Southern Impression Homes
Most Popular Reply
Member since 2022 · 1 post · 5 votes
4yBUYER BEWARE!!! This is the most unprofessional company I have ever dealt with. They completely lie. So many hidden fee's and the quality of the construction is terrible, you'll be lucky to see a ROI. Every month there is hundreds if not thousands of expenses for work orders. The tenant could say "my window doesn't lock" instead of calling or troubleshoot or sending an in house tech they will send an expensive GC who charges $200 an hour to check it out and then charge you for their time. Or to avoid angering you they charge your tenant's huge commercial fee's so you can forget about retention. Go read the tenant reviews. Absolute nightmares. They never eat any cost for their poor communication they find a way to throw it off on us or the tenant. The warranty is an absolute joke, please read the fine print. I've flown down and walked the units at Western Way and there is a lot to be desired. Cheap materials, thin walls, the LVP was peeling already not to mention the transient individuals in the parking lot. It's a high crime area surrounded by sketchy motels. It will be a run down apartment building before long. They hold your money, spend it without your permission and you have to call and email incessantly to get a release of your monthly draw.
There is a woman in onboarding who is well spoken and fairly well informed but once you've signed on communication completely ceases. They have no integrity. They put their educated, well dressed employees on the front line and hide the Highschool dropouts in the office and that is who's actually managing your home. I don't often speak to peoples background but in this case it's important and I would be surprised if half of them graduated Highschool. They do not present well or communicate professionally. One of the ladies, Amanda couldn't keep her eyes open during our meet and greet, she continued to nod off and she is one of their tenured Property Managers. It was clear there were some problems beyond being "tired". They have 1 young girl running the entire community of Western Way. She truly struggled to answer my questions, she has no idea what she's doing. I promise you they will respond to this by saying "Hi Victor, I don't see your name in our records, please give me a call so we can address your concerns" It's all for show. They don't care about doing the right thing they care about hooking, selling and maintaining appearances just long enough to win business. Take your money elsewhere and GET AN INSPECTION!
30 Replies
- Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes8y
I know a couple of the Realtors on the team at Suncoast Property Management, Acquisitions & New Construction Manager, Gretchen Kornutik, REALTOR® - Good person.
- Rental Property Investor · San Francisco, CA · Member since 2016 · 52 posts · 48 votes8y
I purchased their homes via JAX Investments and use Suncoast to manage my SFH rental. I posted a bit about my experience here:
- https://www.biggerpockets.com/forums/88/topics/406311-jacksonville-fl---sfh-new-construction
- https://www.biggerpockets.com/forums/92/topics/501414-data-points-multi-year-turnkey-performance-your-experience
My property is cash flowing well. No notable issues to date - mostly minor stuff. Given the price point you mentioned ($150k with $1250 in rent), are you looking at the Ocala, FL properties? I've considered them myself as my next investment. I like new construction since there isn't any deferred maintenance and the properties should be relatively maintenance free for the first couple years (although it's good to include maintenance/repairs in your pro forma and maintain reserves just in case). Granted new construction probably won't appreciate as much and you'll pay a slight premium for the property.
I like Suncoast. They're very autonomous and don't communicate too much which doesn't demand much of your time. It took me a bit to get used to since I was a bit jittery to start. The next property I purchase in their geographic footprint will also be managed by them.
Let us know what you decide to do. It's interesting to watch what others are doing to learn.
- 8yAlex R.Investor · Washington, DC · Member since 2017 · 26 posts · 6 votesOP
Thank you @Brandon H. for your input and providing those links. Yes I am looking at Ocala, FL due to the fact that the properties they selling are non-HOA. I haven't signed a contract yet, but i'm considering it. Will keep you updated.
Btw, would you mind sharing your analysis spreadsheet for your new construction? I'm hoping you can save me some time from re-creating it. :)
- Flipper/Rehabber · Member since 2019 · 45 posts · 21 votes7y
@Alex Ramos Any update? I'm also interested in investing with Southern Impressions.
- Rental Property Investor · Los Angeles, CA · Member since 2014 · 259 posts · 55 votes6y
up
- Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes6y
@Alex R.
