All Forum Posts by: Murali Jesudoss

Hello Team,

I just closed a property in Huntsville, AL and observed that the property has unusually little higher taxes than other homes. I noticed that most of the SFH with 3/2 are in the range of 400-500 per year with price point around 100K. The owner had this purchased for 85K or so in 2018 and from 2019 they are paying around 800+ per year. Current year quotes 920+ or so. I just closed this for 120K or so. I am wondering if this would go even higher.

Anyone has any insight on why this property alone would be double tax compare to other homes in the area? Also, any tips to challenge this with the county? Is it worth doing or will it backfire? Thanks!

Hello Team,

After 6 months of analysis and back and forth, I had good success in Ocala, FL an KC-MO, but I have my first deal closed in Huntsville(more later on deals analysis). Still not getting any luck with Chattanooga which is another market I am closely trying. 

I would like to know, if you have good success with Property Management teams in Huntsville market as my property in in C area(35810) and like to get a very good team who can find good tenants and handle the property well.

Also, if you had general contractors who you had success with as well, as I am looking to do new flooring to this home. 

Please DM or PM me me. Thanks, Happy long weekend!

Hello Team,

I have been closely watching the Silver Spring Shores in Ocala and Ocala Park Estate areas and have 5 homes under my belt there. I now have an opportunity to acquire few new homes 3B 2B 1G in South east of Silver spring shores and also Belleview and Summerfield areas for 160ish grand range.

I would like to know from fellow Central FL investors how do these areas compare? Are Belleview and Summerfield as good as Ocala in terms of long term rental and appreciation? do they have high vacancy rate? If there are as good as Ocala, are there any areas or zip codes I should be beware and stay away?

Also, there are lot of homes coming up in Locust streets like locust loop, locust ln locust rd, etc(different names) in South east side of silver spring shores. Google map shows them as forest background areas with 1 or 2 homes in street but my builder says these are out of date and these roads are having lot of new homes? Can anyone on the ground confirm the same? Like if these homes would be as close to the core silver spring shore homes in-terms of rental and appreciation?

Thanks again for all your help!!

@Jon Reed Thanks Jon. Yes, we invested 40K each($200K total capital) and acquired 5 properties with around $300+ cash flow (new construction). You are correct, this is why I wanted to understand how people handle these. 

This is not my full time, as I have a W-2 job which I am balancing out with extra hours on hunting for deals, talking to realtors, wholesalers, rehabbers, etc.,

Hello BPers, 

Thanks to all the knowledge and tips, I am an investor now with 5 under my belt, few more in contracts to close in few months. I started venturing out talking to my friends on how we can grow together in partnership. I had worked out one structure with 5 friends where we all put in same capital(in LLC) and I take 24% and the others take 19%. While I found 5 properties for them off market, this may not be sustainable with the amount time and work I had to throw in, as I acquire, close, finance, and handle all day to day. Even the loans would be in my guarantee which is another risk for me. I am thinking of below structures..

1) No capital and I take 15% share for fully owning the business side of it and having all of them as passive investors.

2) Put down 35% capital and take 51% share and let them bring 65% capital.

While I would like to continue this passion and grow along with others, I would like to be fair for my work/time and my friend's capital. Can you all pls share, if you had similar structures or had seen people doing this successfully. 

Thanks all for the great inputs and detailed thoughts. I decided to move forward and closing Monday. Wish me luck! 

I do have bids for foundation bids which ranges from 14K to 40K :-) But looking at the detailed Sow, I was able to find a local GC who has bid for excavating both walls and doing complete basement fix for 18K. It leaves me with 12-17K for rehab and fingers crossed that I don't run into too many issues. 

I actually got my first home from roofstock in Blue Springs for 165K in early Feb and it has been doing well with 1525 rental with tenant moving out next month.

You are absolutely right that I am fully focusing on B neighborhoods now even if it's less than 1% rule. 

Hello BPers,

After 4 deals with no rehab required, I finally have one BRRRRR deal under contract in Blue Springs, (Kansas city, MO). As you might know this is a super hot area with deals going close to 200K or above in good B+ neighborhood. The home is 3B 1.5B 2G ranch (with one more bath in basement that might be gone during rehab) with foundation(2 bowing walls)/mold/wet issues in the basement. Price is $120K and foundation/mold requires solid 20K with flooring, painting, bathroom remodel and other cosmetic upgrades require another 20K(have bids from vendors). So 40K + 120K overall and may be 3-5K more for any pluming or electrical issues or fixes. I saw one home with one 1 garage(similar spec) and 1.5Bath after rehab went for $180K in the same street in April. I was estimating 190K lower end and 200K high end ARV (as MLS listing comps may be no longer relevant for market ARVs, as they are all inflated and hard to compare now, as the price goes up on daily basis).

My realtor is nervous that this deal may not be as good as we thought(which I agree, as this might be just an OK deal), but I believed that it's worth the risk, as the area is B+ and rental opportunities are easily 1450-1600. We might easily have $20-30K equity provided that we address all core issues properly within budget.

I would love to hear from the BRRRR experts, if I am making the right decision or should I reconsider since the issues are in foundation and the numbers may not hit the sweet 70% rule?

Thanks!

Thanks all for your inputs. I requested the PM team to raise the rent to $1300 and check with the tenant and they agreed to stay ;-) Win-win :-)

Hello BPers,

After venturing my REI journey in 2021 with 4 properties under my belt, I have discussed with like minded friends and formed an LLC in NV. I live in NV :-)

So we have 5 members with each contributing same capital with me being CEO and fully responsible for the business, shares will be split as 24% for me and 19% for others. I hope this pays out for all of my time and energy and helps me to expand.

Anyway, when I registered the business in NV with Inc Authority, they set this up as 5 managers managed LLC and I made an amendment later to make me as manger and also added all 5 members as members(including me).

Question I have is that is it OK or required to have the members listed in public record or is it OK for me to keep as manager and leave the owners details in the operating agreement alone? We do have a decent operating agreement that we put together that calls out me as the CEO and others as members with their respective share.

I was not sure if NV requires the members name to be available in public record or can I just have this LLC as manager managed where I can be the manager and all of us will be the members per operating agreement.

Hello BP Family,

Thanks for all of your guidance and help. I closed my 4th successful deal this year for a SFH in Buckner, MO through roofstock.

Purchase Price: 135K

1000+ sq ft. 3 Bed 1.5 Bath 2 Car Garage

Currently Rented for $1150. Raising the rent or turning over end of June to bring up $1300+.

Went for conventional with 4.25% no points 20% down (crazy!)

The home is in decent shape with no major rehab required and already rented. Working with tenant to renew and if not will do a cosmetic rehab and bring the rental to market value. Informed tenant about rent increase to $1300 (she was not having any hike for last 2 years and waiting on confirmation).

I was eyeing this property for a while and made some low ball offers around 125K, but the seller would not budge. Market was getting crazy and the seller also raised the price to 143K. Finally worked through roofstock and negotiated to $135K. Fair deal I guess with some deferred maintenance on roof, flooring coming up in few years. 

Please share what do you guys think.