All Forum Posts by: Amit Raghavan

Sent you a message. Would appreciate a quick chat. 

Thanks @Michael Baum! Appreciate the insights.  Yes PS is clamping down but still allows upto 35ish rentals/year.  Most try to do for 3-5 days to max revenues/occupancy limits.

In terms of financing, yes plan to do a 20 down non conventional (maybe even DSCR) that will be put in an LLC and no need for quit claim deed, etc.

Amit

This is a long post and appreciate you reading through it. We are looking to buy a SFH in Palm Springs (or possibly Indio) for STR purpose. I know the forum has a bunch of info (appreciate it) but wanted to ask a few Qs as it relates to our needs:

1) PS vs Indio - We visited both places over the weekend and almost considered a brand new home on the lake at Terra Lago in Indio but had a last minute pause. We liked the TL home and nice lakefront view but here are some cons: pretty far/isolated, no real dining options outside and besides the music festivals/BNP tournament, didn't know if it would do well as a STR. Also, almost every lakefront home on TL is on STR. Indio is currently STR friendly as well as the HOA but I've heard there may be caps coming soon by the HOA - we wouldn't have to worry yet. However, PS is more established and we are focusing on 4/2 SFH (no land lease and under city caps). Even if STR goes south, we feel there is decent demand for 30+ day rentals as well as the property prices holding its value long term. Or is Indio a good safe bet with potential appreciation - especially the Terra Lago area?

2) PS specific home - We looked at a few and were intrigued by one that is a 3/2 (plus self sufficient ADU, former garage) with a nice pool, yard but 2/2 on city records. The house was rehabbed with good quality materials and overall looks great but should I be worried with unpermitted modifications? Per the listing agent, the additions/changes were way before this seller and he simply just spruced it up. Oh and no garage (converted to ADU with bathroom and kitchen) and a carport instead. Questions on risks/liabilities: 1) Will the appraiser appraise it as a 2/2 2) How will insurance view it? In the event of some disaster, will they do a replacement cost for a 4/2 or 2/2? 3) STR guests - if something goes wrong on the unpermitted add ons, will it be a bigger risk/issue vs something happening in the permitted portion? I do plan to hold it in an LLC, have good insurance and umbrella as well.

3) Older homes in PS - most of the homes in PS are built in the 40s-50s and for those that own them, do you constantly run into issues with major ticket items - plumbing, electrical, etc (things that are not visible to the naked eye). Or anything else to consider when purchasing homes built that old?

4) Prop Mgmt - I am not new to real estate but new to STR and live 6-7 hours away from the area. Read the book on STR by Avery and most recommend DYI if you are tech savvy and can be hands on. Do you recommend self managing in PS (or even Indio) where tenants may be a little more high maintenance:) I ask because PM fees can be anywhere from 20-30% and will deplete any cash flow we may generate. We plan on using DSCR loan (yes high rates but our complicated taxes makes non conventitional as our only choice at the moment) so PM fees will def kill anything. However, we also want to make sure we start off strong with a seasoned PM and then possibly take over in a year (but reviews may not transfer?).

Ultimately STR here may not work out but we do have a desire to buy in the area. I appreciate your feedback on any/all of the above. Thanks BP community!

Amit

I recently started investing in Cle and looking to add more. I've narrowed down the neighborhood/zip codes but as you are aware most of the housing stock is old. My SFH are post 1950s but some of the multi fam I am interested in are built in the early 1900s (over 100 years old). While my preference would be to find something past 1950s or so, I know many of you invest in older homes. Any advice/feedback on what to look for in older homes? I would def be getting a home inspection but curious about your strategy. Or do you just walk away from homes built before a certain period no matter how appealing the numbers are? Appreciate it!

Hi Everyone,

I am just getting started and wanted to figure out the best structure to setup my business accounts as well as fund /withdraw from it. The main goal here is to maintain clean trail as well as minimize questions during tax season:) I just started the investing journey and am currently in contract on 3 SFH in OH/IN area. I've spent the last few months building my out-of-state team but am now also trying to figure best way to structure the business. I've done some research and have seen a variety of opinions but would love to hear from you (sorry this is is repetitive). I currently don't have an LLC but am contemplating on setting one up eventually (don't like the high CA fees!)

1) Business Account Setup Options

1. 1 checking and 1 savings (hold for tenant deposit) for all properties
2. Separate checking and savings for each property

2) Funding these accounts initially

• Can I deposit say $4-5K from my personal accounts into these to get started?
• For example, how do I pay for and account for rehab/capex/inital rental expenses if I don't have the necessary funds in these accounts?

3) Withdrawing from these accounts

• Can I transfer the funds from any/all of these accounts to fund new investments or do whatever I want? 

4) Prop Mgmt

• I am using a small shop/local person who I trust to manage my properties in OH (and he is compliant with real estate requirements)
• He will have the authority to make up to $250 in repairs without my consent
• Should I setup another joint business account and maintain a minimal amount of say $300?
• And then grant him a debit card that has a cap of $X dollars?

5) Favorite tools to track/manage

• Excel?
• Quickbooks?
• Others?

Your help is greatly appreciated!

Amit

I am looking at a potential SFH in the Lee-Miles Area (see attached image and pin) - zip code 44128. I've referred to @James Wise guide but was wondering what you guys thought of the neighborhood or block(s) as it can be different than the entire Zip code? Is the area safe? Will it mainly be Sec 8 occupied? I have run my numbers and can see good returns on a 3-4 bed SFH.  Your help is greatly appreciated.

Seeking a general contractor as soon as possible (home closes March 1) for a 1300ish townhome in Greenwood, IN.  Some major items include:  replace roof,  update certain parts of siding,  replace existing carpet/laminate, reglaze bathrooms, kitchen countertop.  Being out of state, I am looking for an honest/ reliable / efficient and reasonable contractor.  Your help is greatly appreciated! 

Amit

I have a quick question on LLC as I myself am debating between LLC and/or increased liability insurance. I currently live in CA but looking to invest in the Midwest (secret secret:)). However, it is my understanding that even if I buy a property out of state (say OH), i still need to pay CA which comes out to be like ~800/yr. So at that point it's best to create one in CA itself?

I have not picked a specific area but let’s say 30-40 mile radius in B+ neighborhoods from center of KCMO. I used to live in Kansas City (03-05) and have my sister in law/family in Overland Park. We make it out there atleast 1/2 a year so figured this would be the best out of state area to start with.

Duplicate post... please ignore 

Originally posted by @Amit Raghavan:
Apologize if I have posted in the wrong forum....

I am a newbie and have been lurking around here a bit. I am based out of San Francisco and have been looking at investment properties out of state - places where I’ve lived before.

So after learning, researching, etc, I have started focusing my search in the KS/MO cities and have come across a few multi unit properties that I am interested in. All the numbers look good (great CF) but I have now run into financing issues. Because the multi family unit has 6, 1-bedrooms, I won’t qualify for traditional financing and have to opt for commercial. I honestly don’t know much besides that it may be harder to get and the terms won’t be favorable. Also I assume insurance costs may be different? This would definitely throw my calculations off.

Has anyone run into this issue before and do you have advice/suggestion? I could also keep it simple and simply walk away and focus on 4 or less units:) And for those in KS, any lenders that can help with my situation?

Appreciate the help! And don’t be too harsh as this is my first post... jk..

Amit