All Forum Posts by: Yuvaraj Vimawala

@Al Pat. Those are amazing tips. I try to do labor only contracts most of the time and fund supplies. I have tried building relationships with AC and plumbers, used to get all new ACs done for $2600 (parts and labor). But its transient as people move on, or have 1 bad experience. Thank you, you seem to have it down to a system. Kudos. 

Thanks @Jim Cummings, I already have that. 

$35K-$50K/unit in some C areas. $80-$100K/unit in B area. 

Thanks @Danny Webber @Mohammed Elzagha & @Krishna Chava. Have any of you considered buying home warranty for all your properties? 

@Jerel Ehlert - I think Danny's advice is of a firm bur fair landlord. I think someone dying and a widow testifying is too far fetched. And texas legislation? Lol- I think AC unit regulation for landlords is way down on the list and will never make it. Well the prison lobby will always find ways to make more $$ from taxpayer funds. I  really dont think you have even seen the prices to get ACs checked every fall and spring, especially with a multiple properties. It is very easy to give textbook advice (spend more $$, replace everything, dont get multiple quotes). 

Of course, I want to treat my tenants fairly, but one new AC can wipe out my entire cash flow for the year on that property, so I would love to get 2 quotes. I always manage to fix it within 24 -48 hrs. But sometimes it is a Sunday or a long weekend so an extra day can make all the difference. I think the portable AC and fan suggestion is the best mitigation I have got to buy myself a day or two. 

Thanks @Brian Burke and @Jeff Kehl. The market that I am, is so overpriced, usually the seller and I are not even in the same universe, touring is just a giant waste of time. At least of what comes on market, every listing is negative cash flow and competition is simply betting on appreciation. That is why I am looking in other cities in Texas now. 

I am up for all cash offers and also covering closing costs, just looking for a template which covers all aspects of an MFR offer. Can either of you share the due diligence verbiage or an offer template?

Great idea, will certainly implement. Global warming is a serious threat to real estate as well Thanks @Dennis M.

Thanks @Grayson Wester. I am a former Aggie too.. Class of 2008. Yes, @Jim 

@Jim Cummings, what I mean by $1M is based on my liquidity I can secure upto $1M or little over that, of agency debt. I am open to fourplexes and packages thereof. 

Hi @John Underwood. Thanks for the tips. I really like the fan and window AC tip. I can buy one and give it to my property manager to store. I do have a trusted AC guy, but every 6 months something happens and they bail on me on a warranty dispute, so I have to look for a new one. Hate the big companies, believe it or not, they charge $9k for an AC. My lease is also the same, but the tenants lose all patience and become godzillas in TX heat. How do you go about getting the window AC unit installed on the window on short notice? 

My name is Yuvaraj Vimawala (I go by Yuvi (UV)). Started by buying foreclosures at the county courthouse steps and have built a 12 SFR portfolio over 5 years in North Austin TX area. I have been very happy with the equity appreciation and demand, but of course troubled by repairs, property taxes and thin cash flow. Having learnt the game from SFR, I am preparing myself to offer and invest in mutifamily properties so I can achieve some scale and cash flow. My goal is to be able to make at least $10K/month in free cash flow so I can quit my day job (IT Manager in F50 company), achieve financial freedom and pursue real estate full time. Long term, I also want to open my own title insurance company. I am interested in Waco, TX, College Station, TX, Dallas Fort Worth area and any other good upcoming areas in Texas. My MFR criteria is 

Under $1M

6-7% Cap rate (actual) 

At least $100/unit/month cash flow (after financing) 

Areas: Waco, TX, College Station, TX, Dallas Fort Worth area and any other good upcoming areas in Texas

Looking to connect with investor friendly agents, title agents, attorneys, insurance agents and property managers here on BP forum. Feel free to message me directly. 

Hi BPites,

As we all know the MFR market is pretty hot and deals are far and few between. A strategy I have been following is to make few offers every week without seeing each and every property. I strike out almost 100% of the time in this hot market. But anyways, I wanted to ask if someone had a list of recommended contingencies to put on their offer so it is easy to get out of the deal or re-negotiate the price if the condition, income or repairs are worse than the pictures or details provided and avoid losing earnest and option $$.

1. How to include a repair credit/inspection contingency in the offer (verbiage) ?
2. Should the offer include who will pay closing costs? (typically seller or buyer pays)?
3. What would be a contingency to get out of the deal if the rent rolls/ operating statement or lease info is not-verifiable or turns our to be false ?
4. What sort of financing contingency to put on offers (what if my lender denies the loan based on the MFR income reported)?

If anyone is willing to share a comprehensive MFR offer template, I will be very grateful. Thank you