All Forum Posts by: Adam Bartomeo

My plan is to buy as many SFH's as I can this year. This is where we are seeing the biggest opportunities. I just had a conversation with a business partner this morning about freeing up liquid capital and buying more SFH's. I am hoping and praying that the market continues to drop, even though my net worth will drop drastically. As a B&H investor, as long as you buy in a very stable area the market WILL come back.

For simplistic purposes, let's say I buy the same exact house in the same exact area over the course of a year at - $100k, then $75k, then $50k, and $25k. My average purchase price is $62,500. My risk continues to diminish as the market decreases and I purchase properties. If I bought one house at $100k and the market decreases I would have to wait for it to go above $100k. Since I continued to buy I only have to make it to $62,500 before making money. By the time it gets to $100k I would have made a 60% return.

Prices in SWFL have been dropping for 2 years and inventory has skyrocketed. 

@Ken M. How is that self-serving... Please stick to the facts and not make up a narrative to suit your beliefs. Who said I BOUGHT a house for my daughter? Who said that Verril is married? Who said that he has to move every 3 year? 

I spent 6 years serving my country and never moved. My cousin was in for 29 year and moved 4 times. Please get your facts straight before calling me out. 

The 100% TRUTH is that THE SOONER YOU START THE BETTER OFF YOU ARE!

You are not moving fast enough! The sooner you can start the better off you are. Research "compounding interest" and you will understand. I just bought a house with my oldest daughter, she is 18. She is house hacking right now with a roommate paying her rent. "House hacking" and "Live in Flips" are the best way to get started. 

This is case and point of how important it is to have a team in place. Although, @Chris Clothier is correct when you are first starting, once you have a trusted team in place you can handle everything from a far. We work with lots of investors that have never seen their property but we send them enough info that they know what is going on.

I am a little surprised to hear that this was a scam and even more surprised on how intricate it would have to be for someone to get scammed.

OOS investing is difficult to do on your own and not recommended. I highly suggest hiring a PM. For years of experience in the retail industry, buying warranties is like playing the slots, in the long run you never win. I was a manager for Home Depot for years and the only warranties that I ever purchase are on refrigerators and washing machines.

Normally, they will get involved when someone reports issues and that someone is almost always a disgruntled tenant. Maybe they aren't paying, maybe they didn't get their way about someone, or maybe they are right to be disgruntle. Here the county can enter the property when the tenant allows them to come in. We have tenants report about mildew in the bathroom, broken globes (that they broke) and a host of other items when they are upset. The county is there to help the tenant from slum lords, but my experience is that they have zero education on what is enforceable by law. We told them that we would not clean up mildew and that it is the tenant's responsibility to keep the unit clean... we won.

I think that you have some unrealistic expectations here... A week? 

@Chris Seveney We are seeing properties take 90 - 120 days to find a qualified tenant throughout FL but I can specifically attest to SWFL. This is when it is priced right, and we have taken multiple price reductions. The market is FLOODED with inventory which is causing prices to drop rapidly and lengthier procurement times. 

The VERY FIRST STEP should be having conversations with the tenants about what rules they are breaking - nonpayment, smoking, disturbing the peace - and letting them know the penalty. We never want to evict anyone, EVER! We want them to live peaceably, enjoy their home, and pay their rent. But, we do have to evict tenants from time to time, we average 5 - 20 a year. Depending on the issue we would post a 3-day notice for nonpayment or a 7-day curable to other items - smoking, parking on the grass, etc.

I think that the number work out to be less money if you hire a PM than if you hire an assistant. Thats with under renting them for $100 a month per unit. We have taken over larger portfolios than yours with little to no information and have made them juggernauts - no leases, no keys, no contact info for the existing tenants. Now, EVERYTHING is documented and accounted for. If the owner was spending 100% of their time managing before than they are now spending less than 5% of their time.