All Forum Posts by: Alex Kamunyo

@Hal Fischer is this still available? And do you have a buyer's list for this area? If so, I'd like to join it. My email is [email protected]

@Cal Ewing would you mind adding me to your buyer's list also? Our email is 

[email protected]

I would greatly appreciate it! Thanks!

Just emailed you Justin!

Jerry,

Is this still available? Can you send me information to

[email protected]

Thanks!

Hey all,

I am in search of single family and small multi-family properties in San Antonio, TX and or Houston, TX. More specifically, I'm looking for value add properties or any property that can be purchased below market value and has potential for a rehab that can raise the ARV to $250K max for a single family and $400K max for multi-family property. As for metrics, a 10% return and or $200 per unit in monthly cash flow would be ideal. If anyone has anything that fits this criteria, please let me know!

Thanks

Bobby,

Welcome to BiggerPockets! I invest and live in San Antonio currently. I started 6 months ago and I am about to close on my first rental property. I can attribute a lot of the knowledge and confidence I've gained since then to the forums, podcasts, and members on BiggerPockets. I hope you can get the same if not more use out of it!

As for the property you are looking at, I'd definitely get a CMA for comps in that area if you want to flip it. The assessed values of properties that are on the Bexar County Appraisal District don't usually reflect what properties are actually selling for based on what I've noticed. But if the ARV is $180K, I would also consider holding it and using the BRRRR strategy.

B- Buy with short term loan (ie. hard money/private lender). 

R - rehab to increase the ARV.

R- rent the property out to good tenants.

R - refinance up to 80% of ARV into a conventional mortgage (pay back initial lender and get all your cash invested out).

R - Repeat the process now that you have little to no cash invested

This way you would minimize the amount of cash you have to invest and could even avoid using the HELOC if you can purchase it low enough. They key here is the refinance, you have to be sure that the property will appraise at the value you need it to appraise at. This would give you a cash flowing and appreciating asset with no cash invested. Just a suggestion. Good luck!

@John Leavelle Thanks for the insight. The current appraised value is $279K. Once the addition is complete the ARV would easily be $300K+. Asking price is $203K but I can get it for $180K at least. The max I qualified for with this lender is $250K (purchase + rehab). Those numbers seem as if the are exceptional. It would cash flow after I move out also.

@Brandon Sturgill That was also one of my concerns going into the deal. I did confirm that I would be able to live in the back apartment, because it's apart of the property.

View report

*This link comes directly from our calculators, based on information input by the member who posted. 

Hey everyone, I wanted to get some opinions on this deal I am looking into getting into. It would be my first deal and I would house hack it. I plan to use an FHA 203k loan to purchase the property. The property itself is a 5 bedroom / 2.5 bath SFR with an unfinished apartment in the back that is an addition. The single family front house is currently fully rented to 5 tenants renting out the bedrooms, it brings in $2,200 per month in rent. If I acquire it, ideally I'd get those tenants on longer leases in order for some stability, or increase the rent. I would live in the unfinished apartment in the back (after its completed of course). A contractor gave me an estimate of $75-$85k to finish out the apartment. The property has sat on the market since January 2017-November 2017, then they took it off the market and put it back on in March 2018 for $203K. I offered $130K for it due to the fact that it has sat so long and has never got an offer and the owner lives in another state. They countered at $195K (understandable) but that's still too high for me. I countered at $145K, they didn't take that either though. So I'm considering going to $160K. The listing agent says the seller owes more than $130k on the property and has invested a lot into the framing/concrete of the back apartment, so apparently that's why he didn't take the low ball offer. I have a number I'd like to stay within (purchase + rehab costs .. rehab is rolled into the mortgage with a 203k loan) in order to only have to come out of pocket a certain amount each month. Also, I think the property would be a great rental property after I move out of it because the finished apartment could bring in at least an additional $700-$800 per month. Additionally, it's in an appreciating neighborhood that is turning right now. In 5 years it will likely be a hot neighborhood that's close to downtown.

What do you all think of the numbers? I ran them very conservatively. Max purchase price = $250K ($165K purchase + $85K rehab), 5.5% interest rate, higher property tax rate, and current rental income. The cash flow is about -$500 but that's a lot better than what I pay in rent right now ($1,200). As David Greene said one of his biggest mistakes was, I don't want to confuse being scared with being conservative. I could potentially end up losing out on a ton of money by not purchasing it, as opposed to what I think I'm saving by not getting into the deal. Or I could be wrong and it could be a bad deal. Any advice/tips are appreciated.

Thanks! 

Has anyone in Texas (specifically San Antonio) had any experiencing with property taxes uncapping to the current tax rate after purchasing a property? I have heard that property taxes are usually subject to the tax rate at the time of purchase. So for example, if someone purchased a property in 2002 they would pay the 2002 property tax rate for the time that they own the property but if they sell it in 2018, the tax rate uncaps and the new owner is now paying the 2018 property tax rate. Is this how this principle is applied practically or are there more nuances that should be noted? Also, I know property taxes are based on the value of the property, so naturally they will go up gradually over the years. So in that example I used they wouldn't be paying the same in taxes each year, it would increase every year. But I ask because in Texas property taxes are extremely high due to the fact that school districts are independent, so this is how they are funded. When I analyze deals I want to be sure I am accounting for the most accurate tax rate, because that can make or break deal. If anyone has a general explanation as to how the property taxes work, I would greatly appreciate that.

Thanks