All Forum Posts by: Carlos Quiros
Carlos Quiros has started 34 posts and replied 83 times.
Post: Questions from a new investor..... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Quote from @William Anderson:
Carlos, I am not familiar with those markets but some basic things apply to any market. Given the economic situation now, higher prices for property, and higher interest rates, be very careful overextending in the "hope" that you will overcome at least one shortcoming.
I do not believe that we are going to see appreciation shortly, the market is currently in a period of adjustment with prices likely to drop rather than increase. A few years ago you could invest based on appreciation, that's not the case in much of the country now.
You should have at least six months of free cash to make up for any losses that were incidental and not planned. I recommend to my clients that they should wait a while for the market to stabilize, there will be many foreclosures, particularly with short-term rental owners. There will be a good time to snap up those distressed properties fully furnished.
Remember cash is king. Hold on to as much as you can now and be very careful about taking on debt. I sincerely believe that now is always a good time to buy but you need to buy right.
Thank you for your sage advice William. Where do you primarily invest?
Post: Evansville, IN Whats going on here???
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Quote from @Zachery Hitchcox:
Hey! I got a house under contract in east Evansville near Newburgh and my family has been there for a long time. I'm out of state investing though but I'm excited to get started in this market. Looking for a medium term rental operator at the moment though to manage this rental.
Are you self managing it now?
Post: Questions from a new investor..... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Quote from @Becca F.:
I invest in the Bay Area and Indianapolis metro area. I run my property taxes using 2.78% for Indianapolis (Marion County) - you will pay more than what the current owner is paying. 2.77% Hamilton County (it will be negative cash flow since these are highly sought after suburbs with great schools: Carmel, Westfield, Noblesville, Fishers). Indy has a diverse job market: FedEx is one of the major employers and other employers are moving there, Elanco (veterinary pharmaceutical company) and there seems to be a small tech presence.
I'm cash flowing $176 on the Indy house (haven't gotten a notice of property tax increase yet for 2023-24). Cash flow on Hamilton County house $224 (property taxes have reduced my cash flow, used to be over $400 a month). I'm paying close to $5000 in property taxes on this house which I think is a lot.
Insurance: in Indy paying $68 a month for $130,000 purchase price (2 bed, 1 bath, detached garage, no basement) that I closed on March 2023. I've gotten other quotes for a SFH I'm considering an offer on. It's about $70 a month for that $130,000 to $140,000 range. Hamilton County (suburb of Indy) $78 a month SFH I've owned for 10 years (3 bedroom 2 bath, attached garage, no basement)
Management fees: 10% (some will give a discount if you have multiple properties)
CapEx: I didn't factor these into my monthly costs as it was turnkey. I have over 6 months reserves and at least an extra $10,000 reserves for each property. The AC unit was stolen right before the tenant moved in so I had to pay for that (didn't file an insurance claim). I think some people use 10%
Repairs: Didn't factor this in. I've had about $1500 in repairs on Indy. Maybe use 10%.
Vacancy rate: Didn't factor since I got tenants in quickly on both houses. Some people use 5%
Utilities: Tenant pays for electricity/gas, water, sewer/garbage in Indy. On Hamilton County utilities since the city wouldn't let me transfer it over to tenant. If they didn't pay it the city would put a lien on my house so I added this cost onto the base rent. I don't have multi-units for Indy so I don't pay for any of the water.
At this point I'm buying for the tax benefits and ok with break even of cash flow $50 to $100 a month if I can raise the rent every year. I'm considering pivoting back to Northern California (Sacramento) but need to raise more capital. I still think nothing beats California appreciation - if you can house hack, add an ADU buying locally has an advantage (can check on the renovation in person frequently, which I did on my Bay Area SFH) but the Midwest is much easier to get into real estate investing with less money.
Wow interesting! Thanks for the insight! I am from NorCal too and it's definitely a bigger down payment to get into these markets. My goal would be hold real estate in smaller markets and refi to get money to invest in my own state, california.
Post: Evansville, IN Whats going on here???
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
What's happening in Evansville? I hear that the area is developing fulfillment centers, jobs, etc.
Is anybody investing here?
