All Forum Posts by: Andrew Davis

Hey @Account Closed, you should look at it not as losing money, but as paying yourself rent.

If your mortgage, taxes and insurance are $1k a month, then your tenant will cover that and then some.

The 50% rule is more of a guideline, and encompasses taxes and insurance.  If your self managing, you can take 10% off right there.  Set the extra $200 a month extra aside for vacancies, maintenance and upkeep.  Think about ways you can make the unit more appealing/increase the rent.  Maybe you provide free internet access by sharing your internet connection.  Maybe you rent a  out the extra room to a friend on your side to generate extra monthly income.  Maybe you offer a washer/dryer to your tenant for an extra $30 per month.

If you were to continue living in your "roachy" apartment, you'd have to go the conventional route since you wouldn't be owner occupying, and have to put 15-20% down rather than 3-5% for owner occupied FHA.

Remember, cash flow is only one of the benefits of investing in real estate.

You're acquiring a performing asset and increasing your equity through paying down the mortgage and ideally appreciation.  You can also take depreciation each year to reduce your tax burden, and write off many of the expenses associated with maintaining your rental.

Since you're new to the site, here are a few tips to help you get the most out of BP and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

I'm an agent & investor in the Orlando area, so reach out anytime.  

@John Kim, as a licensed agent in Florida, I would never use a purchase agreement other than the one that is state approved, as @James Wise and @Jake Thomas stated.  

The standard purchase contracts provided by state associations have inspection clauses, financing clauses, and you can always add your own at the end.

If you're working directly with a seller, you can use whatever you want.  

Hey @Gerald Tom, welcome to BP!

Since you're new to the site, here are a few tips to help you get the most out of BP and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

Hey @Tripp Drummond, welcome to BP and the Central Florida investing community!

The BRRRR strategy is a great one, I'm currently implementing it with 2 different properties.

Since you're new to the site, here are a few tips to help you get the most out of BP and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

@Mike Collier, thanks for sharing, can't wait to see the before and afters!

Hey @Rafael Diaz, welcome to BP and the Central Florida investing community!

I would strongly suggest attending one of the local REIA's. Either CFRI or GOREIA, to build your network and connect with other investors.

Since you're new to BP, here are a few tips to help you get the most out of the site and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

Hey @Ali Alazmi, welcome to BP!

Given your situation, I would strongly suggest you start out partnering with someone.  You mentioned a non-paid internship... a great idea, but you'll find that most investors are too busy or too small to have a formal internship program.  The best way to partner is to bring a great deal or funding to an experienced investor.

Here are a few tips to help you get the most out of BP and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

Hey @Richard Grenier, welcome to BP!  

Question, do you plan to wholesale in Florida while living in Canada?  Just curious...

I really like the "why" behind your goals, and wish you great success.

Since you're new to the site, here are a few tips to help you get the most out of BP and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

What @John Kent said is right on the money! (excuse the bad pun).

Lenders are going to want to see seasoning, generally 2 months for a conventional loan non owner occupied investment property.

Start talking to your mortgage broker or lender now about how best to prepare for the purchase, it will save you a lot of time and headaches when you're actually ready to buy.

Hey @Scott Harper, welcome to BP!

It sounds like you've got great focus and know exactly what you do & don't want to do.

Since you're new to the site, here are a few tips to help you get the most out of BP:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.