All Forum Posts by: Shiva Bhaskar

Thankful for great family and friends, a growing (non- real estate) business with an amazing partner and clients, and the continued growth and success I experienced this year in my REI adventures. I am very much thankful to my amazing uncle/mentor, who guides me on this journey with the dozens of deals worth of acquisition experience he has, which have allowed him to build a portfolio worth tens of millions. I am also grateful for this community, and all the awesome, wonderful folks sharing their insights here. Thank you BP. Happy Thanksgiving all!

 I think it's commendable that you hear people and their situations out, and I believe in second chances, but no, I would not do this. The reality is that what he said might be 100% true, or not. You were not there. What you DO know is that this person got evicted. You can find tenants without evictions in C or D+ areas, as many other headaches as you may deal with. Why bring in someone who already has a bad track record?

This is your business, the product of your hard work and focus. This is an asset for you and your family. It's something to be proud of. You cannot let someone who may damage it, become a part of the situation. Rules are rules. Evictions and violent crime convictions are an absolute no for me. 

 Very true. Know a guy who, with his dad, bought 5 or 6 courthouse auction single family properties, in a 6 month span, in southern California. This was in 2009. All of these were homes in the Inland Empire, built between 1990 to 2000, or later, so very little deferred maintenance. 

Kept them rented and cash flowing throughout the slow times, and they are worth probably 3x what they paid, if not closer to 4x. Think they refinanced out to buy elsewhere :-) Cap rates are insane if you look at what they got these for (I think around $40K to $60K each), and they rent for like $1400 to $1700 today. Can't imagine an opportunity like that again. 

I think the market is softer than it was a year ago - stuff is sitting around for longer, and there are more places being sold for reduced prices. Who knows what a few more rate hikes will do, not to mention, the reality that we have gone a record time (or close to it) without a recession? Granted, the 2007-09 downturn was really bad, so crawling out of that hole took longer, so that may be why this cycle has gone for longer. 

The thing is, unless you are an experienced investor, or have at least done several deals and have some relationships, I think assuming that you'll be able to pile in and buy during a major slowdown is not a great idea. The people doing deals earlier in the cycle, or in the market for a long time, are more likely to get their hands on those opportunities, than someone who is not known.  I think even in 2008 to 2011, when we were at the trough, most of the folks who grabbed great deals had prior experience. So, figuring out what you are looking for, and doing good deals based on it, makes more sense than waiting around IMHO. 

It's interesting, when I lived in New York City, I remember hearing of folks who lived in nice, relatively higher paying apartment complexes receiving small gifts for renewing their lease. The management would also do what Paul mentioned, hosting events for residents for holidays etc. Of course, people were paying $3000 plus for a one bedroom in most of these places, sometimes closer to $4,0000. I think if you have a tenant who has paid on time, and not been a hassle, a gift is a nice gesture. An even cheaper gesture, is if you know their birthday (from the rental application), sending an email or text wishing them well on that date as well.

I have a rental where the tenants have only been there since August but always pay timely, keep the area clean, give me mail sent to the property for me, and signed a long-term lease with us - I'l give them a Starbucks card (we have one walking distance from the property), and a nice note thanking  them for being good tenants. This is a house that rents for $3,000 per month. Would I do it if they were paying $600 and it was not in a great area? Honestly, less likely to do so. I think you may as well give them something, if they've been good. 

 I love this! Your daughters are correct! 

Hi all, sorry for the delay! I am going to look into a few venues in the South Bay, and see if we can do this in November. If anyone has suggestions, please direct message me.

 Awesome work Eddie! Huge fan of Costa Rica myself - bet it was hard to let go of that house but this is great. Awesome what you are doing for your community with this. I know things have been rough after floods.

These are really nice finishes - I tend to agree with your strategy of reducing turnover by offering something higher quality. Have a rental in a B area here in LA that we redid floors, bathroom, added nice value to the property (at least 2x what we spent) and got a great tenant on a 3 year lease, and over 15% higher rent than before. I don't think it would have happened with the finishes we had before. 

Seems like a refi would be better here unless you have a deal you can 1031 this for? Just feels like this is a solid asset, so not worth letting go unless something much better comes along. Congrats again and thanks for sharing! 

Did play fantasy football, and with my luck, player selections and injuries the past year or two, I might as well be playing the lottery - luck hasn't been much better!

 I agree re Ohio City and Tremont actually. I think for a lot of out of state investors, cash flow in decent areas is strong, so appreciation is icing on the cake. I plan on partnering with some of the local folks we've gotten to know when the right opportunity presents itself.