All Forum Posts by: Yasir Einaudi

Hello Eddie,

Welcome to El Paso! You landed on the right place to start your investment journey, There several reasons why El Paso, is a great market for us real estate investors, to name a few:

The Cheap Real Estate

The average home in El Paso costs around $130,000- $150,000 which is 30-40% cheaper than the national average, $225,000.

Large Military Market

Any city that is home to a military base will be home to a large population of renters. Fort Bliss, one of the largest Army bases in the country.

Sizable Student Market

The University of Texas at El Paso is one of largest colleges in the state, there are over twenty thousand students at UTEP

High Demand for Affordable Rentals

The median household income for the US is roughly $55,000. For El Paso residents, it is only $42,000 a year. This creates high demand for rental properties.

The Strong Job Market

El Paso job market has an unemployment rate of around 4%. It hit a low of 3.7% in 2018, below both the Texas state and national average unemployment rates. El Paso’s job market is quite diversified, and it is seeing gains in areas like healthcare, government, finance, hospitality and logistics.

In summary, 

I have personally seen an increase interest from Out-of-state investors that are coming to El Paso to invest in Real Estate which confirms how good the market is here.

Let me know if you need more specific help with regards CAP rates, neighborhoods, etc.

Thanks!

Yas

yasireinaudi.com

I will have to agree with the majority of people here, 2-4 MF's are no longer attractive but a good place to start if you can find a deal, I can find 2-4 MFH deals here in El Paso, Texas about once every 2 weeks (talking about 1% rule) here in my market but it's getting harder each time. I analyze and send these to my buyer's list and they snap them in no time especially the out-of-state investors from CA, with CAP rates of 7-9% they are pleased.

Here in El Paso, TX, for the multiunit market you are seeing CAP rates of 7% with no remodeling and 9% with some remodeling. Vacancies are super low in ELP. Prices in this market are $40k - $80K per unit.

Goof luck!

El Paso, TX has Rent and hold deals every week, It's not unusual to find 1% deals around El Paso, TX. I send my clients a number of deals I personally analyze and vouch for, perhaps you should find a Real Estate agent that is an investor as well and offer this service within your city.

Good luck!

@Jason Chambers

You know your market quite well! I will DM my info, I would be grateful to provide more opportunities to my investors that are looking to BRRR deals.

Thanks

Yasir

Hello @Olga Merino,

Is there a reason why you are aiming to use FHA? There are conventional loans that take 3% as down payment just like FHA does.

Speak with a lender, and ask them to do a case by case scenario analysis. I have a lender that I work with here in El Paso, TX that is very good at communicating with his clients regarding the ups and downs of certain loans on a case by case basis.

As an investor, it seems that you would benefit from house hacking, perhaps buying a two units that need some work, rent one (price it right) and move in to the other unit, while gradually start fixing it. You will have cash flow coming in from the rental that will help you cover the mortgage.

Regarding your comment about realtors, I became one after being an investor and seeing the urgent need of savvy realtors that understand how to properly analyze deals, are familiar with wholesalers, are aware of remodeling work and know a level of property management. Most realtors are not investor-friendly simply because they are not investors themselves.

Good luck, keep analyzing tons of deals, and you will know when you find a great one.

Hello @Jason Chambers!

That is awesome, I am too using BRRR strategy with multifamily, ironically with the scope to jump into commercial eventually.

I don't do flips, but have a couple of clients that do, hence my constant research on new properties and contacts with wholesalers.  I send them deals already analyzed depending on their budgets, etc.

Do you have properties in a specific area or focus in the returns?

Yas

The beauty of it is that the income generated from your properties (in most banks is 75% of it) count towards your income/debt at the time of applying for a mortgage so will help you qualify!, and you can have numerous mortgages depending on the banks - or unlimited if you go with portfolio loans.

Thanks!

There are always going to be foreclosures in every city, mainly because people buy without knowing what their personal capex is, they then go out there and buy the most expensive home they can, and not surprisingly the minor hiccup in their lives becomes a disaster. Divorce, Probates, Family Issues is another reason for these.
There are currently 83 of them in El Paso (see map), As you can see these are spread-out throughout the city.

During the first 6 months of 2019, 240 of these properties have been sold compared to a total of 3,400 non foreclosures - about a 7%. 

Hey @Joshua Wynn! 

The best tip I give to new investors is to go out there and analyze deals, every day for weeks.

Once you feel an idea of what a really good deal is (since you have analyzed hundreds of deals by know you will know), pull the trigger, don't hesitate, it won't last on the market.

You will learn so much from the first deal that it will break or make you (hopefully the latter)

What I am trying to say? instead of focusing in becoming an expert on paper, learning and reading every single book out there, paying for $30k seminars (glad you didn't) and mentors, what you should do is partner with people who have experience, find a good realtor that knows RE investing and aligns to your goals and strategy, learn from making mistakes - that is how we learn any skill anyway so it shouldn't be scary.

Anyone with basic knowledge can succeed in real estate investing.

Good luck!