All Forum Posts by: Alberto Camacho

This is something I've been thinking of doing for months. Since I've been concentrating on a multifamily deal, my time to invest to fellow members has been somewhat limited. Well things should be changing very soon. Since I believe in the "the whole is greater than the sum of its parts" I thought maybe a few individuals might be interested in meeting once a month as a local peer group. 

The premise here is to get a diverse group together once a month. We'd bounce ideas, problems, deal reviews, share experiences or whatever with the rest of the group. We'd work on goals and be held accountable for action or lack thereof. I'm looking for constructive participation obviously. 

It sounds like a mentoring group right, just I don't want it to be a series of newbies looking for a mentor. I'd like this to be a true peer group. I hope to attract a marketing person, a subject to person, a mortgage wrap person, a wholesale person, a flipper and a buy and hold investor.  Including myself (multifamily) we'd be at least 7 strong. Other skills are welcomed just I don't want the group to get too big. I'm trying to keep the group under 10 total. 

All participants will be beginners with a minimum 6 months to one year of real investing. We would all speak on what we're currently doing and the group would offer their insight as well as ask questions. I can host over a phone\web conference. You don't have to be next door but you need to be local. I do ask we all meet in person at some point. If you don't have 4 hours to invest once a month I'd request you not ask to participate. Easy to see how a small group could consume 4 hours easily. If there is enough interest I'd work on a more formal charter. 

What do you think? Any takers? Send me a note.

You could be comfortable with the math in a few months. Shoot me a note, I'm down to help you with the math. Its one of those things, the more you do the easier it gets. 

Happy to but not sure this thread is the place for it. Give me a bit to write something up and I'll post a new thread.

I regularly find DFW SFRs that make from $400 to $600 month with COC in the 15% to 24% range and don't meet the 1%. Finding $800 a month in this area will be tough. As investors we need to adapt to market conditions. I wouldn't get too hung up on the 1% guideline.

C class properties typically provide better returns. 

Here are areas I know to have properties that cashflow. It is getting a bit harder to find as prices are being bid up by newer investors. Your looking at 20 to 30k in rehab cost. Every once in a while I see one with lower rehab but they don't cashflow as much as the larger rehabs. Equity capture has been thin all around. Be careful as some areas, especially in Dallas, are to be avoided. 

Hamilton City
Denison
Noth Richland Hills
Dallas
Irving
Mesquite
Arlington
Ft Worth
Allen
Desoto

Why sell your 3 rentals to buy 3 rentals? I understand selling a under-performing property to buy one that is expected to have a better cashflow. If they are making good money why not refi? The refi could easily get you another SFR or 2, possibly even a duplex. 100K while a very nice gain can go very quickly. Now you may have had them for some time so it just might be time to get out.

My version of an MF apartment is a common property with 5 or more units. These require commercial loans. A decision would be easier to reach with a better understanding of that process. Its possible your in a good position to get the loan so you should go speak to a lender. Commercial loans normally look for 25% down plus 1 month operating capital. You may have an excellent relationship with your lender so go chat with him. See what your funds can get you. Remember you would be the management company.  The other side is an apartment might be out of reach. Your decision then is already be made for you. 

My personal take on MF is it has to be large enough to support staffing. That might change over time but today I would not go near a smaller MF apartment if it can't pay for a property manager. I'd rather invest as a passive in a larger apartment complex and let the money grow.

Padera Lake dam is looking rough. Stay safe my friend.

Howdy neighbor, Welcome to BP

While probably not what you want to hear your best bet is to join the local REIA, meet other investors in the area and ask. Contractors are plentiful but what is good is somewhat subjective. You will meet contractors at the REIA as well. Your local to me so I'd PM you some names if you wish but I'd recommend you attend the meetings. Its your opportunity to ask whatever question you want.

You can get approved by HML and I'd recommended you do so before making any offers. The problem you may have is they will want you to have some skin in the deal. If you have a solid 401K of some other property you could leverage you stand a better chance of approval.

I went though this 5 months ago. Approval was straight forward. They look for good credit, your not over leveraged, gainfully employed and 6 months surplus in bank to cover your primary residence with an additional 2 months for any others. At least that is what I was explained. I'd expect most lenders to be similar. They ask for employment stubs, bank statements and tax forms so get those ready. 

What is the rate on mortgage? What is your % down? I was expecting the debt service a bit higher. 

Can you explain what went into your expenses number?

Do you have a rehab budget?

I did some quick calculations. I see a COC return of ~6.6%. Just the numbers you have seem optimistic. I've walked apartment deals in DFW for the last 5 months. I would expect an apartment rehab of 3 to 4K on class C units.

If your willing to share a bit more details with me public or privately, I'd work with you to do 3 year proforma.