All Forum Posts by: Sandeep S.

Tax advisors can chime in here and correct me, but I don't think you can claim the depreciation anyway unless you have money in the deal. Something about taking losses over your basis (and if you have no money in the deal your basis is zero). There are exceptions if you personally guarantee the loan but you'd have to get professional advice because taxes aren't my thing. Take what I say about taxes with a grain of salt.

As to why I allocate the depreciation to the investors, my philosophy is that the investors are bringing the money to the table so they deserve the depreciation. I'm not, so I don't. They are investing. I'm working. They get tax breaks like investors. I don't, like a worker. Just my personal philosophy, other folks take a different stance and that's fine by me. :)

Brian - I cannot appreciate enough the time you spend in providing the details for other investors! Every post and article you publish has extraordinary amount of help within. The topic of structuring partnerships and syndication is so fascinating that "someone" should write a BP post on it. Or a book....

Not sure if you entertain meeting BP folks but I would love to come buy you a lunch or beer (or both :) some day. I am in San Jose area so couple of hours from you. I am sure the drive will be worth it.

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Shannon,

In my experience of looking for lenders who would work with investors having 10+ financed properties - I haven't found anyone better than FRB. I did couple of cash-out loans with them earlier in the year at 3.25% (5/1 ARM at 60%LTV). I was quoted 3.75%-4.00% from them last month for the next couple of loans I am planning to do (@Account Closed - FRB rates have gone up by about 50 bps in last ~6 months). I haven't done any long term loans with them as I generally prefer 5 year (or shorter) ARM products.

So if you do find a better product (in rate or in LTV) than FRB - please do share with us :)

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See you there today @Johnson H.

I will also plan to come early today although not before 5:30pm.

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Originally posted by @Jay Hinrichs:

@Brian Tremaine

I grew up in Cupertino and by the time I went into the housing market 1977 houses in Cupertino had surpassed 100k.. and as a new RE Agent I could not buy were I was raised neither could any of my friends. of course not many of my friends were buying houses at 20 years old either. I ended up going WAY out of town all the Way to Milpitas to buy my first home for 80k a brand new Shapel home.. I think this is just a trend that will stay

And why place like Portland Oregon has some serious legs... My daughter works for intel. she started in santa clara and they were looking for their first home a starter home in Campbell for 850k.. I told her to get up here and check it out... only a 10% pay cut to work in Oregon they bought a beautiful 5 and 3 2700 sq ft home for less than 300k in the best school districts in the area.. and I think you will continue to see the brain drain from Silicon valley to silicon forest.

How interesting Jay! I now live in Cupertino, and moved here from Milpitas 4 years ago! And I agree the trend you mentioned (I only know how we stretched to get into Cupertino from Milpitas)! Of course, once you are somehow in Cupertino - things work out as the market here is incredibly strong (for last several decades!)

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I should be able to come to this one. But I agree that it will not that good without @Account Closed!

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Originally posted by @Gaurav M.:

Yes I do have local contractor an property manager team who manage this for me.

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Originally posted by @Johnson H.:

Sandeep, congrats on your success in Houston and thanks for sharing it with all of us. Sounds like you have excellent cash flow and you were able to cash out almost all of your money into it.

As for financing, I thought you had found a local bank to help you with your financing?

Thanks Johnson. I do have a local lender but their terms are not very attractive. I have another lender whose terms are attractive but is otherwise very slow (much like a conventional lender). And I don't have confidence if they will do second deal at same terms as the first. So I am still looking for a lender with which I can scale up. i.e. I don't have to pull hair out going through every financing. Do it once and it should be able to be repeated (if I am similar numbers the next time).

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Just as an update. It's been more than a year since I bought this property and rented it. The first tenant recently renewed the lease and the new rent is $1530. I am quite happy with rent going up along with inflation.

Since then I also appraised the property and got it financed in December. The appraisal came over $150K and my loan is approx $110K!!! So after a year, I am only $10K (rehab money) in and holding a nicely cash flowing asset.

I am quite satisfied and even more convinced that if you want to build a sizable portfolio of rentals (like I want to) - Turn Key is not the way to go.

As a final update - I now have 10 SFR homes in Houston and executing on the strategy I planned early last year. This particular purchase was #2. I have bought 8 more since then. Financing these homes at attractive terms, without seasoning, is still a challenge though. That is the biggest hurdle which prevents me to scale up to even larger numbers.

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All Forum Posts by: Sandeep S.

Sandeep S. has started 2 posts and replied 114 times.

Post: San Jose Meetup - Friday 9/11/15

Post: Partnership Structure and Taxes

Post: Long Term Loan for Investors with over 10 Financed Properties???

Post: San Jose Meetup - Friday 7/17/15

Post: Why appreciation matters in the SF/Bay Area

Post: Turnkey Property Selling Advice Needed

Post: San Jose Meetup - Thursday 6/18/15

Post: How's this deal in Baytown, Texas (near Houston)?

Post: How's this deal in Baytown, Texas (near Houston)?

Post: How's this deal in Baytown, Texas (near Houston)?