New member in Pinellas, St. Petersburg, Tampa

New member in Pinellas, St. Petersburg, Tampa

Saint Petersburg, FL · Member since 2016 · 3 posts · 2 votes

Hello, new member here. I have been browsing the forums and listening to the podcasts. Read a few books, researched the MLS, craiglist, etc. I feel like I'm at the point where I know what I want to do and how I want to do it. Multi family buy and hold in my market or close to my market (I know there may be better deals in other markets, but I'm not ready for that yet). I would like to buy a 2-4 unit property so I don't have to go into commercial loans yet. I'm trying to follow the 2% rule, but it doesn't seem like it is possible in this market and even 1.5% is far fetched, the worst I would settle for would be $100/door/month. Looking to set up a team for my first purchase (and then many more purchases) and need advise on a property manager, lawyer, real estate agent or wholesaler. I have the cash and would like to spend up to $250,000 (really $60,000 or less per door). Any help or advise is appreciated. Thank you.

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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
10y

Hi Jesse,

You're correct that the 2% rule is not realistic in the St Pete market in good neighborhoods.

I'd be happy to help with 2 of your 4 needs (investor friendly agent and property manager)...let me know if you have any questions or I can help in any way.

Good luck!

Copeland Morgan LLC4.770 Reviews
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  • John Van UytvenPro Member
    Property Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes
    10y

    @Jesse Michael

    First off the 2% rule is not a rule. It's a guideline. It's a guideline that doesn't always work.

    You should use the Rental property Calculator. It ask you the questions you need to answer. You need to factor for property management.

    The goal is good, just make sure the math works.

  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    10y

    Hi Jesse,

    You're correct that the 2% rule is not realistic in the St Pete market in good neighborhoods.

    I'd be happy to help with 2 of your 4 needs (investor friendly agent and property manager)...let me know if you have any questions or I can help in any way.

    Good luck!

    Copeland Morgan LLC4.770 Reviews
  • Real Estate Agent · tampa, Florida (FL) · Member since 2013 · 206 posts · 96 votes
    10y
    Welcome! As someone in your area I can tell you the 2% rule is quite attainable, you just have to know where to find them and be ready when you find them because they dont last long
  • Investor · Saint Petersburg, FL · Member since 2013 · 73 posts · 29 votes
    10y

    @Jesse Michael

    Welcome to bigger pockets.   As an investor based in St Pete, 2% is just not going to happen.   Maybe a few south side properties, but probably not even there.   Perhaps in the surrounding community, but not in St Pete proper.   Our best performing 3 unit MF cost $130K in 2014 after repairs and returns $1950.   That's unusually high, we lost several opportunities in that timeframe to investors with deeper pockets willing to settle for less than 1%.   Inventory is really low right now, not helping new investors.  Good luck!  Happy to have a cup of coffee and discuss our experience.   Bob

  • Investor · Saint Petersburg, FL · Member since 2012 · 55 posts · 19 votes
    10y

    been researching this market for a while, it seems that with the low inventory, your best bet might be to buy something that needs some TLC. This way you can add some value. Just my two cents, not sure if more experienced investors agree. 

  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    10y

    You can hit the 2% rule in the not so great parts of the southside (my personal best this year is hitting the 4.8% mark but that was an off market deal, like everything I buy today).   I wouldn't suggest a new investor start in rough areas unless you really know them well.   Don't use some magical rule about what percentage you should pay.  You should make sure you're going to have whatever cash flow you need to make it worth your while after factoring in all costs and expenses.   Also make sure you have another exit strategy, if you buy below market you'll have equity and will be able to easily sell in the future.

    Most deals on MLS aren't going to leave you much room, too little inventory and too much competition.

  • Wholesaler · Tampa, FL · Member since 2015 · 168 posts · 25 votes
    10y

    Hey @Jesse Michael Welcome to BP. Would love to talk sometime. I am a wholesaler in the Tampa Bay Area. Make sure you check out your local REIA's, podcasts, and forums. Lots of great info there. Good luck and happy investing.

  • Saint Petersburg, FL · Member since 2016 · 3 posts · 2 votes
    10y

    Thanks for all of the replies, I appreciate the input.

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