All Forum Posts by: Mike De Lota

@Justin Anderson Do you use traditional financing? Do you have a joint LLC or a Joint Venture Agreement to protect your interests?

@Jon Crosby we’re looking at properties in the $500-700k range and I can secure a 10% down loan. For him and his nest egg, it’s a drop in the bucket (I would have a heart attack if I had to drop that much up front!).

@Avery Carl Thanks for the advice! I wasn’t aware of the nuances of financing and will definitely make sure to y’all to my lender about having a partner.

My wife and I found a partner for an STR who is willing to to pay down payment, decor and rehab costs, while we would secure traditional financing (jumbo loan at a competitive rate), build a team in our vacation market, and potentially self manage. How would you structure the payouts in this partnership? With the increased debt:income and leg work we are incurring, somehow 50/50 seems skewed in their favor.... To be clear, he is not a private lender, he would like an ownership stake in the property. He has non-traditional income and has been denied loans by multiple banks/lenders.

Great question. I'm going to piggy back onto this post- I found a 3bed/1bath 1,236 sq ft SFH in 78748. Seems to be room for an additional bathroom. Would adding a full bath be a significant value-add or will I get as much value with just 1/2 or 3/4 bathroom? End goal would be to use this as a buy and hold cash-flowing rental and, market-pending, selling within the next 5 years to take advantage of appreciation.

@Neil Narayan Thanks for your insights and for these regular updates!

Are there any emerging neighborhoods I should look into investing given the recent news of Tesla, Amazon Fulfillment Center in Pflugerville, etc all opening campuses in the Austin MSA? I am primarily an Austin-based buy and hold investor interested in SFH and small multi family units. Seems like properties East of I-35 (i.e. Manor, Hutto, Del Valle, and Creedmore) show potential.

Appreciation is always icing on the cake vs the tangible benefits of cash flow. I have spoken to agents and PMs in the Killeen/Harker Heights/Copperas Cove markets recently have told me COVID has inflated rental prices and also property appreciation due to reduced deployment and base reassignments which has increased the rental pool, tightened up the inventory, etc. Whether or not this is short term or long term is yet to be determined. Armed services members can also break lease at a moment's notice if they get reassigned and/or deployed. Best of luck!