All Forum Posts by: Stefanny Gonzalez

Hello all, I’m new to Bigger Pockets, so still learning how this all works. Would love to hear about your first successful investment property and what made it successful?

A little about me, I bought my first home in SoCal 3 years ago. Rehabbed it, refinanced it and loved it so much decided to stay here for that time line. I am now in a position where I am looking to move into a multi-unit home (probably a duplex) and house hack by living in one unit while renting the other. I plan on renting out my current home when that happens, and in 5 years pick up another 2 doors at minimum to round out a 5 door portfolio, which I will most likely manage on my own.

I’d love to hear about how you all got started and what made your investment successful?

Looking forward to to hearing from you!

@DJ Dawson

Appreciate you sir!

@Enrique Huerta

Hello! Thank you for the note. I would love to get a property lower than 80% of market value, but I don’t know how realistic that is. The lower the better, to your point, to protect against potential market drops.

A lower loan would also mean a lower payment and higher potential Cash Flow. Win win all around. Have you often seen situations where you could pick up a home for lower than 80% market value?

Also, I appreciate the challenge in what I'm looking to gain from rental investing. . . It's a long term play for me through equity building, but on a present basis - once I cover insurance and maintenance fees, I would like to net 3% to 5% in annual ROI, compared to my monthly payment.

For example, if my mortgage payment on said property is $2,500 PITI + escrow + any maintenance incurred - I want to exit the year $900 to $1,500 in net positive (3% to 5%). Idk how realistic that is, or if I should aim higher, but it's a place I'm happy to start with.

@David Song

Thanks for the advice!

@Brian Garlington

Great call on section 8 housing, I hadn’t thought about approaching that strategy. How many properties do you own out there? Was it hard for you to find tenants for all of those properties?

@David Song

There is so much gold in your message! THANK YOU!

Some follow up questions for you:

1. How much do you usually invest into a home, when you buy a gutted house? I fully agree with the idea of buying in better to best areas, small fixers in large lots to expand. That is GREAT advise!

2. Curious how much liquid cash you set aside before you jump into your next venture? For example, I have a home currently that I plan on renting out when I find my next home, which will probably be a duplex. Saving up the down payment, rehab and closing costs now and should be ready in the next 90 days.

With the unfortunate COVID situation, I also anticipate REOs and foreclosures just as you experienced in 2009, and I am hoping to pick up a piece of the pie to start my journey.

3. How do you find gems like REOs and forclosures in the Bay Area? I'm a licensed realtor and have access to MLS but I am curious if there is other way that you go about it.

4. And is there a preferred loan strategy you go for?

Thank you so much for all of this btw!!

@Account Closed I 100% did not have intention you perceived, and I wasn’t looking for someone to agree with me.

 I was curious to know the timeline for the reason I listed in the previous comment. I know some short term investors and some long term investors, and I know there is strategy to both. The timeline question wasn’t me challenging his advice, it was me continuing the conversation with my next thought.

Not looking for arguments, simply collaborative discussions with great people! :) I appreciate you jumping in and giving advice, as well as your opinions.

I am looking for nothing but TLC homes as those seem to have the largest upside and the plus of putting my own spin on the property through rehab. Also aiming for multi-unit to take advantage of learning while living on the property. 

Eventually I will look into property management as I move away from the property after a year or two. Hope you have a great night and thanks for the back and forth! 

@David Song Really appreciate your input! When looking for a deal, what factors have you found are important to consider? As of now I’m looking into foreclosures and aiming to buy properties that I could buy at 80% of market value. 

@Enrique Huerta Good call on multi-unit. That is exactly the route I am aiming for next. I bought a SFR 3 years back, refinanced it, did some minor rehabs and now looking to rent it out. I think location will help me with this one.

From here I’m looking into Duplex’s, or Triplex’s. To answer your question, I am not looking for a certain figure in monthly returns. I’m more doing this for a long term gain through equity and loan pay down. I just want to break even or come out slightly ahead once I factor wear and tear, emergency repairs, utilities and of course mortgage, taxes and insurance. 

@Account Closed thank you for your input. I am genuinely interested in the timeline of the previous gentlemen’s investment venture because I know folks that tried and bailed, while others who have done it for decades successfully. Asking how long someone has been in their venture is not insulting, as you said, I am here to learn. Again, thanks for the tax info.