All Forum Posts by: Steven Gillmer

Thanks for the responses. $600/year seems low for rental property insurance covering loss of income. Taxes are what they are, I have found some in the $2,200/yr but most are above $3k.

I will re work some numbers with all of the advice and keep plugging along.

@Account Closed, been working through an investor friendly realtor that was recommended.  I have begun to build relationships with others, but nothing has quite come my way yet.  I have made s afew offers at prices that would make sense, but no luck so far.  I have focused on distressed properties but I have not yet found an owner that is willing to sell at the price I need to pay.  Still working diligently but want to make sure I am working on the right things.

Hello San Antonio investors!  I have only been in the market for a few months, but I was super excited about living in a market that would allow me to invest locally.  Unfortunately, every deal I analyze ends up in either miniscule or negative cash flow.  Here is a sample of a single family home in northeast S.A.:

Purchase price $110,000

Rent $1250/mo

Mortgage $594/mo

Insurance $100/mo

Taxes $267/mo

Repairs (5%) $62.50/mo

Capex (5%) $62.50/mo

Vacancy (Varies, but for this example 7%) $87.50/mo

Property management $104.70/mo

Net ($28.20)/mo

So, obviously there is a way to make money here or nobody would be inviesting.  Please let me know your thoughts on my assumptions and how I can find deals that will provide a cash on cash return of at least 10%.

Thanks!

Hello Matthew. If it were me, I would analyze the property as if I was not going to live in it. You should be able to get your expenses very close. Vacancy rates in SA are around 3-4%, taxes are available from the county, repairs and capex are numbers you can gather from local property managers and investors, and you know the mortgage amount. Do the calculations, and if you are happy with the returns after you move out and can live for free, or close to it, I would do it. I would say this, from all of my research, any time you get above $2,000/mo rent here, the supply of tenants looking for a long term place to live shrinks. Another option, depending upon location, could be to use the other the units as short term rentals, a la Air Bnb, but that is out of my scope of knowledge.

Good luck and let us know how it turns out.

Goal first: Add a minimum of 5 properties to my portfolio while still putting my full effort into my primary employment.

Action steps:

1. Network - attend at least one meet up every month and establish one new relationship each time.

2. Listen to one real estate related audio book every month.

3. Analyze at least three deals every morning during breakfast.

4. Post more on BP.

5. Learn my area. I just moved to San Antonio and need to know where to focus and avoid.

6. Set up a commercial bank account for my newly formed LLC with an investor friendly bank.

7. Make at least 5 offers per month.

This is certainly not an exhaustive list, but should allow me to accomplish my goal.

@Marcus Jackson, how did the funding and construction of this flip turn out?  Would love to hear your success story.

Thanks everybody!

Hello all! Now that I am settled in Texas, I need to set up my LLC and am looking for local real estate attorney referrals. Any assistance would be greatly appreciated.

@John Barr, thanks for the insight.  I am new to the SA area and have used your info to set a up a few searches.  I will be at the Craft Brewed Real Estate meet up so maybe we can talk more then.

Welcome Anthony! I too am new to the area and looking for ways to network. I attended a meet up last night and meet some great people. PM me if you would like the info.