I would be weary of anything involving Suncoast Property management. They might be fine managing new construction, but I have seem MANY investors almost tank from their fee schedule on managing older homes...i would compare it to almost predatory practice.
- Rental Property Investor · South Florida and Central Florida · Member since 2017 · 50 posts · 40 votes6y
- Investor · north Idaho · Member since 2017 · 24 posts · 8 votes6y
I have not been impressed to date with Suncoast PM and if nothing improves I'll be looking for a new PM when agreement term expires. I get the impression they were once a better company but are experiencing growing pains. Last I heard, they were planning to expand - as far as I can tell they cannot handle their current workload.
The tenant can complain about a problem for months before it is fixed. I have to pressure them to take care of it. Maintenance and admins fees are high. No one checks the maintenance crew to see if the did a good job (as far as I can tell, their in house folks miss stuff). Termination fee on PM agreement is very high. PM agreement is for 2 years and automatically renews if you don't cancel.
SI homes seem to be built ok. I bought one home in JAX a year ago. No major issues so far. Disappointed they put the septic tank relatively close to the house, even though the lot is over an acre.
Neither Suncoast nor SI disclosed they were building other homes and marketing them for rent at the same time -- at a lower rate.
I went under contract to buy a home in Ocala from SI in Summer 2018. Construction didn't start until Fall/winter 2019. They blamed Ocala govt for delay on permits. House still under construction. Should be complete February 2020.
- 6yRussell AndrewsPro MemberInvestor · North Miami, FL · Member since 2011 · 10 posts · 2 votes
I would like any information available on Southern Impression Homes and SunCoast Property Management. I am considering purchasing one of their properties in Ocala Fla.
I am considering a purchase of a Quad unit in Ocala from Southern Impression Homes with management by SunCoast Property Management. I would appreciate any positive or negative comments on your experience with this investment opportunity.
- Realtor · Papillion, NE · Member since 2013 · 134 posts · 59 votes5y
I, too would like to revive this post. Thoughts and updates on Southern Impression Homes and SunCoast. Can you use SI without SunCoast PM? Thanks!
- Real Estate Broker · Jacksonville, FL · Member since 2020 · 40 posts · 27 votes5y
Originally posted by @Julie Sisnroy:
I, too would like to revive this post. Thoughts and updates on Southern Impression Homes and SunCoast. Can you use SI without SunCoast PM? Thanks!
Hi Julie!
I am the Investor Relations Manager for Southern Impression Homes. Once your investment is finalized, you are required to use SunCoast PM. We initially allowed investors to manage these properties themselves and ran into a lot of issues that affected the integrity of the neighborhood which then affected the other investors and their assets.
- Rental Property Investor · Colorado Florida Arizona Texas, Nevada and Ohio. · Member since 2020 · 116 posts · 58 votes5y
Any updates on anyone using southern?
- Member since 2015 · 3 posts · 7 votes5y
I would avoid new build properties from southern impression homes. We signed P&S agreements on 6 different properties totaling 20 units approximately 8 months ago and received a call today that the price we thought we were buying at has to-be increased on average 13% due to the increased cost of construction. I'm thinking" not my problem"- you are the builder. The numbers no longer look nearly as good on these investments (now more like speculation) and I will now be forced to get my deposit back or accept this new price. Total waste of time company. They market as "lock in now at today's prices and reap the benefits later" but that is just not the reality. They also, last minute, changed an 8 bed Fourplex to a 6 bed. What a scam. Finally the pro formas that they provide are absurdly basic and neglect at least 25% expenses, so are essentially useless. Engage with them at your own risk.
- Member since 2019 · 15 posts · 2 votes4y
@Alex R. Did you move forward? can you share your experiance, also how is Ocala, FL market for rental investment
- Member since 2019 · 5 posts · 2 votes4y
Quote from @Adam C.:
I would avoid new build properties from southern impression homes. We signed P&S agreements on 6 different properties totaling 20 units approximately 8 months ago and received a call today that the price we thought we were buying at has to-be increased on average 13% due to the increased cost of construction. I'm thinking" not my problem"- you are the builder. The numbers no longer look nearly as good on these investments (now more like speculation) and I will now be forced to get my deposit back or accept this new price. Total waste of time company. They market as "lock in now at today's prices and reap the benefits later" but that is just not the reality. They also, last minute, changed an 8 bed Fourplex to a 6 bed. What a scam. Finally the pro formas that they provide are absurdly basic and neglect at least 25% expenses, so are essentially useless. Engage with them at your own risk.
