All Forum Posts by: Jason Lee

I have three properties in the C+ to B class neighborhoods that I have used the BRRRR strategy on so far. After all expense and accounting for maintenance, cap ex, vacancy, and property management, they cash flow about $50-100 per month. Property tax is definitely a limiting factor as the current property tax rate is around 2.9% right now for San Antonio.

@Jesse Ramirez I can believe it! I'm sure it's because things like sq ft, finishes, etc. are all over the place which is a big reason why spec builds can be challenging. 

@Jesse Ramirez Timberwood Park is definitely a good neighborhood. I would start by finding strong comps in the area to determine a conservative ARV since $300-500k is a wide range. Be sure to pay attention to days on market, interior finishes, and extra amenities like pools. Next, I would get some inital contractor quotes on how much a new build will cost just for inital calculations. Once you have a good estimate on ARV, construction costs, holding costs, etc., then you'll have a more clear picture on what to do with the land. I would suggest to take into consideration ROI and annualized return. 6+ months of work for an additional $20k in profit might not be worth it. Personally, I think it's a big project for a first investment but it would definitely be a great learning experience if the numbers work. Either way, it's definitely a great opportunity!

@Jessica C Molloy welcome to investing in San Antonio! From personal experience, I think the BRRRR strategy is a great way to grow your rental portfolio if done correctly. It is hard to find a perfect BRRRR deal in San Antonio (no money left in the deal), however it is does significantly reduce the amount of capital needed to purchase buy and holds. I only left about $3k left in my last BRRRR deal. To answer your questions...

1. Message me if you want my honest opinion. I will say that the more investors you network with in San Antonio, the more it becomes apparent which sources can actually provide you good deals. 

2. I started off using the BiggerPocket's calculator, but I have recently began to use my own spreadsheet. It has a lot of the same elements as the BiggerPocket calculator, but it's easy for me to analyze and play around with numbers since I built it. Nothing wrong with the calculator on here though!

3. I have only used HMLs so far to finance my deals. If you need recommendations for good HMLs feel free to message me.

4. It really depends on what class of property you are looking for. There are a lot of lower class neighborhoods where the BRRRR strategy can work that are just west of downtown as well as in South San Antonio. Far West and North East San Antonio can be good middle class BRRRR neighborhoods.

Again, feel free to message me with any questions or if you are looking for recommendations. Good luck!

@Jason Berdis welcome to BiggerPockets and real estate investing! It's awesome to see a fellow Air Force member on here. Rental properties are definitely a great way to build long-term wealth. Feel free to message me if you have any questions or need recommendations. 

@Shashank Gokhale awesome to hear and agreed, always a good to get a second opinion. I'll be sure to help answer any questions if I can. 

@Shashank Gokhale I apologize if it seemed like I was talking down to you. I was just trying to provide honest advice because there are many people that post before taking the time to do research. Ultimately, I just want to see new investors and the first step is to "do your homework". I do wish you the best in your wholesale endeavors and I hope to see you blasting out some great deals soon!

@Shashank Gokhale I started off about 8 months ago and the biggest piece of advice that I have is to do your homework and educate yourself. Having a good knowledge foundation will give you credibility with other investors and show that you are serious about real estate investing. After all, if you aren't willing to invest the time to learn then why would someone else want to invest their time in you? Also, I would try to have more specific questions like, "Where can I find a good example/template of a wholesaler assignment contract?"

For education, I recommend listening to the BiggerPockets podcast every chance you get and reading the thousands of articles on this site. Seriously, if you just Google "wholesaling BiggerPockets" dozens of very informative articles pop up. Tons of free information out there. 

Welcome to BiggerPockets @Diana Frasier! It's awesome to hear that you're ready to start taking action. It's great that you already know what you want which really does help narrow down the search. I don't know your financial situation or qualifications, but rates have just dropped so you may be able to get a rate lower than 5.5%. For example, my broker was able to get me 4.125% with 1.25 points for my last rental. Regarding property management fees, I would estimate about 9-10% of rent plus a tenant placement fee for a well-established company. For market rents, there are a couple of different sources you can use for estimating market rents. Real estate agent can pull comps of homes that have been recently rented, legit property management companies should have a good idea of rents are in the area, and you can do your own research on Zillow. I have an awesome realtor, loan broker, and property management company that I use. Feel free to message me if you're interested and I can pass along their information!

@Jesse Ramirez it sounds like you intend to "house hack" based on your response to @Shelby Ek. Personally, I think that $145k is a bit high for 724 sq ft in that area. As mentioned above, something to think about is the quality of tenants you would attract in that neighborhood. It may not be worth the headache of them knocking on your door at 2am since you literally live 500 ft away. Don't want you to get stuck in analysis paralysis, but there are a lot of better areas and homes that are "house hack" worthy around San Antonio in my opinion. If you decide to move forward with this deal, maybe think about finding a long-term roommate since the casita is a 2/1. It's a steadier stream of income and you won't have to worry about managing an Airbnb.