All Forum Posts by: Vasundhara Ranjani

As the title suggests, what are the pros and cons of investing Class A vs. B vs. C properties?

I understand that A properties might be less 'headache' due to better tenants but if it's all about the cash-flow, wouldn't a majority of people go for C or even C-/D+ properties?

I'd like to get some perspectives from both newer as well as seasoned investors on the pros and cons of each type of rental property.

An example I'd like to give is a commercial deal that came across my desk - a NNN lease for a very well-known nationwide business for 10 years with two five year extensions (so approx. 20 year lease). The price was ~ $2.5M and assuming a "regular" commercial loan, after the debt-service, the cash flow was just ~ $3K per month.

Now why on earth would anyone put $625K down for something that returns $3K/month? That's a 5.76% return and I can get that all day in the market without risking much. 

Whereas if there is a large Class-C apartment building for a similar price (~ $2.5M), the return could be ~ 20% (or more in many cases) which definitely would beat the market most years. All these figures are 'net' by the way.

Can someone explain the logic of dumping $625K into something that gives 5.76% vs. something that gives > 20% for the same amount?

I would be interested in a meetup as well.

@Tom Wilson How do we sign up for the meetup and get the details?

I have an LLC for a rental property with 2 other members (3 total) and one of them wants to leave the LLC. However, that person is a guarantor on the loan for the property (and is willing to continue to be the guarantor) so what is the process for doing this? This is NOT a result of any conflict between the members but more of a management restructuring question and business optimization issue.

@Sam Brar Haven't found a new PM yet. I talked to a couple of PM companies in the area but they seemed worse than the current one.

Have been renting out in Columbus, MS for a few years - if you do know of a reputable PM company, please send me a PM (lol).

I'm considering selling the property as it as not performed as well as I wanted.

@Mano Chidambaram can you share how you found the syndications and what parameters you used to separate the wheat from the chaff?

I too am looking for multifamily syndications but there is a LOT of info out there and it's a bit overwhelming for someone new to syndications as a whole.

Hello All,

I am a property investor with several multi-family properties in other states and am looking to expand into Texas. Specifically in the following markets:

1.) Austin

2.) Dallas-Fort Worth

3.) San Antonio

4.) Houston

Can you please recommend a couple of agents in each market that I can talk to who can be my eyes and ears on the ground? I am looking to establish a long-term business relationship with said agent(s) to grow in the Texas market.

Thanks in advance.

@Alina Trigub thanks for your detailed response.

They do advertise online but the ads seem outdated and one of them even says "no availability!"

Can you (or anyone else) recommend good property managers in Columbus, MS based on experience?

@Holly Williams congrats on the big step of quitting your job!

What is the threshold you felt comfortable quitting - $10K/mo., $20K/mo. etc.?

Also, what are some good multi-family syndications to get into? 

I have a multi-family property in Columbus, MS and use a professional property management company to manage it. The issue is that the PM company seems quite passive and there are several vacancies in the property - have had about 30% vacancy for more than a year now.

I've talked to them several times and they say they are advertising the property but things just don't seem to improve much.

Any suggestions/help on how to improve the situation?

@Henry M. I am interested in looking at Self-Storage properties in Texas. I'm a multi-family property investor and this would be my first foray into self-storage, but I would like to find out more about it and see some potential listings and their respective numbers.