Acquiring Bradenton SFR via quitclaim - what would y'all do?

Question

Hey everyone, as of next week I will take ownership of a SFR in Bradenton. It's a 3b/1.5ba/816sqft home located by Norma Lloyd park in the Eastern part of town. Currently rented for $1000/month, the lease expires at the end of April. As I see it, my choices are A) keep the house and cash out via HELOC or refi or B) sell it immediately. Having taken over this deal from California (I was initially a passive investor) I don't have a network in place in Florida to help me best ascertain my best avenue of disposition. There has likely been some deferred maintenance (roof, siding) that will need to be taken in to consideration and I'm having a little trouble trying to pin down the market value - both current and ARV. Without a BPO/appraisal and an inspection/contractor bid I've little data with which to run any calculations.

Also, since the lease expires at the end of April, there might already be an extension in place that could preclude me from doing any reno work. I assume I'll have to have my attorney contact the local property management team in order to facilitate the change in ownership from their perspective. Not knowing anything about them either, I may have to change PMs if we aren't a fit.

Do any of you Florida investors, agents, PMs, etc. have any input or references to those who might be able to help? Of course, I'm not looking for a freebie and am committed to making everything mutually beneficial. I'm certainly not opposed to establishing lasting connections that could potentially lead to more deals (flips/SFR/MFR) down the road. This is an unplanned market for me but since I'm already in it, why not look to expand?

Thanks everyone!

Brian Moseley · Answer

It is my understanding that in Florida, Title companies can also conduct closings. This may be something to think about in the process

Simon Hernandez · Answer

Thanks for your thoughtful input, Mr. Williams. I think going through the current PM for contacts is a good place to start. To be clear, the quitclaim is the result of a foreclosure initiation for which I held the note so I'm not purchasing it. Good point about the buildout, Ms. Arehart. I think I'll have a better idea after I get an official inspection of some sort.

Karen A. · Answer

I agree with Mr. Soper; the area that you're describing is a low-income neighborhood. That's something to keep in mind especially if you're doing renovations. For example, you would not want to put in the highest-class finishes because the neighborhood will not support a return on that investment.

Charles Soper · Answer

Hey @Simon Hernandez, you’re playing in my backyard. Out of curiosity how did you come about this property?

So I’m not sure how well you know Bradenton but that area is kinda of the edge of the hood, depending which direction from the park you mentioned that could work for or against you.

Send me a PM and I can get you the name of a property manager that a lot of the local REIA members use and happy to get you a some contractor info as well. Get you an agent or investor if you want to sell it as well.

Franklyn Williams · Answer

Hey Simon,

It's great that you're getting involved outside your city and it seems you've thought about the situation a lot. I wasn't sure what you're asking, though for a BPO, you can simply locate/google a broker/realtor office near the property and get a BPO for free. The agent might even run comps for you especially if you're interested in selling. For contractors, you can do the same thing, namely contact a few near the property using various websites (e.g., angie's list, etc) and request bids if you have some idea of the project and its requirements. The existing property mgr may also provided useful contact info for a broker, contractor, etc. As to buying with a quit claim deed, I wouldn't recommended it if you haven't already done so because what you're buying with such a deed is "the rights and interests of the seller, if any," which means if the seller does not have good and marketable title for whatever reason (e.g., fraud, a defect in title, etc), you equally have nothing and the true/lawful/rightful owner can recover the property. Most folks buy either with a warranty deed or a bargain and sale deed, though the deed varies base on the state.

Hope that helps and good luck.

Acquiring Bradenton SFR via quitclaim - what would y'all do?

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