All Forum Posts by: Branden Jordan

I've been doing a lot of reading and research on long term rental property investing, specifically long distance investing, and am somewhat stuck at which market to pursue for long term rental property investments. I am active duty military stationed in southern California and cannot afford that market. I have been doing macro studies of the following locations and would appreciate any feedback on the goods and bads of these locations, or any other recommended markets for a new investor. I am looking to buy and hold for long term single family or small multifamily rentals:

-San Antonio, TX: Seems to have a decent amount of properties available but property taxes are high cutting into cash flow.

-Tampa, FL: Rental market seems sizable and stable but insurance rates seem high and potential of hurricanes, etc.

-Jacksonville, FL: Same concerns for natural disasters and insurance rates.

-Columbus, OH: I have had many people tell me to look into OH for good cash flow. Is this a flooded market or are there investments to be made still?

-Tucson, AZ: Seems to have an average population/job growth and decent rent rates, plus good weather.

-Knoxville, TN: Decent rent rates, lower property taxes, high % of renters.

-Raleigh, NC: Low rent to income ratio, average rent rates, moderate rent rate increase.

-Charlotte, NC: Good job/population growth, lower vacancy rate, higher rent, lower taxes.

Please let me know what you think, thanks ahead of time!

I can tell you from living in the Greater Tampa Bay area for decades, that insurance rates are what they are. You need insurance, and FL does not have the best rates. It is what it is. Flood insurance is where the more significant problems are. However, the chance of a major hurricane hitting your property is slim to none. These storms will come, and this is why we carry insurance. The numbers here in FL are much larger than in most states. I am speaking mostly of the East Central parts of FL. There are 1000 people a day moving to FL from states like NY, CA, Midwest, and more. They need a place to rent for at least a year before finding where they want to call home. Rent here is outrageous, and I am not sure they can go much higher to be honest. People are already being pushed out of the state to be replaced by higher-paying tenants. It is sad in a way, but capitalism wins out most of the time.

1 Vote

@Adam Weinstock I bought a property through NetWorth years ago. I no longer get any emails. I'm interested in what you might come across in Pinellas, Pasco, or Hillsborough Counties.

0 Votes

Saint Petersburg, Florida

Quote from @Hochi Yang:

I live in Wisconsin. I am currently taking a real estate licensing course to acquire a license. I just recently started looking into wholesaling and found out that you don't need a license in my state to wholesale. I've been told by many investors at my REIA meetup to not get a license. The course that I am taking is actually paid for my Keller Williams. I reached out to them on a job posting that they had offering to pay for the licensing course. Now I'm not sure what to do. I've been fighting myself back and forth about the decision. I heard it was highly beneficial and have great advantages to having a license while wholesaling. On the other hand, a bunch of investors at my local REIA are telling me that it's against the rules of a broker and illegal for me to be an agent and wholesale at the same time because I would be unethical and also that the broker will force me to get a cut of all assignment fees if I wholesale. Are there any way around this? Should I opt out of the course and Keller Williams altogether? Can I still go and get a license and not work for a broker but have it for credibility when I wholesale? I'm not sure what to do. If anyone can give me some great advice, I would greatly appreciate it. Thanks.

A RE license is simply a tool for your toolbelt. It is not illegal to wholesale while having a license. I have never heard this. It is about what is best for the client. Sometimes it is better to not put a sign in the yard as the typical RE sale goes. Maybe the seller wants something more simple and quicker. Maybe the seller can't sell on the MLS because of the poor condition. There are a million reasons to go one way or the other, but they are not in conflict with each other. You can not go around a broker if you are doing licensed business. This is the whole reason for a broker. A license gives very little "credibility" as you stated. Almost anyone can get a RE license. It is not hard. I would suggest anyone buying or selling RE to get a license.

0 Votes

Green Bay, Wisconsin

Quote from @Brandon Roundtree:

Quote from @Robin Simon:

Quote from @Brandon Roundtree:

How do you qualify for a DSCR loan before purchasing the investment property?

You should be able to get a pre-qualification letter or even term sheet through filling out an application and credit authorization and briefly chatting with a DSCR lender to see where you stand. Process shouldn't take more than 30 minutes or so to get a real good look at what you qualify for and what you'll need

Are rates for a DSCR typically higher since it's an investment property?

My experience is that DSCR rates are 1-2% higher than the going rate.

