All Forum Posts by: Oscar Montealegre

Originally posted by @Rick Pozos:

Austin has great growth, San Antonio has great growth, Dallas has great growth, Houston has great growth. Many of the secondary and tertiary metros all across Texas have seen growth over the last 10 years. 

You have to follow employment, labor, and other economic indicators. There is NO DOUBT that Austin is going to grow WAY MORE than San Antonio. They have more job growth, there is higher-pay job growth, they have higher wages in general. Plus Austin is starting from a smaller base which means you will see larger percentages in growth of population. I love San Antonio, but I can say that Austin is fundamentally stronger. 

Thanks for the info Rick!
Man, I couldn't agree with you more with everything you wrote.
I am starting to comb over deals in Austin with the mindset that perhaps this is a better play long term despite investing at a high entry price.

Keep in touch! 

Originally posted by @Victor Steffen:

@Oscar Montealegre Anybody competing for multifamily inventory in San Antonio will tell you prices are climbing almost as aggressively in SA as they were in ATX 12 months ago. Different scale of course but San Antonio seems to be at the start of their growth curve while Austin seems to have (as you say) peaked in the short term. I do believe we'll see another price surge in Austin but that's for another post. Compared to other areas in central texas San Antonio has more multifamily inventory so you shouldn't have trouble combing through a deal or two each week. Like anything else- you'll get what you pay for. If you're seeing price points below 75k-100k per door you should tread with caution. best of luck!

Thanks Victor for your detailed response.
That is some good info you dropped and it is much appreciated.

Keep in touch.
Thanks! 

Hello Bigger Pocket world!

I am thinking about buying multi-family in San Antonio. I'm looking at 6-12 units. I would love to get some feedback from this forum. Many people tell me ignore San Antonio and invest in Austin, but I prefer not to chase returns that perhaps already peaked in the short term.

I look forward to your comments!

@Bill Schrimpf Yes you are right, I should have clarified my statement. I meant as a CA resident you are still liable to CA cap gain tax despite the property being in NV. Some people think because NV does not have a state capital gains tax then they don't have to worry about paying a CA tax, unfortunately that is not the case. Let's just say I am referring to me, myself, and I, when I say 'some people ;). I learned the hard way. Thanks for the shout out! 

I've been investing in Real Estate for 10 years now. 80% of my assets are in Los Angeles, the remaining 20% in Colombia-that's another story for another time.

In my last post I wrote that I am no longer investing in Los Angeles or any where else in California. Reason being is because the investment environment is too anti-business and anti-capital. And I when I write capital, I mean it in the literal sense. We are becoming a state of handouts and entitlements.

I'll stop ranting before I digress even more. As a result, I am looking at investing in other states. Please note that my list is in its preliminary stage and subject to change. Here is you go...

1. San Antonio-I expect a halo effect from Austin to hit this city soon; after my travels to San Antonio (July 2020) it seems it is already                happening.
2. Phoenix-It's hot literally and metaphorically speaking. But I don't see a bubble forming; in fact I see the opposite, a lot of upside.
3. Reno: Close to Sactown, relatively close to the Bay Area. No income tax is a plus for locals but out of state investors beware of investment      capital gains tax.
4. Dallas-Because its the opposite of Austin. Austin is cool, but its too hipster for my liking. I already live in LA, I don't need anymore "I'm too        cool for school in my life."
5. Bend, Oregon-Although Oregon is the first state to impose a statewide rent control mandate, I foresee the city growing even more now           than the norm. Especially with the increase of people being able to work remotely.

FYI, I am a long term investor. I don't flip and when I buy, I buy never to sell. I want cash flow and appreciation. If I need money, I refinance when it makes sense, take some cash out when I need to (especially now with such low interest rates), and deploy said cash into new investments. In short, I try not to complicate investing in Real Estate. Sounds cliche, but life is a marathon not a spring.

@Shiva Bhaskar That's good to know. I am glad there are groups out here in Los Angeles that are fighting for our rights in CA courts. 

I realize when you want to do in business in CA, you are going up against a plethora of regulations, high taxes, and an anti-business stance from Sacramento politicians. That's the risk we take and we have to accept it. But as you mentioned before, there are serious issues if we allow people to live in private property without compensating the owner of said private property. I don't want to sound dramatic, but this is a slippery slope and it has etchings of government confiscation of private property. 

Best. Oscar Montealegre

@Pauleen B Atkinson

I love your energy! Do you mind me asking what cities are you targeting for your future flips? 

@Rory Kinnear Thanks for your input on my post. I appreciate your perspective on this matter-albeit I would agree to disagree with your argument-nevertheless I think it is important we are open to an array of positions, arguments, ideas, etc. So thanks for sharing your side. 

Best. Oscar Montealegre

@Bryan Beal Hey man thanks for your response! I hear you loud and clear about leaving CA. I am trying to convince my significant other as we speak to do the same. 

All the best!

Oscar

@Ricardo P.  You are absolutely right my friend. I didn't want to vent about ab1436 because that's just another can of worms. Although I did know know it is supposed to expire April 1st-thanks for the tip. Man, you maybe right about 2021 being another year lost of rental income; what a disaster if that's the case.

Anyway, thanks for your response and keep in touch.

Respectfully,

Oscar Montealegre