All Forum Posts by: Marco Lopez

@David Mares

I do not mind sharing. My small business unit is a supervised living facility for individuals with intellectual disabilities.

Hello everyone,

Property taxes in my area have risen substantially every year since 2007. As you maybe aware these taxes hurt the NOI.

My question:

Have you had success DIY or 3rd party with lowering non-homestead tax valuation? If so, please share. Thank you!

Marco

Assuming the property location has a positive long-term outlook and buy and hold fits with your long-term goals. The only question that I would be concerned with is the ROI (return on investment) on the money.

If you forgo the opportunity cash out on your home. There is a dollar amount associated with this decision. That would be your net proceeds from the sale. There is also a net gain from the positive cash flow the property will produce every month. I would add this monthly income for the year and divide it by the net proceeds for year 1, 2 and 3.

This should assist you with determining if this the highest and best use of your money. 

I hope that helps!

Marco    

Hmm. I am not familiar with Arizona Real Estate Law. So I will offer advice with my understanding of Texas Law and maybe it will help you with some alternatives available to you.

The down payment is high. 

1. I would try to get seller finance with a 6% APR (I would go as high as 9% if its a good deal) and 10% down. Balloon payment (the date the loan must be paid in full or refinanced) would be no earlier than 3 years. Or

2. Look for an alternative lender who is willing to come closer to 20% down. 

Both alternatives allow you to keep more funds in reserve. Additionally, the seller finance will allow you to get the property to cash flow assuming you are purchasing this investment at a reduced price and have a plan to create a "value add" scenario. 

Ultimately, this question concerns deal structure. I would look for a structure that allows you to keep the most in reserves at the highest NOI (net operating income) to investment (total $ invested to acquire property) ratio. I hope this helps!

Hello everyone,

I am an investor/real estate agent in San Antonio. My focus is on buy and hold, cash flow properties. 

My recent deal was on a duplex (off market deal) located near Medina base. We acquired it on 03/18/2019 for 190K. It is a 3/2/1 on each side. Rents equal $950 a month. I inherited tenants on one side. The other side was vacant. I have completed renovation on one side and running a small business out of that side. The other side (once tenants vacate will be used for AirBnB). I will remodel, furnish and test this model for approx. 6 mo. So far, the results have been fair. Small business side is producing $2,570 a month. The tenant occupied side is $950 a month.

I am actively looking for more opportunities via MLS, direct mail, and client referrals. I would like to implement a online marketing strategy soon to increase leads too.

Well, I hope to meet and network with y'all on BP and in the San Antonio market soon!

Marco Lopez

Investor/Real Estate Agent  

@Daniel Lynch

Yes, complete a lease agreement with both of y'alls information included. Just like if you were going to rent out a property to two new tenants.

IMO if she would be willing to split the bills in a property y'all rent from someone else. There should be no issue with splitting the bills on a property you own.

If an issue is raised with splitting the bills on the property you own. I would consider that a red flag and cause for concern in the future.

This opinion is based on the fact that I would personally pay full price for my significant others products or services offered in a given venture.

@Mark Yesa

I believe it depends on your goals and your market.

I look for cash flow and do not pay much attention to appreciation. My market (San Antonio TX) produces opportunity for investments that cash flow. Therefore, whether the market takes a dip or not makes little difference to me.

My goals include a set of numbers. An example would be out of pocket cost to net income. When I find my numbers. I begin my due diligence.

Market is important considering investments in a market that is losing population and jobs equals lower rent. I hope this helps!