Texas lo rental property unna vallu raavali

[Tellugodu]

45 minutes ago, Gaali_Gottam_Govinda said:

90% of the people who buy these so called investment properties buy it because someone else in their friends or families group bought it...... 2019-2022 Propery covid boom nadichindi so many people flipped homes for profit even though the rental return never made sense.. Thats not the scenario now. 

Just to breakeven.... your property value should have to go up 4-5% ever year and be rented out for all 365 days..... bad tenant vaste thats total different scenario again. worst case. I heard stories of tenants not moving out and not paying rents and got into court fights. 

Property Taxes, Insurance costs and repairs after all these you get nothing in return for the effort you put into,  

US Residential and Real estate rental returns are some of the worst (Less than what Treasury bonds pay) I have seen.... 

Mari, what do you suggest for investing money ? 

[rmJU72]

1 hour ago, Gaali_Gottam_Govinda said:

90% of the people who buy these so called investment properties buy it because someone else in their friends or families group bought it...... 2019-2022 Propery covid boom nadichindi so many people flipped homes for profit. Thats not the scenario now. 

Just to breakeven.... your property value should have to go up 4-5% ever year and be rented out for all 365 days..... bad tenant vaste thats total different scenario again. worst case. I heard stories of tenants not moving out and not paying rents and got into court fights. 

Property Taxes, Insurance costs and repairs after all these you get nothing in return for the effort you put into,  

US Residential and Real estate rental returns are some of the worst (Less than what Treasury bonds pay) I have seen.... 

so true, it’s hard to make sense of new rental investments now, esp high property tax states

[ManchamKodi]

17 hours ago, jsk423 said:

Thanks. Water was leaking when the sprinklers were on and tese were running daily 4 times a day. So atleast 90-95% of the bill is due to the incorrect  schedule.

yes

so instead of 400, I ask him to pay 600$?? or ask him to pay 1000$ instead of 400$?

realtor nundi rent chesina house ki why do you care anna ?

[chantigaduUS]

21 hours ago, jsk423 said:

Hi all.. I bought my first brand new investment property in Celina in March 24. One tenant(African American) moved from out of state in May 2024. Vaadidi travel job and after he moved in, he had to travel out of country for 2 months starting on June 2nd and returned on August 3rd. Now after the return, his water bill for the month of June( jun15-july15) and the bill generated on Aug 1st came to 3800$. Problem is the sprinklers were set to auto which were running 4 times almost every day and also there was a leak in the  sprinkler system which caused water pooling along the property line. Since the house was still under warranty I opened a ticket with the builder and got the sprinklers repaired. Now the tenant says the water bill should be builders/warranty company responsibility as the huge bill was due to the leak. We tried to get the bill correction from the water company and the final bill is around 2500$. Warranty company denied saying this doesn’t come under the terms and conditions that we signed during closing and it is owners responsibility and also warranty  company found during the repair that the sprinkler settings were not updated to run only only one time during a day in a week. So now the tenant sent an email saying since the water bill 2500$ he will pay 400$. Based on billing periods, normal water service amount averages $200. To be safe and fair, he will double the amount for a total of $400. He is asking me to pay 2100$.

So need your inputs folks.. I’m already losing money as the interest rate when I closed was over 7 and having a negative cash flow.  What should I do in this situation? any thoughts?

Should I pay the 2100$ or negotiate with the tenat to pay 50% of the bill?

so far ayite tenant seemed really nice person based on our previous conversations. But at that time there was no money involved.

PS - For ppl who might be think/ask why did I close the house if there was a negative cash flow is cuz when I signed the property interest rates weren’t that high and I will be loosing 20k$ earnest money if I dint close it. 

Thanks in advance.

who name was on the water bill? if you have it on your name, why did you have it on your name, all the utilities supposed to be on tenant correct?

[jsk423]

8 hours ago, Pavanonline said:

Depends on lease agreement, if it's written about lawn maintenance and sprinklers. Landlord won't be controlling the device, so ideally it should be transferred to tenant and mentioned in lease like every other utility. If nothing is mentioned in lease terms it will be landlord responsibility.

lease agreement lo it is written that it is his responsibility to maintain lawn.Also all the utilities have been transferred to tenants name.

3 hours ago, ManchamKodi said:

realtor nundi rent chesina house ki why do you care anna ?

Realtor ni hire chesindi to list the property and find a tenant.

56 minutes ago, chantigaduUS said:

who name was on the water bill? if you have it on your name, why did you have it on your name, all the utilities supposed to be on tenant correct?

All utilities are on tenants name. He doesn't want to pay it as this was caused due to leak in the sprinklers.

[jsk423]

18 hours ago, ilakatamaflia said:

nuvvu too much unnav bro, tenant enduku kadtadu ? Icche $400 tiskoni settle chesko, Just think  (common sense) who is responsbile for scheduled Sprinklers? 
Tats ur house, ur responsibility, next time make a checklist of the repairs and go for annual .. routines . 
tenant gaadu case gisu veste .. bokka neeke .

i understsnd , if he was at home instrad of his travel job, things would have bn diffrnt, but no way is the excuse for you to make him pay

I had a third party inspection done before closing and the sprinklers were fine at that time.  Sprinkler system can be controlled through an app from his phone. But it needs to configured unfortunately which he din't.