I am experiencing the same problem. I went under contract with Southern Impression Homes in June 2020 for a fourplex in Ocala, FL . They are informing me now (Jun 2022) after they FINALLY started work, that they are increasing the price by~$164,000 / 39% increase. Has anyone had any luck obtaining legal counsel and fighting this? They had our deposit for 2 years, kept stringing us along, and now demand an increase. This is ridiculous and I feel scammed. If I didn’t have a positive experience with them prior to this, I would literally think we were scammed.
- Member since 2019 · 5 posts · 2 votes4y
As a follow up to this post, we met with the CEO of Southern Impression Homes to discuss our rate hike of$164k. He seemed very authentic in our discussion and showed charts indicating how the cost of supplies has increased more over the last 2 years than they did over the last 20 years. He indicated that they have begun to change their business model now and they no longer sell a property until it has been permitted. He seemed as transparent and genuine as possible. Since we have previously done business and had a good experience with this company, we decided to accept the rate hike as the numbers still made sense and we've been wanting to get into multifamily. I will update again if the rate hikes again or anything changes.
- Member since 2015 · 3 posts · 7 votes4y
I'm circling back to this thread. I've dropped every single property I had under contract with SIH. Not a single one of the properties I was under contract for made any sense once the massive price increases were put in play. I had 5 fourplexes and 3 duplexes. Consider that interest rates are now double what they were in 2020 with investment properties (especially a four-plex 6.5 at least) and the new cost of the buildings. Initially 515, now 815. Sure rent has increased, but the number will put you massively underwater right off the bat. SIH has some marketing gimmick with the Real Estate Guys where they bus unsuspecting retail customers around to the sites to see home being built. It is a total scam for the unsuspecting who really want to get into "real estate / small multifamily". April, have you seen the recent pro-formas they are putting out on these properties that suddenly become available..basically, the properties that investors decided to drop once they asked for massive price increases? The proformas are utter nonsense because they know the product is no longer a viable investment. They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year). They are essentially hoping you don't notice all these little maneuvers and that you look to the bottom of the page to see a positive cash flow. Did I mention they also factor ongoing rent increases of 6% for the next 5 years and 7% appreciation for the next 5 years. Sure, anything would look good with those numbers. In addition, suncoast will charge you a 1 month rent just to get the property filled, so you are already starting off massively underwater. If rent is 1500 per unit, well, now you are $6000 (1500 * 4) in deficit right from the start. The properties looks good in 2020 when they were 515 and interest rates were 4%. These properties will now eat you alive. Also beware, suncoast will hold you for 2 years while they suck the life out of you. I too though these were good investments early on 2020, but the whole premise of buy now, lock in now is nonsense. They take two years to build these and then factor in the new market pricing to essentially ride the appreciation wave. Finally, the data they are using to demonstrate the price hike is WAY out-dated. Most material pricing, especially lumbar has come down tremendously from the chart he is using to show the increase. I'm sure they are taking advantage of people. I just don;t have the energy to pursue litigation. I got all my deposits back plus 6% for the 2 years they held it. Again, buyer truly beware, I'll be around in 3 years when everyone is dumping these properties because they are so underwater and I can buy them without the burden of suncoast waiting to sting me. Good luck to you.
