All Forum Posts by: Polo Vazquez

@Juan David Maldonado
There is definetly affordable properties properties in Seguin TX. It is in the outskirts of San Antonio and it is on a major highway to another major city. This usually incites faster than normal growth which is good as an investor. 

The best/fastest way to scout the market is to get with an agent from Seguin or San Antonio and ask them to run a seach for rentals and another one for homes valued under 130k and compare.

@Jeff Taylor This can def be attained in Texas if you buy right

Hi Michael! You don't the lender to be from San Antonio to borrow for a home in San Antonio. Just an FYI

Shoot me a DM and I'll gladly tell you all the ones I have used and the pros and cons of each.

Hi Gary, I'm DMing you.

Hello Agustin,

I have had 3 tenants struggle due to Covid. Luckily I haven't had trouble getting them out. They have all willingly vacated. I'm pretty sure evictions are still getting done in most parts of Texas. If you picked good tenants in the first place, they will more than likely willingly leave to keep an eviction from appearing on their record or their credit score being ruined

It depends. Having a mortgage is always more risky, but if you buy more properties you can use the cash flow of the other properties to pay off your first property even faster! Also, you would have 4 o 5 five properties going up in value every year vs 1. For a fourplex in San Antonio, that's the difference between having 4 fourplexes valued at 2 million dollars or just one at 500k. You would gain, 80k in equity versus only 20k (at 4% appreciation).

The way I see it, if you are older and worried about retirement, then just pay it off as quick as possible and get rid of the risk. If you are young or have money to take the risk then take advantage of the power of leverage.

Regards

I use to do something similar hahaha. Since you will be getting investor mortgages, expect to pay 25% down. Some lenders will do 20% down. Rates for me have been around 4%. Normal rates are around 2.5-2.8% but it's a little higher when you declare it's for an investment property. You will do fine until you have 4 mortgages under your Husband's name. At that point they make it a little harder. Some lender won't even lend you anymore. At that point I began getting mortgages under my wife's name.

Then, once you have enough mortages you begin running into debt to income ratio. In the eyes of a bank, you have too many payments for the amount of money you make. You will then need to find a bank that will take into account rental income as income to offset this. Most, however, will only allow it once you have declared it on your tax return. It is possible to do this until you have 10 mortgages each.

But no worries, if you get to that point, you can always continue getting mortgages with hardmoney lender or portfolio lenders to name a few. This mortages are usually more expensive though or have adjustable interest rates. You just need to look for better deals to offset this.

Regards,

I hope no! Houses are going to be too expensive hahaha but here is the data for San Antonio

https://www.recenter.tamu.edu/...

Live Oak and Hardendale. Anywhere around the Military Bases is good too. Makes them more recession proof.

Hello Tyler! I might be able to answer why people are investing in Texas. The answer is the power of leverage. Texas has been appreciationg strongly, with some areas appreciating up to 6%. Now, with leverage you can buy a property with 20 or 25% down but get appreciation on 100% of the property. If you have $200k, you can maybe buy 8 properties worth $100k each giving 25k downpayment in each.

at 4% appreciation (which can be attainable here). That is:

32k in equity growth in year one (8 properties x 4k each)

384k in year 10

960k in year 20

That is only appreciation. There is homes that will sell for 1.1,1.2,1.3% of rents and therefore cashflow as well.


That being said. Your number for the Midwest at very good too! If you live there and know the area better... I'd probably just invest there.

You can try Venmo or cash app. But our course he is probably going to say no.... Look at what your lease says. If he didn't write that he only accepts trough online payment, he is probably obligated to take cash

Condos will definetely have HOA fees to take care of common grounds and they amount of the HOA can vary a lot, but you just need to make sure you include the HOA in you rental analysis. If the numbers work then its all good.
Story of my life hahahaha my wife objected to moving into a condo as well but she loves the place now. Of course, we renovated the place to her liking and it cost me quite a bit to do that.... which is probably the opposite of what you want to do.

Keep education your wife. It is important she understands what you are doing and why. Try to get her to read some finance books like Total money makeover by Dave Ramey or Rick Dad Poor Dad by Rober Kiyosaki. I had this problem at first, but after slowly seeing what saving frugaly and investing has allowed us to do (buying her dream home, not worry about money when I got laid off among other things) my wife is on the same boat!