All Forum Posts by: Mario DeGrazia

Hello! I'm currently in the process of acquiring my salesperson real estate license in Michigan and take my state exam in November. I'm reaching out to find a broker who I can hang my license with. To start off I'll be working part time as a real estate agent so I'm not looking for full time right away. Eventually I hope to become full time with a goal of acquiring my own brokers license after a few years of learning under someone else. I'm also an investor so you need to be ok with me using my networking/connections towards my personal business as well. Of course that won't be on your time though. Please feel free to PM me or respond to this thread. Thank you for your time, Mario DeGrazia

Originally posted by @Gregory B.:

Is it worth is to hold on to is you're only making 8% without calculating in management? At that arv it seems you would be much better off selling and reinvesting ... if you hold the property you would see better returns on the S&P rather than the rental income and not have the headaches of being a landlord. What is the view from the appreciation standpoint?

The area is still appreciating well so we expect to be able to raise rents on the next turnover. Since we don't owe anything on this property and are looking to hold loan payments on next purchases I was hoping that we could use the equity towards that. Also like most I feel in the next few years the property values will start to come down a bit so I don't want to be holding too many liabilities. 

Thank you for the response!

@James D Malone Thanks, that does make more sense.  The market is excellent, re-developments are ongoing in the area. Also helps that we fully renovated the interiors while also fixing any exterior issues with the property so realistically it should be low on maintenance costs. 

Appreciate the response!

Also I did use a 5% of annual rent for vacancy purposes but I do self manage so I'm assuming you meant a cost for property management.

Charles Kennedy Yes the $250k is an estimate but I went low with it to help mediate risk in the future.

Below are the numbers on my first deal based yearly. The property is a duplex that needed a full rehab in both units to meet the area's rental rates. My company is made up of three equal partners that came together to put up all the cash for this deal. Moving forward we will be using investors and banks to acquire our properties.

Purchase Price: $105,000

Closing Cost: $623

Rehab: $57,000

ARV: $250,000

Rent Income: $24,600

Taxes: $4,343

Insurance: $1,748

Utilities(Paid by Landlord): $1,472

Capex(5%): $1,230

Vacancy(5%): $1,230

Maintenance(5%): $1,230

INCOME: $24,600

EXPENSES: $11,253

CASHFLOW: $13,347 

Feel pretty good with this property. We lucked out big time finding this deal considering the area its in. Also this property was packaged with the property next door that is also a duplex that we will be turning into a triplex. Once we complete the rehab I'll post those numbers as well. What do you guys think? Any advice going forward? I plan on billing back the utilities once the leases are up with the current tenants.

Hello all! So I'm getting ready to head to the bank to hopefully set up a line of credit. My question is what should I bring or setup to show them? I have properties with tenants in place so rent roll and P&L is obvious but what else will help benefit me the most? Maybe somebody would like to send me an example of what they've done? Looking for any suggestions please. Thank you, Mario DeGrazia

Are you building one?

Rent seems low. I'm getting around that on duplexes in my area. Know my area is more desirable but think there's some cash flow left on the table with this deal. Could consider billing back utilities to tenants as well.

Congrats and excellent work! Sounds like you made it work and are getting some cash flow. On to the next my friend!