All Forum Posts by: Andrew Davis

Hey @Vinod Sirimalle may I ask who is the team you're working with?

I try to get a minimum of the 1% rule for my clients here in Orlando.  (Monthly gross rent = 1% of purchase price + any repairs.)  So on the property you're talking about, I would want to see a minimum of $2,100 a month in rent.

The reason for this is, if you use the 50% rule that they talk about all the time on BP applied to your scenario.  50% of your $1500 gross income will go towards expenses (taxes, insurance, prop mgmt, maintenance + repairs), so that leaves you with $750 left over for your mortgage payment and cash flow. 

If you're putting 20% down, depending on your loan terms, that $750 will barely cover your mortgage payment.  

All that to say, I think your concern about your ROI being too low is valid.

@Holly Williams, I'm right there with you for COC return, I like to be at 10%, but I'll go down to 8 if I feel there's real value there.

Orlando, and Central Florida are very strong rental markets.  A lot of people are drawn to investing here for the same reasons you and your husband are, the allure of a vacation spot combined with a savvy investment.

Housing is still relatively affordable and rents rose nearly 8% last year and continue to do so.  I own several rental properties, and as soon as we put a sign in the yard, the phone does not stop ringing!

Beyond that, vacation rentals can be very lucrative when managed well.

Hope that helps, reach out anytime I can be of assistance!

Hey @Charvick White, welcome to BP and the Florida investing community!

Congratulations on taking action, that is HUGE!  As you listen to the podcasts you'll hear taking action is a common answer when the question is asked, What sets apart successful investors from those who fail or never get started?

I'm an agent/investor down in Orlando, so reach out anytime.

Keep us updated on your success Charvick!

Hey @Wayne Ferrell, welcome to BP!

@Michael S. have all given great advice getting started.

Here are a few more tips:

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. 

Your desire to be mentored/coached is a great one.  I would strongly suggest spending time educating yourself on the basics with all the great resources you can find on BP.  Get an idea of what area of investing you'd like to focus on, and then seek out a mentor who specializes in that area.  Also, be sure you know what value you bring to the table, aka: how you can help your prospective mentor or coach grow their business and achieve their goals.  

It sounds like you have some great experience, and I'm sure much of it will translate to your investing career. 

I wish you all the best Wayne!

Hey @David Colvin, welcome to BP!

In addition to @Todd Trader, @Ina Felsher & @Lucas Machado, definitely reach out to @Account Closed, he has a really good handle on the rental market down there and runs a great property management company.

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

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. 

I wish you all the best David!

Hey @Kenneth Quattlander, welcome to BP and the Florida investing community!

Do what @Linval T. suggests and you'll be in great shape.

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

I wish you all the best Kenneth!

Hey @Josh Nicolson, I think you'll be very happy you came over from the lurk side.  I've learned A LOT just by engaging with other members, have made some great connections and done some great deals.

Sounds like you've got an impressive portfolio and model, thats awesome!

I'm active agent/investor in the Orlando area, so reach out anytime.  I always enjoy connecting with other investors, especially when beer is involved:)

@Bryan Thompson, congratulations on getting started!

@David Krulac has given some good advice and knows his stuff!

I would also recommend chatting with an attorney as your structuring your business.

This podcast was extremely informative for me in regards to legal structures and protections:

https://www.biggerpockets.com/renewsblog/2015/02/1...

I'm active agent/investor in Central Florida, so reach out anytime.

I wish you all the best Bryan!

Hey @Kyle Stoltz, thanks for your question.

That's a tough question and there are several answers.

The average agent (meaning total people with active RE license/total number of homes sold in the US per year) would less than $10,000 per year.  BUT to @Federico Gutierrez & @Jake Thomas's point, there are plenty who make nothing and some who do very well.

It really depends what you want to do with it and where it fits in the scheme of your overall RE goals.  If it's just a means to an end for finding investments, then that's what it will be.

It's a job, just like anything else, and you get out of it what you put into it.

@Mindy Jensen wrote a great guide on becoming an agent, you can check it out here:

https://www.biggerpockets.com/renewsblog/2015/12/0...

If you haven't already, do this:

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 Illinois 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. 

I'm an active agent/investor, so reach out anytime.

I wish you all the best Kyle!

Hey @Alberto Urena, thanks for posting the question.

Have you run it through the BP rental calculator?

https://www.biggerpockets.com/buy-and-hold-calcula...

That would be a good place to start.

If all the units need to be renovated, does that mean they are all vacant now?  If so, you'll want to factor in the holding costs while you're getting it rent ready.

If you're basing your numbers on what it will rent for, make sure it will!  Call around to other apartments in the area that have similar amenities or size as yours and see what they're renting their studios and 1 br's for.  What's the vacancy rate in Anchorage?  What's the market value of the property or what would it appraise for?

If the seller is motivated, you may want to consider asking him/her to seller finance.  That will limit your cash outlay to the renovations, and you may even be able to find a lender that will put up some of rehab $.

I would suggest a high LTV seller finance offer with a 6 month - 1 year period before payments begin. That would you give you time to get at least some of the units cash flowing and performing.

Keep us updated on your progress!

Hey @Robert Zavertnik, glad you're coming up to visit!

@Adrian Smude is a good guy and knows that area well.

This goes for any area, but be sure you're looking at quality in those areas.  There are some great deals to be found, but there are also some real lemons.  I'm helping some investors navigate their way out of some really bad investments in Polk County.  They looked good on paper, but have been a real headache to manage.

I'm an active agent/investor in the Orlando are, so reach anytime.