All Forum Posts by: Joshua Townsley

Cash on cash and IRR are absolute staples to understand inside and out if you plan to invest. The 1% rule doesn't always work, Price/Sqft doesn't always work, price rent ratio doesn't always work, comps don't always work. What always works is underwriting the deal to understand all of the numbers including income AND expenses, this will provide you with your percent returns, this applies nationally every single time to every single deal. If it meets your desired return with conservative numbers it is a deal for you. Nice and easy. It can take a while to understand the math behind COC verus Cap rate Versus IRR but if you don't know them and the averages for your area I would focus on that.

Bigger pockets and youtube can help with understanding those numbers!

Best of luck!!

There is no harm in listing it with a note that says it will be available on Day XXXXX. In my market I wouldn't really have anyone willing to wait for a rental as most people want it immediately but it may work out to put it on the market sooner. 

I see no harm in it

Best of luck!!

You would likely be better off working with a broker or wholesaling agent, they will have every connection you could possibly want and while you might have to pay them, it will likely be worth the price! 

Best of luck!

P.s. there are so many wholesalers now that have no idea how to value a property you might actually be better buying on market. 

That is all that we do and I would be happy to chat and see how I can help you. I am sending you a private message now!

All of the markets that you hear about down here (Miami, Fort Lauderdale, Tampa etc.) all have their pros and cons, if you want growth then you need to look in a hot market but be careful of exactly which neighborhoods you are going into as some are overpriced/under priced and some will provide better returns long term. I can give you a list of neighborhoods/areas/cities down in SE Florida that we are targeting for our investors but doing that is only good if you want to be in the SE area of Florida. Realistically if you are thinking about investing down here and planning to use it for yourself in the future then pick a city that YOU like and then do some research to find a realtor/broker who specializes in investments in that area and work with them as local knowledge and advice is the most valuable thing you can have especially at a distance. They can help guide you to where the development and growth will likely be 5-10-20 years down the road if they are any good.  

Best of luck!!

Look up "Investwithace" on instagram, tiktok youtube etc. You don't even need to pay to learn everything you could ever learn from him. 

There is so much info out there you just need to know where to look!

Best of luck!

I wouldn't stress about being distant from the property from an operational standpoint. Mostly, with a good property manager and good realtor to work with you won't have much to worry about. Even if the rental is close, if you want to maintain your sanity you should put people between you and the tenants/property. 

Do remember that if you use an FHA you need to occupy the property for a year so if at all possible, go for conventional loans on the house hack if you really think you will be moving soon!

I am an agent at investment only brokerage working in Broward, Dade and West Palm. If you need any support feel free to reach out and I am happy to give any insight I have!

Best of luck with your investing journey 

 Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol

I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections. 

So it will certainly come down to the property and when interest rates lower again. You are going to want to finance at the current 6ish% for a lot longer if all of a sudden rates jump to 15% or something crazy and same goes with refinancing right away if the rates drop big. Likewise I am always a fan of buying for cash flow (unless the goal is to flip) if you buy for cash flow then you know your mortgage is covered and that you can wait until the time is right to refi.

Overall I would find the right deal and make sure the numbers are solid (don't be overly generous with rental estimates or not thinking about all possible expenses) if the numbers are good then you can cash flow, if you can cash flow then within a year when rates stabilize and you add value to the property you will likely be able to cash out without too much of a problem.

BOL!!