All Forum Posts by: Richard Talbott

Adrian,

Thank you very much for your insight. Yes, I will definitely take into account the higher property tax. I was not aware of the refrigerated AC consideration so I appreciate you informing me of that issue. I will  look into One Realty Investments. Luckily I still have a few months to do some homework before I get out there but am excited to get going in the El Paso market. 

Estephan,

Thank you for your input. Just looking on realtor/Zillow I've noticed that the rent rate/prices seems to suggest that the NE section is a better place to invest in.

Bottom line up front: What are some of the key considerations when investing in El Paso?

Hello everyone,

I am a buy and hold investor who will be moving from southern Alabama to El Paso in a few months. I'm looking for any tips, advice, or information concerning anything particular to El Paso when investing in rental properties. So far I have been advised to live on the west side of El Paso. Even if that is the best place to live, is it the best area to focus in when looking for an investment property? Thank you in advance for your comments.

Have a great day,

Louie Talbott

Thanks everyone for your input. I plan on offering my tenant the option to purchase the SFR. It is currently only producing about 5.5% ROI. If she decides to purchase I will be able to get a comfortable profit margin. I dont believe capital gains should he to bad since I've owned the home for 5 years. If she doesn't agree to the price were going to continue with current rental agreement. She has no intention of moving so it's a win/win.

BLUF: Is it a good idea to invest in low income properties or is it better to focus on properties that will attract middle income tenants?

Good Afternoon Everyone,

After telling everyone I know that I am interested in investing in real estate a seller informed me directly that he is planning on selling a four-plex  and a 20 unit townhome complex. They have provided all the operating details and costs but did not provide a price. The rents range from $375-450 and two units are subsidized. Even if they accepted a price which would result in a 12% return (I'm not willing to purchase anything that doesn't produce 12%) would tenants of this income bracket deter many of you from even being interested in this type of property? Please, keep in mind that I have a full time job and do not intend to manage it myself. On that note, is it difficult to get professional managers to manage these types of properties? Thank you in advance for any advice/comments.

Richard Talbott

Is it a better strategy to sell my SFRs in order to finance 20+ unit properties, or to slowly build a portfolio before making the big jump to large multifamily properties?

Hello everyone,

I have a SFR that is completely paid off and I now have a great tenant. I have been looking high and low for another good rental property but have been contemplating if I should focus on multi-family properties. My initial plan was to acquire five SFR and get pay them off. At that point I would focus on getting into multifamily, specifically 20 units or more. At this point, should I run into problems with the large multi-family unit the income from my SFRs could cover the difference. Therefore, I would not be putting myself in a position where I'm risking my personal financing and the potential go bankrupt. However, I watch podcasts, such as Grant Cardone, and have read a few other articles that suggest I should sell my SFR and go directly for the 20+ unit properties. What do some of you more experienced investors believe to be the better strategy? After looking at nearly 100 deals and having made a few offers, which were not accepted, I've come to the realization that even if I were to get an extraordinary deal on a SFR I will be hard pressed to make even an 8% return. There are a few "fairly secure" stocks out there that pay 6.8% dividends which is making me a little discouraged in the SFR realm. Keep in mind I have a full-time job and do not intend to manage properties personally. Thank you in advance for any advice/comments. Have a great day

Should I sell my SFRs in order to finance 20+ unit properties, or should I slowly build my portfolio before making the big jump to large multifamily properties?

Hello everyone,

I have a SFR that is completely paid off and I now have a great tenant. I have been looking high and low for another good rental property but have been contemplating if I should focus on multi-family properties. My initial plan was to acquire five SFR and get them paid off. At that point I would focus on getting into multifamily, specifically 20 units or more. At this point, should I run into problems with the large multi-family unit the income from my SFRs could cover the difference. Therefore, I am not putting myself in a position where I'm risking my personal financing and potentially go bankrupt. However, I watch podcasts, such as Grant Cardone, and have read a few other articles that suggest I should sell my SFR and go directly for the 20+ unit properties. What do some of you more experienced investors believe to be the better strategy? Keep in mind I have a full-time job and do not intend to manage properties personally. Thank you in advance for any advice/comments. Have a great day.

Louie Talbott