All Forum Posts by: Spencer Gracia

Hey guys! Made a GOAL this year NOT a New Years Resolution that most people did after celebrating the New Years.

I turn 30 in four months from now. My goal is to purchase my first investment property before my twenties are over. Ive been looking in the Florida/Georgia market.

My question is while “shopping” for a real estate agent thats right for you, WHAT QUESTIONS SHOULD I BE ASKING HIM OR HER ON THE PHONE TO SEE IF THIS PERSON IS THE RIGHT FIT?

Thank you for reading and your insight!

Best!

@Jaron Walling we spent roughly 50k in our home including down payments and closing costs/fees along with the remodel. We plan on living in this home, but with the equity gained we thought we could use that money to purchase another home as a rental.

Back Story: My wife and I purchased our first home we currently live in last June. It was a fixer so we purchased the house about 100k under the comparable market in the neighborhood. Since the interest rates dropped a whole percent since we closed on our home we looked into refinancing our home. We also plan on purchasing our first investment property out of state after closing on the refi.

Fast forward to now: We are in the middle of refinancing and now looking into a cash out refi. The home was appraised 120k more than the original appraisal so we know the money is there to cash out.

Questions: 

(1) If you were in my shoes what considerations would you take during this process of the refi?

(2) What would be your next steps after closing on the cashout refi?

(3) Any advise or feedback you'd give this rookie

Thank You!!!

@Dennis Wayne Right on, huge help thank you.

@John Morgan what is everyone’s strategy on determining rent yield?

@Bob Norton thank you for that info, I was just told from a (California investor) to sock away 100 dollars each for repairs and capital expenses and to add that into your ROI calculations.

I have crunched the numbers with the avg rent prices for the specific neighborhoods the properties were in. Now, I’m not a real estate agent nor have access to other programs than the generic real estate apps like (Zillow or RedFin etc).

Are there other deals I'm not seeing in front of me that others might find on listings like the MLS.

Kevin,

Example: I ran numbers for a140k home with 20% down($28,000)

Avg. rent in that area went for $950

TOTAL Expenses including: $1051

-Mortgage $668 

-Utilities (Water/Trash) $40

-Vacancy $48

-Cap expenses/Repairs $200

-Property Managment $95

Am I way off on my numbers in regards to rent or expenses???

@Kevin Purvis have you invested in Memphis? I’ve been looking around east Memphis and just outside

Hey Guys I am a rookie investor (Still have not purchased my first investment property.) I have had some issues calculating ROIs. I am in the Los Angeles area however I have been looking into investing in the Memphis area.These SFDs seem super affordable (150k) and under but it seems like when I find a home on the market the ROI calculations always end up upside down, becoming negative. My question is, am I simply looking in the wrong market? Or is there something im not looking into as far as having positive cash flow. I hope Im making sense in my questions.

Thank You in Advance!