All Forum Posts by: Ujwal Velagapudi

Rules, like this one are just general. I would say as a new investor learn more about the fundamental of the rule, and why it's there. At the basic level it is simply saying have enough gross so you can cover all your expenses and hopefully have some margin as a monthly net cash flow. If you do that, you'll be fine. 

Each market will differ, and some just aren't good rental homes or good rental neighborhoods/cities since the rents are too little relative to the home value. 

Tough call. In the past, I've eaten these charges. Tenant ignorance ultimately falls on me as the landlord for not properly walking them through it all. I chose to call the service person because I couldn't/didn't want to do it myself. Something similar happened with a door not closing properly, where it was just a simple technique to it closing, unfortunately those small things are on us. 

Now if it was something where a toilet backed up and the plumber found out it was a stuck diaper or tampon in there....that one is on the tenants!

Pretty interesting. Did you just buy online, site unseen? Is the inspection report just on certain items, or is it a legitimate, thorough inspection? Can you request for a due diligence period of your own, to bring your own contractors/inspectors?

Was it the same time as a traditional SFH closing, ~30 days?

Not RE feedback, but it does sound like you want/need to get out. Seems like you'd be happier cashing out, making good money on it even with all the headaches over the years, and then buy yourself that condo + beach rental + travel. 

You could easily re-invest that equity into smaller assets across the country, or locally, and get some cash flow that way...whenever you feel like re-investing it.

Cash is king, so it wouldn't hurt to liquidate on an asset with all your equity that is currently not cash flowing at all. Even more so since you don't have tax burdens on this, and you're willing to downsize. 

I got a property that had a similar issue, but it was removed and I still had a tough time. It was a struggle, fought through a ton of hurdles, but eventually bought it. I would say to get insurance for it, the environmental studies, etc. as needed to cover yourself and truly assess the risk. But at that price point, <$200k, that is a big decision since it can get pricey with all of these tests and the lengthy process it can potentially amount to.

Quite a few things come to mind, and tenants have always been extremely grateful. It's amplified even more so in lower income neighborhoods as there are a lot of terrible landlords out there. Just being human & treating people like people will go a long ways, always empathizing with tenants.

The biggest one was me helping my tenant get proper permits & licenses (store owner in a commercial retail strip) which I had inherited when I bought the building. Also helped with some basic budgeting, planning, etc. He was not aware of the process to license/permit, did not understand it, and couldn't navigate it solo. After he got hit with a fine, I helped him maneuver through the courts, filling applications, directing to the right people, etc. I took 6 different days off/half days/"fake sick days" to go to court or other places to assist in this process which spanned well over a year. It was literally handholding through the entire (cumbersome) process which the city did not make it any easier to do business in either. This was tough enough for me as it is, so taking that extra step, supporting the tenant, also was a good experience for me. 

Of course I had a vested interest to assist, but it was a lot of work. I just like business, businesses, and knew that if he could get it properly set up he could do much better. Tenants are forever grateful for these because it is a lot of time invested, care, etc. in them & their business. 

Do an analysis of what it realistically can rent for as-is, what it can rent for with light rehab, and then with a full rehab. Analyze the cost/ROI on that. If nothing else, just check zillow and similar sites for comps, and check craigslist or FB marketplace for rental ranges. What you would do really depends on those figures and how they look.

For that price point it might be rural towns or lower income neighborhoods. I'd say almost every state/city has these areas that can fall into that price point for you. BP is definitely good, but I'd also pick a handful of cities that you like as an investment. Looking nationwide may be tough for MF, too many to choose from. If you network with a few meetup groups in cities that you like, you can gain expertise within that local market and grow exponentially. Everyone selling will think their market is a great market too :)

Seems all of the agents are saying to buy now :)

I personally would consider holding for a bit. I'm in a very similar boat, looking to be in Austin in Q1, but in Socal for now. To me, what it comes down to is not the couple bucks I could save, hedge against, make, etc. but am I making a sound decision, and not being rushed into anything during a very uncertain period? RE is very illiquid, and even though I don't think TX/Austin RE would be greatly impacted, I think there is less risk in holding for a few months and following the timeline that you've set out for your family.

As of now, planning to spend a few months in the city in an Airbnb, physically see different properties, feel out the city, and pull the trigger whenever something comes up. 

Also, not sure if this is an option, but I would considering selling the Bay area home with a clause in there asking for a 60-90 day move out period. So at least you've cashed out of your place when the market is still fairly strong, even in the Bay. 

It's not over when you sign the contract, or you get a verbal confirmation, or when due diligence is approved. There are so many areas where any transaction can fall through. So don't get too giddy at a minor milestone, and keep pushing as you did from day 1 until you complete that task. It's not over till it's over, and then some just to be safe :)