All Forum Posts by: Account Closed

$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.

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? 

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

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

Hi fellow landlords,

This year I have been particularly lucky to have 3 AC units blow up and 2 properties have flooding due to sewage back up in my properties (all SFRs). I wanted to ask the experts here if there is a playbook for handling tenants' situation when say an AC goes out after hours on weekdays or weekends. I have a property manager, but AC issues are particularly flexing as most service providers only want to replace and it is costly ($3k-$6k depending on the issue. I have a property manager but have to handle some of the AC issues myself as they are expensive and sensitive. It takes at least 2-3 days to get multiple quotes and get the AC repaired. Similar in case of a sewage back up too. 

Do you let the tenants suffer in 95-100F heat in Texas? (potential lawsuit?)

Do you offer them hotel stay? (again expensive as pets and multiple people/rooms involved)  

Do you ask them to file a claim on their rental insurance for meals/stay? (some have said its not covered) 

Do you offer them rent refund for the days they couldnt sleep at the property? 

Mainly, how do I set expectations that the issue cant be resolved in the same day ? 

Thanks in advance

@Justin Lewis Zillow and Redfin have pretty decent comp data for single family homes. I am noticing I need MLS data to properly analyze multifamily dold data. Now that doesn’t mean that agents do a good job. Most agents simply pull comps in 5 mins and forward it to you and don’t spend any time analyzing it for you. I would not call an agent if I had MLS access.

If youre In an apprecIatIng market and have job that you don’t hate, (so you don’t depend on the cash flow from the property) then a negative cash flow can also be an asset in the long term. You can also pay down your loans more aggressively and be negative or near 0 cash flow while building wealth for long term. Hope this helps