Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Amit Chawla

Amit Chawla has started 12 posts and replied 78 times.

Hello @Nick Barberio from my understanding you would have to discuss with the lender as to what they will allow. Typically if you can show that the debt will no longer be serviced by the seller, then they will allow for that debt to be exempted from their DTI. Since the old debt (now being serviced by your buyer) is for their primary residence, then 100% of the income would be counted. If it is for an investment property the seller has, then i think its typically 80% of the income is applied to the DTI.

Post: Anyone familiar Ohio?

Amit ChawlaPosted
  • Posts 81
  • Votes 30

Ohio is where I am focusing my energy right now.  It seems like theres an opportunity everywhere I look.  Working on 2 projects there currently.  I am located in California and finally bit the bullet and made a deal.  So far everything has been going great.  Looking to get some investors together to start pursuing larger projects and have more control over financing costs.  Would love to connect with anyone investing in Ohio to compare strategies.  DM me if interested.  @Aj Parikh & @Simon Ashbaugh would love to hear what you have to say about other cities in Ohio.  I am currently focusing on Cleveland and Akron. @Ruben Silberman would love to connect too and see what your strategy is.  I have good contacts with Realtors, contractors and property managers in the area.

Post: Property Manager for Akron

Amit ChawlaPosted
  • Posts 81
  • Votes 30

I have a great property manager in Akron.  He is used to short-term rentals and Airbnb, but has recently taken over managing my 12 unit apartment building I recently purchased.  He has already gone above and beyond in helping me get my property running and getting trouble tenants I inherited from the seller out amicably.

DM me for his info if needed.

Post: Akron Ohio Neighborhoods

Amit ChawlaPosted
  • Posts 81
  • Votes 30

Hi Derek,

I just purchased a 12 unit apartment building about 4 miles away from St. Vincent high school.  My appraisal said market rent for the area is $900 for 1 bed and $1000 for 2 bed units.  Although I am having my property manager and agent list them at $850 for the 1 bed and $1000 for the 2 bed.  So far, no push back for the $850 for the 1 bed units.  We'll see what people say once the 2 bed units are ready to market.  In the process of renovating all units and exterior of building to help justify the increased rental rate.  Apparently Akron prices are going up very quickly due to the new Amazon distribution center.  

Post: Akron Apartment Building

Amit ChawlaPosted
  • Posts 81
  • Votes 30

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $407,000
Cash invested: $250,000

12 Unit apartment building. 10 1bd/1bath and 2 2bd/1bath.

What made you interested in investing in this type of deal?

Great value add component and high ARV

How did you find this deal and how did you negotiate it?

Through Crexi and used a great real estate agent

How did you finance this deal?

Bridge financing for 80% purchase price and construction loan.

How did you add value to the deal?

Fully renovating all 12 units as well as basement and exterior of the building.

What was the outcome?

Increase in cash flow by minimum of 2x from sellers income. Appraised value significantly higher resulting in 6-figure being added to net worth and positive cash flow.

Lessons learned? Challenges?

Have proper purchasing contracts in place for commercial real estate. Also make sure that any information is given in writing and notarized if needed. Seller kept deposits and seller's property manager stole rent money for the month of October. They never notified any tenants of the building sale or of their need to vacate the building.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mark Colucci with Keller Williams Real Estate. Helped me negotiate with seller and find relevant team to renovate and manage the property.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $733,000
Cash invested: $733,000

4 Mobile Home Parks with 32 Park Owned Homes

What made you interested in investing in this type of deal?

Had been looking at mobile home parks for quite some time. Found this deal and it seemed to be a cash cow

How did you find this deal and how did you negotiate it?

Contacted the sales agent and happened to walk into the deal where the previous buyer had passed away a few days before closing. I ended up getting the property for a discounted cash price over the appraisal.

How did you finance this deal?

Cash

How did you add value to the deal?

Rehabbing and repairing and issues with park owned homes as well as evicting non-paying tenants and raising rents slowly to market value.

What was the outcome?

Still in the process of stabilizing. Moving in the right direction. A lot of capex improvements have been made regarding damaged homes and increasing park value.

Lessons learned? Challenges?

Seller had lost titles to all homes. I had to go through the painful process of trying to figure out how to get new titles. Wasted some money on a lawyer for power of attorney from seller. Turns out I just needed to pay for bonded titles. Still awaiting their issuance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Brooke Wells in Arkansas. She is fantastic and has gone out of her way even after the transaction has closed to help me in any way. You can DM me for her info if required.

Investment Info:

Single-family residence other investment.

Purchased raw land for development of 9 SFH. Slated for completion Dec. 2023

What made you interested in investing in this type of deal?

Good learning tool for ground up development as well as working with the city to provide net 0 water consumption with new homes.

How did you find this deal and how did you negotiate it?

Brought to us after selling a piece of land with minimal building potential.

How did you add value to the deal?

Went through city planning and development to get approval for 9 SFH on a 3 acre subdivided parcel. City required us to find water savings equal or greater to usage by new houses being constructed.

What was the outcome?

In progress

Lessons learned? Challenges?

Try to rely less on other people to handle time sensitive matters.

Post: Pros and cons

Amit ChawlaPosted
  • Posts 81
  • Votes 30

Hard Money loans are a good way to get involved in Real Estate Investing. Especially if you do not have the time to find/manage a deal. There are a lot of ways that you can structure it so that everyone wins. I have an investor right now who is giving me such a good rate on my hard money loans that I will use him almost exclusively. He gets a decent return on his money. I give him 5% interest on the loan and then 20% of the cash-out refi amount over what he put in. So say I borrow 500k for a property. ARV is 800k, so the loan amount I cash-out is 640k. Since the profit is 140k in this example, the investor received 20% of that or 28k in this example. The investor is happy because I can flip the property within 1-2 months making his return significant.