All Forum Posts by: Rahul Bhatt

So recently I have taken interest in expanding OOS. I live in Loudoun County, VA and OOS deals, if done properly can provide lucrative returns. Also TK model allows me to invest even by keeping my full time employment.

So far I am nothing but somewhat disappointed in finding someone reputable company to connect with that can make the numbers work.  Found real good company in Cleveland, OH in Smartland, and thanks to @Tom Ott for reaching out to me and following through like he said he would, but the property taxes in Cuyahoga county seem astronomical, with no added value for me, as an investor.   I am a little hesitant to pull trigger on Cleveland properties due to that.  The property worth $90,000 is being taxed around $2,400, a whooping 2.66% real estate tax.  Places like Columbus,OH. Indianapolis, IN, Jacksonville,FL  all seem to have around 1 to 1.5% tax. 

So my recent experience with "reputable" providers is that they seem too busy to take new clients. Had a brief conversation with a very well renowned TK Provider in Indy, and was informed by one of their associates over IM (chat) that they are currently NOT taking new clients. I emailed this husband/wife team anyway to find out from husband that they are taking new clients (that was after my 2nd email), and the husband asked me to propose a time in the afternoon, which I promptly did.  Never heard a word back from the guy again ! Sent him another email a few days later... NOTHING !!.. What gives !    Some people pride themselves to be Full Service (FS).. That's hardly any service.. Just sayin'... 

After the horror stories, not even going to reach out to people like Morris Invest. I remember this dude from Fox News (Fox and Friends Weekend). Now did he become real estate guru after quitting FOX NEWS or was he first a real estate guy then became a media personality? He is charismatic and all, but he ain't no Tom Brady. Sorry I digress. 

Right market for me would be a place with strong job market, lower tax bill and low crime with rent around $850 - $1000

Right company for me would would following characteristics. 

• Efficient communication and prompt email responses. Should always be reachable.  I am the kind of guy who never takes advantage of anyone. If you respect my time, I will respect your's 10x 
• Should own the property. No middle men brokers sending MLS listings.
• Should have In House PM. 
• Properties should be in B neighborhood with price point of $80,000- $90,000
• Should be willing to take me to the property. I plan to fly down once I am done researching and ready to pull the trigger. 
• Should have good reputation in the industry with verifiable 3rd party references.

If any investors have any recommendations, please post or PM me privately.. Both work. 

Thank you @Sean Walton Bri, hope to see at one of our future events.

https://www.meetup.com/Bay-Area-Multifamily-Moguls...

@Sean Walton , @Rahul Bhatt hope to see you at the Tax, CPA event as well.

Happy Holidays!

@Rahul Bhatt  - Is this property managed by the Seller or Property Management? I prefer properties managed by Property management as income & expenses are better documented.

Generally in the LOI, I always ask for the following before going under contract

1)  2-3yr income statement (P&L with all income & expenses)

2)  Current rent roll with monthly rent payment dates (to see late or pending rents) and  lease start/expiration dates

3) 2yrs Tax returns (K1 or Schedule E)

4) Seller Disclosure on the condition of the property with upgrades and current known issues

All these need to be signed by the Seller. 

Sometimes Sellers aren't willing to share all or some of these docs and I tend to be more cautious.

Hi Rahul,

I live in Fremont and I am interested in this meetup. I will connect with you. Thanks for setting this up.

Acceptable CAP rate for multifamily properties in Ohio is as follow: Section 8 or any other subsidized housing is minimum 7.5%. For Market rate properties it is 8.5%. Student housing is minimum 6.5%. A good property that can be easily financed should have a Cash-on-Cash of 10%. Anything beyond these parameters is not a good deal, period!

Unfortunately what I am seeing is out of state buyers (my take: desperate out of state investors) are paying way too much for properties in Ohio driving up prices and bringing down CAP rates here. Biggest culprits? Investors from California! I just saw an investor from CA pay $215,500 for a property that in my opinion was not worth a penny over $60,000. The property was in C area with C construction and did not even come with appliances!!!! No kidding, but just enforces what I am trying to say.

Please, Please, Please speak with a good commercial agent before you put down your dollars. There are plenty of Residential Realtors here who are thrilled at catering to out of state clients and can earn big commissions! 

Just venting, it's your dollars, no skin off my back.  

Rahul Bhatt i been to many meetups and meeting.

1. always try to sale
2. it always talk about how great there are
3. hey give me your leads

i guess it works to get tour name out there