All Forum Posts by: Alex Kamunyo

Matthew Powell you should definitely check out David Green’s book “Long Distance Real Estate Investing”. He will explain how investing in another market that’s not local to you, is not much different than investing in your own backyard. By getting your team together first in the long distance market you will have no problem finding deals. Especially if you are finding rockstar agents, lenders, investors, contractors, etc. Once you have your “core four” together as he calls it, deals will be a lot easier to find. And tbh it makes sense to find your team before you find the deal, because if you tried finding the deal first and your scrambling to put together a team of people you will either lose out the deal or you won’t have a good enough team to be as successful as you could’ve been had you found the best team you can find.

Thanks for keeping us updated for the duration of this project @Jason D.. As a new investor it was great to see how investment projects progress from beginning to end, especially when problems arise and you figure out a way to deal with them. Nice job & also the property looks great! What would you say are your biggest takeaways or lessons, if any, that you got from completing a BRRRR deal?

Manan Singh welcome to the BP community! You don’t have to put down 20% for a down payment on an owner occupied property. Many lenders will lend you FHA insured loans that only require as little as 3.5% down. There are also lenders that’s lend conventional loans for 3-5% down. They are becoming more and more common after lenders essentially stopped doing that after the market crash 10 years ago. One thing to be cognizant of with down payments less than 20% is that you will be charge monthly PMI in addition to up front MIP. It used to be that you only pay the monthly PMI until you reach 20% equity in the property for FHA loans, then it goes away, but after 2013 that’s not the case. You would have to pay PMI for the life of the FHA loan. Fortunately if you use the right lender, you can refinance the FHA mortgage into a conventional one and remove the monthly PMI when you have enough equity in the property. Good luck!

@Brian Schmelzlen thanks for the feedback. We will definitely consult with someone about the specifics of the OA. So as far as filing goes, is it just a matter of doing it? It seems as if most of the details/questions arise after you actually file for it.  I just want to make sure I don't miss anything that I should've taken care of before filing.

Hey everybody,

Does anyone have any advice for starting an LLC with partners? Our intention is to create an LLC to hold a few rental properties in. What should we make sure to include in our LLC as far as operating agreements, EINs, and licenses, etc.? I'm just curious about the nuances that come along with establishing one. We plan to do it through LegalZoom. Any help/advice is appreciated.

Thanks

Hey everybody,

I am currently looking to expand my farm area to sub-markets in Houston. I am currently situated in San Antonio and investing here, but I have partners in Houston whom I plan to invest with. I want to utilize the BRRRR method for small multifamily properties. We are looking for value add rental properties so we can refinance and continue to repeat. As for metrics, ideally we'd like to obtain $150-$200/mo/unit in cash flow (after variable expenses such as repairs, cap ex., vacancy, management) along with a 10-15% CoCROI. Just curious, for anyone currently investing in the Houston market now, how do these metrics and criteria sound? Obtainable?

Also does anyone have any recommendations for investor friendly real estate agents? Ideally agents that invest themselves. I am open to all recommendations.

Thank you

Hey everyone,

I'm currently in the process of shopping different lenders in order to compare rates and terms for investment properties (buy & holds) and also for owner occupied properties (house-hacking) in San Antonio , Texas. I've been recommended to Gateway Mortgage and AMP Lending. Who are some of the other lenders that you have used that you have enjoyed working with or that you've heard are good lenders for rental properties? All feedback is appreciated.

Thanks

Hey everybody,

I've been practicing analyzing as many deals as I can. But when I account for expenses I am having a hard time estimating the monthly insurance rates for a property in San Antonio and accurate monthly utility holding costs. I've been looking around for SAWS and CPS Energy rates but I know they vary based on house size, meter size, etc. So what should I be assuming as the expense for utilities and also insurance? All feedback is appreciated.

Thanks

Hello all, I wanted to reach out to possibly get some opinions on my strategy for my first investment property. I am wanting to utilize the BRRRR method for the first property I invest in. The areas I am looking at are the northeast and northwest sides of San Antonio, between Loop 1604 & Loop 410. But I am really open to any single family properties that are between 1604 and 410. I am not particulary attracted to anything inside of 410, but I won't rule out the possibility. I plan on using a hard money loan for the short term loan (12-14 months) to purchase and rehab the property. The reason I say 12-14 months is because I am under the impression that banks/credit unions require a seasoning period from the time you purchase to the time you refinance, typically 12 months to see that the property is profitable. The two extra months would just be a safety time period to make sure that I get the cash of re-fi before the short term note expires. Then I planned on an institutional loan from a local credit union such as RBFCU to do the cash out refinance after about a year. If I'm not able to do this, ideally I'd like to be able to sell the property as if it was a fix & flip. What do you think about this strategy? I’m looking at a two on market properties currently. Property 1: 3BR/2BA 1500 sq ft Asking price = $95,000 Est rehab = $20,000 (could be way off, still working on it) Neighborhood comps = up to $160K (don’t have rental comps at the moment) Property 2: 4BR/2BA 1700 sq ft Asking price = $150,000 Est rehab = $25,000 (again, could be off) Neighborhood comps = up to $200K (don’t have rental comps at the moment) What do you all think about all of this? Are these potentially good deals? Are there any foreseeable problems based of your own experience? I want to know what I should be looking for when I’m analyzing these deals. Of course I plan on running all the numbers and meticulously analyzing all potential deals using the BP BRRR calculator and also another one I have. All feedback is appreciated. I am extemely eager to get started but everytime I think I'm progressing, I see or learn something that makes me more hesitant.

Hello all, I’m a new investor in the San Antonio area. I’m looking to invest in fix & flips and/or buy & hold properties. Currently I’m the process of putting together a team. Does anyone have any recommendations for general contractors in the San Antonio area? Or even sub-contractors that I can contact that may know a general contractor. All recommendations are appreciated. Thanks