Advice for first time investor in Tallahassee, FL

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Advice for first time investor in Tallahassee, FL

Monika Charles
Tallahassee, FL · Member since 2017 · 5 posts · 1 vote

Hey everyone, I am new to this and wanted to get some advice. I have some money to put down on a rental property. A few that I am considering are in the Tallahassee, Florida area. The main property I am looking at is 3/3 condo, 1344 Sq ft. $87,000. Does anyone have any advice on this or any general advice when it comes to investing in property in Tallahassee?

Thanks, M.

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  • Bill Turner
    Investor · Tallahassee, FL · Member since 2013 · 77 posts · 24 votes
    9y
    What is your target renter? College students rent by the room? Renting section 8? What kind of condition Post some numbers and more info I have 6 town homes in Tally. Let me know if I can help you Bill
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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    Be careful with condos. Many have rental caps because of the HUD financing restriction. Plus the condo fee can be unpredictable. If you have a lot of foreclosures for example, the remaining owners have to make up more than their normal fair share. Non-condos are safer for landlord's, in my opinion.

    THE BASIC ELIGIBILITY GUIDELINES for FHA CONDO APPROVAL 2016

    FHA condo approval guidelines for owner occupancy and commercial space Percentage Requirements
    • Commercial Space – No more than 50% of property can be used as commercial space
    • Delinquent Dues: No more than 15% of units can be arrear in their assessments more than 60 days
    • Any investor/entity (single or multiple owner entities) may own up to 50% of the total units IF at least 50% of the total units in the complex are owner occupied as principal residences. (The previous limit was 10%)
    • No more than 50%** of the units can be investor owned / rentals
      • **10/26/2016 update – There is an exception to this rule, which reduces the required owner occupancy to 35%. A special set of additional guidelines will apply. The exception is only given to existing condo complexes with at least 3 years of very stable finances, and low delinquency rates.
    • No more than 50% concentration of FHA Loans within the community
    757-472-2547
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  • Monika Charles
    OP
    Tallahassee, FL · Member since 2017 · 5 posts · 1 vote
    9y

    @Bill Turner Hello Bill! I'm not sure what my target is, possibly just college students that are tired of dealing with student housing or couples or small families who want to rent for now. Please explain your experience with townhomes and how you can to acquire that many properties.

    A townhome I am looking at is $65,000 2/2 1,222 Sq ft. and 3,920 sq ft lot. The other side is also for sale by the same owner so i was looking into purchasing both and maybe living on one side. So essentially, it would be the whole duplex under one roof. Please help I just want to know where I should start!

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  • Monika Charles
    OP
    Tallahassee, FL · Member since 2017 · 5 posts · 1 vote
    9y

    @Patti Robertson I'll be sure to keep that in mind! 

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