All Forum Posts by: Michael Kammenzind

@Michael Kammenzind don't know anyone, but here's some info hope you find useful.

Beginning investors need to STOP believing all the fluff about rental investing, especially with the overheated real estate market trending to historic norms. Many believe unrealistic assumptions and often apply those assumptions to the wrong property classes.

In our OPINION (always verify yourself!):

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Great market to be in! I love San Antonio. Under the radar but huge metropolitan. I have a fully renovated duplex I might consider selling on seller finance in denver heights if someone is keen. Want to focus on developments 

I think its very doable to buy a duplex for around $200,000 - $300,000 and a quad between $500,000 - $800,000.

Entry point is lower than other large markets.

Best of luck.

@Michael Kammenzind

Please let me know if you have any questions on the small multifamily side. I can send you over a list of solid neighborhoods to focus on for investment and good places to live as well.

San Antonio is a great market. Its entry point is low, and the economy and potential is strong. I just bought a flip out there.