All Forum Posts by: Karan Arora

I understand the DSCR is calculated by diving net operating income by the debt service amount. The questions is that my lender wants to use the tax return of the owning entity to come up with this net income amount. They say that they will add up the depreciation and the interest amounts back to the income but this restricts me in fully expensing any capital expenses and forces me the account for them as assets and depreciate.

I am also thinking about the asset management fees which are usually below the net operating income and I believe the lender should not be using this asset management fees against us when calculating the DSCR. Am I correct here? Any ideas on how to tackle this situation?

Need some recommendations for Class C property managers in Houston.

We have a small 10 unit property we are looking for some manager recommendations. 

Hi BP members,

I am under contract on a 10 unit duplex property for which the appraisal came back exactly same as the purchase price. Is this normal for appraisals to come back for the exact same amount? 

Thanks 

Thank You! @Michael Dang

Thanks @Jean Ambuehl! I will go ahead with the property once I review the financials and numbers still give me a good cap rate and cash on cash return.

@Michael Le Thanks for the feedback. Yes, will definitely make sure to see the trailing 12 month. Property is occupied 81% or 9 out of 11 units and will factor that in my decision. 

Hi All,

I am looking at a 11 unit property that was recently flooded after hurricane Harvey and was renovated after the flooding completely down to the studs. New Roof, new floor, new walls, everything, Would you suggest going ahead with the deal? Or should I leave it due to it being flooded before? It is still not under a flood zone per FEMA so flood insurance will not be required.

Any help is greatly appreciated. 

Thanks 

Thanks Denny. Will look into the next meeting they will have. Do you manage properties in FL or own them? Do you manage them on your own or have a company managing the bookkeeping and operations?

I am looking for a partner who is a licensed real estate broker in the state of Texas to start a property management company. I work for a big multifamily property management company on the Financial/Accounting/Bookkeeping side of the business, so I have experience on how things run on the financial side and need someone with experience on the operational side of property management to form an excellent team and build our portfolio. Looking to start a company as soon as possible. Any knowledge on how to go further or leads would be appreciated. 

Looking to start a property management company with a licensed real estate broker who has the knowledge to operate multifamily properties.