All Forum Posts by: Tushar P.

Hi all, I am hoping to get recommendations for CPAs with solid expertise in real estate investments. Someone in Houston, TX that I can meet personally and talk to. The tax deadline is far away but I prefer to have someone now rather than later.

I am sure there are savvy independent CPAs out there with good knowledge of handling multitude of real estate issues - out of state syndications, crowdfunding syndications across many states, out of state SFRs, opportunity zone investments in many states, vacation rentals in foreign countries, etc. For the last 6 years my taxes have been done by Deloitte and PwC. Now looking for an independent CPA with good handle on real estate.

Thanks in advance!

Ok, makes sense now. The property tax in Missouri is probably much lower than Texas, hence decent cash flow can be achieved even without the 1% rule...

@Michael King that’s great you can get a decent roi with rent ratio of 0.74%!! Are these properties in Houston? Did you put 20% down with 30-yr loan or some other strategy?

@Cody L. I wonder what your opinion is about the current status of smaller multifamily (10-20 units) in inner-loop Houston - are they too pricey now with low cap rates or are good deals still to be had? SFRs do seem like a grind, especially if the end goal is to scale which may not be possible without multifamily.

Right now I'm pumping money into multifamily via crowdfunding where institutional-grade seasoned/tenured developers are offering 15-20% IRR for 4-5 yr hold period. But this doesn't offer equity, so keen on acquiring smaller multifamily to get ownership and scale.

@Kevin Bazazzadeh thanks for clarifying. I thought you had bought it new from a builder. And regarding the LLCs getting dissolved becoming common place, I have been hearing that from realtors. But these realtors work for big builders, so they could be exaggerating. Curious to hear other views.

If you invest in 1 sfr with $200k cash purchase, your roi will be same as the cap rate, ~6%. Something that you can get via a reit with zero effort, no capital calls, no hassles from TTT (tenant-toilet-termites). 

If you want higher returns, be prepared to leverage and deal with TTT. 

Why invest with cash to get the same return as reit and also deal with TTT?

If leverage is not your thing then might as well go into stock market, which will beat everything in the long run without doing anything. All you need is a stomach to handle the volatility.

Why buy with cash? The opportunity cost will be very high and the cash on cash return very low. Is it to ensure that cash flow is positive? If yes, then might as well put the money in REITs which will provide diversification, liquidity, and a steady cash flow of 5-6% with zero effort.

@Vijaianand Thirunageswaram

How are you offering warranties for these new constructions? 

I've heard it's becoming common in Houston for unknown builders to offer warranties under a LLC which gets dissolved soon after the sale. There was a post shared by @Kevin Bazazzadeh on that a while ago.

For Houston city limits, how can anyone find out who owns a piece of land and if it is being planned for any kind of development (multifamily, single family, mall, warehouse, etc). Is there a particular website for Harris county?

@Jason G. Do you not believe in this statement from Roofstock: “Rigorous certification means you can focus on your investment strategy rather than due diligence.” 

@Jay Hinrichs thanks for pointing out that TKs are selling their properties via Roofstock. What do you think - is it a better platform for the sellers or the buyers? By the way, have you bought or sold properties via Roofstock?