All Forum Posts by: Juan Mora

Quote from @Bob Stevens:

Quote from @Juan Mora:

I have been searching for investment opportunities for a few months now and had zero luck.  The single family properties that look reasonable for a flip or flip and hold are snatched up for a lot higher than what my numbers show I should get them for.  

I have been unable to even submit an offer because they are gone within 2-3 days.  

The only duplex and triplex that I am finding in San Diego are over $700+ and makes it really hard to enter the market.  I am somewhat hesitant in buying something out of state sight unseen or thru facebook.  Here are the two properties that seem "doable" in San Diego but the location sucks. 

One property in San Diego was REDUCED by $250,000!! That's a quarter of a million dollars that they just cut the price in.  It shows that sellers have no idea what their prices should be.

https://www.zillow.com/homedet...

https://www.zillow.com/homedet...

https://www.zillow.com/homedet...

It almost feels like these sellers have already flipped their properties within the year and now they want to unload their properties before a recession.  

What do you guys think of the units above? I would be renting one of the properties to my brother and qualify for a FHA loan and rent the other.

You need to go out of state like 100s of investors from Ca, 10% + net caps ( based on cash purchase ) are To be had. I l just picked up a 7 unit all in 200k, NET rent about 35k, on gross of about 46k, not so bad .Its all about knowledge

Hey Bob

How are you finding out of state properties ?

is it an online service or thru realtor connections ?
 

Pardon my ignorance. But how or where do I sign up for a wholesale lists ?

I have been searching for investment opportunities for a few months now and had zero luck.  The single family properties that look reasonable for a flip or flip and hold are snatched up for a lot higher than what my numbers show I should get them for.  

I have been unable to even submit an offer because they are gone within 2-3 days.  

The only duplex and triplex that I am finding in San Diego are over $700+ and makes it really hard to enter the market.  I am somewhat hesitant in buying something out of state sight unseen or thru facebook.  Here are the two properties that seem "doable" in San Diego but the location sucks. 

One property in San Diego was REDUCED by $250,000!! That's a quarter of a million dollars that they just cut the price in.  It shows that sellers have no idea what their prices should be.

https://www.zillow.com/homedet...

https://www.zillow.com/homedet...

https://www.zillow.com/homedet...

It almost feels like these sellers have already flipped their properties within the year and now they want to unload their properties before a recession.  

What do you guys think of the units above? I would be renting one of the properties to my brother and qualify for a FHA loan and rent the other.

Quote from @Dylan Speer:

Hey Judd,

I am an analyst at a real estate investment advisory firm and I help clients looking to invest out of state. We are located in Denver and see limited cash flow opportunities here so we focus on two midwestern markets. If you are interested in hearing more about why we focus where we do and how our business model works, I'd be happy to chat. 

 I just sent you a PM.  Im in San Diego and interested in Out of State options since the barrier to entry in CA is higher.  

Quote from @Callaway Pate:

Does your renovation cost take into account carrying cost for the duration of the rehab? I'm assuming that with your hard money interest rate will make that a pretty high monthly bill. If your reno is longer than a couple months the carrying costs will eat up that gross profit. Not to mention agent fees, staging, and short-term gains tax from the sale. The net profits may be pretty slim but it depends on what you think is worth your time. 

Best of luck!

You are right.  Im still new to this and learning.  

I estimate it will be 4 months given the amount of work that it needs.  Im pretty sure it will need new hardscape, electrical upgrade, flooring, demo , hvac and new kithcne and bathrooms. 
I will update my reno budget to $90,000 and maybe offer $400k 

This would actually be my first flip.  I own some rentals that I purchased as my original home and turned them into rental.

I have a full time job so this would be handled by my General Contractor.  

I will get some pricing on some hard money loans and add them to my budget. A spreadhseet for this would be really helpful for these scenarios.

I will walk the property with a contractor this week.  There are a lot of people interested as you can see by the number of "saved" numbers on Zillow.

I am looking at this property for our first flip in California. 

https://www.zillow.com/homedet...

Single family residence 

Purchase price $450,000

Renovation $80,000

All in $530,000

Selling price $630,000

Closing costs $30,000

gross profit 70,000

Financing would be hard money and some of our savings. 

Did you lose money on this deal?

Or did you purchase for $140k and put in $50 for a GRAND total of $190 and profit of $80k?

Quote from @Mike Lambert:

@Juan Mora

These are my two cents, for whatever they’re worth.

Very bad location. I think the land is pretty much worthless. $100,000 for construction today in Tulum most likely means very small or low quality. Anyway given the huge amount of supply coming up in the area, you can’t afford a bad location or « bad » property if you want to get rented on a sustainable basis in my humble opinion.

I would only get something like that if I wanted to use the property for myself only and want to be on the middle of nowhere.

Hope this helps and sorry if I involuntarily poop the party but, at the risk of repeating myself from previous posts you can’t expect to buy by anything in Tulum and make or not lose money. That ship has sailed!

This being  said, don’t take my words fit the truth necessarily as I have no crystal bowl. Just make sure you do a property due diligence. But it looks very risky and there are much better options out there in my humble opinion.

 Thank you so much for your insight and opinion.  This defiantly helps a lot. 

What recommendations do you have for getting started in a STR in Playa del Carmen or Tulum ?

I used to own a condo in downtown San Diego and I’m not a big fan of condos buildings with high HOAs. Interested in something I can pay off in the next 36 months