All Forum Posts by: Amran Musaid

@Shireen Y.

I know that you are frustrated and rightly so but please don’t do anything that will either get you hurt or sent to prison. It’s just not worth it.  Get rid of them legally and file an insurance claim for the damages. Consider it a very expensive lesson from the school of hard knocks and learn from the mistake. 

@Brad S.

I would like to hear more about your experience with agents and property managers. I sent you a DM 

@Drew Sygit

The idea behind my post was to get some recommendations then use that as starting point and investigate further. Thank you for your feedback as always. 

Well I'm looking for a property that I can turn into a STR in Austin because eventually that's where I'm considering moving to from California so the ideal is to lock something in and just Airbnb it until I can sell my property and business in California. And I'm looking for value add opportunities that are 2-4 units. Then maybe a commercial property once I'm completely moved out of California. I don't want anything in a war zone and has to be in an area where families want to move to and also cash flows.

I’m an out of state investor from California and I’m looking to get into the Texas market. The markets I’m considering are Austin, Houston, Dallas/ Fort Worth and San Antonio. I’m looking for recommendations for a solid agent and property manager. No self promotion please. Thanks in advance for your help 

Quote from @Michael P.:

What do the numbers look like to add the third unit? Renovation cost? New ARV? Total rent for the building?

Purchase price 165k

rehab $30,420

ARV 227k

total monthly rent $3500

Quote from @Eliott Elias:

Did the appraisal come back at a number you liked? If so I don't see square footage to be a huge issue. 

The appraisal did come back above the purchase price but my whole point is you can’t claim one thing and offer another. If the listing says 2100 sqft then that’s what I expect. I used sqft of similar comps to determine how much the property is worth. These were all similar properties within 1 mile and sold within the last 6 months. I wasn’t comparing properties that are in totally different areas. Based on this analysis I thought I was getting a much better deal. The listing agent misrepresented the product so I guess what it boils down to is it better for me to take an ok deal that’s on the table and pretty much guaranteed since I have both the appraisal and inspection report or is it better to walk away in hopes of finding a better deal? This will be my 7th door and I was hoping to make it count before I run out of steam for awhile. Right now I have limited resources and can’t grow as fast as I’d like. Hopefully in the future I’ll have “bigger pockets” and funding wouldn’t be an issue

@Chris Seveney so basically you are saying that even though the property is only 1590sqft and not the 2100sqft as advertised once I convert the attic I can get a new appraisal only this time the square footage will really be 2100 sqft right ?

Quote from @Russell Brazil:

Quote from @Amran Musaid:

@Russell Brazil, there is an unfinished attic and I was looking to force the appreciation by converting into either a 1 bedroom or studio apartment. My understanding is because it’s unfinished it can’t be counted towards the sqft and it sounds like the listing agent did just that. Another thing that I forgot to mention earlier is the listing says that each unit is 3/1 when in reality they are each 2/1 with dining rooms that former tenants turned into bedrooms but would need closets to be added to become legal. I kindly of feel like I’m being played here in the listing agent says that the units are 3/1 when they are 2/1 and creates sqft out of thin air 

There is no standard on how to measure square footage. Nothing about the property has changed, and youve just been explained very easily why the 2 different sq footage numbers. Closets are not required by IBC to be a bedroom, though your local jurisdiction may possibly require that.

Sounds more like cold feet to be honest.

I know that it’s still the same property but my point is when I did my math I was basing it on the 2100?sqft size. So essentially I thought that I was getting 55k of equity using the following numbers

108 per square foot x 2100 = 226,800

when in fact the numbers are

108 per square foot x 1590 = 171,720

It’s not about having cold feet it’s the fact that when the size changed the reality of the deal changed. It’s true that I’m still buying it for 7k less than it’s worth but that’s not as good of a deal as I thought I had on the table. I wanted a larger equity cushion just in case the market starts to weak. If I buy at retail or close to retail it wouldn’t take much of a downturn for me to be underwater on this property

@Russell Brazil, there is an unfinished attic and I was looking to force the appreciation by converting into either a 1 bedroom or studio apartment. My understanding is because it’s unfinished it can’t be counted towards the sqft and it sounds like the listing agent did just that. Another thing that I forgot to mention earlier is the listing says that each unit is 3/1 when in reality they are each 2/1 with dining rooms that former tenants turned into bedrooms but would need closets to be added to become legal. I kindly of feel like I’m being played here in the listing agent says that the units are 3/1 when they are 2/1 and creates sqft out of thin air