All Forum Posts by: Manuel Olguin

 Michael - did you ever make any headway on a pitchbook?  Interested to hear about your process...

Hey Ben - welcome to BP!  Is there any way you can structure the deal where your monthly payments are paying down the mortgage directly then the remainder is being paid to the seller?  You're right to question your exposure here along with the "due on sale" clause.  Do you happen to know how much equity the current owner has in the property?  This may also be an indicator to the likelihood of default though past is not always indicative of the future.

Best of luck in the deal and looking forward to hearing how this pans out for you.

 Jonathan - thanks for the insight here!  In your experience, have you been able to find 2% rule SFRs in SA?

@Ryan Deasy thanks for following up here!  Good to know that you have been successful with multiple out of state rentals.  I will definitely reach out if I have any questions.

Thanks for that feedback @Steven Gillmer...   that sounds like a good move on the appreciation and rent increases.  Hopefully it pans out that way.

Thanks for the follow-up Charlie!  Right now, I am all set in SA from a realtor perspective.

Hello BP – I am new to BP and have listened to a number of the podcasts which is what brought me to the forums. Here’s our story (which is hopefully just the beginning).

My wife and I stumbled into owning an “investment” property last year when we purchased a townhome in Stamford, CT that we thought would be a 3-5 year stop for us. Within three months of the purchase, I was relocated to San Antonio, TX. Here are some details on the purchase in CT:

• 2 story unit with a (now awesome) basement within a small 5 unit community
• Price: $350K
• 10% Cash down
• Fees/escrow: $3K
• Net Mortgage:$312K
• Closing Fees (Legal/Title/Clerk): $3,150
• Reno costs: ~$25K upgrading basement and two bathrooms while replacing carpet in bedrooms, and removing popcorn ceilings and painting entire unit

Monthly expenses:

• Mortgage + Taxes/PMI/Ins: $2,030
• HOA: $275

We loved the place for ourselves and thinking that we were going to be there for awhile had pumped in a good amount of cash into the reno before we understood that this actually wasn’t going to be “ours” because of the relocation. In any case, we found some renters to come in at $2,350/month (1.5 yrs) term starting November ’17 and they have been good. We ended up using a realtor to post the place for rent and also to find our renters. The realtor charged us one month’s rent for that job. In hindsight that’s a lot however due to the relocation, we simply didn’t have the time to run through that process on our own.

Having not known that this was going to be a rental property for us, I understand that we made some unfortunate moves (in the purchase and the reno and lack of rental analysis). It is a really lean margin here and I have already been saving out of pocket for a reserve for the unit.

Some other items to note:

• We are absentee renters now living in SA
• No property manager is being used (calls come to me)
• We don’t have friends in the area
• We have a 1 yr. home warrantly through Select Home Warranty

All of this was done prior to me knowing about BP or rental properties in general.

I would love your thoughts on how I can maintain this rental going forward with some potential pitfalls to look out for.

My real estate goals going forward:

• Potentially buying our own place in SA (we are renting for a year)
• I'd love to get into the multifamily space and utilize the buy/hold rental method + BRRR
• Putting a 1-page plan together on my multifamily aspirations
• Networking to learn good strategies

Hobbies: bass fishing

Thanks and I look forward to creating a strong BP network!