All Forum Posts by: Yuvaraj Vimawala

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

Great pointers, thank you @Jerel Ehlert and @Ronald Rohde

@Chris Seveney, I understand there will be no warranty as its a 2006 property and I bought it as a foreclosure. But isnt anyone accountable for faulty construction? @Greg H. - Thanks, I will get a second opinion. 

Bought this as a as-is site unseen, foreclosure. 

I have a 3 bed 2 bath (1 story) KB home rental property in TX. Recently had couple of plumbing issues where the toilets were not flushing. First time, got the sewer lines cleared in the yard - spent $2500. Then again, toilets kept rocking. A trusted plumber goes out there and starts digging to find the issue. Turns out the builder has a piece of rebar going through the main sewer line. Sewage has been seeping into the ground underneath the flooring for several months. Insurance wont cover it because it is "pre-existing condition" or "faulty construction". The repair and mold remediation job is $20K. 

Any advice on what is the best course of action? 

• Sell property at deep discount
• Spent $20k and suck it up 
• Sue Builder 
• Sue insurance 

Thank you all - Yes, I confirmed that plumbing is NOT covered, corroborating all of your comments. I have not actually filed the claims (paid deductible etc.) just inquiring with insurance company. So premiums wont go up. Turns out I am out $8K and nothing is covered. Thanks @Fred Heller, I will look into American Water resource. Wish I had home warranty, but I bet they would have got out on a technicality too... 

Hi Fellow BPites,

I recently ran into some bad luck and had two major plumbing repairs on two properties. Expenses were $2.5K and $5.5K (& counting) respectively. In both cases I had sewage backup into the home. The former damage was caught early and didnt damage flooring or drywall. However, the root cause was tree roots had hijacked the sewage line, which had to be removed and line cleared. The second issue, did flood the home with sewage, but again limited damage. No flooring or drywall to be replaced. However, the plumbing cost alone is $5K. Root cause is still unknown for 2nd issue. My deductibles are in the $1500 range for each so it is worth filing a claim. 

I thought of filing an insurance claim - and guess what, ASI lloyds tells me "plumbing issues are not covered". They were willing to cover the ensuing damage by the sewage back up (which is most likely less than my deductible) but not the actual plumbing repair. 

My question to the community is, should I hire a lawyer to deal with them? Has anyone had any luck dealing with these insurance companies(especially in Texas)? Yes, I know I am not asking for legal advice - just experience and guidance on whether its worth investing time in this battle. 

Thank you in advance.