All Forum Posts by: Ujwal Velagapudi

I've taken a glimpse of the local market the past few weeks as I'm spending time in the area, and have not seen much. Speaking more to OC, but even looking in LA county, the numbers just don't make the cut.

Now, if you're willing to look at the alternative and see that it may be more beneficial to house hack considering principal, potential appreciation (don't bank on this), and just a lower or comparable payment vs. renting, then it could be an option. It could also be a good way for you to get first hand experience into the RE world. 

If you're up for an adventure, maybe find something that needs major value add work, foreclosed + work, off market, multiple bedrooms, etc. This is where you can add some value to your equity realized when you improve the property. 

I've actually noticed prices to rent have come down considerably, especially fully furnished Airbnb's that I was looking to stay at a few months. May not be a bad idea to downsize or get into a monthly agreement as you wait to find an opportunity. 

Overall, seems pretty tough in this region, but I'm sure local agents may have more details. I'd be curious too if anyone's found pockets worth exploring. i will say that trucking companies have been extremely backed up with most places I've called, for what it's worth.

Pre-payment penalty? What sort of conditional checks do they require (environmental studies, their inspector, etc.)? How long does the process take (get a detailed picture of this as best as possible, even though they will say it varies)? Maybe now I'd also consider if they have any "pandemic" or other clauses in there in case you are unable to pay for some reason. What requirements to maintain the loan (insurance, annual P&L, taxes, etc.)?

Just some off the top of my head. Some are not so important. 

I do not know of any, but if they do, it might be 20%. Maybe some private or hard money lenders may consider going even lower depending on the buyer profile, additional collateral, etc. 

I would certainly have an LLC purchase the new MF's. You can go about it either way, joint entity or separate, but since you asked not to discuss business/personal matters, that'll be on you.

Typically if you're comfortable doing business with any partner, then you would go in with a single entity. If you have two entities, you should have a single entity that both of your individual entities own, so that ultimately 1 LLC is investing in the MF. But the latter can just be complicating things unnecessarily, but a benefit is if you do think you will co-invest with folks other than your father. Depends on where your next moves are going to be and what your interests are.

Also, you do not need any of this set up prior to making offers. It's completely unnecessary and something that takes ~$100 and a week at best to have all set up, from a form(s) that takes 10 minutes to fill out in most states. When you put in offers, you can write down your individual name, and notate that it will be in an LLC yet to be formed. It's very common. People who have a new entity for each purchase don't have them created before, they just create them once due diligence has gone through and prior to closing/getting financing approved.

Your time is best spent on finding good deals. Definitely doesn't hurt to know where to go, how to set it up, etc. but it can be done in a matter of minutes. 

In terms of investing for appreciation, where exactly would you all recommend (speculate) the new spots to be? I'm fine 45 min to 1 hour out of downtown as I do think it will eventually grow into it. 

I like North of the city, along 35, making it closer to Dallas. NE along 290, closer to Houston/College Station. Or South of Austin along 35 in between San Antonio all seem to be hotter now as well. 

Tricky situation, especially if/when parents & co-signers get involved. I've always let those type of situations be dealt among themselves, and I'd only advise (minimally) as a 3rd party but not as a landlord. I only govern based on what is on my lease, and if not, then it's for y'all (tenants) to sort out as adults or the police. But of course it's never that simple, especially if they are individual leases under the same roof. 

I think you're definitely doing the right thing, offering to market for them, and even providing the out for their leases if they wish. For you though, they are still on the hook for the lease, so I'd still hold them to it until a suitable new tenant assumes the remainder of the lease. 

How about just cash for keys to tenant B, and letting the other two stay? Keep the good ones, let the other one go. 

I simply had my business account with Chase, and let tenants make payments either in person at a location or digitally. They would write their name and address with unit number on the deposit slip or transfer memos so I could record it. This was free and did the job. I've heard Cozy as being a popular one but have never used it for collection. As for the other items, I think you'll need more of an all in one property management platform. 

I think the basic rent, expenses could be done using a spreadsheet, maybe Quickbooks Online to import from the bank account. 

Not particularly content related, but within the forums if there could be a "newbie" section or simply better direction for new users in how to use the search function. There are too many of the same questions, that have literally been answered (in detail) hundreds, if not thousands of times!

This would help reduce the redundancy, improve the quality of each posts making it more unique, and also gets people to understand the platform a bit better. 

Have they ever been in your shoes, and truly understand what it is that you (as an investor) are looking for? 

I want to get down to business, I don't want someone assisting with no experience, or expertise in a different niche. They need to be a subject matter expert within the particular domain I am looking in, and also have been an investor. 

John did a good job answering, and just to add on, LTV can vary from 60%-75%, just depending on the full criteria & buyer/deal profile. I haven't seen LTV's higher than that, but I've heard as high as 80%. I did have a lender who was willing to refinance after 12 months, so the timeframe can definitely vary, but just to be safe I'd factor in 12-24 months.