All Forum Posts by: Polo Vazquez

Hey! If you are going to invest in California  you should follow Meet Kevin on youtube. He was in the same spot as you when he was 19 (realtor wanting to invest) and used house hacking to make A LOT of money.

DM if you like his videos. I'd like to know what you think.

Well if the house is woth more than 100k the title company will pay the government their 100k and clear the lien when its sold. Mortgage company gets paid next, but if they are upside down (the remainder of the money is less than what they ow) then you might need to do a short sale. However if they sell for cheap and won't be able to liquidate this debt with the sell price then they buyer needs to pay it off. Government always gets paid. 

Your state might have different rules but I'm about 90% sure this is how it would proceed in my state.

What Denis said is a good rule of thumb. I usually try to meet this rule after setting aside 15% of the rent for maintenance, vanacies and capital expenditures. Once al this is paid along with mortgage taxes and insurance if you have $100 per door you are generally good. 

I don't like the break even strategy because if we hit a recession you might need to bring down rents. In this case you might need to be paying out of pocket for over a year. This might not be a problem if you only have one door but what if you have 20 doors and you have to bring down rent $100 per door? That's $2k you have to put out of pocket every month!

I also look for COC ROI to be at least 8%. Prefer 10% or more

Hey Joe!
DM me I'll do it for you. We can talk about details thorugh there.

@Ben Darby Feel free to DM me anytime so I can give you my contact info and we can talk anytime!

@Jose Campos I thought I was the only one that had noticed people from Austin are moving here now. Locals just can't afford to live there anymore it's crazy. SA clearly still has a lot of room to grow. I'm talking economically and spacewise!

I agree with Jose for the most part. Also, unemployment numbers are skewed. I say NOW HIRING signs everyone and talk to the business owners and they all say they just can't find anyone because nobody is applying, (probably because of the unemploymet boost) so don't let that scare you. 

If you think inflation is coming then might as well get a house now. If you get a mortgage on it for and inflation comes then all that means is that the money you own now is much much less!

If you sit on the sidelines waiting you might stay there for a long time. Whenever I started investing eveyrone kept telling me how houses where so expensive now compared to 2008 etc etc. If I had waited for a downturn I would be at year 5 of being on the sidelines. Instead I have a few properties under my belt that generate me income every year. So buy now and if the market falls then buy another one or better yet buy two more.

Did you already tell us who you bought the property from so we can stay away from them? Also, congrats! Not all your investments will be home runs. They way I see it, as long as you have some cash flow and the property is appreciationg your than  are doing better than 99% of the people.

Hey Sam! San Antono is a pretty good place to start. I would take advantage of you living here to at least try to buy two properties. When you leave, set them up with property management and enjoy the great appreciation San Antonio has!

I highly recommed this event. It is a great way to meet new and seasoned investors! 

Cap rate is basically the ratio of the price of the property vs the income the property produces. So if a property produces more money or has a lower cost then it has a higher % cap rate and vice versa. In multifamily this is important because it determines how much your property is worth. If in you area a regular cap rate is 10% then you would use a cap rate of 10% figure out how much you multifamily property is worth. If you manage to increase the rents then your property is worth more. In the same way you can use cap rate to figure out if you are overpaying or underpaying for a property.

I myself dont use cap rate. I just compare the price of the property directly with the rents. For example, I know in my area the rents of multifamily are about 95% of the price. So if a property is priced at 100k and can bring $950 in rent im paying market value for it. Cap rate works the same but the formula is a bit more complicated.