0 Votes

It might be difficult to find a lender to do a loan for less than $100K. My first idea was Indianapolis, and then I kept reading and you mentioned Indy. I have some connections in Indiana to even help you. Have you considered joining up with an investment group, or other investors to expand your options? The amount of working capital you mentioned is very very low. DSCR lenders usually want 6-12 months of reserves after closing. These days $20-30K is not going to go really far. I am not trying to discourage you, but rather help you not get disappointed in the long run. For your first deal, I would not recommend an out-of-state deal where neither of the investment partners are not local. You can really get taken advantage of with no experience, and you don't have the capital to absorb these mistakes. You could set yourself back several years if your first deal is a bust. At least find somebody that can be your "boots on the ground".

1 Vote

I keep hearing this is bound to happen, but I know that fundamentally the market is very different now than when things "crashed" in 2008ish. Who has data to show short sales are coming? Please show this with concrete evidence and not just an opinion. No offense, but everyone has a guess and opinion, but would like to see what data can be derived from a group like this. Thanks.

Read this:

https://www.baynews9.com/fl/ta...

There are always 2 sides to a coin. I grew up on this beach, and would rather not have it turn into Clearwater Beach or St Petersburg Beach. IRB is a hidden gem. I noticed no investors showed up for this meeting. I wonder if there's intimidation. Why wouldn't they show up and present their business plan? Who has experienced STRs in Pinellas County?

1 Vote

Tampa, Florida

Quote from @Jorge Barboza Jr.:

Hey Team,

Investment tactic I would like feedback on, I have a plot of land in Joshua Tree and I was thinking of adding some Tiny Homes to the land and making it a fun Short-Term rental. What are somethings I should be thinking about besides the expected Rent to Investment?

Thanks!

Access to clean potable water, and electricity?

1 Vote

Riverside, California

Quote from @Joe Lujan:

Good afternoon all!

Here it is!

My daughter and her boyfriend of 3yrs are splitting up. They bought a house together. My daughter put down $30,000 all together with her own money for down payment and closing costs. He didn't put any money in. Neither on can qualify on their own to refi and buy the other out. His mother said she will help him keep the house since he refuses to leave. His mother will give my daughter $15,000 now and she is to sign a quit claim over to remove herself from title. Of course, Her name will be on the loan. Another $5,000 in 2024 and another $5,000 in 2025. total of $25,000. Which I think is stretching this ordeal too long.

Numbers: Sold price: $520,000. House comps at about $545,000 so about $25,000 in equity. selling the house will short change her drastically. I need suggestions on a FAIR contract that my daughter can present to her EX, that will work for both.

All suggestions will be taken with great thanks!!

Why can't he give her half of her deposit back, and split the equity? I would not suggest hanging on for a couple more years. It keeps the splitting couple attached longer. It is a burden and headache unless they are very understanding and cordial with each other. I am a financial coach, and this is a common way to do things. Split everything that was mutual. Individuals get their money back.

0 Votes

Riverside, California

Quote from @Mark Weins:

Hi, when is the proper time to ask for the EMD for a wholesale deal? Is it okay if I ask for the EMD right before I disclose the address to my buyer so they can do a walkthrough or should ask for it after I have already disclosed the address to the buyer?

I won't walk a property if you ask for EMD up front. That is crazy. If it is sight unseen, you can ask whenever you want. You will lose many buyers if you ask for money before ever even looking at the property.

1 Vote

Quote from @Charles Burgess:

Hello everyone! Currently doing reporting on my portfolio, and I see we've spent $1800 on pest control YTD over 5 different doors. My question to the community is, should I continue to offer complimentary pest control services to tenants? Our thinking is it will help to maintain the property, while attracting a higher quality tenant. But, I'm also wondering if it's worth the cost. All opinions are welcomed. Thanks everyone.

This is certainly a good question, and I feel it will be different from owner to owner case by case. Yes ultimately you are maintaining your properties better than the next landlord, but these things often don't pay off. Think about how much it would be to come once or twice a year instead of each month. Nobody likes bugs. I know this.

0 Votes

Charlotte, North Carolina

All Forum Posts by: Branden Jordan

Branden Jordan has started 10 posts and replied 63 times.

Post: Looking to narrow down a market for long distance rental properties.

Post: Off Market Properties For Flip or Rent

Post: Should I get a real estate license?

Post: DSCR Loan Qualifications

Post: Figuring out first Investment/Market.

Post: Are short sales & foreclosures coming?

Post: Land in Joshua Tree to Put Tiny Homes On

Post: Writing out a contract for splitting couples

Post: When to ask for EMD

Post: Continue to offer pest control?