[Calc Review] Help me analyze this Orlando deal, near UCF

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I am thinking of using it as student living and renting per person or just a single family home. I tried changing the purchase price to see if it will cash flow. What am I doing wrong? Where else can I switch the numbers around to make it work. Average rent for a 2 and 2 in that area can go as high as 1425

@Keleisha Carter So a couple things I see. First you should be able to look up the actual taxes instead of guessing a percentage. Is vacancy really going to 6%?  That seems a bit high. I think 3%-4% is more accurate for the area. You have management at 9% which I think is actually low unless you already know a PM that will do it for 9%. I personally do 5% for capex and repairs. I think basically the margins are too thin on this. If you plan to live in the property and rent out rooms then it might make sense but only because you would be reducing you living expenses and be able to increase your savings for the next deal. I see you have electricity listed as an expense and as income not sure how you figure that. I guess if you are going to bill the electricity back to the renters then sure. But if you are doing that why would you not have them pay all the utilities?

@Tyler Gibson Hi Tyler thanks for responding. I got the tax info from the listing info from my agent. Thanks for the vacancy percentage, that I guess because I’ve been asking for that rate but they don’t seem to know and wasn’t sure how else to get that info. Thanks for the cap ex info and PM should actually be 10%


I’m thinking of including it in the rent as well if I rent to students. Any suggestions of how to do this?

This property sold two days ago. I would check with your realtor for live deals

In terms of underwriting going forward: 

For property taxes, I would make sure the property is not currently homesteaded. $1,680 annually for taxes seems light

You should definitely charge tenants back for electricity as well as water/sewer. If you are setting this up as a student housing deal, you might be able to keep it in your name and just bill back your tenants a flat fee. If all utilities combine for $180, charge tenants $200 for the convenience of paying one bill and it always being the same rate. 

I also don't see any HOA fees, since this is a townhome you would likely have those

@Megan T. What do you mean homesteader? Also, I got the tax info from the listing and realtor.com


That's what I'm struggling with. Having an idea of the cost for utilities. Also, there isn't any HOA

Homestead exemption is a discount on your real estate taxes if you live in the property. They set this up to offer discounts to Florida residents instead of snow birds. You should definitely be watching out for this when buying rental properties because the real estate taxes for the property can double or triple the year after you buy it

More information on the exemption: 
https://www.pbcgov.org/papa/homestead-exemption.htm

You should not be relying on your realtor for real estate tax estimates. While the 2018 taxes on this property were $1,679, if you use the county assessors estimate they will increase to $2,391-$2,756 next year based on your purchase price. 

This is the link to the county assessors website, on the top to the left of the picture they have an estimator tool where you can put in your purchase price for the property and it will estimate your taxes next year
https://www.ocpafl.org/Searches/ParcelSearch.aspx/PID/312215286600301

There is a search tool at the top left for properties going forward