All Forum Posts by: Rajiv Patel

@Janel Page thank you for some great info there! Looking long term, having a large portfolio of properties under one LLC seems risky...having a good CPA would be an absolute must with multiple LLCs.

@Matt Horwitz Starting out, I would imagine I'd go the LLC route and learn the process of creating & maintaining one. Long term, I am interested in how folks handle protecting a large number of properties. I have read from some folks who swear by using insurance as the vehicle to protect assets and consider it a better option. Looks like @Andrew Johnson is in favor of this route, especially in CA where the benefit of LLC is much lower (high cost & less protection).

@Kyle R. this is the first I've heard of a series LLC. I will have to read up on that more. Thanks for throwing that option out there.

@David Lichtenstadter and @Matt Horwitz what are your thoughts about the same scenario with CA LLCs which hits you with a $800 per LLC? Would you consider going with an umbrella insurance policy instead?

Congrats on your first potential purchase! I used to live in an apartment that billed me a flat rate for utilities (water, electric, trash) each month. Every tenant payed the same amount. You could estimate the overall cost of those utilities and split it evenly across all the tenants assuming all the units are similar in size.

@Jerry Ta Thank you! I will be sure to reach out to Jhoana. 

Hello BP!

I’m searching for a real estate agent who focuses on the investing side in Houston, TX. Does anyone have any recommendations? I am currently focusing on buy & hold, 1-4 unit properties.

Appreciate any referrals!

@Jordan Decuir Looks like there is a Katy/West Houston meetup on Aug 3rd @6:30pm. This is pretty far from where I'm currently located, but I will do my best to make it after work. Thanks for the heads up on that meeting. Looks like @Account Closed Thank you for the referrals! I will look into both and be sure to reach out to you with any questions I may have. 

@Chris Matson I will have to take you up on that! I am currently located in the Texas Med Center area. Do you attend any local meetups? If so, are there any you'd recommend?

@Jason Hirko Thank you for the bank recommendation. I will add Icon Bank to my list to check out. 

@Rene Montelongo Thank you! The forums here on BP have been amazing! As far as meetups here in Houston, I been to a few and just went to one yesterday evening. I found this meetup to be the most helpful. @Gordon S sets up the meetings once a month. The next one will likely be at the end of August. 

@Mason Peacock This would depend on your market area. If the rents are below market value, you could factor in the water/sewer costs into your rent. Ultimately you have to figure out what your market rate is and adjust your rents accordingly. 

@Nathan Piercy When I lived in LA, my apartment charged me a flat monthly rate for water/sewer/trash on top of my rent. When signing my lease, I understood that I was charged the same rate as all the residents regardless of my usage. This practice varies market to market. Essentially you would charge a flat rate each month which could help you cover, if not all the cost, but at least partial cost of these utilities. I have heard on BP podcasts of investors doing this as well as a strategy to cut their costs in the event the property they own is not metered separately.  

When analyzing a property you want to be able to see where you can either increase your income and/or cut expenditures to boost your bottom line. Ideally you would want your units to be metered separately, but in cases that it is not, trying to recoup some of the cost by charging the tenant will help your numbers. Another idea is to increase the rents which could help cover the cost of the utilities you are paying out of your own pocket. 

Thank you @Vijaianand Thirunageswaram for your insights. I realize my numbers appear aggressive, but those are really just a guide and I would adjust based on the parameters of a deal. Of course I am in a constant stage of learning and will have to adjust my thinking as I acquire greater market knowledge. In your experience, would it be better to set your numbers at the very minimum that you would accept to get a deal done or set a higher bar? What sort of benchmark numbers are you seeing here in Houston?

I would certainly be interested if you do set up a BP meetup. I will keep a look out to see if you do set it up. The humidity here is something I've been trying to get used to, though I am not sure if anyone can fully get used to it. At the least housing out here is far more favorable compared to LA!