking for residential rental property deals in the Austin Area. I am open to working together or developing a potential partnership.

Looking to invest or house hack in Residential Rental properties. I would like to live in a multiplex while renting out the other units or a house while renting out other rooms. What are some good areas to start looking? My budget is about $300k but can go higher if needed.

As I am filtering among a list of properties to invest in, I am trying to rule out properties that are “clearly” not worth looking into.

Is there a rule of thumb for calculating the cost to tear down a building ($ / sq. ft)?

What are the parameters for this number and how does it change with respect to a change each parameter?

For example, how many additional $/sq.ft. does it cost for houses that are older than 1978, smaller/bigger than X sq. ft., class A/B/C/D buildings/zones, etc.

@Justin R. Wow! You couldn’t have said it any better! Thank you! I will incorporate your method when I structure my partnership.

What are some of the roles that need to be divided in a partnership to try split the work load 50/50?

For example, analyzing, marketing, researching, negotiating, RE licenses. . . What else am I missing? What is a good and fair way to share the load?

What are some of the formulas or stats that investors should look at regarding RE (I.e. GRM, ROI, Cash on cash, NOI, etc.)?

In which cases should you apply these formulas (I.e. flipping, rentals, turkeys, vacancies, etc.)?

What are some good numbers to aim for (I.e. GRM = 8.33, 1% rule for rentals, etc.)?

@Jason D. I didn’t mean to do that. I appreciate everyone’s answers. I am a new investor, and I have learned a lot from everyone’s answer. Thank you all! :)

@Luka Milicevic Lenders can't buy what they are financing because it's already too late for them. Agents can buy what they are selling. I have seen the MLS and the great deals go out fast! That's because they were priced below market value. Usually, what stays on the MLS are properties at market value or above (takes forever to sell). For investors, the MLS should not be the place to go. You could, however, find hidden gems.

@Donald Williams Very well put! Sounds like the general consensus is to go after the address or property they are offering and do the numbers yourself. Only go to the wholesaler if you can’t find any deals.

@Jason D. When you say more money, how much more do agents make than wholesalers per transaction?