All Forum Posts by: Vijaianand Thirunageswaram

@Jesse Mao haha!! good one... He knows what he is been doing.. But this tide is unexpected one and unpredicatable.

@Jesse Mao The reserve you are saying is not even counted in the calculators. What we are seeing is out of ordinary and nobody ever imagined. Capex and Repair reserves are not equal to pandemic reserves. Don't compare and confuse it. Let's keep it simple. I know about Harvey and Hurricane, been there and came out of it. What I am trying to say, you need the reserve, your cashflow is your reserve and don't try to split to much and lose it.. You cannot work that way in real life. It's all in one pool rental cash flow pool for all your rentals and keep saving and use it and document it and take deductions in your tax return. That's how it works. I look for cashflows $350-$500 all together on my rentals.

This particular property, I cashflow $440 per month. I paid for pex repipe once and did tile flooring when they renewed the lease last year. So far it's going good. 

@Xenia K. I meant to say for that property, I cannot do any other strategies because of the numbers and situation. 

@Rusha Jayasuriya Good insight!! It's deal but not a deal. Anyway, more insight to munch... 

It's off market deal purchased directly from seller. It had 7 year old roof, 5 year old AC, no pending repairs when we purchased. Its ready condition. Yes capex I didn't add because no foundation issue, no roof for 20 years and ac is new. Only capex would be plumbing which I usually count is as repairs. Again, many investors get bogged down by putting capex, repairs etc in their report. Just thing realistic, are you going to keep that money assigned in seperate bank account. That's not possible. End of day, you get cashflow from property, and set aside as whole and use it when needed for repairs and what's left at the end of year you use for other property or saved up. People do not think practical. I have 7 properties myself. We had 2 moved out last month. Where do I get funds to rehab and put back in market.. It's from cashflow from other houses and deposits. Guys, think practical, do not lose sign by looking very granular. You will never make it work. 

@Jesse Mao I like really different perspective with exposure to your market. Interesting!! Let me share some thoughts about Missouri city. It's not that bad as you are saying.. Properties are great properties build in 1980's. I have 5 properties myself and have 4 more investor properties we manage. Yes, they are galvanized pipes and most houses built 1980's are galvanized pipes all over houston. Missouri city is good city to work with and i have done few flips myself. It's hottest rental market I have seen in my 14 years as experience. It gets rented within 1 month and it's B class neighborhood not C class. The missouri city you are talking is west side of Fort Bend Tollway near Briargate. We don't go there. I hope this helps.

@Xenia K. That's well done. I would say we bought it has buy and hold investors, buying 2-3 properties every year with our extra income. You cannot do any other strategies. I know 50-60% investors fall under this category. 

I like it,, keep sending your thoughts and deal points. 

Here is the quick Report from BP Rental analyzer, it shows $104 negative cashflow.

Report

Explain why? Just because you now that it's making money and appreciated or what's your decision factor? Explain to others please.

@Girish Bharwani Good questions, I will share my tax and insurance. Taxes per year - $3000, Ins for year - $1450

It's up to you figure out all other things if it works with finance or not. Understand, I want you to think like me going back 2018. 

Hello New Investors,

I know many people get stuck in the analyzes paralysis mode and never move forward. One of the big mental pressure among new investors is, whether I did the right thing to pick up this deal or missed it out. So I thought Iet me share some of the deals which I did for myself and for investors and  see whether you will do it or not do it and what would be the reason.

Location: Missouri city

Year: 2018

Property: 1628 Sqft, 3/2/2

ARV at that time: $135k, now $151k

Purchased: 120k

Rent -$1365, now $1415

Rehab required: $500

Not lot of discount just $15k from the market. We purchased for cashflow and good rental area. It was rented within 30 days and have tenant living in 2 years now and 2 more extended.

Will you consider this deal or not in 2018 if you were me? 

@Tony Castronovo That's rightly said. I see lot of new investors who just getting their first rental want to find the best deal possible but they forget about the relationship. They want rental income protection, property protection etc., which only big franchise can offer but they cannot offer one on on relationship. Especially during this pandemic, we had to work closely with tenant and landlord to make sure the rent is paid even though they don't go to job or how to get rent deffered and collected. It's not easy unless you have personal relationship. 

We worked with our landlords and tenants individually case by case basis and collected the rents 95% of our tenants except few depends on the Fed check.

If you nickle and dime with these services, long term relationship won't be built. I work with many BP Investors who are instate and out state who have single properties and multiple properties and every one is different. Some wants to help out tenants at same time how we can keep them current in their rent. We have learned and progress because it's new to everyone. 

@Mak K. My suggestion as investor and manager myself, analyze and pick the right property management company who care for the relationship not just your business. 

@Tammie Spikes That's pretty good quote, close to our quotes considering all the permits and clearing and final certificate. If you want, I can try quoting it for you. You can ping me the address. Also that's pretty narrow lot and unless you can find a townhome type home to move it in, you don't have choice other than build one. You can may be build duplex and make it work in that area.