All Forum Posts by: Elias Shanaa

Hello again!! I'm back after 2 years of inactivity. I ended up deciding to wait as I felt property prices were too high, but with the correction currently happening, I think it's a good time to jump back in.

My target markets are San Antonio and Austin, TX. I have some contacts in Austin, but not in SA, and plan to visit before the end of the year! The plan is to eventually have cash-flowing properties in both cities, but I'd like to start with something small to learn the ins and outs and develop a team. I'd also like to keep some reserve funds in case of a deeper correction so I can invest in a second property.

I'm not sure how much cross-over there is between agents/contractors/PMs that work in both cities, but creating a team that can cover both areas would be ideal. I know that San Antonio will have better cash-flowing properties, but I'm also open to Austin if I can find a good deal. If I had to guess though, I will most likely start in San Antonio since it's got an abundance of cheap single/multi unit homes.

I also need to find a lender. I'm not sure the best way to go about that for out of state purchases. Does it matter who I use for that? The way I learned was to get quotes from different lenders until they stop going lower than the previous one, but wanted to get your thoughts on it too!

Thanks to all those who contacted me before my hiatus, I am happy to keep working with you. Please send me a PM if you're still around!

@Jennifer Boubel

@Sherri Stokes

@Loren Polito

Thank you all for the replies and PMs!!

@Loren Polito will PM you for more info

@Jerry Tello while we would also like to move, we are somewhat tied to SoCal because of family. I will PM you for more info on the DFW area

@Alanna Wojciechowski thank you, will DM you for more info!

@Leslie Pappas Thank you for that resource! That is pretty much my strategy :)

@Paul Moore Thank you for the perspective! Lots of people mentioning syndications, but it reminds of that saying, "if it sounds too good to be true..." Definitely need to read up further on them before committing any capital. I've done a lot of research into building a team and finding/making good deals so I'm definitely more comfortable with that for now, but I will read up more on syndications to see if that's something I'm interested in.

Quote from @Will Barnard:

My first buy and hold investments were in San Antonio (I lived - and still do) in Los Angeles as well and made the investments from afar, although I traveled there numerous times as needed. Building the team is essential regardless if you buy SFR's or multi's. I will say you get better cash flow and economies of scale with multi family.

To your comment against syndications, I fully understand and appreciate the desire to have more control over your investments but keep this in mind, as a new investor, your control over it can often be more damaging than helpful as you are likely to make mistakes when you are new (ask me how I know). Even if you can avoid any costly ones, I am willing to bet that the experienced syndicator with proven track records would outperform you even after they take their split. So before you are quick to dismiss that option, I strongly urge you to look closer at it if you intend to invest from afar. You can always start with a small amount and learn the ropes by watching how a pro performs the investment, then perhaps stretch out on your own with experience in hand. Just a suggestion to ponder.

Thanks for your thoughts! I guess that a syndication wouldn't be a bad option if we were all aligned on the long term goals and contingencies. My philosophy/strategy is basically the same as Paula from Afford Anything. I have gone through her course and I know she recommends against those, but I do appreciate the warning against being too involved as a newbie. I fully expect to make some mistakes along the way! 

I'm curious, what kind of rates of return have you seen from syndications? Ideally, I would like to find a multi with a return rate of at least 5% in the mid case scenario.

Quote from @Nathaniel Ziomek:

Quote from @Elias Shanaa:

Hey everyone! Excited to join and learn from this community.

We are prospective real-estate investors looking to purchase our first rental property this year! We live in Los Angeles, CA and are looking heavily at investing in Texas or Arizona. The main purposes for investing are finding the best cash flowing deals and diversifying into something more stable than the stock market.

I have the cash reserves ready and good credit, and since Texas seems to be growing rapidly, it seems like a really safe bet, but I'm not sure what kind of cap rates I can reasonably expect. From our research so far, it seems like the San Antonio area is the best bet for finding a good deal in an area without too much risk. But I'm also open to investing pretty much anywhere else where we can get the best cap rates/cash flow. I'm wondering if investing in two cities is a good strategy or not for a first timer, and especially if anyone here has recommendations for a stable city with upside/cash flow potential, and maybe a city with lots of cash flow potential and less stability. Our strategy is to buy and hold long term.

Thank you in advance for any responses, it's much appreciated, and we are looking forward to connecting with you all!

 Hey Elias,

I am also from LA, looking to invest in SA within the next several months. Are you looking to stay in LA and invest long distance or make the move out to SA?

 I will be staying in LA and hiring a property management company to do the managing for me. Eventually we want to move from California though.

Hi Matt, thanks for your comment!!

So far we are just looking listings on the MLS. We do not have an agent yet as we are still not 100% sure about the cities/neighborhoods we want to invest in, and we're really just getting started. I am interested in either single family homes or multifamily homes (up to a fourplex), and I don't want to manage it myself, so I know that I'll need to build a team with an agent, contractors, a property management company, etc. I do not want to pursue a joint venture because I'd like to have more fine-grained control over the investment.

Thanks again for your thoughts!

Hey everyone! Excited to join and learn from this community.

We are prospective real-estate investors looking to purchase our first rental property this year! We live in Los Angeles, CA and are looking heavily at investing in Texas or Arizona. The main purposes for investing are finding the best cash flowing deals and diversifying into something more stable than the stock market.

I have the cash reserves ready and good credit, and since Texas seems to be growing rapidly, it seems like a really safe bet, but I'm not sure what kind of cap rates I can reasonably expect. From our research so far, it seems like the San Antonio area is the best bet for finding a good deal in an area without too much risk. But I'm also open to investing pretty much anywhere else where we can get the best cap rates/cash flow. I'm wondering if investing in two cities is a good strategy or not for a first timer, and especially if anyone here has recommendations for a stable city with upside/cash flow potential, and maybe a city with lots of cash flow potential and less stability. Our strategy is to buy and hold long term.

Thank you in advance for any responses, it's much appreciated, and we are looking forward to connecting with you all!