All Forum Posts by: Fernando E.

when you run ALL the numbers tax's cap ex on going maintenance you will find you can spend more get a very nice quality home that performs as well as homes that appear on paper to have better numbers.. PS I dont have anything to sell you and its just my experince of owing there and in 15 other states.

Thanks @Jay Hinrichs its been along time since we met in SF meetup. Hope you are well. Thanks for the tip in Las Vegas, my sister and I were looking into Hawaii for an out of state property, numbers don't work. I'm also looking into Phoenix Arizona, Florida and Las Vegas Nevada for multi family home. I just did a quick search and bam, found this comment. Thanks boss, I appreciate your comment here. Cheers!

2 Votes

Thanks @Royce Talbo thanks for bringing this up. I just learned about leasehold, the property I'm looking has leasehold so definitely won't work with the numbers. I have to go back to the drawing board. From your experience investing in Hawaii, what seems to be working there? Single Family homes run in the $1M+ so that's out of the question for us. Thanks bro.

1 Vote

Honolulu, Hawaii

Quote from @Chris Levarek:

@Aquila Kentish Start with your goals. If you want to learn more real estate and grow your portfolio then you choose the active investor route. You then go find an agent, lender, property manager and contractor in a specific market you select.

However, perhaps you simply want to earn passively on the 100k, then you go vet a few passive deals and select the one that best fits you.

The thing is, most on this platform will counsel either based on their experience or based on what they are offering. Neither is always best for you.

Decide first what want your life to be like, then select the investment path to get there.

My two cents is this, focusing on career and family seems priority for you. So ensure if you do choose to actively manage/own in a remote state or even locally, make sure you don't give up what are your priorities UNLESS real estate is going to be one of your priorities.

Ask me how I know! :) Either way you got this...

@Aquila Kentish, the advice here are good but at the grand scheme of things, you need to identify with your goal in real estate investing. For example, are you in it for the cash flow or appreciation? How much effort are you going to invest in this project, active or passive? This will lead to the type of property - Single Family or Multi, location - out of state or local, etc. I'm in the same journey so I'm doing a lot of research while keeping my W2. As David Greene say, we have to be bullet proof, having reserves & solid income. Good luck!

Also great advice @Chris Levarek! I see you are in the Phoenix, AZ market, is the market still good for small multi? I appreciate the input.

1 Vote

Boston, Massachusetts

Quote from @Chris Seveney:

@Fernando Enrile

Did you include condo fees? High rise buildings tend to have higher condo fees especially in tropical areas because of the weather / salt. Also buildings have more complex systems and repairs are more costly

Thanks @Chris Seveney, no I didn't. Thank you. This seems like a not so good deal already :) I appreciate the input.

1 Vote

Honolulu, Hawaii

@Lane Kawaoka hope you are well bro, I think this is your territory, feed back is much appreciated.

0 Votes

Honolulu, Hawaii

Hi all,

My sister recently sold a property in Sacramento and planning to invest a very small portion of her profits in Hawaii. I plan to help her by joining in the venture. I'm doing some research, I see some 1Bed 1Bath for about $125K+ and I ran some numbers using BP Calculator, your comments & feed back is much appreciated

Purchase price: $125K

Down payment: 20%

Closing cost: $5K *

Interest: 5.5% for 30 years

Rent: $2K / month *

Property tax & insurance: $100

Repairs: 5% | CapEx: 5%. | Vacancy: 5% | Property Mgt: 8%

Net Cash flow: about $160 Cash On Cash: 6%

Total cash out is about $30K

*Not sure about closing cost and rent may vary

Purpose of the deal is to buy a property in a fairly good location walking distance from Waikiki beach, potentially grow some value for the next few years, having a property outside the US in Hawaii as a potential vacation home, if we don't rent out the mortage can be absorb w/o breaking the bank.

Thanks all!

1 Vote

Honolulu, Hawaii

Start with Beardy Brandon's book - the Multi family Millionaire volume 1, @Brandon Turner throws some good knowledge there.

Also save money for down payment, this is separate from your emergency fund - we're heading to a recession, things can get nasty.

My 2 cents, Not Financial Advice of course, good luck!

