All Forum Posts by: Joseph Cacciapaglia

@Alex Loera that's a definite maybe. The best thing to do is ask your lender. I've used personal loans as down payments in the past, but have run into restrictions once in a while. 1. The LOC will change your DTI, so be sure to check those numbers. 2. Some lenders dislike the strategy, but will let you do it if you've cash advanced on the line of credit 30, 90, or 180 days ahead of time. This varies by lender, so again, just ask them. 3. How are you turning the LOC into cash? Depending on the provider, you may or may not get checks or the ability to wire directly from your LOC. Even if you are, the title company may want the check earlier in the process than normal, to be sure the funds clear.

In general, it's possible, but it's always best to walk through the details with your mortgage lender first. If you don't have a good lender here in San Antonio, please let me know and I will be happy to recommend one.

@Ryan Brown and @Sandy Morales I use http://www.lawofficeofmichaelv... and have no complaints. He's set up my series LLC, drafted private loan docs, etc., and I don't have any complaints. Several of my clients have used him as well.

@Andrew Q. the $80/SF build cost seems incredibly low to me. I have a couple of new builds going on, and I'm significantly higher than that on both. Neither is a high end build either. If that's based on a quote from a contractor, I would suggest digging into it to see what he is leaving out of the quote. I dealt with this on one of my projects, where the contractor gave me an incredibly low $/SF like that, but left out a ton of line items and wasn't able to stick to budgeted numbers on several of the ones he did include. It turned out he was completely broke, so couldn't cover the shortfall, despite having a guaranteed price contract. Feel free to PM me, if you'd like to know who that contractor is, just in case he's made his way to Houston. I'm sure there are plenty out there doing the same thing though. If it were me, I would make sure the deal pencils out at $140/SF. I think you can do a little better than that, but not a ton. Of course, Houston is a bit different than San Antonio, but I can't imagine it's that far off.

@Isaac Hayes I would leave the number of loans out of the equation. There are tons of ways to finance investment properties, so most investors aren't ever limited by the "10 loan max." This is something that seems to preoccupy a lot of new investors, but in reality isn't actually an issue for most people as they start to scale. That being said, I still think the fourplex is a good idea. If the ROI is the same between 2 duplexes and 1 fourplex, then you should look at your ROT. It takes twice as much of your time to find and close on 2 deals, so you're making less return relative to the time that you spend. However, that is a big "if". It may be the case that 2 duplexes provide better or worse returns than 1 fourplex. That depends on your market, so you'll have to run those numbers.

@Marlon Brimmer Welcome to San Antonio! Finding a lender is the right first step. I would recommend Lance Bryce at Thrive Mortgage. A ton of my clients have used him for their investment properties and house hacks and he does a great job. Feel free to PM me, and I'll pass along his contact info.

@Daniel Paul Goodman I'm building a shipping container home to use as an STR in San Antonio at the moment. I'm using four 40' HCs, but I also own a few lots where I'd like to put single containers. I've found there are a ton of providers that are doing what you're proposing, but hardly any of them provide a full service where they'll put in foundations, utilities, deal with permitting, etc. I think a full service build like that would have a ton of demand in my market, but just doing the containers and making the owner figure out the rest is a pretty saturated market here.

BRSTRR is Buy, Renovate, Short-Term Rental, Refinance, Repeat - These deals are still relatively plentiful here in San Antonio, because they're at a different price point and in different areas than where most BRRRR investors typically play.

BRWRR is Buy, Rent, WAIT, Refinance, Repeat - This has worked extremely well over the past couple of years here in San Antonio. Investors that picked the right neighborhoods were sometimes able to refinance out their entire investment after just 6-12 months of ownership due to those areas experiencing rapid appreciation. Of course, there is no guarantee that the rate of appreciation will continue. However, investors that sat out last year missed incredible returns, and I think it's likely people sitting out right now will have a similar experience.

@Julia Scuderi if I were you, I would either find a mentor, join a team, or switch to a brokerage with a lot more support. One mistake a lot of new agents make is focusing too much on their split and not enough on the support that the brokerage provides. Focus on finding the resources and environment where you can be successful and the money will figure itself out.

@Kevin Luttrell I have ran into similar problem. I opted to get a private lender to provide an 18 month loan, because a few lenders said they will use my STR income once I have 12 months of P&Ls. It wasn't a cheap loan, but it should solve the problem.

@Chace Dietrich BRRRRs are very difficult to find in San Antonio at the moment, but BRSTRRRs are still relatively plentiful. Have you considered going that direction? With soaring prices, many investors are making BRWRRs work as well, especially with small multifamily.

Also, a lot of people thought waiting was a good idea last year, and they missed out on 20%+ appreciation in many parts of town. There is not guarantee that will happen again, but I think the prices are much more likely to continue to climb over the next 12 months than they are to drop any meaningful amount over that same period.