All Forum Posts by: Alberto Camacho

Hi Steven, 

Based on your goals you may be a good candidate for investing in a few apartment syndications. I would look for yield plays on stabilized properties that payout on a quarterly schedule. You'd be a money partner in an apartment deal. 

Please get educated in this niche. You want to know your involved with the right people and the right deals. 

The SFR route will take time from your family that you may not have. Even picking up a turnkey SFR portfolio you'd have to be involved with the management company to a greater degree than MF investing.

I've invested and continue to educate myself in investment strategies. Obviously my approach is just my view and you should decide what is best for you.  

There are some aspects of the post that cause me concern. A free and clear property that breaks even doesn't sound right.

Brent hit on one aspect. It's time to downsize. Just I would not stop there. I'd take a hard look at the budget and takes steps to eliminate and minimize all re-occurring expenses. 

Only after addressing expenses I'd look at selling the condo. Yup I'd sell. 

It's a seller's market in DFW. While it would be great to hang on it hasn't been a winner. We make our money on the buy. It doesn't sound like that happened here.

All investors review their portfolios and drop the worst from their heard.  If necessary I'd take the minimum possible funds from the sale and get my affairs in order. With steps to reduce spending those funds will go much further. Once the JOB is back on it wont be too long before saving add up and one is able to re-invest in a property that cash flows.

I'd move IRA funds while between jobs into a self directed IRA. I'd use those funds to invest in real estate that provides positive cash flow after all expenses are covered.

Sorry to hear you going through this. I also have lost employment on more than one occasion. Find strength in knowing this happens to all of us at some point in our lives. You will come back from this stronger than ever. 

The HM lenders I've seen in the DFW area typically do 70% ARV in the 14% range, 2 to 3 points sometimes one point upfront and the rest on the refi.

The idea behind the 70% is to allow you to refi into conventional at 75% LTV. Recently I've seen 80% loan of purchase price and rehab at similar terms. There are draw fees associated with the rehab funds on both of these loans.

They also look for 6 months PITI reserves on primary and 2 months for every additional homes. You don't want to get stuck in HM on a buy and hold.

Contact me if you like to get more specific numbers. I'm happy to crunch this stuff with you. I'm not a lender so no pitch from me.

From the comptroller site at texas.gov

Do all homes qualify for homestead exemptions?

No, only a homeowner's principal residence qualifies. To qualify, a home must meet the definition of a residence homestead: The home's owner must be an individual (for example: not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year. If you are age 65 or older, or disabled, the January 1 ownership and residency are not required for the age 65 or disabled homestead exemption.

Hi Paul, 

Multifamily 5+ units require commercial lending. Seek out lenders that specialize in that area and get qualified with the lender you resonate with. That will get you moving in the right direction.

-Albert

Everyone above is on point. The DFW market is tough, great deals are far and few between. Doing anything long distance is tough. Lessons will cost you money.

At the same time as investors we can't allow market conditions derail our business goals. Regardless of where you look there are deals, contractors and various other business relations worth their weight in gold. It's easier said than done but you just have to find them. 

If what you seek is advice I'd say figure out what you want and don't want in a deal. Then be ready to act when the deal shows up. Good deals don't last.

Welcome to BP Nick!

What type of flooring...vinyl, laminate or hardwood? It may be easier to post the bid minus any company branding so we can identify possible issues. I would expect an itemized bid from any contractor.

Welcome to BiggerPockets

Hi Rivy, 

I sent you a message with some options. Both of the links supplied work with real estate investors. I am not paid nor do I represent either of the firms provided. One of them happens to be my guy. I'm new to the area so my experience with my firm while positive is also limited.