All Forum Posts by: Ryan Baker

Is there an HOA for the townhome? If so that could be factored into your cap-ex reserves as well. You probably don't need to plan for the 10% usually reserved for SFH capex (although it certainly won't hurt you), but you will need something.  If you're cashflow positive with these numbers in place, using that additional money to buy more properties would probably help secure your goals.  How many properties do you think you'll need to accomplish your goals?

A duplex for $200K in Sarasota would likely put you in a part of town that you'd probably rather not be, or will require a significant capital investment.  Most single family homes are going for above that, even in the C/D parts of town.  Also I may be mistaken, but did you account for capex or maintenance at all?

Sarasota REIA meets on Wednesdays at noon. Really good group, well led. Tough to make if you have a full time job, but I try to make it now and then. Sarasota is starting to slow, properties are sitting a bit longer. Nice area with a lot of really good schools.

Thanks for the input I appreciate it!

I'm a newbie from Sarasota, FL.  I currently own one rental property that has been a bit of a headache but I've been hanging in there for a while with it.  Beyond that (and my primary residence), I don't have much real estate experience.  I was piddling a long, up until about 10 months ago when I really started getting motivated to pursue real estate investing for long term wealth.  I've read books, viewed webinars, purchased a pro membership, and saved up to buy, and have kept fighting along with, my current property.  

In my primary residence, I have a vacant lot next to me, and an old house that needs work in the lot next to that one.  Today, the owner of that house drove to my house, and knocked on my door.  She told me that the tenants are a nightmare, and she is 74 and wants to get rid of the house.  She told me it has a new water heater, needs a new roof, is small at about 900 sq ft on a 1/4 acre lot.  She told me she'd want about $175,000 for the house.  Zillow has it's value at $226K, but that's got to be high given all the work she made it seem it needs.  However, homes in this neighborhood routinely sell in the low $400 range, so I'm sure there has to be a deal in there somewhere.

I definitely do not know how I can go about structuring a deal, and all I have from her is a starting price and a phone number.  I would definitely appreciate anyone that can help walk me through this, as I clearly have no idea what I'm doing.  I definitely don't want to waste my, or anyone elses, time, so if there's nothing here, I'd appreciate that input as well.  

Thanks in advance for any tips!!

Very cool but not much in the way of larger multi-family buildings.  There are several newer large condo buildings downtown, but these tend to be very expensive.  Not sure what class of area you're looking in, but the multifamily rental buildings tend to be in low C to D class areas.  Check out East Tampa, northwest Hillsborough County, or north Pinellas if you're looking for multifamily IMO.

Sorry got cut off... My understanding is that in Florida, the courts will view the LLC (again assuming you're the sole owner) as a legal pass through organization and you can still be personally liable even for claims against your LLC. You'll definitely want a strong homeowners insurance policy with an umbrella policy to protect against a personal claim. I am by no means a professional and could be way off, but that's the impression I'm under.

In Florida, a single owner LLC provides very little personal liability protection.

While I'll concede that a small amount invested over time is effective in building wealth (albeit not a large amount of wealth, nobody is retiring on the 100K they saved by foregoing lattes), the thinking is upside down. To truly build wealth, you have to pay yourself first. So the line item isn't earn-buy lattes-invest, its earn-invest-buy lattes or whatever else you want. People don't walk around not buying things and investing the money they saved from the "not buying." You begin with the end in mind. You figure out a reasonable number that will get you your retirement lifestyle, figure out how much a month you need to save, invest that and live off the rest. Then you go out and buy all the lattes televisions or cars you want (that you can afford).

I'd like a couple of recommendations for Sarasota, FL.  Does anyone have a good accountant they can recommend for Sarasota or Bradenton, FL?  Also, I'm looking for a property management company that serves Bradenton, FL.  Any good recommendations on those?

Thanks in advance1