Post: Questions from a new investor..... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
wow this helps alot! Thank you Ryan. What's going on in Lafayette that is attracting new investors. A friend told me about Evansville. Any opportunities there?
Post: Questions from a new investor.... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Tell em about it. Where in relation to Central, IN is Evansville? I hear that there is alot happening there
Post: Questions from a new investor.... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Great! Thanks for the input Kevin. My wife and I are looking at our options but I will keep you in mind. Do you primarily invest in Louisville or around the mid-west?
Post: Questions from a new investor.... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Hello All-
New to investing and had a few questions for those seasoned investors. My wife and I are looking at the mid-west to start investing (Ohio, Wisconsin, Indiana, Pennsylvania or Kentucky) My question are in the models I am running I am losing money on deals or barely breaking even. Should I expect to cash flow SOMETHING or just be happy with a breakeven/small lose and expect property appreciation to help later as a buy and hold.
For those of you that are already investing in these markets are there some your prefer over others?
What percentages are you seasoned investors assigning in your models for
- Insurance (I know that I can look this up but is there a baseline number to get an idea)
- Maintenance %age
- Repairs %age
- Cap ex %age
- Management Fees %age
- Who typically pays for (Gas, Electricity, Water, Sewage/garbage)
Should I avoid properties where I pay water as it would eat into my profits?
For those of you that are already investing in these markets are there some you prefer over others?
There’s so much to unfold and it’s definitely overwhelming but I thought I would ask those who have been in my shoes before. I know it’s a lot but it can be done since there are already so many successful investors here that show me all I need to do is keep going and ask questions.
Thank you in advance to anybody who takes time out of their already busy day to help a noobie
Carlos
Post: Questions from a new investor..... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Hello All-
New to investing and had a few questions for those seasoned investors. My wife and I are looking at the mid-west to start investing (Ohio, Wisconsin, Indiana, Pennsylvania or Kentucky) My question are in the models I am running I am losing money on deals or barely breaking even. Should I expect to cash flow SOMETHING or just be happy with a breakeven/small lose and expect property appreciation to help later as a buy and hold.
For those of you that are already investing in these markets are there some your prefer over others?
What percentages are you seasoned investors assigning in your models for
- Insurance (I know that I can look this up but is there a baseline number to get an idea)
- Maintenance %age
- Repairs %age
- Cap ex %age
- Management Fees %age
- Who typically pays for (Gas, Electricity, Water, Sewage/garbage)
Should I avoid properties where I pay water as it would eat into my profits?
For those of you that are already investing in these markets are there some you prefer over others?
There’s so much to unfold and it’s definitely overwhelming but I thought I would ask those who have been in my shoes before. I know it’s a lot but it can be done since there are already so many successful investors here that show me all I need to do is keep going and ask questions.
Thank you in advance to anybody who takes time out of their already busy day to help a noobie
Carlos
Post: Questions from a new investor..... :-/
- New to Real Estate
- Los Angeles, Ca
- Posts 83
- Votes 63
Hello All-
New to investing and had a few questions for those seasoned investors. My wife and I are looking at the mid-west to start investing (Ohio, Wisconsin, Indiana, Pennsylvania or Kentucky) My question are in the models I am running I am losing money on deals or barely breaking even. Should I expect to cash flow SOMETHING or just be happy with a breakeven/small lose and expect property appreciation to help later as a buy and hold.
For those of you that are already investing in these markets are there some your prefer over others?
What percentages are you seasoned investors assigning in your models for
- Insurance (I know that I can look this up but is there a baseline number to get an idea)
- Maintenance %age
- Repairs %age
- Cap ex %age
- Management Fees %age
- Who typically pays for (Gas, Electricity, Water, Sewage/garbage)
Should I avoid properties where I pay water as it would eat into my profits?
For those of you that are already investing in these markets are there some you prefer over others?
There’s so much to unfold and it’s definitely overwhelming but I thought I would ask those who have been in my shoes before. I know it’s a lot but it can be done since there are already so many successful investors here that show me all I need to do is keep going and ask questions.
Thank you in advance to anybody who takes time out of their already busy day to help a noobie
Carlos