advice for estimating my expenses

11 Replies

Hello Mariana Lopez. I would say that if you cannot fly down to Tampa and spend a month looking around the whole of Tampa Bay for the location that you would live in, then, stop where you are at. You are a disaster waiting to happen. The Vultures are looking for someone just like you. Real Estate Investing is not like Stock picking. The difference between Stocks, Futures and Options Markets and Real Estate is that Stocks are instantly Liquid and you could wait a year to sell the wrong house. You live in N.J? Stay in N.J. and make your mistakes close to home.

Originally posted by @Michael Haynes :

Hello Mariana Lopez. I would say that if you cannot fly down to Tampa and spend a month looking around the whole of Tampa Bay for the location that you would live in, then, stop where you are at. You are a disaster waiting to happen. The Vultures are looking for someone just like you. Real Estate Investing is not like Stock picking. The difference between Stocks, Futures and Options Markets and Real Estate is that Stocks are instantly Liquid and you could wait a year to sell the wrong house. You live in N.J? Stay in N.J. and make your mistakes close to home.

 Thanks so much for this advice!!! my dad will house hack in the property in Tampa, although I will be in NJ. I would be the one to administrate the maintenance though. Does this make a difference?

Mariana, hace investiment intelligente. You have to make sure that the property that your father will live in, is in the location where you would want to live. If you have been following BP this last year, you will see that it is very hard to find a single family home to monthly rent, that even gives you a $100 profit after all the PITI and other expenses. It is harder to find Duplexes and the guys are looking to buy real heartaches in the War Zones because they think they are cheap. The only thing that saves them is that land values are skyrocketing for the time being. Your father is not going to House Hack a single family home to rent rooms...the worst thing a Landlord can do is live with is Tenants. If you do find a Duplex the margins will be negative and your best bet is to break even on the monthly costs. The idea that you will live in NJ and handle the maintenance is ridiculous. I had a general Handyman for thirty years. One after the other they died. I learned to do all the repairs myself and now I just have to call my AC guy once a year. You can get a list of tradesmen to call for Electrical, AC, Plumbing etc. and pay their rates, when they have time, to do any repairs. My neighbor has a small tile job in the kitchen to do and he has estimates from $1500 to $4500. And the City requires everyone to be a Licensed Contractor. You can't find a Licensed Contractor with any time to do any big job and there are only a few Licensed Handymen in Tampa who might have time later on for the small jobs. So, you are stuck with the guys in Angie's list and trusting that they will do the job correctly, regardless of what you pay. For me, that is not a good way to do a business with people I do not know and have no experience with and I live in New Jersey. My Great grandfather owned the bar on the way out of the port in Bayonne and my grandmother who was born in Sandy Hook Point, used to work there. I found that out as a Merchan Seaman working on Oil Tankers when we had to deliver gasoline and diesel fuel during the winter time to Carteret or Bayonne. If you are not going to live in Florida and your only trying to find a way to invest in a property that your father can live in and rent the rest, why would you look to buy in Tampa??

You can contact some local property managers and see what the vacancy rates are across their portfolio. Realize this will be very manager dependent and is a function of tenant screening. An easier way it to just anticipate that you will have one month vacancy per year (it shouldn't me more than that if you are doing year leases and getting quality tenants).

@Mariana Lopez Tampa is a great location but @Michael Haynes brings up great points. It is extremely tough to find a solid 2-4 unit for a good price in an area you would be comfortable living in. Not to say it can't be done but this isn't the current time in the market cycle to think it'll be super easy to find what you're looking for. For sure a big investment, it may be worth making the trip and familiarizing yourself with the different areas. 

Originally posted by @Luke Rorech :

@Mariana Lopez Tampa is a great location but @Michael Haynes brings up great points. It is extremely tough to find a solid 2-4 unit for a good price in an area you would be comfortable living in. Not to say it can't be done but this isn't the current time in the market cycle to think it'll be super easy to find what you're looking for. For sure a big investment, it may be worth making the trip and familiarizing yourself with the different areas. 

that you for the feedback!

WHat about buying a single family home where I can rent the first and second floor while House hacking the basement or attic?

 

Hello Marina Lopez...Now, you are showing your ignorance. Please listen to us who live here and have been in the basic Rental business for 40 years. You live in New Jersey. Our soils here are mostly sandy down to hard coral which is our bedrock. We do not have houses with basements. We build houses on Concrete Slabs or Cinder Block foundations where the house is two or three feet up off of the ground. We do not build houses with Attics. The roofs heat up to 140 Degrees and we fill them with fiberglass insulation in order to run our Air Conditioning units. We cannot live in Florida without AC. It only gets "cold" for three weeks out of our three month "winters." Summer started early this year and we could have nine months of 90 Degree days with sunny skies and no wind and high humidity. If you don't like the heat, you can look to buy something on the East Coast of Florida where the Tropical winds blow. Your idea of buying something for your father to live down here without any family support and having him live with strangers who rent a room or two in the same house? It's one thing if this is his idea and he is wanting help to do this House Hacking idea, but, it does not sound like either of you have any idea of how things really are here in Tampa Bay. I would suggest that you learn to do a Basic Search with Zillow.com for the whole of Tampa Bay. Start with just Houses from $100,000 to $300,000. There are lots of them. Then, look at Townhomes. Then, look at Multi-family. Then, Condos and Co-ops. Never leave out Lots because you want to know what they are asking for a regular 50 X 100 foot lot in the area you are interested in. There are zero Apartments. But, there are a lots of Manufactured homes. Most of them are 2/2's and have high HOA fees. The trick to Manufactured homes is to get them with their own lot, septic and well, so you avoid the HOA fees. The problem is that they do not Appreciate in value. The Land does and if you own your own Lot, then, that is what you can count on for the future. I could give you my Broker, a Puerto Rican lady, born in Chicago and you talk with her about your idea to get the female viewpoint from a Pro? You also should look at the Flood Zone map online in the area you think would work and do not buy anything that needs Flood Insurance. I am 72 and my Target property ended up as a Townhome, last year.I am going to spend most of the rest of my life in Brazil and traveling. I don't want to maintain the yard and I want a pool to do laps in the morning when I am home. Under $200,000, 3/3 with Garage and pool. Gated Community with low HOA fee that includes Water and access to everything within ten blocks of Hwy 60 on the North side in Brandon. Had to be two story as I don't want a three floor walk up. For a little more money I could buy a brand new 4/3 with two car garage , but, they were under construction and farther away from the Center or around and around in the back of a big Community. I need to be 30 minutes from the Airport and near the Hospital etc. on high ground. Later on, when I don't need a Garage, I could downsize to a 2/2 in a Tower near the Coast with a View and rent my 3/3. We do not know why your father is not asking the questions and what his needs are, but, learn how to use Zillow.com and get familiar with what's available and the prices and block or wood frame construction and age of the build etc. This is not like Stock picking online with a TDAmeritrade software program.

Welcome to the jungle, kids.  Institutional loot is rearing it's evil head throughout the country....we are in a bubble that continues to grow...not good.

Hello Mariana Lopez. Instead of getting involved with a house of any kind in Florida and send you father down here to live, without you...why don't you just get him a Room to Share in a nice private house with a pool and see if he likes it down here? In the past I have seen some really nice mansion types that would rent a room and share the pool etc. for cheap. Here is one on Craigslist under Rooms/Shares in St. Petersburg. Does your father drive? Have a car? https://tampa.craigslist.org/p...