- Member since 2022 · 1 post · 5 votes4y
BUYER BEWARE!!! This is the most unprofessional company I have ever dealt with. They completely lie. So many hidden fee's and the quality of the construction is terrible, you'll be lucky to see a ROI. Every month there is hundreds if not thousands of expenses for work orders. The tenant could say "my window doesn't lock" instead of calling or troubleshoot or sending an in house tech they will send an expensive GC who charges $200 an hour to check it out and then charge you for their time. Or to avoid angering you they charge your tenant's huge commercial fee's so you can forget about retention. Go read the tenant reviews. Absolute nightmares. They never eat any cost for their poor communication they find a way to throw it off on us or the tenant. The warranty is an absolute joke, please read the fine print. I've flown down and walked the units at Western Way and there is a lot to be desired. Cheap materials, thin walls, the LVP was peeling already not to mention the transient individuals in the parking lot. It's a high crime area surrounded by sketchy motels. It will be a run down apartment building before long. They hold your money, spend it without your permission and you have to call and email incessantly to get a release of your monthly draw.
There is a woman in onboarding who is well spoken and fairly well informed but once you've signed on communication completely ceases. They have no integrity. They put their educated, well dressed employees on the front line and hide the Highschool dropouts in the office and that is who's actually managing your home. I don't often speak to peoples background but in this case it's important and I would be surprised if half of them graduated Highschool. They do not present well or communicate professionally. One of the ladies, Amanda couldn't keep her eyes open during our meet and greet, she continued to nod off and she is one of their tenured Property Managers. It was clear there were some problems beyond being "tired". They have 1 young girl running the entire community of Western Way. She truly struggled to answer my questions, she has no idea what she's doing. I promise you they will respond to this by saying "Hi Victor, I don't see your name in our records, please give me a call so we can address your concerns" It's all for show. They don't care about doing the right thing they care about hooking, selling and maintaining appearances just long enough to win business. Take your money elsewhere and GET AN INSPECTION! - 2yBrandon GallPro MemberMember since 2019 · 20 posts · 13 votes
Has anyone had any recent experience with this company?
- 1yJames N SheilsBusiness MemberReal Estate Agent · Jacksonville, FL · Member since 2023 · 10 posts · 10 votes
Hi Brandon,
I have worked with Southern Impression Homes for also decade and merged my own company with them to become a full partner in 2022.
We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida a. We are only selling completed homes with our own in house financing currently at 3.75%, a huge discount from most bank rates.
We are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group and more
We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional side
We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75% through our in house financing program. Plus 2 years free property management. A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program. And easy for us to fulfill 1031 exchanges now. Not to mention we have grown our PM staff by almost 50% to help better support our growth and overall management.We are currently building out 5,000 lots ion Florida
thanks Brandon
- 1yJames N SheilsBusiness MemberReal Estate Agent · Jacksonville, FL · Member since 2023 · 10 posts · 10 votes
Hi Brandon,
I have worked with Southern Impression Homes for also decade and merged my own company with them to become a full partner in 2022.
We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida a. We are only selling completed homes with our own in house financing currently at 3.75%, a huge discount from most bank rates.
We are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group and more
We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional side
We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75% through our in house financing program. Plus 2 years free property management. A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program. And easy for us to fulfill 1031 exchanges now. Not to mention we have grown our PM staff by almost 50% to help better support our growth and overall management.We are currently building out 5,000 lots ion Florida
If you would like a free copy of my best selling book "Passive Income Playbook: How To Leverage Build to Rent Real Estate to Buy Back Your Time And Have a Legendary Family Life" just let us know and we will send you a copy
thanks Brandon
- 1yJames N SheilsBusiness MemberReal Estate Agent · Jacksonville, FL · Member since 2023 · 10 posts · 10 votes
Quote from @Victor Nunez:
BUYER BEWARE!!! This is the most unprofessional company I have ever dealt with. They completely lie. So many hidden fee's and the quality of the construction is terrible, you'll be lucky to see a ROI. Every month there is hundreds if not thousands of expenses for work orders. The tenant could say "my window doesn't lock" instead of calling or troubleshoot or sending an in house tech they will send an expensive GC who charges $200 an hour to check it out and then charge you for their time. Or to avoid angering you they charge your tenant's huge commercial fee's so you can forget about retention. Go read the tenant reviews. Absolute nightmares. They never eat any cost for their poor communication they find a way to throw it off on us or the tenant. The warranty is an absolute joke, please read the fine print. I've flown down and walked the units at Western Way and there is a lot to be desired. Cheap materials, thin walls, the LVP was peeling already not to mention the transient individuals in the parking lot. It's a high crime area surrounded by sketchy motels. It will be a run down apartment building before long. They hold your money, spend it without your permission and you have to call and email incessantly to get a release of your monthly draw.
