All Forum Posts by: Chirag Shah

Hey all,

I am an early stage investor (9 mos in the game) in Austin and Bryan/College Station. Currently owning 2 properties with 6 units (1 duplex, 1 quad).

I am curious to know what types of annual maintenance I need to do without the burning the bank. My goal is to ensure there is absolutely no deferred maintenance, a high-quality experience for my tenants, BUT also make the right decision on what I should and shouldn't do.

 Just to let you know where my thoughts are right now, I am thinking of the following:

Doing

- Bi-Annual HVAC maintenance 

- Annual Pest inspection 

- Bi-Annual interior/exterior inspection of each property

Not Doing

- Quarterly Pest inspection

Tenants are expected to do:

- Change A/C filters every 1-2 months

Please let me know, really need to round out my thinking here!

Thanks in advance.

Chirag

I am purchasing a property (4-plex) roughly ~1.5 hours away that I want to hire a PM for. I have interviewed a few, and have found my own realtor and a professional company as the most responsive and with the most astute answers.

Realtor: first property under management, discounted rate of 3%, lives very close to the property, likely will receive attention due to proximity to the property. No systems/processes yet, could groom (though I have little exp. my self)

Pro: 200 units, rates of 6-10%. Lives in the area as well. Likely will receive less attention, but managed by systems and processes set up by company. Will get access to Buildium portal, along with periodic inspections and a nifty maintenance tracker. 

Thoughts, suggestions? Who would you go with?

Hey all,

I'm under contract on a quadplex and am in a precarious situation regarding the leases in the option period. According to the seller's agent, three leases are month to month, and the other is going to expire at end of the month. According to the agent, 3/4 have verbally agreed to extend, but for an unknown period. I have requested that the owner permit me, as the soon-to-be-owner, to ask the tenants if they are willing to sign a letter of intent to renew leases pending background checks. The letter would introduce me, the updated rate ($50-$100 increase depending on rate), and a brief explanation of my policies and procedures. Eventually I will have a PM, but for now, will manage until I find the right one. 

 I have also asked the owner to pay for said background checks as she did not conduct any and actually inherited these tenants herself. She's noted that they've been no trouble, but I want to verify that they check out according to my standards. 

Is the right approach?

Thanks,

Chirag

Hey all,

I have a small business incorporated in FL generating ~35K in passive revenue (split 2 ways), and also one investment property (soon to be 2!) in Texas. I was wondering what state my accountant should be in, or if it matters at all?

Thanks,

Chirag

Hey! The book club is still a thing, but we've transitioned to more master mind like group. I'll keep everywhere here updated as we review books.

I use lawn starter. It works well for me and seems to be reasonably priced. I have a duplex and they cut both sides for ~$45. I haven't surveyed the market extensively, but another lawn service was charging just $40 for my side. 

@Scott MacDonald is this a recurring? Do you have a meetup page? Just curious so I can add this to my calendar and attend the next one.

Thanks! 

@Albert Bui thanks for the advice - just to verify my understanding of SS: hypothetically my total gross income would need to be $3000 (75% of the total gross of $4,000) if my PITI is $2,999. Correct?

Moreover, you suggest getting an interest only HELOC now, before I convert it into a full rental? This permits for greater access to my equity. Correct?

Also, on this HELOC, am I able to increase the value after I convert into a full rental if I see appreciation?

Just want to make sure I'm interpreting correctly! 

@Costin I. thanks for the thorough response.

Re $200: The $200 is after monthly OPEX/Capex reserves AND Property Management. I am considering the following:

• 10% Capex
• 8% Vacancy
• 5% Repairs  

This also does not include the $600 I am currently saving/mo due to house hack. 

Re HELOC: Good point, about HELOC at 100% financing. Did not consider that, and the cost of debt definitely impacts cash flow.

Re Gold/401k: Those figures are related to re

@Chris Youssi I completely agree with you. I'm leaning towards acquiring a quad/tri plex in Austin, TX in the next few months after my primary residence requirements have been met. Moreover, I could even have remaining funds to attempt OOS investing as I'll save money with 3.5-5% down! 

@Anna Buffkin got it! Thanks for the explanation. Not confused as much. But, just to confirm you're using it on a rental property you BRRR, and when you refinance, you're paying back the HELOC+whereever else you got the remainder of the cash from. Correct?