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All Forum Posts by: Erik Orozco

Erik Orozco has started 11 posts and replied 88 times.

Post: Engagement vs. Down Payment?

Erik OrozcoPosted
  • Mcallen, TX
  • Posts 92
  • Votes 72

@Devin James man oh man what a question! I was asking myself this exact question not too long ago and I appreciate you sharing with the BP community as it is a very personal one. There's so much solid advice already given, but I just wanted to share my experience. 

My wife and I were together 4 years before we got married, we pushed back just about everything we could. Wedding, ring, house, nice cars and anything else remotely expensive. When we started we had no savings, credit card debt, large student loans and terrible credit...We sat down and had hundreds of discussions as I educated myself in real estate, finance, and everything self help. She was hesitant to jump on board, but eventually she saw the "light!" 

Now we own a 4-plex, a commercial building, purchased a profitable daycare center and looking for another plex or small multi family. We live off a portion of my w-2 income save the rest and the income from the properties and business we don't touch. I paid cash for her ring about the same price your girlfriends searching for and she's crazy about it! Next year we'll be able to have the big family wedding she wanted for years. We are by no means wealthy or financial free, but we're on the right track.

The truth is that everybody likes nice things and girls like diamonds, but buying liabilities before assets will have a negative affect on your future for years to come. Talk to your girlfriend introduce her to the site, listen to some podcasts together...BP's Money, paula pant's afford anything, and chose FI are great podcasts. 

Best of luck to both of you!

@Cirilo Villar welcome to the site and congrats on taking action! My advice would be to save as much as you can from your current job. If there is little left over after paying the bills, consider a 2nd job. Once you're savings rate climbs up over 50% and that 4K gets up to 15-20 then you can really jump into RE with some skin in the game. 

Another route is wholesaling, but make no mistake wholesaling is a grind. Especially at the beginning. I got lucky and after maybe $1000 of marketing and after 4 months of hustle I was able to wholesale my 1st deal for 10K. I used that and some savings from my W-2 job to purchase my 1st house hack. 


Build that credit and continue your education. Best of luck!

Post: Disapproving Family - Starting in Rental Property Investing

Erik OrozcoPosted
  • Mcallen, TX
  • Posts 92
  • Votes 72

Jump in @Tyler Kress

1. Educate and absorb everything you can. 

2. Do your due diligence and buy right (this will give your cashflow a cushion for those unforeseen expenses). 

3. Buy that plex with at least 10K in reserves. 

After a few successful deals those naysayers will be changing their tune! Maybe even asking to jump in on your next one. Best of luck!

@Maria Luna I dig your positivity and mindset! Congrats on your 2 Rentals. Sounds like your up for the challenge in Detriot. Good luck!

Although i wouldn't write off Lacey altogether. I graduated from St Martin's and I'm familiar with the Lacey/Oly area. I understand the barrier to entry in Seattle and any surrounding counties has gotten out of hand. But is there anyway you can JV/partner with other investors/fam/friends in the area and continue to invest there??

I’ve been keeping my eye on a 4plex close to the university that sold for 385K. At a conservative $600/room that plex is going to cash flow nicely. I really believe there’s a profitable niche in any market regardless of price point.

Lauren, I typically take 10% of the rental income every month for cap ex regardless of condition and at least another 10% for vacancy and repairs. I'm shooting for at least 15-20K in reserves for every property.

Hey Lauren,

Congrats on taking action! We just about swapped places as I live in Weslaco, but I'm originally from Seattle. 

It looks like you've done a lot of the due diligence necessary. Have you considered on going cap ex, vacancy, repairs? From what you provided it seems like this rental wouldn't cash flow. What are you goals with this investment? Are you looking for cash flow, appreciation, or some other goal?

If you don't mind me asking, what bank was comfortable with 10% down payment on a rental property?

Good luck with your 1st venture.

Post: Location, location, location

Erik OrozcoPosted
  • Mcallen, TX
  • Posts 92
  • Votes 72

Hey Van...I live and invest in the Rio Grande Valley area which encompasses McAllen/Edinburg. I would say that information of the area is accurate! The highest potential for appreciation (rent rates and equity) is going to be the McAllen/Edinburg and its surrounding cities such as Mission, Pharr due to the growth of these areas among other factors. 

Areas I would avoid are really based on the intimate knowledge of the neighborhoods. When considering a deal connecting with a local realtor or investor will help. 

I personally invest in the Weslaco about 20 minutes from McAllen east. As it has seen the most growth out of the mid valley cities and is even less well known then McAllen. Less competition and lower prices.

Yes the BRRRR method can be implemented. Message me if you would like to know more details about this.

Post: Should I start my real estate journey with my dad? Or solo

Erik OrozcoPosted
  • Mcallen, TX
  • Posts 92
  • Votes 72

My father is my silent partner and each deal we do we determine whether he receives a % of monthly income or a set interest rate. After only a few deals it has worked great for us. I control the deal, he makes extra income that pushes him closer to retirement. All that being said I am constantly learning, educating myself in RE and not scaling too quickly. It's a tremendous responsibility using family capital.

Post: 4 Plex after purchase

Erik OrozcoPosted
  • Mcallen, TX
  • Posts 92
  • Votes 72

Congrats @Joseph Casarez! I also house hack a 4plex in the RGV. The Valley has a surplus of 4plex's which are perfect for house hacking. Whats next for you? We should grab a coffee and talk shop. I'm always looking to meet up with like minded investors in the valley area.