All Forum Posts by: Akash Jain

@Account Closed - if you are just looking at proforma numbers you might see great opportunities in many places. You really need to account for deferred maintenance, big repair items (hvac, roof, plumbing) as well as the tenant base. Most turnkey provider will show you the proforma numbers for best case scenario (5% vacancy, 5% repairs etc.). Any investor with some experience can tell you those number or your cash-flow is no good, if you get a bad tenant, big repair items or 1-2 month vacancy. Buy Smart. 

Once you have it, turnkey or BRRR your property manager could make or break the cash-flow numbers. I have seen way too many incompetent property management companies (personal experience + stories from investor friends) that will ruin your cash flow and make you rethink real estate investments altogether.

I agree with @Sean Wang , the purchase process was easy and they were responsive. It wasn't perfect and I did have few issues with repairs that were needed according to my home-inspector at the property even though it was 'rehabbed very well' and was 'almost new' . It took them a while to find first tenant and I had to reduce the rent to $1050 to get it rented (proforma rent $1200). The PM operation and communication is okay-ish while property is occupied , however as @Rachel Bier said they are not fast with make-ready and re-renting the place. I did not even follow up with  tenant to renew the lease 30-60 days in advance. Oh and they try to lock you in the 12 month PM contract that auto-renews (for another year) quitely if you failed to explicity cancel it.  

Thank you @Christina Carey - I agree with you. This property however is in Kansas City MO and USREEB does have license to real estate businss in MO from what I understand

I think buying property from USREEB might be okay but I WOULD NOT RECOMMEND THE PM contract with them. If a PM company cannot re-list the property for rent in 6 weeks after tenant move-out, they should re-think the PM business. 

Update on USREEB PM: 

I DO NOT RECOMMEND THEM. I would think twice before working with USREEB PM /OnlyChoice PM. My experience buying the property was okay but they really need to work on the PM company/business. I guess they are busy but not responding /answering questions in 4 to 6 weeks is NOT acceptable.

The PM company could not enforce the lease, did not check or renew the lease 30/60 days before lease end and then accepted 2-week notice from tenant. And failed to keep the landlord updated. I emailed at least 10 times in 6 weeks still I could not get basic information like: When did tenant move out? Did you get prorated rent for the last two weeks? What is the make-ready estimate? When are you going to list the property again for rent? NO answers!

When I got fed up and asked to terminate the PM contract, it took them 15 days to respond and tell me that it will cost me $1000 to terminate the contract. Not cool USREEB PM, not cool at all. Instead of trying to lock people in bs contracts, maybe try doing a better job at PM so the client doesn't want to run away from your PM company. 

If a PM company cannot re-list the property for rent in 6 weeks after tenant move-out, they should re-think the PM business. 

I would think twice before working with USREEB PM /OnlyChoice PM. My experience buying the property was okay but they really need to work on the PM company/business. I guess they are busy but not responding /answering questions in 4 to 6 weeks is NOT acceptable.  

The PM company could not enforce the lease, did not check or renew the lease 30/60 days before lease end and then accepted 2-week notice from tenant. And failed to keep the landlord updated. I emailed at least 10 times in 6 weeks still I could not get basic information like: When did tenant move out? Did you get prorated rent for the last two weeks? What is the make-ready estimate? When are you going to list the property again for rent? NO answers! 

When I got fed up and asked to terminate the PM contract, it took them 15 days to respond and tell me that it will cost me $1000 to terminate the contract. Not cool USREEB PM, not cool at all. Instead of trying to lock people in bs contracts, maybe try doing a better job at PM so client doesn't want to run away from your PM company. 

Nice, looks like you got a great deal with these OH properties. I am going to look into OH properies little more seriously now. thanks for sharing. 

Originally posted by @Chris Nordella:

Yes, after all the numbers it's about $338 and $275 a month. One has a 3-year lease already in place. One was basically taken down to studs and brought back up. The other had full interior rehab, new HVAC, New Water Heater, New Appliances and New Roof. The inspection came back clean. The one that was taken down to studs will be complete in a week or so and I'll go through the same inspection and repair request. I also spend zero of the income and it all just sits and builds in an account. I just treat it as savings and the account earns 1.8% interest on top of the COC return and only us the funds in case of repairs.

@ Chris Nordella congratulations, so that's 3 properties with USREEB. Glad to hear they are working out well for you. 

What made you invest in Dayton, OH after first one in KC area? Do you think the appraisal value of these two houses will be higher than the purchase price? I am looking at properties in both KC and Dayton, OH but seems the listing price for houses from USREEB are higher the neighborhood. 

If you could share some more info on properties (purchase price, expected rent, zip code) that would be really helpful. Thanks! 

I am in east bay as well, looking to connect with local investors interested in out of state buy-hold investment rental properties. I will check out the meetup link posted as well. Akash

congratulations on your first out of state. I am in Bay area as well and interested in connecting with local RE investors buying out of state. I have properties in TX and Kansas City, its been great learning experience!