There is a woman in onboarding who is well spoken and fairly well informed but once you've signed on communication completely ceases. They have no integrity. They put their educated, well dressed employees on the front line and hide the Highschool dropouts in the office and that is who's actually managing your home. I don't often speak to peoples background but in this case it's important and I would be surprised if half of them graduated Highschool. They do not present well or communicate professionally. One of the ladies, Amanda couldn't keep her eyes open during our meet and greet, she continued to nod off and she is one of their tenured Property Managers. It was clear there were some problems beyond being "tired". They have 1 young girl running the entire community of Western Way. She truly struggled to answer my questions, she has no idea what she's doing. I promise you they will respond to this by saying "Hi Victor, I don't see your name in our records, please give me a call so we can address your concerns" It's all for show. They don't care about doing the right thing they care about hooking, selling and maintaining appearances just long enough to win business. Take your money elsewhere and GET AN INSPECTION!Hi Victor, my name is Jim Sheils and I am a partner here at southern impression homes. I apologize for your troubles. Since merging my company with Southern Impression homes 2 years ago, we have made a lot of strides in growing our PM department and client systems. Unfortunately a lot of times we have found tenants speaking bad on PM no matter what happens but still trying to improve that I am not aware of your individual situation so cannot speak on it yet. One thing of encouragement is I have many personal friends and clients invested in Western and their values are up almost 300K with larger rent increases as well so I m hoping you have experienced the same results! I have not been aware of any building defects on these units either but happy to discuss further. we do appreciate you business and for working with us
- 1yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @James N Sheils:
Hi Brandon,
I have worked with Southern Impression Homes for also decade and merged my own company with them to become a full partner in 2022.
We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida a. We are only selling completed homes with our own in house financing currently at 3.75%, a huge discount from most bank rates.
We are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group and more
We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional side
We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75% through our in house financing program. Plus 2 years free property management. A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program. And easy for us to fulfill 1031 exchanges now. Not to mention we have grown our PM staff by almost 50% to help better support our growth and overall management.We are currently building out 5,000 lots ion Florida
If you would like a free copy of my best selling book "Passive Income Playbook: How To Leverage Build to Rent Real Estate to Buy Back Your Time And Have a Legendary Family Life" just let us know and we will send you a copy
thanks Brandon
owned by a Japanese company, the floorplans are pretty poorly designed and larger than build to rent should be. the 4 plex they have is a higher price per door than th national average and needs to be modified. horrible designs. I wouldn't touch a multifamily with them or single family. I'll drive you down the streets of Lehigh acres where they build and show anyone the gap between market rents (real asking prices) and their pro formas
Section 8 Launch52 Reviews- 1yChristopher StevensPro MemberRental Property Investor · Redondo Beach · Member since 2023 · 36 posts · 44 votesThanks for the feedback, Robert. What build to rent, turnkey + good property management companies do you recommend if Southern Impression Homes is not a good option?
Quote from @Robert Ellis:
Quote from @James N Sheils:
Hi Brandon,
I have worked with Southern Impression Homes for also decade and merged my own company with them to become a full partner in 2022.
We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida a. We are only selling completed homes with our own in house financing currently at 3.75%, a huge discount from most bank rates.
We are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group and more
We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional side
We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75% through our in house financing program. Plus 2 years free property management. A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program. And easy for us to fulfill 1031 exchanges now. Not to mention we have grown our PM staff by almost 50% to help better support our growth and overall management.We are currently building out 5,000 lots ion Florida
If you would like a free copy of my best selling book "Passive Income Playbook: How To Leverage Build to Rent Real Estate to Buy Back Your Time And Have a Legendary Family Life" just let us know and we will send you a copy
thanks Brandon
owned by a Japanese company, the floorplans are pretty poorly designed and larger than build to rent should be. the 4 plex they have is a higher price per door than th national average and needs to be modified. horrible designs. I wouldn't touch a multifamily with them or single family. I'll drive you down the streets of Lehigh acres where they build and show anyone the gap between market rents (real asking prices) and their pro formas
My biggest challenge is finding a good long-term partner for turnkey and good property management. It's all starts with turnkey deals, but they need to have good property managers, too, else it becomes a huge task for property owners. I've found that good/fair property management companies are hard to find.
