All Forum Posts by: Saurabh Kukreja

Quote from @Drew Sygit:

@Saurabh Kukreja you can find a sheet someone's created & shared using this thing called, "Google".

Why awesome suggestion and helping out a beginner ! 

Do you use any fancy tool that you plug in your numbers to calculate your net per year ? Or Just use excel ?

I use excel , but many times I forget to add any expenses and then it messes up the calculations.

How do experienced people do it ?

Quote from @Jordan Ray:

Quote from @Saurabh Kukreja:

Is it priced well? Will this be a good deal ?

6436 Macon Rd, Memphis, TN 38134 | MLS #10185084 | Zillow

Looking at these numbers :

The thing that I like is its in a good area. The current tenant is paying 1550 , but there are other properties in the same community available for rent at 1400, which makes me think If I should calculate my numbers for 1550 Or 1400 ?

Also , normally I keep 5% as vacancy rate , but for this case I did 4% as its a desirable rental area

Is 7% expense conservative for such townhomes?

Is 6.2% Cash On Cash a good deal worth looking at ?

I would pass on this deal. I personally wont buy a property unless it has a minimum 40% Cash on cash return. (Best done by a BRRRR) Also, rents are coming down slightly and properties are taking way longer to rent out. There is plenty of supply so I would either pass on this or write them an offer that makes sense from your position. Let me know if I can help in any way!

I think it depends on the strategy right , I am still a beginner and wanted something more turnkey rather than BRRRR.

How would you think of something form that perspective ? My goal is Long term and positive cashflow with appreciation.

Is it priced well? Will this be a good deal ?

6436 Macon Rd, Memphis, TN 38134 | MLS #10185084 | Zillow

Looking at these numbers :

The thing that I like is its in a good area. The current tenant is paying 1550 , but there are other properties in the same community available for rent at 1400, which makes me think If I should calculate my numbers for 1550 Or 1400 ?

Also , normally I keep 5% as vacancy rate , but for this case I did 4% as its a desirable rental area

Is 7% expense conservative for such townhomes?

Is 6.2% Cash On Cash a good deal worth looking at ?

Thank You everyone . I have decided to go out of pocket,

Appreciate all of the feedback

Hello , 

I have a rental property in memphis and now planning to get second one.

I need to understand if I cash-out-refi my first property and put the cash downpayment on second one , Should I consider that as 0% downpayment Or 20% downpayment to calculate if the numbers make sense.

Also suggest if I should do it at this point or wait some more time. Here are the numbers:

Property 1:

Purchase Price - 130k 

Current Zillow Estimate - 166k

Loan Remaining - 100K

Current Interest Rate - 5%

If Refi - 6.38%

Obviously at higher interest rate my EMI is gonna increase , but at same time I am adding an additional asset which would cashflow as well. OR make the downpayment from out of pocket and refi later when interest rates go down ?

Hello Folks, 

I am fairly new to RE Investing , Currently own one SFR in memphis area and looking to explore some new areas.

I recently got a job for a Michigan based company so exploring this as I may visit there every 6 months or so ! 

I have some things that I would like to get started with in this process of doing my research:

- What are the good B+ areas around Southfield, Farmington?

- Are there any zip codes to avoid?

- Are these areas rental friendly ? 

- Which other areas should I explore which will have good job market for people to keep coming / renting in MI?

Looking forward to connect with locals and make some connections.

Quote from @Dan Sheeks:

Hey Timothy!

I host a bi-weekly Zoom meeting for GenZ around real estate investing and early FI.

I'll send you a DM with some details.

Dan

Is it specific with genZ  ?

Happy to connect, I am not in the area but invest in Memphis . Happy to connect with more poeple locally over phone / zoom

Quote from @Devin Peterson:

Quote from @Saurabh Kukreja:

I currently own one out-of-state rental property and am planning to acquire another. However, the high-interest rates are significantly affecting my operational costs. A neighboring property, similar to my current rental property, is now on the market at the same price I paid two years ago, with comparable rent. Unfortunately, the cash-on-cash return isn't the same due to the interest rates.

Should I proceed with the purchase now, or wait for interest rates to decrease before re-entering the market?

What strategies are others using when looking at MLS listings at this time?

 Lets put it this way. If you can make it work now, you can make it work when rates are better. Its never a bad time to buy real estate. Any professional investor can vouch to that. The waiting period hurts more than having a rate in the 7 or 8s. My advice is get your feet to the fire.

I agree , if numbers make sense now, then chances are it may get better in future if I can re-finance it . but I am looking at almost half of CoC that people say to expect.
on my first property I am getting around 7.8 % CoC and on this If I get numbers right , it is 4.9

This is what is confusing to me whether I should go for it or drop it , Considering CoC.
Other than Location is good, Property is good