All Forum Posts by: Laura Navaquin

Hi Christa,

Thanks for reaching out and sharing the details about your property and your plans. It sounds like you’ve got a great opportunity on your hands, especially with your experience in the short-term rental space as a cleaner in the area!

In short, while you can explore short-term rental opportunities, it's important to align your plans with both FHA guidelines and local regulations.

If you want to dive deeper into the specifics or need help with the logistics of setting up a short-term rental, I'd be happy to share more insights or resources that could help you maximize your investment.

Best regards,
Laura

Hello Cenada, Thanks for sharing a bit about your journey! It’s great to see you diving into the San Antonio market and actively building your real estate portfolio. It sounds like you’ve learned a lot through hands-on experience and your self-directed research, that’s truly the best way to grow in this field!!!!

I can definitely appreciate the challenges of managing cash flow and the learning curve that comes with operating a PadSplit, especially when you're doing it solo. It's impressive that you're already looking to scale with your next acquisition and focusing on non-HOA properties. That can definitely provide more flexibility for rental strategies like PadSplit.

As someone who’s been in the industry for nearly a decade, I’d be happy to offer guidance, whether it’s on strategy refinement, financial structuring, or even navigating some of the tougher lessons I’ve learned along the way. I believe in the power of community and mentorship, and it’s great that you’re also open to connecting with others and providing value to the group.

If you’d like to chat more about next steps, creative financing, or expanding your network, feel free to reach out. I’d be happy to help and share what I’ve learned!

Looking forward to connecting with you further.

Best,
Laura

Hi Natasha,

Congratulations on closing on your first investment property in Mexico.....that’s such an exciting milestone!

Hang with me here, this is long. In regards to your questions about structuring your investment and LLC, it's great that you're already thinking strategically. Using a separate LLC for each property is a common approach to limit liability, and a Series LLC can be an excellent choice for long-term scalability, especially if you plan to acquire multiple properties in different markets. It offers flexibility by allowing you to establish multiple "cells" under one parent LLC, which can reduce the complexity and cost of managing several separate entities.

As for your Mexico property, the issue of ownership through a fideicomiso adds an extra layer of complexity due to Mexican law, which requires foreigners to hold property within a trust structure when purchasing in restricted zones. You can absolutely transfer the property into your LLC; however, there are a few key things to consider:

1. Fideicomiso and Ownership Transfer: The fideicomiso must typically be in your personal name, and it may require you to set up a new trust to transfer the property into your LLC, which could involve additional fees and paperwork. You'll want to work closely with a qualified attorney who specializes in Mexican real estate law to ensure the trust agreement accommodates the LLC structure.

2. Tax Implications: The international aspect of the property could impact both U.S. and Mexican tax filings. In the U.S., your LLC would need to comply with IRS reporting requirements, and the income from the property would be taxable. A tax professional who understands both U.S. and Mexican tax laws will be crucial in ensuring you're optimizing your tax strategy.

3. Estate and Succession Planning: One additional benefit of the Series LLC structure is that it could streamline your estate planning for your properties. As you scale, this could help you organize your investments in a way that minimizes complexity and potentially reduces your estate tax exposure.

My recommendation would be to consult with both a business/tax attorney and a real estate attorney who has experience with cross-border investments.( I have a referral I can make to you if needed)  They'll be able to help you navigate the specifics of transferring the property and structuring it for long-term success. If you haven't already, you might also want to look into establishing a tax-efficient structure for your income from the property and potential repatriation of funds.

Let me know if you’d like any further guidance, and I’m happy to help in any way I can as you continue growing your portfolio!

Best,
Laura

 Perfectly put! So much clearer than I. 

Hi Richie,

Great question! To clarify, the MAO (Maximum Allowable Offer) is indeed the price at which you should aim to offer for the property. Here's a breakdown of the process:

1. ARV (After Repair Value): This is the estimated value of the property after it's been fully renovated.

2. Purchase Price + Renovation Costs + Holding Costs: These are the costs involved in acquiring and improving the property. Make sure to include all potential expenses for repairs and the time it may take to sell or refinance the property.

3. Multiply by 70%: This percentage helps account for your profit margin, unexpected expenses, and ensures you leave room for a reasonable return on investment (ROI).

