All Forum Posts by: Polo Vazquez

You met the 1% rule of thumb! You are probably better cash flow than most investors. Congratulastions buddy! I lived in SA and know it isn't easy to find a home in the $160s that's in good condition.

Hello Sachin! I use to live in San Antonio and from my experience there isn't very many 2-4 multifamily units in San Antonio. I have moved back to my hometown in the Rio Grande Valley and we have an abundant number of fourplexes here and at lower prices to. You can usually get them to cash flow positive if you do PM yourself. Which, now days you can do it from a distance no problem. DM if you would like more information of the area.

Fourplexes are still selling strong in the RGV. However, I have seen prices drop a tiny bit just recently. Make sure they know that you are buying a 4 unit property!! I can't stress this enough. Many times, these types of programs are only for primary residences that are single family residences. Also, they usually have a fee attached to them, but the amount you can save by giving a cash offer normally more than covers this fee! I hope you can get your offer accepted. Best of luck

I'm going to have to agree with @Jonathan Greene. Don't look at the big cities (Hot Markets). Look at the smaller cities in Landlord friendly states. In Texas and lot of people pitch Austin, San Antonio and Houston. I lived in San Antonio and houses that were going for $300,000 were renting for $2000 a month. The city I live in now, this same house costs $200,000 and the rent is $1800. I've here other cities the ratio is even better.

You have A LOT of equity on this property. Some investor will frown upon it saying you should take it out and use it to buy more properties. Other will cherish because it means less risk and more cashflow.

Some things to consider:
1. As Mr. Rolf said, you can sell tax free since you've lived there and pull out the equity, but if you don't you can also do a cash out refinance at any point in time and pull out tax free money from it as well!
2. If you sell, your closing costs will be about 9% of the sales price and when you but another property with the money you will have closing costs again of about 3% of the purchase price.
3. $700k properties are on the high end of the spectrum for rentals. During a recession, these are usually the hardest ones to rent out. However, since you owe very little you should have plenty of room to lower rents if needed.

4.  Houston is growing very very fast. It has very good appreciation. There is a chance it the appreciation alone will outperform anything you buy on another city.

Hey Mr. Dozer,

I personally don't own a STR. Everytime a have a vacancy I'm too lazy to buy the furniture to turn it into a STR, but one of my good buddies does and he is making a killing on it. We have people from Mexico who come visit all the time, people that come for work for agriculture and oil and not to mention winter texans that rent for several months a time. There is definitely a market for them.

I would never buy a property that cash flows negative, but that's me. I feel like if you that and we hit a recession you might end up jobless or with a long vancancy and you would be prone to lose the house. If you have positive cash flow, you can just lower the rent and I'm sure you wouldn't have a problem finding a tenant with a lower rent.

Texas small cities tend to cash flow very good. In my area, most properties cash flow but we don't get the appreciation Austin and San Antonio get. Consider buying in smaller cities or suburbs. You are youg, so I would try to leverage as much as possible haha. Leverage and time are a great convination.

I've done cash out refinances on about 4 investment properties in Texas. Most lender will only go to 75% loan to value. I actually did one with @Andrew Postell. He was able to give me 80% back. I'vef also used better.com, and South Texas Federal Credit Union. Send me a dm if you want more details.

Quite a few tenants request them. I always tell them I can put them in but that I will have to charge them and extra $30-40 per month. I also let them know I will be getting them the most affordable set in the market. Some tenants prefer buying their own rather than using cheap appliances that are not very good. I rather not put them in but I also don't mind the extra income for the occasional phone call to the appliance technician.

In my opinion cats destroy furniture, not houses. So I don't mind cats. Unless there is carpet. They will ruin that. One or two cats should be a problem. More than than that and I would have to pass on the tenant. but that is for any animal. Even just having a big dog usually stinks up the house. Just make sure you charge a pet pee and have an ample deposit in case you need to do a deep clean