All Forum Posts by: Will Pritchett

I like what @Jonathan Escobar says here. You'll still have some equity after a cash-out refi because banks will only offer 75-80 LTV in my experience. So market would have to dip by 25% before you are upside down. Of course leverage can equate to risk but not using it can be risky too. I thought that rates would be much higher by now and loaded up on conventional loans but I keep being surprised by the rates staying low. If you ever are going to do it, this may be a good time; when rates are low, values are high, and banks are lending. I'd be very disciplined with your tax-free cash after the refi and earmark it for real estate.

Lots of ways to do this and most of it comes back to your risk-tolerance and long-term goals but at least you are in a position to have options.  Best of luck with your decision.

Sounds like a win to me.  The next one will be even better, I'm sure.  Congratulations on living for free!  

@Chris Hutchens we invest here in San Antonio as well. We focus on long term rentals and have properties in many areas of town. We love good working class neighborhoods with great tenants who stay for years. We take pride in having clean properties to attract multiple applicants which allows us to pick the very best ones. This has made property management much more enjoyable.

It is more competitive than a few years ago but there are deals to be made. I got spoiled with BRRRR deals that cash flowed easily after refinance in the last few years. They are tougher and sometimes we leave some cash in a deal. But it still beats the stock market in my opinion. And there are few investment classes to get into with such a small outlay of capital.

Good luck in your endeavors here!

@Marco Lopez I wish I could help and I know this is late.  I had similar questions regarding homes in small towns.  My biggest concern is understanding demand for rentals or seller-financed homes.  I looked at one similar to this lately and backed away due to unknowns of level of demand.  I hate to take my big city norms to a small town and get burned.  But I know people who have done great on these types of properties. Curious how well you know the town or the level of demand.  

Best of luck.  Let us know if you moved forward on this deal.  I'd love to hear about how it went if you did.

check out Sanantonio.gov at https://www.sanantonio.gov/DSD/Resources/Maps They have a map of zoning.  May be able to get some info here.

Best of luck.

Hello @Ash Mathradas, 

     Interesting strategy.  I was just discussing the potential for new build multiunits as rentals today.  What is the zoning for your lot?  My experience trying to convert a detached garage in SA was more of a hassle than I was willing to pursue (with the type of zoning it had).  I would start with zoning and see what is allowed and if it isn't allowed, what it would take to change the zoning; if possible.  

     Keep us posted.

Best of luck.

@Adam Noble I’ve heard of this too. I’m not against it from a landlord perspective but I also have almost zero vacancy and no difficulty renting out my houses. This might be different at different (higher) price points. It may really help a landlord that’s struggling to fill a house. Or possibly offering a premium over market rent for areas where houses rent easily. Otherwise, a long-term tenant may be seen as less risky to landlord. Just a few thoughts on the subject. Good topic.

@Justin M. I don't know of any in that specific area but many of us meet all over town and invest where the opportunities are.  Check Meetup.com and BP for meetups.

@Justin M. welcome.  Welcome to BP and soon to San Antonio.  I would suggest looking up the local meetups and REIAs and find groups you like.  Networking has been so important to our business.  People told me it would be but I didn't truly believe it until I saw it for myself.  Best of luck!

@David Serna I find that to be silly.  I'd pay a return to a California investor just like a local one.  I think some people just like being angry.  Maybe he got outbid by a California investor in the past and it hurt his feelings.  If a California investor can pay our property taxes and their income taxes and still make money overpaying for the house, more power to them.  We have an advantage in that we don't have state income taxes but we certainly pay our fair share of property taxes.  It's a relatively free market and most of us are capitalists here so I don't see the problem.  Just my 2 cents.