All Forum Posts by: Jerry Lundergard

Uncertain times broski. Doesnt suprise me at all they are raising rates. Imo, there is a real possibility of housing prices tanking a good bit. May take a while but I see it as probable considering the damage that our economy is suffering and expected to continue to suffer. Cash is king again and there should be a premium on it now.

I 100% recomend CPAs, especially if you make money apart from real estate. I would also like to hear specific recomendations san antonio folks have for "real estate friendly" CPAs here. Thanks

Is anybody using soaker hoses on the perimeter of the foundations on their rental properties as a preventative measure? Im wondering if its even worth the hassel if the foundation is roughly level and has maintaned level for 20 years? Wouldnt you expect foundation issues to occur within the first couple to 5 to 10 years after being built? Or is it something that really happens 20 to 50 to 100 years after the fact around here? Like foundation is good for 10 to 20 years then suddenly the soils push it out of level that long after being poured and staying good?

@Will Pritchett I had been just looking specifically on the NE side so I will broaden my search on my next property to include the entire North side :)

I realize south side might get might closer to the 1% rule and very well could appreciate as well as the north side, its just I personally buy in areas/houses that I would want to live in. Prolly not the greatest strategy but I figure if I like it and its good enough for me hopefully renters that I would want will too.

Great point on reaching for harder to find deals. I think if San Antonio is really gonna catch up with home prices in other growth sunbelt areas of the country it will just keep getting harder. San Antonio is definitely out of the dark ages now and actually a spot people are noticing on a national stage. If we ever saw explosive price growth like phx, vegas or austin that would be awesome! Im hoping for atleast 4% per year for a couple decades.

@Joseph Cacciapaglia I agree with your analysis. If that growth scenario unfolds in San Antonio people holding real estate around here should crush the S&P index funds. Especially with all the turbulence in the market now anyway. I get this feeling we could be roller coasting sideways for a long while in the stock market. Its good to see PMs around here with their ears to the street keeping tabs. One of these days I will hit you up. Im prolly gonna wait to pick up another property late this summer or next fall.  

Hello everybody! I am wondering if the 1% rule is a thing in good areas of San Antonio now? Im talking about after a solid rehab and all in price in either the NW or NE of San Antonio? The best I have been able to do is about .8% with a 5% cash on cash on my last 2 purchases here. If some folks dont mind sharing their numbers on recent purchases here in desirable areas I am curious.

With these numbers I have a hard time deciding if it makes sense to continue to aquire rentals VS just buying more S&P index funds VS just holding cash (it burns holes in my pocket and I start buying dumb sh$t!)

Any swamis out there have a crystal ball or guess what our appreciation might be next 5 to 10 years? 3% a year, 5% a year, side ways? Are we gonna catch Austin tailwinds with our appreciation?

My rentals always sit in San Antonio. I have tried several PM, both good but after my last rental sat for nearly 60 days I knew I was gonna try somebody else. So same problem with this rental, I am at 30+ days and counting. I am having to tell my PM to drop price and stay on them about it. BTW, my property is a B+ to A- property in NE San Antonio at the 1500$ range 4/3. 

This season is terrible for renting IMO but great for buying.

I think its sensationalist fear mongering. Were not talking black death here. The kill rate isnt high enough, even though its 2-4 X as bad as regular flu. I think its a short term spook and our markets are ready for any reason to break this overheated/record setting bull run.

@Rickpozos thanks for the vote of confidence! I was hangin out on mmm forums and they were starting to put doubt in my real estate plans. I have run the numbers on different scenarios and i calculate picking up another rental beats investing in S&P mirror or paying off my current rental. Ill just have to stay on the lookout for something I like that makes sense. Short term it creates more anxiety but long term I am confident its the wiser choice.

Thanks for the replys guys! @bjorn - The 1% rule is super tough to come by on the ne side of san antonio. I dont have many wholesaler contacts but i do need more. No way your getting that off mls. I think to get the 1% rule on ne side the house would need hard money d/t beeing a super hot mess. I have a great plumber and a couple good contractors who do decent to good work and have good pricing. Im still scared of big projects requiring 50k+ renos.

@a dooley, i agree 2 cash flowers is better than 1 paid off but 1 paid off rental would make for stress free. However, i have no doubt my overall net worth will be higher with 2 vs investing in s n p or paying off first rental.

Hello everybody! I have a question. I own a rental house with 135k left on mortgage with 3.75% and monthly payment of 1100$ My house is located in a very solid B+ neighborbood in the NE San Antonio area close to IKEA. The house rents for 1545 to 1595 depending on season. I have a pretty high earning capacity currently but would like to retire in 5 years. I also have a spare ~100k I could invest or pay down this rental loan to get it cash flowing better. 

Do you guys think I am crazy to buy another house in the 175k range put ~60-70 k down payment then 15 to 20k renovating it then renting it for 1595? I calculate my mo mortgage payment plus tax/ins would be 1050$ with a loan around 100k @4.5 to 4.75%

Or should I just pay down the rental I currently own? How bad of a deal do you guys consider my current rental? PS, I own my primary residence outright with no mortgage. Thanks for advice!