All Forum Posts by: Mohit Asthana

It's basically the BRRR strategy but on a larger basis.

When I worked for a large apartment owner/operator, they would buy an older apartment (around 20-25 years old) that was outdated and rehab it. In their rehabs, they would put new counters, appliances, cabinets, etc and pool and renovate the leasing office and usually add a gym.  

Once they had the units upgraded, they would increase rents to maximum the market would allow. In my specific apartment complex, we used software that would change the rate daily depending on availability & market rent. We were also asked to push other ancillary services (like fans installed at $10/month) or insurance for an extra $10/month. It was mandatory to have valet trash pickup (an extra $25/month) too, so that boosted the NOI.

After 4-5 years, they would sell the complex or portfolio to another institution and made back the money invested. My former employer was also kept on as the management company for day to day operations. 

Incredible story man. Do you mind if I PM you to ask you what your venture was about? 

As for real estate, I'd find multifamily or commercial property and use property management to have a hands off approach. Dallas, Houston, Phoenix, and Salt Lake City are all pretty hot markets, but do your own due diligence. 

The FHA multifamily is always a great idea too.

I can't offer input as an investor, but rather as a former student (just graduated 9 months ago). I've lived in a Class A, luxury student housing complex as well as houses.

The way it worked at the luxury student housing complex was they charged per bed and offered services to pair people with random roommates as well. Parking was extra. Amenities were infinity pool, hot tub, sand volleyball court, tanning beds, gym, and vending machines too. 

Tenant turnover is going to be high and you're going to have to worry about parties/noise complaints. Maintenance may be a nightmare, so require high security deposit (depending on credit). My landlord charged me the legal max when we moved in (1.5x monthly rent). 

What sort of amenities are you planning on offering? 

I'm pretty sure there's a few BP podcast episodes that talk about them. 

Both would be great options. Have you also considered commercial real estate too? You can do NNN (triple net) leases where the returns aren't as sexy, but it's less stress for you. (Which you might need, seeing your family just had twins!)

If you're super inclined to have MF, I'd just join a syndication if you're looking for passive income. My dad invests in a few funds and the majority of locations are TX, FL, AZ and a few other states I can't think of right now. 

Play to his/her strengths. Hire a leasing agent for $10-12/hour + commission. It's a larger upfront cost, but you'll have units filled and paying rent faster than if the PM were to lease it by him/herself. 

@Dave Foster Tax deferral assumes you won't cash out at some point. The only downside is the 45 days to look at other properties and 180 days to buy one. Time is not your friend when you're looking to swap. 

@Grant Rothenburger The reason why I was interested in MHP is because of Frank Rolfe actually. I then saw that Clayton Homes and 21st Century Mortgage are both owned by Warren Buffet. 

My investment philosophy when it comes to real estate is to buy in lower class areas (B- and C+ areas), this way, there's always a demand for affordable housing. Plus Grant Cardone seems to invest in it and it's deemed "recession-proof". I feel too many people get caught up in the A and B class properties and it's mostly institutional players in that space. 

Hi @Grant Rothenburger, I'm most interested in the multifamily space and mobile home parks. Once I've got enough money I'm going to buy an apartment complex or mobile home park. 

I find it extremely interested how you can 1031 everything into bigger and better properties and larger cashflow, plus valuation is based off NOI instead of comps.

Hello everyone! 

My name is Mohit and I've been following BP for quite some time now. I've had a keen interested in real estate for as long as I can remember. 

At this point, I don't have enough money to invest, but I've got a wealth of knowledge and have worked in the industry for the past 3 years. I've also got a finance degree and am an Excel wizard. 

I've worked for a commercial real estate brokerage, residential real estate broker & property management, and an owner+operator multifamily giant. 

I hope to network with investors in the multifamily, mobile home park, and commercial real estate spaces. I'd love to also connect with someone in the notes/liens space as well! 

Nice meeting you all, would love to connect via LinkedIn and perhaps create a financial model if you need. 

Thanks! 

Mohit 

+1 to finish your degree. I'm sure it sounds repetitive, but just having a degree to fall back on helps so much. 

My long term plan is to invest in multifamily housing or mobile home parks and live off that cashflow. Right now, I'm working a job in real estate (property management) that's paying me well. 

Try doing IT work for a real estate development company and see where you can move? 

Maybe Tracy areas or Hayward or Union City? The tech industry isn't going anywhere and people are going to need housing to live there. My dad's got a few rentals in Hayward and Brentwood and we've had tenants living in those houses for 5+ years. 

I'd also consider investing in Merced/Sacramento area. It's expected to grow and UC Merced is doing their best to increase student population and spending a lot of money for the area.