All Forum Posts by: Aaron K.

This is a 120+ year old property so you may be looking at some repairs not immediately visible in the listing photos.  Also I have a hard time believing that property taxes are only $26 per month; That would be 0.25% which is incredibly low.

@Bailey Rubal it is great that you are starting early, with this home in particular I see that it has a very sizeable HOA of $276/ month which is not included in your analysis, however the variable expenses you list at $280/ month are likely to be a bit lower as this will pretty much only include repairs/ maintenance. Also because this home is in a flood zone your insurance premiums may be quite a bit higher as well.

@Johnny Garcia yeah no, find someone else to help or at least help him do something on the up and up, it sound's like your wife's boss is committing fraud, you really don't want your first foray into real estate to be a fraudulent transaction.

Everyone is different and you may have better luck with the smaller amount, someone's grandma could very well have $40k saved that they would like to earn 15% on, but are much less likely to have $200k saved.  You may have more hurdles with hard money lenders and companies but if you get in front of enough people you may be able to make it work.

@Ryan Burke why is this a concern for you?  It could be that they just want to see the condition of their units so they know what repair requests may be reasonable.  You can always discuss your thoughts after your showing anyway, as those conversations usually don't take place at the property in front of tenants anyway.

Get more specific with your analysis than FL at large, The area in your backyard of the Austin Suburbs and SA has quite a bit of opportunity for appreciation and rent growth.

I'm confused by the question, do you mean the owner wants to continue living in the property after you buy it?  Are you a PM dealing with an owner who wants to be present for all showings?

@Christopher Lee to my knowledge this is not a common thing, it may be that being based somewhere else allows larger cases to be handled in courts in states more favorable to landlords, but most cases (if you have any) will not rise to that level and likely not be worth the additional fees of setting up and maintaining the structure.  Your money may be better spent on additional liability insurance, if this is something you are worried about.

@Nick Belsky I believe your biggest hurdle is going to be the bank, they generally don't look favorably on borrowed down payments and may not loan you the remainder.  Your profile says you're a lender so maybe you know something I don't.  And unless the market keeps it's crazy pace it may be tough to force enough appreciation to refinance all of the money out in 6-12 months.

If you do it right, the cost will probably be quite a bit and may not pay off.  If you do it cheap you may not get the increase in rent you were expecting, do more research on what it takes to truly make something livable space, talk to some contractors and rerun the numbers.  My guess is the juice won't be worth the squeeze.