How to structure my move

Question

I am a house flipper. Was a Realtor then switched to primarily house flipping because I am better at it and pays more for me personally. 26 year old (almost 27) single guy. I own a house in Hyde park Cincinnati which is prime area 3 bed 2 bath that I live in with my roommate. I want to move to St pete florida.. as the years go by I want to do this before I get too comfortable to move. I would be renting out my primary either LTR, MTR or STR. Don't know yet. I would be continuing to buy flips in Cincinnati and manage them remotely the eventually dabble in the florida market once I have been there a bit and know whats what.

With these house flips I take a lot of write offs so my income on paper is not enough to buy a house in St pete. After my current flip sells In around end of feb, mid march should have around 125k liquid cash after that sale. Should I just rent for a year (or 6 months) in St pete and see what areas I like and see how I like it in general or eat my tax bill for 2023, be able to show more income and try to buy something in st pete? Problem with this is I probably could not buy downtown where I want to live and meet new people. It would have to be not so close to downtown.

Thanks!

Amber Stout · Answer

Hi James, I've lived in Saint Pete since 2019 and it's the best city I've ever been to. I love it! You'll do well flipping in St Pete as there are many pockets that could use your gifts. Are you looking for a single family or multi family?

You could do a bank statement loan or DSCR as others have mentioned. I understand you want to put down as little as possible. There are bank statement loans for 10% down. I'd want to understand your specific financial situation and your goals first and as a mortgage broker, I can check into options for you. Let me know if that is something you'd be interested in.

In addition, happy to share any info about St. Pete or make connections for you in the Saint Pete/Tampa area!

Jake Baker · Answer

@James Robert

Renting seems like the best option. Or you could rent an airbnb for 6 months while you settle in.

James Robert · Answer

If I bought a flip in st pete I would have to pay more tax this year to qualify for a conventional loan, or I buy something with 10-20% down on dcsr and just live in it and fix it up. Most lenders don't see my flips as income even though I have flipped 5 homes in 3 years. They only see my realtor income as income and thats my side hustle basically..

Adam Bartomeo · Answer

Why would you just do a Live In Flip for two years? You would gain the equity/appreciation, reduce your capital gains taxes to $0, and not pay rent. After the two years you will know exactly where you want to live and can buy your dream home. Seems like a no brainer.

James Robert · Answer

Hey! Ill send you a message

James Robert · Answer

Yes renting is probably the play for me. 6 months to a year. I already had my dad co sign on my primary in Cincinnati which I want to keep so i don't want to do that again. Dcsr loan could be a good play, that 20% down is a major kicker though

Ray Hage · Answer

I am a huge fan of St Pete and that's where I would live if I had to move out of Fort Lauderdale. It might be worth renting the first 6 months to get a good feel of different areas. Maybe you will end up like St Pete Beach, Clearwater or various parts of Tampa better. If your income is low on paper, you'll most likely be best off with a DSCR loan. Rates are a big higher but not crazy higher. You could also look into having a co-signer on your loan if you got a relative/friend who willing to do it.

Sam McCormack · Answer

I shot you a message!

Matthew Paul · Answer

I would rent or roommate for a year and get the feel for the area , make contacts etc . From my understanding from some friends in Florida that are in the business , finding houses to flip and make decent money is difficult , and they are established in Florida .  At 27 and single you can travel light and move to greener pastures easily . I wouldnt increase my tax bill to show higher income , self employeed , they want 2 or 3 years

James Robert · Answer

I know about the bank statement loans and DCSR all that they require that 20% down and have the higher rate as you stated. I am a big believer of leveraging the 5% down strategy and moving into the property for 1-2 years. I would be less out of pocket eating my tax bill without write offs and getting into something with 5% down

How to structure my move

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