All Forum Posts by: Issac San Miguel

Hey Robert,

As San Antonio continues to be more affordable than here in Austin, what areas of SA would you rec as far as living goes? I live in 78749 right now and the rents here are crazy - I have a great IR on my house right now and would consider renting it out if I can find a quality tenant.  Since I work in South Austin, the drive in from New Bruanfels or North SA wouldn't be terrible. Any North SA areas you recommend?  Looking for Circle C/Village at Western Oaks vibe.

Thanks!

Issac

Lots of variables involved to get the best rates and terms out there.

In hard money, like-for-like is huge, and may also be a big part of getting a conventional bank to loan. What they will need to vet is not only your FICO, but your ability to actually build/complete the project.

That said, I work with several home builders who use the equity in their vacant lots to finance construction.
Shoot me a dm if you want to chat about it more.

Thanks,

Issac

my clients in FL and GA are doing exceptionally well - TX is also performing.

San Antonio is solid - great investments being made in the city - with plenty of room to grow.

Me personally, a multi fam, simply due to my comfort level with the asset class.

Both have upside of course - if you needed to recapitalize after your initial investment, you could always sell 1 of the 4 sfr

I'd say the decision lies ultimately in your short term and long term goals.

I think both areas are going to perform - The infrastructure build out in the mlk/183 area is amazing.

The idea is to use proceeds from refi to fund the next deal, thereby growing the portfolio utilizing in place rents to pay the debt service.

Recap it through cash out refi bridge until you find a buyer.

I second Eliott's response - no one is going to do this deal for you.

Pencil it out - add contingency reserves to account for unforeseen issues, make, and execute a plan.  It goes beyond the calculator.

What is your goal here? Increase cash in your bank account as quickly as possible? Build long term equity? 

In that case just pencil it out. Make sure your loan is favorable to refinancing in the short term. With rates rates where they are, don’t get stuck in the 6s when in the near future they will likely come down again. Prepayment penalties can be costly.

Cure the property of deferred maintenance and perhaps add some value that may pay you back in rent.

Include debt service, taxes, insurance, capex, and ultimately, with a certain caliber of tenant, some turnover and repairs beyond those you are accounting for. Do not expect the resident to treat the property as if it was their own and keep some revenue on hand for emergency repairs.