All Forum Posts by: Austin Fox

@Brian Ellis

That's what I figured and I know it won't happen overnight which is why I asked the question now. I'm trying to do my best now to put myself in a good position for next year and so on. Thank you for your time! 

@Juan Carlos Castillo

I'm looking in the same general price range in South Florida, in what neighborhood/area did you find this property? I've been looking for duplexes in the rougher areas of pompano for around that range and it's been tough, the biggest issue i face in rougher neighborhoods, isn't the neighborhood itself but the lack of central A/C.

This property was found on the west side of I-95. Pompano, Fort Lauderdale and Hollywood are all duplex areas however many of them are in rough areas and the prices are unreasonable. I recommend speaking with an agent that knows the area well. There were times I found a nice duplex and my agent would laugh, tell me to go visit it and then be waiting for my phone call only to tell him he was right. Sometimes the older agents are better than the younger because they've been around the block once or twice.

Although from an architect/contractor perspective, might be worth getting a quote from an HVAC company for a full design and install...

Yeah that's a beast of its own(duct work, soffits, etc) That's a call you'll have to make depending on the deal. I can't make that decision for you but I can draw the plans ;)

@Brian Ellis

Understood and Im not 100 percent sure on the market value after rehab. According to the purchasing comps another unit sold right behind mine not 8 months ago for 240k and another for 232k. My idea is to do the updates, sit on it for a year and in that process continue to save cash flow and reassess in a year or so. 

I am open to the idea of selling it or moving out/renting it out aka BRRRR. The lady who sold it is a widow and has owned it from 2004. Once the unit went up for sale, we had an offer on it that night. The rents in the area go for around 1700.

What about the thought of using a mezzanine loan for the next purchase? 

Hello BP,

I have closed on my first property and would like to thank you all for the wise words of wisdom this community provides. My question is how can I leverage myself to use this deal for future deals. Now before you continue reading I will add a bit of background below so you can understand why I selected a townhouse or you can scroll down to the deal/pictures.

Background

I am 25, an architect and located in South Florida. I moved out went to college, moved back home with parents and started saving money.The market here is....unique.It's very hard to find a duplex to house hack in an area where your car wont get stolen. I was originally looking for duplexes to house hack. Almost closed on a nice looking duplex(literally 2 weeks from closing) until the plumbing and structural inspections killed the deal. Everything on the outside looked good and yeah I learned its not always what it seems. My goal is to be financially free by 30 and I wish to use this investment as a foundation for the following deals.

The Deal

2 Bedroom 2.5 Bath Townhouse in A GREAT NEIGHBORHOOD(Like for real, they're opening a Starbucks down the corner and a town center development is in the works with restaurants/bars/stores)

Purchase: 225k Bought with FHA 3.5% down.

Interest 4.15%

HOA: $240

Total Cost: 12k including closing costs

Monthly Payment including EVERYTHING: $1649, roommate moving in will pay 750/mo

*To some this may seem incredibly high or some may say its very cheap, again I am located in South Florida Fort Lauderdale so please keep that in mind*

Rehab: I have 15k leftover for remodeling. I plan to replace flooring, repaint and possibly new kitchen. See picture below

The Question

This is my first investment and I would like for it to be the foundation for my following deals. For those who have started and gone down the path, what advice do you have a for a young investor like me looking to eventually reach financial freedom. Thank you.

@Mark Bookhagen Thank you for time, ill dive into that strategy some more

Hello BP,

I am in the process of purchasing my first duplex. The point of this post is that I found the property I have under contract distressed in some areas aesthetically, nothing serious. Thinking ahead of the exit strategy, what influences the appraisal? 

The point I'm trying to make is if I purchase the property then make improvements (new paint, finishes, driveway) will this affect the future appraisal? My end goal is to purchase the property FHA and reside the first year, move out and then make reassess 3-5 years down the line the condition. Ultimately selling the property for a profit in the end as well as collect rent/experience/etc...

@Marc Middleton As others said before, may I be added as well? Looking for my first investment property and so far the 2 I had under contract fell through due to underlying building conditions. Pre-approved and ready to go.

Thanks!

@Richard Lovering Wow, good call! My plumber said one of his clients purchased a property in July, didn't do the inspection and had a line break under the foundation. So far $27k in the hole, can't live in the property and permits had to be pulled. It takes money to make money and if you can't spend a little extra for an inspection then you shouldn't be doing this.

Hello BP,

As I continue to search the MLS and work with a realtor for opportunities I am finding it harder to find a liveable duplex-tri-quad to house hack. Thus I am turning to you guys to see what advice one might have for finding a deal that actually makes sense. Has anyone else had any luck lately? Or has this market become too inflated and its time to rent?

@Justin A. The year of the building. The building was built in 1963 which construction back then consisted of cast iron plumbing.