So, once you've calculated your ARV and added in your purchase, renovation, and holding costs, multiplying by 70% will give you the MAO, the maximum price you should offer for the property to stay within profitable margins.

In essence, your MAO is the highest amount you should be willing to pay for the property, factoring in all your costs and desired profit.

I hope this clears things up! Let me know if you need further clarification or help with the numbers. I also have a spreadsheet I can send you that I use to run numbers on every offer I make. 

Best regards,
Laura

 I got a registered agent for each business. 

Hi Rimane, 

Welcome and congrats on taking the first steps toward homeownership! You’re asking all the right questions, and it’s great that you’re exploring your options.

House hacking is absolutely something worth looking into. With the right approach, it can be a smart way to build wealth and reduce (or even eliminate) your living expenses. And yes, FHA loans can be used to purchase multi-unit properties (like a duplex, triplex, or fourplex) as long as you live in one of the units. That’s where house hacking comes in!

Here’s what you could ask your counselor:

• "Can I qualify for an FHA loan to buy a multi-unit property if I plan to live in one unit and rent out the others?"

• “Is house hacking an option for me given my current income and credit?”

• “Are there grant programs or assistance available for buyers purchasing multi-family homes as a primary residence?”

Some agencies may default to condos or lower-cost properties simply because of income limits, but they might not always present creative investing strategies like house hacking. So don’t be afraid to advocate for yourself and explore different options.

If you want, I’m happy to help walk you through what that could look like or connect you with resources to dig deeper!

You’re on the right track, keep asking questions and learning!

Hey Matt,
Sounds like a solid deal with a lot of potential, and I love that you’re being mindful about treating the seller fairly, so important and undervalued nowadays. 

Your current idea actually sounds like a great starting point. Structuring it as a subject-to with seller support like rent + profit share can really make it a win-win. Here are a few other angles to consider:

1. Equity Share Agreement – Lock in the deal subject-to, cover his rent for 12–18 months, and offer him a percentage of net profit upon resale. It gives him upside without needing the full $300K upfront.

2. Option to Purchase – Lock it up now with an option agreement while you stabilize or start the rehab. This gives you flexibility without fully committing cash until you’re ready.

3. Seller Carry Second – If he's open, structure the $170K difference ($300K ask minus $130K loan) as a seller-financed second lien, but make it balloon in a few years or payable upon resale.

Your offer already respects the seller's needs and protects your upside. You could even present 2–3 creative offers and let him choose what feels best.

Would love to brainstorm more if you want to dive deeper, feel free to DM, always down for a good creative deal convo!

Hey David,
Great question, and you’re not alone! A lot of investors are facing the same challenge with these low-interest "subject to" deals.

You're right, refinancing and giving up that 3% rate would be a disadvantage currently, so here are a few alternative options to consider for pulling equity without touching that primary loan:

1. HELOC or Second Position Loan – Some lenders are open to issuing a HELOC or second mortgage, even on a subject-to property, if there's enough equity and the property is titled in your name or trust. These can be harder to find, but they’re out there, especially local credit unions or portfolio lenders.

2. Private Money – You could work with a private lender who’s comfortable with a second lien position. You’ll likely pay a higher rate, but it keeps the original mortgage intact, and it’s often quicker and more flexible.

Happy to chat more about what might work best depending on your situation. There’s definitely more than one way to tap into that equity!

Hey Scott
That’s awesome, you’re in a great position with two debt-free properties already! For financing the third one with only 5% down, here are a few options to consider:

1. Leverage Your Equity – You could look into a HELOC or cash-out refinance on one of your Denver properties to free up funds for the down payment (or even buy outright, depending on the price point in Omaha).

2. Seller Financing – This could be a great option, especially if it’s off-market. You’d be surprised how many sellers are open to it when approached the right way.

3. Partnership – If you’re short on cash but have the experience and hustle, bringing in a capital partner might make sense for this deal.

4. DSCR or Low-Down Conventional Loans – Some lenders offer investor-friendly products with low down payment requirements. DSCR loans, for example, focus more on the property's income than your personal income.

Happy to connect you with a few lenders or run some numbers with you if that’d be helpful!