[Pavanonline]

1 minute ago, jsk423 said:

lease agreement lo it is written that it is his responsibility to maintain lan.Also all the utilities have been transferred to tenants name.

Realtor ni hire chesindi to list the property and find a tenant.

All utilities are on tenants name. He doesn't want to pay it as this was caused due to leak in the sprinklers.

It's your call, if you really want to impose it on him you can but it'll also leave the tenant unhappy 

[Konebhar6]

Remember there is no right answer for this scenario and someone will be unhappy. 

Since the tenent's name is on water bill, you can say its his problem and let him pay else his credit history will be screwed. If you take the bill, you will be unhappy.

Talk to the tenent face-to-face, talk facts may be split the bill. Like him paying $1000 or whatever you both agree to. 

Give him an option to pay the full amount and ask him to cut your portion of the bill in monthly rent (like $200 per month). This way you will have some leverage that he wont spoil your home.

[Tellugodu]

1 hour ago, Konebhar6 said:

Remember there is no right answer for this scenario and someone will be unhappy. 

Since the tenent's name is on water bill, you can say its his problem and let him pay else his credit history will be screwed. If you take the bill, you will be unhappy.

Talk to the tenent face-to-face, talk facts may be split the bill. Like him paying $1000 or whatever you both agree to. 

Give him an option to pay the full amount and ask him to cut your portion of the bill in monthly rent (like $200 per month). This way you will have some leverage that he wont spoil your home.

Enduku vachina penta anna, ee rental properties lu cheppu. Leniponi talakaya nopulu. Happy ga edo okka REITS lo leka pothe index fund lo invest cheste it will give similar returns kada at the end?? Why desi uncles won’t understand this ? Or am I missing anything about rental property investments ? 

[rmJU72]

10 minutes ago, Tellugodu said:

Enduku vachina penta anna, ee rental properties lu cheppu. Leniponi talakaya nopulu. Happy ga edo okka REITS lo leka pothe index fund lo invest cheste it will give similar returns kada at the end?? Why desi uncles won’t understand this ? Or am I missing anything about rental property investments ? 

It think because with REITs, there is no leverage. With an actual home, ur paying only 20-25% and getting advantage of the leverage of full home value.

[Konebhar6]

40 minutes ago, Tellugodu said:

Enduku vachina penta anna, ee rental properties lu cheppu. Leniponi talakaya nopulu. Happy ga edo okka REITS lo leka pothe index fund lo invest cheste it will give similar returns kada at the end?? Why desi uncles won’t understand this ? Or am I missing anything about rental property investments ? 

Rental properties made a lot of sense before but not at these prices and interest rates.

Lets say a property cost is 500K, you invest only 20% (100k) to buy home. If the rent offsets -> Mortgage on the home + property taxes + other expenses and may be generate $500. Its a decent investment. Esp if the property appreciates. 

Properties appreciated so well over the past 12 years .. everyone wants a piece of it. They are not looking at returns and making informed decisions. Smart people got in early. 

If housing market falls, these will be good investments.

Personally, I would not get in this business. Too much head ache. I can easily make that money in Stock Markets.  

[ManchamKodi]

2 hours ago, jsk423 said:

lease agreement lo it is written that it is his responsibility to maintain lawn.Also all the utilities have been transferred to tenants name.

Realtor ni hire chesindi to list the property and find a tenant.

All utilities are on tenants name. He doesn't want to pay it as this was caused due to leak in the sprinklers.

ok

[beerboy17]

18 minutes ago, Konebhar6 said:

Rental properties made a lot of sense before but not at these prices and interest rates.

Lets say a property cost is 500K, you invest only 20% (100k) to buy home. If the rent offsets -> Mortgage on the home + property taxes + other expenses and may be generate $500. Its a decent investment. Esp if the property appreciates. 

Properties appreciated so well over the past 12 years .. everyone wants a piece of it. They are not looking at returns and making informed decisions. Smart people got in early. 

If housing market falls, these will be good investments.

Personally, I would not get in this business. Too much head ache. I can easily make that money in Stock Markets.  

Thanks bro.. how do you make that money easily in Stock market ? can you pls throw some light in terms returns ?

[ManchamKodi]

26 minutes ago, Konebhar6 said:

Rental properties made a lot of sense before but not at these prices and interest rates.

Lets say a property cost is 500K, you invest only 20% (100k) to buy home. If the rent offsets -> Mortgage on the home + property taxes + other expenses and may be generate $500. Its a decent investment. Esp if the property appreciates. 

Properties appreciated so well over the past 12 years .. everyone wants a piece of it. They are not looking at returns and making informed decisions. Smart people got in early. 

If housing market falls, these will be good investments.

Personally, I would not get in this business. Too much head ache. I can easily make that money in Stock Markets.  

Agree anna Rental business is good for the cheaper houses.

 

How can you make in Stocks ? which stocks to buy 

[paaparao]

3 hours ago, jsk423 said:

I had a third party inspection done before closing and the sprinklers were fine at that time.  Sprinkler system can be controlled through an app from his phone. But it needs to configured unfortunately which he din't.

you could have made that change on your phone. even if you use for 4 times a day, it should not go more than $1000 in worst case scenario. high bill is due to leakage only. leakage must be on the controller only it seems. you need to correct that controller and take responsibility of high bill.