0 Votes

Quote from @Scott Trench:

Quote from @Travis McGray:

Quote from @Scott Trench:

If I earned a median income and didn't want to house-hack, I'd find a partner to help me finance the purchase. For example, perhaps you could find a person to guarantee the mortgage, provide the down payment, and they receive a preferred return of 8% per year.

For example, the financing partner provides a $100K down payment and a $400K loan on a $500K duplex.

The financing partner receives an 8% return ($8,000) from the property prior to the new investor getting any profit.

After that, additional profits are split 50/50 between the financing partner and our new investor.

This allows the financing partner to get a good return and have protection of capital, while heavily incentivizing the new investor to get the financing partner's money back, and provide material upside.

For good measure, the new investor could put in $10,000 of their own capital to show that they are going in with what they can reasonably afford, so that they have meaningful skin in the game as well.

This is an awesome example! How do you go about finding someone to be willing to take on a brand new REI and go in with them on something like this?

I think that will be the challenge. This is where being relentless pays off. I think that this new investor should:

- Save as much as humanly possible to have more and more cash to potentially put in the deal with each passing month.

- Obsess over real estate - analyze dozens or hundreds of deals, read books, listen to podcasts, post in this forum, etc. BECOME an expert on real estate investing in a convincing way, by putting in the work.

- Talk to a variety of people - personal connections, family, friends, investors at networking events, etc. Ask them if they'd be interested in a partnership structured something along the lines of what I said above.

- Send deal examples to the folks who seem interested, and provide detailed business plans for what you'd do with the property, how you'd manage the process, reduce risk, promote upside, how you'd be willing to do some of the work/repairs yourself to save costs, etc.

I believe that this approach, worked on with vigor, would be likely to yield a partner within a reasonable period of time.

Great strategy and insight as always @Scott Trench! Happy to be back in BP after a while and seeing you throw out this nuggets of wisdom. Cheers!

2 Votes

Quote from @Paul Moore:

Hi @Fernando E.. That is very kind of you to say. Feel free to PM me and I’ll send you the ebook Vwrsion of my book on multifamily investing. Good luck!

Thanks @Paul Moore! I appreciate the coaching that you gave me a few years back here in the bay area. Excited to go back to real estate game. I will send you a DM. Thanks

0 Votes

Quote from @Doug McVinua:

@Fernando E. I operate as a Broker and a Property Manager of Multi-Family in the Phoenix, AZ market. We have owners with multi-family in Chandler AZ, Phoenix, Mesa AZ, Apache Junction AZ, Arizona City AZ, and others.

Much of what we manage in the Multi-Family sector is B-C property. After 24 years of real estate, we have sure learned plenty of things to do and some things not to do lol

I have really grown to like multi-family as the cash flow is always flowing, unlike single-family. We have owners that have done upgrades/remodels and with multi-family we can typically do that unit by unit, increasing the rents at the same time to make the numbers great in a fairly short period of time. By staggering the remodel/upgrades we always have cash flow in multi-family.

Yes, I see pit-falls in multi-family. It's not all roses, mistakes are possible, you can buy the wrong building, etc.

Not sure of your questions? Happy to engage and offer my experiences if it would be of any help?

Thanks Doug, great to e-meet you and happy to connect here in BP, just sent you a DM & connection request. I am starting my due diligence on the states that the numbers will work and also path of progress. Austin Texas is hot right now, I have some friends who move from silicon valley to Austin and the state is experiencing massive price surge. I think AZ is also experiencing some growth and migration from expensive states like California. As noted earlier, my partners and I are starting our due diligence process, I will definitely reach out if there is an opportunity for us to work together. Thanks again.

0 Votes

All Forum Posts by: Fernando E.

Fernando E. has started 29 posts and replied 222 times.

Post: New Investor - Which market to pick?

Post: High rise condos as a long term investment

Post: How would you invest 100K if you were just getting started

Post: High rise condos as a long term investment

Post: High rise condos as a long term investment

Post: High rise condos as a long term investment

Post: Starting on acquiring a 5-25 unit

Post: QOTW: If you had an average income, but don't want to househack..

Post: Tips for Multi Family OOS

Post: Tips for Multi Family OOS