All Forum Posts by: Gonzalo Gaston

The definition of multi family you provide is very short sighted. You have plenty of duplex and triplexes that have the features of a single family home or a townhome in Texas, probably not a fourplex. I would just not be that cheerful about starting with a weak offer give the state of the market in Texas. If the small MF is relatively OK, it would go away with much stronger offers than a DPA and short funds to begin. Besides, $5k for a MF and what reserves? I have been a little more aggressive before, but seems like the OP does not begin from a position of strength in any point.

A good deal is a good deal, if you are thinking about FOMO then you are not getting into good deals but wanna be deals. I can tell you, when a lot of panic took the markets in march 2020, I was there scooping up my favorite stocks that I had on my radar for a while. Nothing different from what I would do in such event in the RE arena, but, are you willing to keep just waiting on the sidelines if a deal comes through your door and it makes sense? That did not mean I was not buying stocks that made sense during that time. No 50x earnings or anything like that.

The same way I never stopped buying stocks when it makes sense, I would never just be lurking in the dark waiting for a one in a lifetime opportunity. The law of the averages makes up for it in the long run. The same applies to RE in my view, why would you buy a negative $400/mo property just to get it because interests are low? or why would you pass a positive $300 cashflow just because you are waiting for a black swan?

One issue with Cozy is that you cannot control whether to disable the credit card payment option. With the right tenant, which means the wrong one, that can go bad quickly.

I have been looking at properties in the same area, but does not it share a metro area with Waco? Would not be more reasonable to look at Waco in terms of rent increases?

Regarding jobs, I see that it is mostly military with some contribution from manufacturing. Any local insight on that?

Generalization is always a bad idea. However, nobody will take care of your business like you would. If you provide good customer service, you are already in a winning battle. There are painful tenants and painful landlords, so there has to be painful PM's. The same applies to the opposing point of view. So I would say you are doing something right, but that is not a general rule as there are new and old tired landlords who just let the time go and forget.

Sounds like a very well-oiled machine you have there! 

I was sort of joking because it is ridiculous to see what happened in the area in the past 2 years with MF.  The spike in the demand was drastic. But it is the nature of the beast.

I am from the area so I have an understanding of where to place my bids, however, it was astonishing how many offers most of my targets had within a day in some properties people would have passed in a different time. 

I keep tweaking my strategy, but I am already in the process of closing one that will require some patience to get it through. I am now looking for properties willing to do seller financing as part of the mix.

For off market, are you using wholesalers or direct marketing yourself? 

Really hot is not hot enough. MF go into multiple offers in less than 2 days with several dozens of offers.

At market price, a big chunk of SFH in the metroplex are not cashflowing at this level of retail price, plus you are dealing with emotions from sellers and buyers paying whatever. Insurance went up by a lot, taxes are all over the place and the differential of sales prices / rent is wide.

As you said, within a few blocks you can see a difference of 3 or 4k in property taxes due to cities/school districts on a property worth 400k. Are there still cashflowing properties out there? Of course, but in comparison to 2019/2018, it pales.

Plano near Toyota Hq, Addison near Galleria, Bishop Arts (still reconverting), Arts district, Casa Linda.