All Forum Posts by: John Martinez

Are you dependent on the cash flow to live off of in the near future? If so I would put more emphasis on higher cash flow. But if not, I'd be ok going in with a lower cash flow, if there's upside to rental growth (sounds like there is with a growing market) and appreciation. Personally if I can cashflow positively right now with higher interest rates, I'm interested in the deal.

Tyler - not necessarily, I would save the cash flow to reinvest into another property at a later date - use the earnings to get scaling when possible.

I would like the deal just due to appreciation but I can't depend on that alone in my opinion - that is not a guarantee.

I would like the cash flow to be able to do more later - especially when the market corrects - i can potentially use this money as a DP on another home.

Of course - long term strategy.

If you don't need the cashflow now just make sure the deal can float it self. The likely hood that rents don't go up over a long term hold is very unlikely if you are in a good area especially with the way inflation has been. They may not change for a year or two, but over 5-6 they will most likely go up. And if not you have been getting loan paydown and chalk it up as not a great deal but you made the effort.

Unless cashflow is over 1k a month it likely isn't going to help you scale. For example if cashflow is 500/month and you need 20k for a down payment you have to save for 40 months almost 4 years. At 1k a month you are just under 2 years, but likely won't be buying something cash flowing 1k a month for 20k down. Equity build up is how you scale not cash flow. Cash flow allows you to maintain and hold your properties.

To expand on this. Say you buy a 200k house and it goes up 8% for the next two years you would have built up 33k in equity excluding paydown. It would take 1,375 in cashflow each month to make the same in equity gains.

Best of luck!

Chris,

What great insight - i will have to look at it in this example as well and runt he numbers long term to annotate for mortgage paydown nd potential equity build. thank you for this insight, it makes perfect sense.

1 Vote

San Antonio, Texas

Quote from @Tyler Nash:

Tyler - not necessarily, I would save the cash flow to reinvest into another property at a later date - use the earnings to get scaling when possible.

I would like the deal just due to appreciation but I can't depend on that alone in my opinion - that is not a guarantee.

I would like the cash flow to be able to do more later - especially when the market corrects - i can potentially use this money as a DP on another home.

Of course - long term strategy.

0 Votes

San Antonio, Texas

Quote from @Chris Davidson:

@John Martinez there are so many questions on this one. It is completely personal. Some people are fine eating a couple hundred a month as they know the returns will be greater 10 years down the line when they actually want the money.

Determine what works for you and what makes it a good deal for you.

Chris you're absolutely right. I just like to get opinions and thought process of others as well but it seems to be a positive deal right now.

0 Votes

San Antonio, Texas

Quote from @Nathan Harden:

If you can get into a property with $150 cash flow, in a growing metro area with high interest rates that you can refi out of?

So, the answer to your question.

Yes

Thank you Nathan for the response, I agree cash flow + growing market equals buy. Especially because I can refi later to lower rate and would cash flow even more.

1 Vote

San Antonio, Texas

Hello everyone - I just had a general question. As the market is changing and I am seeing in my market more house producing lower cash flow - what would be your minimum cash flow you would like to see from your investment. I know there is a lot to consider but if Cash flow is King, would you be okay with $150 a month cash flow in a growing metropolitan area?

3 Votes

San Antonio, Texas

Quote from @Lexey Vezzoso:

Hey John!

My husband and I LOVE seller financing. It's a great way to obtain investments while obtaining little to no debt through a traditional bank loan.

As long as you're doing it correctly I definitely think it's worth it.

If you would like to jump on a call with my husband and I to talk it over we'd be happy to help you out with how to structure the deal.

Good Luck!

Lexey

Thank you for the feedback. Yes!! I would absolutely love to be able to speak to you and hear about your experience and what process you went through to make it a successful investment. Message sent!

0 Votes

San Antonio, Texas

I am looking into a potential investment property that is in bad shape. The price is reflected of it and I would actually try negotiating the price down a bit more due to the amount of work that has to go into the property.

The current owner is allowing seller financing with a $20K down payment. If I can get it for what I want to and the rehab cost I estimated are accurate it can potentially bring between $15K - $25K in profit, the only thing I am unsure if is "seller financing".

Has anyone done this already? Can you share your experience?

0 Votes

San Antonio, Texas

Quote from @Aaron Francl:

Quote from @John Martinez:

I am new here of course and super excited about learning more. I have been steadily listening to the Bigger Pockets podcast and reading. I made it a personal goal to buy my 1st Investment property by the end of this year, I am unsure which type of property but I think to begin building capital, I will purchase a flip. I would love to hear some of your first buys if you have made some or what you are planning on doing for your first investment?

Hey John, welcome to the community! Absolutely continue to network and educate yourself as much as possible.I’d advise a few things based on your note above. First, drill into the type of asset you want. A single family building purchase vs multifamily vs commercial are all unique and nuanced unto themselves. Each type will vary greatly in terms of how you purchase, rehab and ultimately manage each asset. Which meets your goals and falls within your comfort zone? Then narrow and focus your learning + networking there so you know precisely what level of capital you’re saving for.

Second, I know flips and BRRRR are talked about constantly here and elsewhere. That being said, in terms of a first time purchase, there are very few new investors (myself included when I started!) that should be venturing into those waters. In my opinion, there are just too variables to consider for these strategies. Once you have a solid team, streamlined processes/systems and a really reliable general contractor, then, at that point, by all means jump in. There are other ways to start your investing journey that won't pose the risk to you of a heavy rehab dependent project.

Happy to discuss further if you’d like!

Best of luck.

@Aaron Francl thank you for your advice! I would definitely like to discuss this further! Would you be willing to set up a zoom or phone call?

0 Votes

Quote from @Erica Destinvil:

Hey! I am also in the San Antonio area would love to link up and discuss.

@Erica Destinvil that would be great! I am always looking to pass ideas and talk to learn more and share stories. I’ll message you my number and we can set something up!

0 Votes

I have always felt a great way to learn and build relationships is by just sitting down and talking. I wanted to reach out and see if anyone in my area is interested in meeting up for some coffee May 7th?

Yes, we can talk real estate but I am also curious in learning what made you follow this path and how it is going so far?

Please feel free to send me a message if you would like to get together, if there are enough of us maybe a lunch :)

0 Votes

San Antonio, Texas

All Forum Posts by: John Martinez

John Martinez has started 6 posts and replied 41 times.

Post: Minimum Cash Flow???

Post: Minimum Cash Flow???

Post: Minimum Cash Flow???

Post: Minimum Cash Flow???

Post: Minimum Cash Flow???

Post: Seller Finance - Is it worth it?

Post: Seller Finance - Is it worth it?

Post: Hello Everyone!!! San Antonio, TX Newbie

Post: Hello Everyone!!! San Antonio, TX Newbie

Post: Coffee & Conversation