All Forum Posts by: Ricardo Hidalgo
Ricardo Hidalgo has started 13 posts and replied 532 times.
Post: How to scale your rental portfolio
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Ashwin C.:
I recently purchased my first property (turnkey) using a conventional mortgage. After purchasing it, I realized that saving up for the down payment (25%) every year is going to be a really slow way to grow my portfolio but I see many investors buy multiple properties a year. How do you do it? How do you fund the down payment?
I understand that the BRRR method is one-way to cycle money and fund future projects but what are the other methods that people use?
You will notice that the quickest way to scaling is through wholesaling, high income earner, flipper or builder. It helps us grow much quicker than holding long term because we scale up production in a shorter amount of time. I would only keep a property that us very hard to replace or bigger infrastructure that takes years to build.
Post: Best Cities for Cashflow Rentals?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Ralph Richardson:
My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.
What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?
At the moment we are considering Huntsville Al and Al Paseo, TX
But what other places should we be considering?
Thanks!
Panama City Beach:
This market is the best mix for cash flow and appreciation. Tons of new construction and infrastructure coming to the area. The west side of Panama City Beach and Laguna is a nicer area than Thomas Dr.
Address 125 Rose Lane, Panama City Beach
Purchase Price: $1,020,000
Grossing $132,000 a year
Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100
Insurance: $6000/yr
Taxes: $2283/yr
Utliities: $250-450/mo, avg maybe $350/mo
Management: $0 (I always encourage self management)
Repairs: 2-4%
Purchase Price: $325,000
Address: 232 Robin Lane, Panama City Beach
Grossing $50,000 a year.
Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100
Insurance: $2000/yr
Taxes: $2283/yr
Utliities: $150-200 monthlyhoa: 950 every 3 months
Management: $0 (I always encourage self management)
Repairs: 2-4%
Here are some properties we sold to investors or sent to buyers.
Post: Buying two $300k properties in a mid appreciable market or one $600k in a high one?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Shahrouz S.:
Fellow BP members, please mention the factors for each choice. TIA.
Focus on what bring the best value not price point.
Post: Panama City Beach Flip into STR
- Real Estate Agent
- Posts 552
- Votes 254
Investment Info:
Townhouse other investment.
Purchase price: $250,000
Cash invested: $103,000
Loan amount of 200k and we are the lowest sale of purchase that has occurred since 2021. Going to renovate, furnish and then make it an STR. We will will put it back on market for 375k plus as we make money on rentals.
What made you interested in investing in this type of deal?
Lowest sale in the complex.
How did you find this deal and how did you negotiate it?
MLS and got quotes from builder.
How did you finance this deal?
20% down interest only.
How did you add value to the deal?
Going to renovate and furnish so it's a turn key rental.
What was the outcome?
I believe it was appraised for over $350,000 with a full renovation.
Lessons learned? Challenges?
Always offer where the numbers make sense if it's a property that can be maximized.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate professional.
Post: How to List Luxury Homes ?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Christian Garcia:
Hi Everyone!
Since I started my career as real estate agent I have been on the buyers side for my last 17 closings .
Like everything else I’ve seen the good the bad and the ugly sides of real estate.
But now, I think I’m ready to sell luxury homes.
I’m not asking for the whole playbook here but just a piece of advice on how to get a luxury listing.
Thank you :-)
I used RedX. I broke into the luxury market not knowing anyone with limited knowledge. That lead system has allowed us to capture over 600k in commission over the last 18 months.
Quote from @Matthew B.:
Hello,
I'd like to get your input on how you would invest 500 K. I am a 40 year old high earning professional. I do not work in real estate. I have a few single family homes, but no major real estate experience. I have 500 k of liquid assets that I would like to deploy for real estate. I am no in a huge rush and I am not limited by location. My goal is to invest the 500k for about 50 k in cash flow a year. By the time I'm 50, I'd like to be around 100 k. I do not plan on retiring soon. I would like the investment to be mostly passive, though I am certainly willing to give time to understand and plan well.
