All Forum Posts by: Ujwal Velagapudi

I would definitely make sure zoning, licenses, permits, etc. are all in hand and get that verified with the city. I would also not mind charging more given the business element and potential wear & tear on the building. This will also mean more expenses for you as some have pointed out, and possible deterrence for other tenants. 

@Adam Regos I still think you go to a place where you can enjoy living in personally, I value that above all else. You can make finances & investments work anywhere if you really want to. It seems the no-income tax states are doing better, smaller towns as well. If you can work remotely and keep your SD income, then it's really all in your hands to go anywhere. Cash flowing is great, but if you're considering house hacking or anything like that, I'd rather pick a decent city/location than living in a class C/D multifamily and househack/manage.

I wouldn't suggest uprooting and moving just to make your first purchase, but if you're willing to and have that flexibility with your other income source(s), then I'm all for it! 

Moving alone to either of your neighboring states (NV or AZ) will save you a bunch in cost of living & state income taxes, plus will have your dollar go much further. I would personally choose the zero income tax state that I think would benefit the most during this time from leaving CA residents. Still can't go wrong with either Vegas or Phoenix, but I think buying Vegas during this time could be a good move for the long haul. I just don't know enough about that local market to suggest if it has taken enough of a hit, or if sellers are still seeking top dollar. 

Also, whether or not you want to invest today is another question in the current market. I think each local market will differ slightly. I would personally choose where you prefer to live on a personal level and could see yourself growing out your RE holdings.

Gladly I've never had a full on flip (minus a handful of SFH's), and all my commercial buildings were well maintained by long time owners/owner-operators. I did buy one hoard house. I'd say never again to that. I think it took 2 of those oversized dumpsters to get most of the items out of the house. Didn't even know that people lived like that till I bought the place. I didn't do the work, but did pay for it, and it was draining with all the issues that were uncapped after the junk in the house was all removed.

Also, never again to simply rent out to the first person that hands you your first month's rent + security deposit in cash. Don't be that desperate, stick to your set of requirements and keep it vacant for longer than accepted anybody just because they're waving some cash at you. Learned this the hard way when my 2 bedroom apartment, signed by just 2 tenants, ended up having 12 people within the first week! Also fights, late night fights, too noisy, etc. Amicably evicted after the first week once I found out and gave 2 warnings. 

Hi Luis! I used an LLC since it was just a small deal. It was not a syndication with a standard LP/GP structure, not that an LP couldn't be an LLC though. I have also invested personally, without an entity.

In most cases I would still use an LLC, have tax advantages if you use it as a business to scale into more transactions. Of course the liability factor is there. Could become a more reputable vehicle down the road, seemingly more professional, even though it will be your personal name that will carry the weight for the most part (almost exclusively in the early days).

Even in an LLC, you will still (most likely) be personally guaranteeing it, so it's not that big of a factor for a lender. You just have to transfer title and all to the LLC and notify the bank, they'll put the loan under the entity as well as you, and have you personally guarantee it. There are a bunch of threads on this to get multiple perspectives if you want to check those out too.

I used 1 account for dozens of units, just simply had the tenants notate (by hand or electronically) whenever they sent rent. They'd put their unit # & street name, or just their name, which allowed me to account for it. I banked with Chase and it was easy since there was one on every block where my units were. 

My PM's had their own method, so my owner disbursements were just 1 larger checks every month with the rent roll provided in their software. 

Security deposits have different laws based on state. 

I always think when you are tight on cash, fire to the bum, people (or at least myself) will find ways and get it done to make it work. Being more efficient with expenses, finding creative ways to make $$, hustling harder, working smarter, etc. For this alone I would say go ahead and leave that job, live off the cash flow, savings, and the PT job. 

In addition, I'd leave any toxic relation if it absolutely cannot be worked out, especially if it is something that you spend 1/3 of your day at. 

On the flip side, which only you would know, if it is a chill, super relaxed job and the income is significantly higher (on an hourly basis) than what you could get (hourly) at a PT job, then I would still re-consider. Unemployment is high, and will only be getting higher with more lockdowns in place. It is a good thing to have a steady paycheck coming in during this time. It can help increase your cash reserves for when you do want to make that investment. You say you enjoy/used to enjoy it, so I would consider first giving it a legitimate 1 on 1 with the manager, being real with him, seeing if there could be some compromise and work things out. Otherwise, you've got nothing to lose it seems, you can easily fall on your income producing assets, PT job, and searching for more investments. 

I've always believed I should be in a constant state to enjoy. Not putting it off till tomorrow for a finite moment (retirement), but that I do things on a daily basis to enjoy the fruit of my labor. Also fortunate that little things make me happy, and it's not a financial burden to sustain it. 

Just based off your post, enjoy every second. Sell it, that amount is plenty enough to live well & invest it into something else. I don't think anyone's ever regretted living life and enjoying their time here (reasonably), but I'd bet plenty have regretted not quitting sooner, trading work for life, or just other alternatives to enjoy what they truly wanted in life. 

Personally, if possible, I'd find that happy medium where you can still make $$ to enjoy everything but still make enough to support that lifestyle and possibly grow your net worth simultaneously. i think that's kind of what a lot of BP'ers strive for, that passive income that exceeds their desired lifestyle expenses while working a minimum, w/less stress.

Today? Yes, some sort of interest bearing account. A 1-2% net loss from potential inflation is far better (to me) than whatever "good" deal is out there. 

Unless you find amazing deals, with great value add, and put in the sweat to find them, with desperate sellers (in a seller's market), then sure. Otherwise, I wouldn't touch any of these so called deals out there I see.