All Forum Posts by: Ryan Betzing

I'd imagine it will have some impact.  Here's the latest out of the pentagon, indicating up to 20,000 teens could be housed there.  That increases our population by about 20% immediately.  

https://sanangelolive.com/news/business/2018-07-02...

Also - is anyone in San Angelo from bigger pockets meeting up?  I'd be thrilled to join in and meet with some like minded individuals.  I do know @Aaron Nelson as he manages a couple of properties for me.  If anyone is looking for a realtor or property manager, Aaron is outstanding.  

Hi Jack - I'd love to see that spread sheet - your process seems far more accurate than some of the percentages thrown around. 

@Devang Vora thanks for the input and going against the grain.  Prior to posting I felt the same way you do so I was a bit surprised at all of the "insta-sell" advice I got.  Being new at this I thought maybe I missed something and this was no-brainer quick flip.  Really appreciate this analysis:

"In 20 years with the mortgage paid off and appreciation of 1%/yr at a min, the value of both properties would be $240k as well as the positive cash flow of at least 1k total from both properties. Compared to $70k now, it looks more lucrative to hold?"

Something else to add - based on the research I've done thus far, that $70k now is going to be taxed at my ordinary income rate, which is going to be gross.  I'm meeting with a local CPA next week to discuss options so hopefully I'll have a better understanding of the tax implications.

One other thought I had - lets say I save up 10-15K over the next year then sell one of the houses and use the proceeds + personal savings to pay off the other?  Now I've got a 100K house and ~$450 a month in cash flow for 10-15K out of pocket.  Maybe I could even refi at that point on the house I keep to a 30 year loan, pull out a chunk of equity and end up with better cash flow and cash for my next deal.

Lots of options but man this is fun :-) 

Hello BP,

I am a software professional here in San Angelo and have been investing for a few months. I currently own 3 single family homes and I'm searching far and wide for my first small multi-family. I am hoping to use real estate investing as a path to my financial freedom. I've only posted a couple times here and have learned a ton already. I look forward to becoming an active contributor to the community!

@Jacob Pereira thanks for the tip. I am very interested in the BRRR strategy and the more I look into it, the more I lean towards doing it with small multi families as the cash flow just doesn't seem to be there with the single family opportunities I've come across (with these two being prime examples.) Only challenge I'm encountering thus far is there just aren't many small multi family homes here in San Angelo. May have to expand my search to include Abilene or even San Antonio or Austin, though it makes me nervous taking on a large rehab project 3 hours away

@Brian Pleshek thanks for the feedback. Fortunately I have a good paying job in software sales so I should have no problems covering a few months expenses.

@Dave Foster thanks for the great input. I would really like to reinvest the gains into higher value property with better cash flow, so a 1031 exchange would make a lot of sense. I'm going to find a good real estate cpa and figure out the best course of action, but it's definitely worth waiting a year or more if means less taxes. Plus here in West Texas, the market is still in a bit of a post oil crash slump. Wouldn't be surprised if its quite a bit hotter a year from now

@Travis Hughes I agree. 20 years is all the bank offered for the zero down loan they gave me. Actually the more a look at it and read over the great feedback I've received here, I'm realizing that the creative financing I used and was all excited about is actually what total destroyed my cash flow. If I had used conventional financing and put 20% for the property I purchased for 50k, then paid the repairs out of pocket, my payment would be $263 instead of $395 and the cash flow would look so much better. Instead I put zero down and fiananced the repairs and now here I am. 

I was actually very surprised after I ran the numbers at low the cash flow is as I though I bought at the right price to have decent cash flow.  Here are the numbers - can y'all take a look and tell me if I'm missing something ? I'm reserving 10% of monthly rent for vacancy and 15% for maintenance.

Property 1

Amount Financed  $55,000

Gross Rental Income $850.00

Vacancy–$85.00

Net Rental Income $765.00

Expenses

Property Management–$68.00

Leasing Costs (Annual/12)–$17.71

Maintenance (Annual Reserve/12)–$127.50

Utilities–$0.00

Property Taxes–$86.83

Insurance–$72.92

Net Operating Income $392.04

20-Year Principle & Interest $362.98

Cash flow around $30

Property 2 

Amount Financed–$60,000.00

Gross Rental Income $1,000.00

Vacancy–$100.00

Net Rental Income $900.00

Expenses

Property Management–$80.00

Leasing Costs (Annual/12)–$20.83

Maintenance (Annual Reserve/12)–$150.00

Utilities–$0.00

Property Taxes–$135.27

Insurance–$73

Net Operating Income $440.56

20-Year Principle & Interest $395.97

So the second property is actually showing a cash flow of about $45. Still not awesome.

So does this all look correct? If so, finding deals  buy and hold while showing a nice cash flow going to require some serious patience!

Thanks for all the great feedback. These deals kind of fell into my lap. The first one was from a friends neighbor, a lady who lived in the house and was wanting to move into an apartment. The second was a coworker who took another job offer and had to move quickly. Regarding the zero down financing, my brother I law has been working with a local bank for years and basically set it up for me. I was very surprised to get 100% financing on the purchase plus the repair with no money down but I'll take it