All Forum Posts by: Reggie Nworie

Hi @Jordan Moorhead Paul was referring to his previous article about reasons why the housing market could decline in the coming months. Here is the link: https://www.biggerpockets.com/... 

Much like anything else, it's important to know your customer before making any recommendations. With that said, some answers are better than others - depending on who the investor is. 

1. If you are a newer investor who is just starting out and you don't have a lot of cash to invest yet, the 5+ multi-family property may be out of reach. The higher the purchase price, the harder it will be to pull together the 20% down that would be required. 

2. Rates on SFRs are lower than for MFHs (in the same market area). 

3. From a maintenance perspective, the newer investor may prefer to start with an SFR (or duplex) before "chasing waterfalls".

4. Consider the implications of diversification. If you have heard the phrase "don't put all your eggs in one basket", you will recognize that the concept applies to real estate investing as well. If all of your units are in one building, that doesn't lend itself to the same type of risk reduction that you would get from investing in properties that are located in different cities throughout the US. For example, the market in Detroit is very different from the market in Austin right now. Diversification can help reduce your investment risk. If you can afford multiple MFH properties, then of course you can take advantage of diversification on a larger scale. If not, you can still take advantage of geographic diversification with SFR investing.

The idea is they want to be close enough to drive into the office once in a while, but far enough to get the home they want at the price they want. I think that is going to create some interesting investment opportunities in places like San Marcos, Waco, and especially San Antonio. When you consider the proximity to Austin and relatively lower costs, San Antonio is the next closest urban/suburban option with an international airport.

Austin is a hot market, no doubt. And with the increased tech firm presence there, the opportunities will continue to expand, but this year has shown that physically going to an office every day may not be necessary. The increase in telecommuting has lead to a recent trend that shows more workers are choosing to live further away, in order to get a property with more land and/or more space. 

Over time, you will eventually be able to estimate the costs in your head, but there is real value to having a licensed General Contractor on your team. A good GC can make all the difference. Not just because they can tell you what they "think", but because they can tell you what they actually "pay" for parts and labor in their area. 

Hi @Renuka Lokare,

San Antonio is only an hour from Austin, but the military bases here provide a consistent supply of renters. San Antonio also offers (on average) more square footage per dollar than Austin. 

Have you considered investing in rental income properties in San Antonio?

Hi @Daniel Machado, 

I am based in San Antonio, TX. I would love to connect with you this week to discuss the local market. I'm happy to help you any way that I can.