All Forum Posts by: Kim H.

@Mike Lambert thank you for the reply. I guess I'm just looking for a "Go for it!" or "STOP! you're better off sticking with investment properties in the US". 

I have plenty experience in real estate sales and rentals, including multi family, short term and long term rentals. I'm not concerned about marketing the property, finding tenants or collecting payments. I'm pretty sure I can handle that part. 

However, not living in Mexico and not having the freedom to fly down all the time makes me a little nervous. How do I ensure that the property management company and cleaning crew are doing their jobs? 

Who has investment property, specifically short term rentals, in Puerto Vallarta or another resort town in Mexico? Would you do it again? What advise do you have?

Has anyone purchased a home at a foreclosure auction in Texas (Denton County) lately? What's your experience?

My goal is to find a new 6-12 unit multi family and maybe another SFR property. Haven't purchased any new investments in about 4 years because I just can't find anything with great returns.

@Corby Goade there are more than 4, all first floor units with 2 car garages, so more like single family than multi family. The SFRs in the area all sell for $250K and up and rent for $1500+

@Henri Meli this is not my first MF. I have a 9 unit one that I have owned for almost 5 years. I am using the expenses (and experiences, good and bad) from that one to figure the return on this one because the seller doesn't seem too forthcoming on details yet. He wants it under contract first.

@Zach Evanish I would classify it as a B+ class. My first one was a C for sure and it does get much higher returns.

But, I am walking away. Seller won't negotiate and he's over priced! 

@Keith Jablonowski There aren't any other properties like it in the area, unfortunately. It's in the middle of a residential area. 

I am looking at a small multi family property that has current rents of $7800 per month, but I believe that rents could eventually be increased to $9200 per month. The cap rate is just over 5%, according to the seller, but I think it's closer to 4%, using the 50% rule. The property is in a great residential area that is growing and is mostly newer single family homes. The property doesn't need a lot of work and is 100% occupied. Raising the rents would be gradual as leases renew, with possibly some minor updating (carpet, countertops, paint). Other expenses appear to be in line with another small multi family I own. I would prefer to purchase something with a higher return, but just haven't found anything in the past few years. Would you buy a property with a 4-5% cap? 

@Andrew Gingerich - I never had to do anything with my particular set back issues. The property is grandfathered as long as I don't do any new development on the property. If I build new, I will have to bring the entire property up to code, unfortunately.

I haven't been on here since this purchase... almost 5 years now.  But, I did purchase this property and did a major renovation on all 9 units. Turned out to be a good investment for my first one. Now looking for another :)

Here are a few pictures of one of the units... they are not horribly ugly as is...

http://www.biggerpockets.com/files/user/kahdallas/file/mf---bedroom-before

http://www.biggerpockets.com/files/user/kahdallas/file/mf---kitchen-before

Sorry if it's it's against the rules to share pictures. I am sure a moderator will delete if necessary :)