Again, thanks, and keep up the great work! - 1yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Christopher Stevens:
Thanks for the feedback, Robert. What build to rent, turnkey + good property management companies do you recommend if Southern Impression Homes is not a good option?Quote from @Robert Ellis:
Quote from @James N Sheils:
Hi Brandon,
I have worked with Southern Impression Homes for also decade and merged my own company with them to become a full partner in 2022.
We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida a. We are only selling completed homes with our own in house financing currently at 3.75%, a huge discount from most bank rates.
We are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group and more
We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional side
We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75% through our in house financing program. Plus 2 years free property management. A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program. And easy for us to fulfill 1031 exchanges now. Not to mention we have grown our PM staff by almost 50% to help better support our growth and overall management.We are currently building out 5,000 lots ion Florida
If you would like a free copy of my best selling book "Passive Income Playbook: How To Leverage Build to Rent Real Estate to Buy Back Your Time And Have a Legendary Family Life" just let us know and we will send you a copy
thanks Brandon
owned by a Japanese company, the floorplans are pretty poorly designed and larger than build to rent should be. the 4 plex they have is a higher price per door than th national average and needs to be modified. horrible designs. I wouldn't touch a multifamily with them or single family. I'll drive you down the streets of Lehigh acres where they build and show anyone the gap between market rents (real asking prices) and their pro formas
My biggest challenge is finding a good long-term partner for turnkey and good property management. It's all starts with turnkey deals, but they need to have good property managers, too, else it becomes a huge task for property owners. I've found that good/fair property management companies are hard to find.
Again, thanks, and keep up the great work!I'd focus more on the market economics. Florida is a great market for build to rent. There is a laundry list of great places. SIH builds in all of florida but their markets are pretty soft overall they are going where land costs can be supported. Single family home in my opinion is very poor strategy. I'd stick to 2-3 units for build to rent development and focus on markets where you can direct contract with a builder. You can use any floorplan you want. Three story walk up apartments are the most common. I'd look where the value per door is at least 25% above the construction cost per square foot you are being quoted to build. That allows you to pull out your cash and keep recycling it. In our market in Columbus, the economics are as follows:
Land: $30,000-$60,000
Construction cost with profit hard cost per square foot $190-$195
Exit Value that you'd want per door is $200k+ or $260 per sq ft or higher. We overlay where land prices are under 60k and force comps for new construction over $260 per square foot. This ends up being mostly infill zip codes.
Zip Code
Zip Code (Count All)
Sold Price/SqFt (Average)
43206
8
292.47
43081
6
302.43
43110
4
272.79
43215
2
397.32
43203
2
291.21
43205
2
278.40
43207
1
388.63
43222
1
290.90
Grand Total
26
302.27
We target then the zips that have the land prices like 43206 because it has the most deliveries on single family homes. These are single family home deliveries on a trailing 12 month basis. So we kind of reverse engineer where the economics exist. Columbus has a lot of multifamily downtown so in these zip codes we ahve a pathway to construction stacked three family. It's part of an entitlement process that takes 3 months but it creates a lot of value. Three family in our market is the highest you can be without commercial because commercial becomes cost prohibitive on the entitlement side of things.
That's just an example but these economics exist in Homestead Florida which is a suburb of Miami Florida there are lots below 100k and the asset is worth $300k per door down here so anywhere that new construction is selling at a premium to the builder cost with profit is where you can do it. We only target 5 zip cods in Columbus Ohio. Any realtor in any market can get you this data.
As far as property management that's easy. We separate lease up and property management. Often realtors who deal in rentals can place higher rentals than property manager and know how to market. Then you turn it over to property manager once tenants are placed.
What markets are you invested in right now?
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