Hold Old Homes in Florida?

Question

I have a few old properties (around 100 yrs old) in Tampa/St Pete that I am considering selling.  Initially wanted to hold forever but with insurance costs rising/property taxes going up/threats of Hurricanes destroying home, considering cashing out.  I have nice 3-4% rates but just fearful of a hurricane coming through and destroying the homes.

I think I would reinvest in newer homes if possible.  Either here or out of state.  The 100 year old homes just worry me.

"They've lasted this long".  Yeah well, we are getting stronger and stronger hurricanes coming through and if I don't sell prior to house getting destroyed, would only get rebuilding costs from insurance.  Also, the insurance companies are fleeing Florida so I'm definitely not making as much as I would from selling while things are still good.

Talk me off the cliff or push me over please.

Samuel Diouf · Answer

You could sell this one and buy houses in the mid-west that are sturdy and don't have insane insurance costs.

Columbus, Ohio, could be a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.

Jimmy Lieu · Answer

Hi Tim, I'd recommend that you sell the house and invest in a market that offers strong growth potential, affordable property prices, and less risk from natural disasters compared to Florida. Investing in newer homes could provide you with peace of mind and stable returns. I'd recommend that you look into Columbus Ohio since there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

Raymond J. Rodrigues · Answer

If you end up wanting to sell them or would just like to bounce ideas off someone local to the area, reach out to @Josh Green!

Dave Foster · Answer

@Tim Kaminski, Using the 1031 exchange will allow you to exit your older Pinellas properties and purchase newer properties elswhere that are not as big a risk from capital expense or natural disaster.  This is a very classic 1031 exchange use.  One large capital expense can wipe out years of cash flow and appreciation.  So moving from greater capital risk to less can be very wise.

Of course every area has it's challenges.  But you may be more comfortable with earthquakes, or tornados than hurricanes.  Again, the 1031 exchange will allow you to not only reduce capital repair risk.  It will allow you to purchase any type of investment property anywhere in the country.

Appreciation has been strong here.  It won't always be.  Appreciation comes in cycles.  It's just that no one can time the cycles.

Tim Kaminski · Answer

@Jacopo Iasiello

Selling would probably reduce stress but the only thing that is stopping me is FOMO of future cashflow/appreciation. Would love long term rentals paying my dividends but old homes in Florida area give me stress that one year it can all get wiped out with nothing to show from it.

Jacopo Iasiello · Answer

Hi Tim, in what move do you think could reduce your stress? Then go for it! :)

Hold Old Homes in Florida?

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