All Forum Posts by: Will Pritchett

Why 20 years? Why not 30? Great idea to do it while it is a primary residence for better rates etc. But I would do 30 years If you want more cash flow. Kinda depends on your overall strategy. I used to just want to own them outright but now see the value of leverage (despite greater risk) See if it is worth it with all the closing costs. Traditional wisdom was that refis made sense if you could improve by a single percentage point on your rate. Not saying that is always good advice. I have my house on a 15 but rentals are on 30 year fixed notes with ridiculously low rates. Good luck with whatever you decide to do.

That is a hot spot now. Be careful as the area can change a lot in a few blocks. Watch out for condo fees, assuming there are some. I bet those things are selling at a premium if within a few blocks of the Pearl. I would be surprised if you can make it cash flow. Are you playing appreciation maybe? Good luck.

@Valerie Reed - nice work. Good luck in the future!

Rodney Getsy send me some info on the property if you would like. I am not a realtor but may buy it or know a buyer if the price is good.

Andrew Martel I agree with it being street to street here in San Antonio. As a firefighter/paramedic here I have been in most parts of the city. I would be happy to give my insight as you get it narrowed down. I might even suggest stopping by a fire station in the immediate area you are looking in and asking (once you move here). Along with police, we go when people are shot, stabbed, or overdose etc. you will find it is a generally friendly city and I trust any of my colleagues would be happy to give their opinion on the streets to avoid. I used to work near SW Military and New Laredo highway in a low income area and absolutely loved it. It is largely a Hispanic area and the people are salt of the earth in general. There were shootings but generally amongst those who led a lifestyle that led them down that path (gangs); not random acts of violence towards landlords etc. The prevalent gang in that area is the orejon (sp?) pronounced "O-dey-hone" and they are often identifiable by their spurs tattoos - as in the logo for the NBA team. They have never been aggressive towards us. There are some streets in that area that have some pride in ownership and some that don't. The area is worth a look at least. In wouldn't want to raise my kids there but I wouldn't hesitate to fix a faucet there. P.S. Sunrise is often affectionately referred to as "Gunrise" for obvious reasons. I don't doubt that some investors can make it work. I wouldn't fix a faucet there without a gun on my person. Feel free to PM me if I can help you. It is a really big city (sprawling-not very centralized) and it changes a lot in a few blocks. Best of luck and I hope you enjoy San Antonio.

There are great areas all over San Antonio. Bad ones too. We buy between culebra road and Bandera road inside loop 1604 but a lot of variety there as well. School districts vary quite a bit in town as well. We like Northside school district. Feel free to PM me about areas of town. I work for the fire department so have a pretty good grasp of the safe areas versus the sketchy areas. They can be just a few blocks apart sometimes in this city. Good luck and thank you for your service!

Adam Harris just my two cents here and I am not a sophisticated investor but your situation is very similar to my own. Here is what I did and it worked well for me and I sleep well at night. It is not sexy and exciting but it is getting me started fairly conservatively until I am ready to do more aggressive or risky plays. I kept house number one (if I were you would refi the balance for 30 years while an owner occupant at these cheap rates to keep DTI low). I would save up for house number two to live in but that would also make a good rental. Less down required as OO. Now house one begins the two year clock that many banks want to see as Landlording experience before Crediting you the rental income in your DTI. This is admittedly not as aggressive or exciting as some of the other options but gave me confidence moving forward. Now start saving for house number three. You have some emergency funds available in equity in house number one if it helps you sleep better and later you can sell that house or refi for equity to re-use. I am at this step where I pulled equity out of house number one and am looking for rental number three. In the three years or so I have learned a lot about being a landlord and feel more comfortable growing safely (as I have kids too). Everyone talks about the number of units (I personally want a lot as well) I just believe risk is not considered or discussed enough here. I read a great BP blog today about the focus on number of doors instead of quality of units. The author referenced someone who grew very fast and then collapsed very fast. I admire those who grow fast and are great at finding great deals and creative financing so I would do that if I could but I am not there yet so my conservative route is getting me going while I learn. Great post by the way. Let us know what you decide. Best of luck. -Will

Dawn Anastasi , I have learned a lot from your posts. Thank you for the value you add for all of us here. I was wondering what numbers you use for repairs, vacancy, cap ex, reserves etc.? Do you use a specific accounting software to see how your numbers compare to reality over time? I am trying to better account for my expenses and historical trends per property. Thank you!

Daniel Foster I was a bit confused. You are referring to 100% LTV on the Heloc at 5%, not a purchase, correct? Thanks.

East of 37 near the Alamodome may have long term potential but right now it is just an inexpensive area in my opinion. I would think there are better areas to flip where demand is higher but I am not a flipper. I buy for holding in the northwest areas within good school districts such as Northside. Good luck!