All Forum Posts by: Paul Gomez

@Tim Herman

I think wholesalers typically do cash only listings. Since they’re off market and trying to move fast. 

@Tim Herman

Hey Tim. This deal requires a cash purchase so I can’t do a loan off the bat. Any other suggestions?

Bump, can anyone help me out?

@Jenny Letto

As eager as you are to get in the game now, I'd just caution you to consider what the US and even Austin TX will be like let's say a year from now. Many mortgagees will be in foreclosure, leading to a slow drip of inventory back in the market, which will then drive rent prices lower. So while the numbers might work for your property for the recent job boom in Austin, you got to think long term. You may be in this particular property with too much equity and have the potential to have to lower rent such that you can't make a profit. Then your stuck doing a bunch a work for an expensive property that doesn't net you much. I know that's a big scary thing to say but I would just urge you to think a few years down the road given that it will be a tough ride for REI investors coming out of the aftermath of covid.

Can you guys help me analyze this deal? It's a new western acquisition deal in San Antonio. Basically, the hard money loan fees (8.9% for first two months, 2.5 pts, ~$1k in fees) plus the 20% down payment puts me in the hole in the first year. It's two properties in one, brining in $1580 from a 2/1 and a 3/1 on the same lot with tenant leases until Nov 2021. The cash flow is great from day 1 but I won't make any money until year 3. This won't really appreciate as much as in a lower cap rate area. It's not in the nicest part of town, but the two properties in 1 makes it appealing. Do people usually have to get into a negative return in order to secure great cash flow for years to come?

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*This link comes directly from our calculators, based on information input by the member who posted.

@Juan A. Ortiz

Perhaps from a pure investment (no hacking) it's not worth it in that area of town. But if someone offered you the cheapest rent you could find in NW Plano and told you that you could also own this property, wouldn't you take it? Oh and for next to nothing down. Sounds like a awesome way to "get ahead" given your position to use an FHA. Also keep in mind that will make you less competitive in terms of making an offer, so keep it in mind.

@Juan A. Ortiz

I was in your shoes about 6 years ago and barely convinced my GF, now wife, at the time that we should buy I house. Looking back, house hacking with an FHA loan is such a killer way to get in the game that it's so worth it. It gives you a huge head start. Home will appreciate of course, but there's nothing like having someone pay your mortgage. Do you have a best friend or family member who could live with you? Take a second to think about it. After all you only get to purchase a home for the first time, once. Good luck.

So do you plan to rent out the other bedrooms in the SFH? You mentioned house hacking but just wondering. I know friends who have done it.

@Natali F. 

Congrats on the flip! I'd love to hear what you've learned working in this area of Dallas. 

I was born and raised in San Antonio and over time, the city has expanded. You can buy giant homes for dirt cheap if that’s what you’re into but for the most part you’re really in it for the northerns public school areas and the homes out in the “country”. Good luck I think this would be a great area to invest in and I would do it too if I lived back home.