All Forum Posts by: Seth Teel

@Ivan Vera

@Lluis Bacardi is 100% correct.  However, if this is your first time doing it, I highly recommend actually going down to Development Services.  They will make sure you fill out the form correctly.  This can save you weeks of "revision" time for the smallest of errors on the form.  

What you've described offers little-to-no benefit to the broker, but increases their liability exponentially. 

There are plenty of flat-fee "ghost brokerages" that operate in Texas. Most fees are $200 - $500 per transaction, plus annual E&O fee. It's not likely you'll get much training or support from these brokers, but they aren't getting much from you either.

Shoot me a PM and I'd be happy to give the names of few brokerages that operate in this capacity.  

@John M. Red

The ordinance actually went into effect immediately after approved in November 2018.  There has been a grace period for permits and Hotel Occupancy Tax (HOT) registration.  The ordinance divided STRs into two types: Type 1 = Owner Occupied properties. Whether that was a duplex scenario, Accessory Dwelling Unit, or rental of a room/suite within the Host's home.  Type 2 = Non-owner occupied STRs. From what you described, it appears you plan to have a Type 1 STR, which is not subject to many of the rules for Type 2 STRs, including the density limits mentioned by @Aaron Bihl.  

You can find the ordinance and all info need for application and registration on the City's website: https://www.sanantonio.gov/DSD/Resources/Codes.  Both Logan Sparrow and Deborah Gonzales with the CoSA are very helpful.  Their info is in the link above.

Thanks @Rick Pozos!

Our monthly meetup is actually tonight.  You can DM me for more info, or look it up on MeetUp.com or Facebook. /nopitchmeetup/

@Domenick Llanda

@Skylair Richter

Most of my clients like to net $200 - $300 per month per door on their small multis.  Since you're going to live there, net profit is less important.  Think of it this way, if your renter is covering your mortgage on 90% and your property is appreciating, it's a total win.  You're basically living for free.  For example.  In 2012 I bought a duplex in the Lavaca Historic District, live in one side & rented out the other.  Our renter covered most of our note.  I sold the property in early 2015 for over $100K more than I had purchased it for.  The area had appreciated so well, we killed it.  

Don't get hung up on 1% rules and price per square foot.  This initial investment is going to be your home. Think about it wisely, consult an educated realtor and make a solid decision.

@James Walker

I don't think this is an unreasonable request at all. I do think the contractor's dollar amount is a little high.  That being said, there are so many "investors" in San Antonio, these contractors get inundated with requests for bids.  This time consuming, and if the investor doesn't close, it's a total waste of time for the contractor.  

If you plan to use this contractor regardless of whether you purchase this property or it's on the next one, then I don't think deposit that will be applied to the work is out of line.  I would propose something around $300.  Alternatively, you could just tell the contractor you will be $100 - $150 for each bid they provide whether you close on the property or not.  

Ultimately having a little skin in the game on your end let's the contractor know you're serious.  Before you give them any money, I would ask for a copy of their insurance, and check to see if their are licensed with the City of San Antonio. You can do that here: https://www.sanantonio.gov/DSD/Online/Contractor

@Skylair Richter

House hacking is a great way to get into RE investing.  My first purchase in 2000 was a duplex and I house hacked in duplexes until the end of 2014.  Even the new home I am renovating for myself will have a 900sf apartment we plan to use as a short-term rental.    

Things to think about:  

San Antonio does not have an abundance of small multi-family property.  This creates a high demand for these types of properties.  It also limits the areas you'll find them.  Yes, there are some duplexes and four-plexes in the suburbs, but the majority are in the City's urban core.  You an your wife will need to identify areas where you are comfortable living before beginning your search.  

Many small multi-family in SA do not have the property zoning.  This will make it difficult getting financing, so make sure 1) it has the proper zoning designation or 2) The property's multi-family status predated the 2001 Unified Development Code (UDC) adoption.  

Metering can be another issue. Do you want your units to have separate meters or have rents to include utilities? Adding a second electrical meter can be a PITA, you'll need to get an address assignment from the City approved, then you will have to jump through a bunch of hoops with CPS. I am going through this right now with a client. Water is usually covered by the owner, as adding a second meter has an astronomical impact fee + the cost of installation. I have yet to see a good ROI on adding a second water meter.

Likely the first thing you want to do, and doing it now is not too early, is talk with a mortgage broker about your buying power.  Also, engaging a mortgage broker now will also allow you time to fix any blemishes on your credit.  This will also help determine location of your purchase.  

If you have any more questions, feel free to reach out via DM.

Good luck!

Reach out to @Ernest Fernandez he has been sourcing on and off-market multifamily deals for our clients here in San Antonio.  I am sure he can help.

@Account Closed 

I think the "big" decision you need to make is which part of the industry do you want to work?  Do you want to work traditional real estate as a buyer's agent and listing agent selling single family retail properties?  Do you want to work on the residential investment side, selling distressed assets, and small multi-family, or do you wan to work as a commercial agent, either selling commercial property or leasing commercial space?  None of these things are mutually exclusive, but it helps to start with one area to get experience and branch out as your career grows.  

For me, I knew I always wanted to work the investment side of things.  Before I ever got my RE license I owned rental properties, flipped properties, etc.  Now I run a brokerage that does both retail and investment, small commercial, home building, and small-scale development/redevelopment.   

Building a book of business isn't easy, but the lowest thresholds for entry are definitely on the retail and residential investment sides of the business.  My first year as an agent I worked for a large corporate wholesale company and was able to close out over 40 deals.  That's more than most retail agents do in their first three to four years of business. The volume allowed me to ramp up quickly and gain a ton of experience faster than many of my contemporaries.

Good luck whatever you choose!

@Account Closed mentioned), then shop policies.  If there is current flood coverage, depending on zoning, the insurance coverage may be transferable.  You would need to ask the carrier about your specific policy.  

Where's the property? I may be interested. Shoot me a PM.