Do i have a good realtor and how am i doing

[Account Closed]

Good evening all,

Im a noob investor in the Tampa area and in need of advice on my realtor and if im on the right path. Two years ago we met our realtor on craigslist and he helped my wife and i to buy our first duplex in New Port Ritchie. It was our first and we just wanted to start the path. It was $135k, we used Regions and overpaid on the down payment; $40k, $3500 for repairs to bring it up to S8 code. As you would have it as soon as the renters moved in an issue came up with both AC units. $4500 later we were on our way to investors. Last year one asked for a cover over the exterior washer/dryer. So we added one for each side @ $1200 total. The tenants are still with us for a second term and no repairs or issues so far.

Used a HELOC to purchase our second last year in Busch/Nebraska area for $100k, $20k down and $1200 to repair the fascia. One tenant decided to stay at a higher rent and the other we are honoring until August so waiting to see what happens there. This property will require most likely a new roof in the near future, and we were prepared to put in $7k worth of work but tenant was fine with the way it was and he has been there for 13+ years. So if hes okay we are okay. If the second moves out we will update to S8 code and rent it out for more, currently at $500/month. First tenant is at $765. We pay water but is included in lease amount.

So here we are...

We were able to refi the first and pull $21k. We will use that as down payment for new property this year. But we are limited in the areas for obvious reasons. I think we could have gotten a better price for the second unit but it was a NET sale. We have sat down with the realtor and explained our goals to buy 1/yr and as we acquire more maybe 2/yr. We hope to buy two this year.

So are we on the right track? Is our realtor guiding us in the right direction? How do i know we are getting good deals? What signs should we look for that we can trust our realtor/investor? He is an investor realtor as he has come to us with off market properties. 

What area in the Tampa/St.Pete/New Port Ritchie are good places for me to invest? Our budget is limited as right now we can scrape roughly $20k a year for purchases and have enough for repairs. We are hoping this will be the first year to buy 2 properties. The goal is to reinvest our earning from all properties into other purchases.

Thanks for reading all this. I feel i need some guidance or even some reassurance.

Thanks,

Carlos

[Russell Brazil]

Originally posted by @Account Closed:

Thank you both for your response.

On the second property we were going to do $7k on repairs to clean it all up and get it up to S8 code. We did not use an inspector since our handy man went with us to look it over.

When he repaired the fascia he found the roof may have a couple years left of life. So add another $8k or so for new roof.

So maybe the issue is that I’m not negotiating these repairs. For instance, if it’s $100k for the property, is it fair for me to request $15k deduction from total price to cover expenses?

Maybe it’s me and not my realtor? Appreciate all your help!! :)

This is impossible to put a generalization on.  If a property needs $X in work, that doesnt mean the price should be list price minus $X.  The condition of the property may very well already be factored into the price of the property.  Or the fact that it needs work may, or may not have an effect on the market value of the property.

Every single house on the earth is going to have 3 major things that need constant replacement. The roof, HVAC and water heater.  Unless it is a new construction, these things have different life cycles and are never all going to be lined up at the same time. So every house essentially has one of these 3 components at the end of it's lifespan, thats just a fact of properties aging.