All Forum Posts by: Porf Fenton

Update:

I kept my studio and am currently setting it up to turn it into a STR. Given its location it should bring in at least 20% more than having it as a LTR. Numbers backed by airdna.co that I use to estimate income for STRs. If you are looking into STRs you should definitely check it out!

I never found a seller willing to sign a lease option in Acapulco. But I found a great deal (2 BR, 2 Bath) and was able to finance it with 80% from a conventional mortgage and 20% + closing + set-up costs covered by a private investor. I've been running it as a STR with much better returns than I initially estimated. Cashflow is tight because of the financing costs but that should turn around quickly as summer kicks in full and COVID restrictions recede.

I now have made 5+ offers for 3 BR and 4 BR apartments in Acapulco again looking for a lease option. I need to follow this path until I can get pre-approved for another mortgage. So far I have been turned down from the lease option by two owners, but one of them agreed to my purchase price. If his property is still available in a couple of months I might negotiate again. But hopefully I will find a seller willing to sign a lease option to speed things up!

When I wrote my first post on BP I never thought it would be possible for me to buy an apartment with $0 down while holding on to my studio. Now that I know how it worked out I feel limitless and buying a second, larger deal within six months of the first one seams like a real possibility. And why stop there? If I can get preapproved again after my second deal, I will shoot for a third one this year!

The information available in this site has turned out to be invaluable to me. Thanks to all who make it happen, including members. Thanks to all of you.

Thanks, @Connor Griffiths.

I am starting out, so first I need to figure out the financing. I will keep you posted on my endeavor and reach out as I move closer to making this a reality.

Sure! You can search the area in Google Maps as "Ampliacion Los Alpes, Mexico City". It is a 3 BR, 3.5 bath house in a 6-unit complex. It is listed for MXN 9 million (about USD 450K). Needs new kitchen, bathrooms and some flooring.

I am in the early stages of the process to invest in Whistler, BC. I would appreciate some contacts (realtors, loan officers) in the area with experience in helping foreign investors get started.

Thanks!

Good morning! I have access to a house in need of moderate updates in a very hot market in Mexico City. I am looking for flippers.

Thanks, @Sofia Sharkey

I am focusing on Mexico right now because I want properties that I can visit with my family.

But if I hear of someone thinking about KC I will refer them to you.

@Mike Lambert

Yes, I agree it is a good idea to shift from long- to short-terms in tourist areas.

I am currently fishing for a seller in Acapulco willing to sign a master lease-option so I don’t have to wait on the sidelines until my long-terms sells.

And I also have my eyes set on a couple of developments in Tulum. Maybe we’ll meet there sometime.

Best,

-pf-

Thanks, @Mike Lambert

I agree with you an everything.

For what I’ve heard from a couple of agents Acapulco is making a real comeback BECAUSE of COVID. Many people are renting there for extended periods of time to ride the lockdown.

Best,

-pf-

Thanks, @Sebastian Marroquin

I actually started thinking about master lease-options this past weekend before I received your reply. A couple of agents have told me it will be very difficult to find a lessor who accepts a sub-lease clause, but I will be chasing this to the end because I now see it as my best option to expand and also hold on to my current asset.

I also appreciate your comment on changing my mind set very much.

Best,

-pf-

Thanks for the reply, @Charles Large

I would pay minimum taxes on the sale because I lived there for a few years and all utilities are under my name, so no issue there.

I do track the USD and know that most of the appreciation comes from it. It has become more stable now and is not something I see changing wildly in the near future.

I will take a deeper look at the legislation regarding extinción de dominio but I really haven’t heard of it actually applying to someone who conducts an honest business.

Best,

-pf-