The asset categories I am considering are passive RE through syndication, multifamily, or NNN commercial. I am leaning towards NNN commercial given the low expenses once purchased, appreciation and equity pay down. I know the cap rates are lower with this class, but I am not looking to milk every penny. More interested in stable, low maintenance return on investment.
You all have much more experience than me, so I am hoping that you all will give me a sense for how you would handle things.
Thanks!
Have you thought about building a Short term rental portfolio? I think those numbers can be achieve if you would consider doing some renovations on an older property. I am seeing options below 350k in Panama City Beach that could be maximize to exceed or have those returns in the current market.
Post: What to do with 500k in Investable Assets?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Mike Primsky:
Long time BP member and done 3-4 flix & flips. Fortunate enough to have liquidated assets- what to do with 500k in todays market? In Denver, with 7% interest rates the numbers are HARD to make work. Please advise
Hi Mike, have you thought about building? or perhaps owning short term rentals on the beach? Depending on the deal, as long as you are willing to renovate or value add we are creating 20-25% equity position on tops of the initial downpayment and cost. These properties will cashflow and give out a 40-45% LTV for future refi or sell off.
Post: What EXCITES you the MOST about Investing in Real Estate?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Brandon Elliott-Pandey:
Just curious, why are you investing in real estate? Is is for the freedom, passive income, wealth creation, bragging rights, to start a business/ real estate empire, or something else entirely?
Let us know in the comments!
Having the ability to create a quality product on the market that will generate big profits and flipping or building bigger homes. In addition, having access to leverage and not being limited to resources. It feels good to be able to pull the trigger to buy what I want and when I want on my own terms!
Post: How are you making money if always in debt?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @David Ogas:
Hello Everyone:
At this point, I am a prospective investor who is looking to get into multifamily real estate. In short, I'm in the research phase of my development and in doing so, I've encountered several strategies for acquiring real estate and developing a portfolio.
Whether it be 20% down and then later, utilizing another 20% down to buy more properties, or by utilizing the BRRR method, the thing that I can't seem to understand is how anyone is profiting if they're constantly owing money to the bank, without paying off the mortgage in full from the first property?
On the surface, it appears that you're only making partial payments on one property, and then moving on to the next property by adding another mortgage that you're still responsible to pay for with interest. It would seem that if you're always in the red, that at some point, you could get yourself into a lot trouble with the bank or potentially ruin your credit.
In short, what's the point that I'm missing?
I prefer to have a flipping and building portfolio with a rental portfolio on the side that is set for long term growth.In my opinion, you have to have high income or flips/builds to generate cash quickly. I don't like to constantly leverage my loans (how majority of people max out their approvals) to have a net positive for 200-400 a month on cash flow from a refi. The margins are too low and that's not accounting for any repairs which will mostly likely put you at break even. We have 7x our money in 18 months from the building and flipping portion which allows to have 500k to swing and another 500k in property that we use for leverage or generating atleast 15-20k net profit per property.
Post: 30A investment lot to build STR
- Real Estate Agent
- Posts 552
- Votes 254
Investment Info:
Single-family residence other investment.
Purchase price: $177,500
Cash invested: $37,598
Appraised for $44,000 over purchase price. We will be building an STR creating a 370k equity position or 450k equity position that will generate 55-60k a year or 75-80k a year. Hoa will let us know if we can build an 1100 square foot or 1500 square foot home.
What made you interested in investing in this type of deal?
Lots are undervalued with high rates since building requires more upfront capital but due to 30A high appreciation and median price point of 2.5 million, we are focusing on an entry point of 850k to 1 million for resale since its affordable for the area. We will be holding 55-65% equity position once the build is completed and will be cashflow positive even with current rates.
How did you find this deal and how did you negotiate it?
MLS and slowdown of market
How did you finance this deal?
Commercial loan
How did you add value to the deal?
Got it under value and exploring different floor plans to maximize value and rental return
What was the outcome?
Passing plans with HOA.
Lessons learned? Challenges?
Study comps and cost to build plus interest and fees of the loan.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate professional
