All Forum Posts by: Amir Navabpour

@Jay Hinrichs 40-80 items on the make readies/rehabs. What I’m saying is when I buy I go through everything to tenant proof the home and attract quality tenants. That’s where my feeling of potentially being overkill stems from to go out there

@Gregory Schwartz helpful. With this all inclusive approach I would be curious to see an example of a typical deal you've done. What I'm struggling with on this definition of COC is how it's mathematically realistic to show a positive return within two years.

@Sergey A. Petrov have you actually produced a positive cash on cash return within two years? I don’t see how it’s possible to generate enough cash flow to be positive when the typical rehabs I’ve come across are 20-30k

I typically view the rehab cost as a separate bucket as my downpayment. For COC I typically look at how much I put down, and then divide my net returns against that downpayment. I don't include the rehab costs as I typically view that as in the "equity bucket," in the sense that those dollars increased equity value or at least built a turn key product with little to no equity. If I included my typical rehab costs as part of my COC returns everything could be negative. Just curious if this is standard, or are any of you able to create positive cash flow within 2 years with rehab budgets over 15-30k?

My philosophy is to raise, but very small.  I like to keep good tenants under market. 

I have a portfolio of 11 rentals in Kansas City (I live in Ca).  My PM is competent.  I have done make readies/rehabs for all of them through a contractor, and the PM walks the properties when he is done.  Over the years, I have not personally visited any of these rehabs when the work is done, but rather rely on pictures/videos and my PM walking them.  Often times the to do lists for the contractor is in the 40-80 item range, and even with a good PM its impossible to monitor everything perfectly, and I have caught some items here or there that were either not done at all or half assed.   Additionally, I have had a friend in KC walk the majority of my properties to check on the repairs the PM had done.  For the most part everything checked out.   The majority of my portfolio is 2-4 years old so I was thinking about personally visiting to do the following.

-Walk the surrounding neighborhoods to monitor the quality of each neighborhood

-Get an inspector to provide a report on each property for proactive maintenance: termite, AC servicing, grading dirt, finding hidden leaks, etc. 

-Check the quality of work for myself on repairs and rehabs I had paid thousands for. 

I'm torn on the striking the right balance between taking care of your asset for the long term, and wasting money on something that already has thin margins.  The time off work, travel costs, getting inspections, etc isn't cheap.  Curious what others do to check in on their out of state rentals?  

@Albert Bui got a big laugh over here with the 800 dollar sandwiches…..

So, what I ended up finding out is on a recast they will only recast for what you put down as an additional payment. They will NOT count your past monthly principal payments toward a new balance.

@Cameron Moore thank you. I think I’m

Going to do it. Getting money on claims is like pulling teeth anyway, so may as well improve cash flow and build a reserve

Curious why peoples opinions are on maintaining full coverage (with Lower cash flow) vs driving down your coverage to improve cash flow. My increasing my deductible from 1,800 per property to 5,000 per property I can save about 2,300 a year on my whole portfolio

One of my properties had a tree with large branches that fell and broke part of the neighbors fence. Now they’re asking us to pay for it. How would you generally handle this? I can see why they are asking but at the same time anywhere I’ve ever lived I always trim branches from neighbors that is encroaching on my property