All Forum Posts by: Brent Reynolds
Brent Reynolds has started 0 posts and replied 31 times.
Post: First Time EVER real estate investing! NEED ADVICE/Guidance
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Sultan Azad:
Hello, I'm not sure how to start this...i am very intrigued on owning a residential property/rental property i have not yet decided due to my current living situation i am a 26 year currently living rent free and currently have a salary of $50,000 Annually and have accumulated about $40,000 in my savings account. I have been battling with myself on which route to take either a rental property or a residential but at the same time the area i am currently living in i would not be able to afford the 20% down on a investment loan unless if i go out of state/2-3 hour drive. i really am stuck and want to capitalize on any opportunity as soon as possible please i would love the feedback and guidance on how i can get my foot into the door of becoming a real estate investor.
Sultan -
First - read Brandon Turner's book on How to Invest with No or Little Down Payment. One of the best strategies (that I wish I new about when I was your age and had your savings) is house hacking. Find a duplex, live in one side, and get a low down payment FHA loan, build equity over a minimum of 2 years (to avoid capital gains tax), buy your next hack and rent the side you were living in. This will turbo boost your investment journey.
Go get it... you can do this!
Post: Creative Ways To Generate Deals
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Anna Ahhee:
Hi Im kind of new here and wanted to seek some advice. I have a few creative ways to generate deals but not sure how to lay the terms down with a partner. How can I create a trust worthy partnership in legal terms?
Hello Anna -
The best partnerships are formed with full authenticity from each member of the partnership so that everyone understands the motivations and expectations of each member. And without question, I would memorialize the partnership into a formal agreement that can be crafted by your real estate attorney. This helps to remove emotion from the partnership and creates a roadmap for how to navigate if and when something goes awry in the partnership.
Post: Hello I'm new to Bigger Pockets.
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Anthony Edward:
I am eager to start investing. I've been listening to the podcast for about 3 months now and I am looking forward to buying my first rental property. However I don't have any skin in the game but I am hungry to learn. I don't have much capital on hand but I would love to own several multi-family homes in the distant future. Thanks in advance for the help
Hello Anthony -
Welcome to investing! You are going to rock this.
I highly recommend reading Brandon Turner's book on how to invest with no or little down payment. Great starting point to help you take the first step. I wish I knew about house hacking when I was younger... I still believe that this is a power way to get started.
Best of luck on your journey!
Post: When To Sell A Buy & Hold
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Zackarias Aitchison:
Hey!
I'm curious about something...
When do you sell a buy & hold?
Now I know this depends on a lot such as the investor's goals and the property itself, but is there a general rule of thumb you as an investor follow?
Do you sell a buy & hold if it's still cashflowing but has appreciated a massive amount?
Do you invest in a buy & hold knowing you're going to sell it after X years? If so, how do you come to that number in the first place?
Cheers!
Hi Zackarias -
There's a lot to consider on when to disposition. It largely depends on what your goals and personal strategies are. I think most investors would say - if you are cash flowing at or above your tolerance level and the property continues to appreciate at a rate at or better than your tolerance level (ROE), then hold and enjoy. If either of these is falling short, then the only reason to sell would be to 1031 into another asset(s) that have better returns.
In short, the answer is: my exit strategy is to sell when my ROI and ROE no longer meet my needs AND there is an opportunity to buy a better asset.
Hope that helps!
Post: Looking to invest in Florida
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Tyler Gibson:
Quote from @John M.:
How would the occupancy rate in Orlando compare to say…fort Myers beach or Marco island?
I would say the State of Florida is seeing high occupancy rates across most metros. So many people are moving here and I hear countless stories from property managers of how many applications they get from really well qualified tenants within 48 hours. I don't think you can go wrong in Florida if you can find a property where the numbers work. Orlando can be challenging to get the numbers to work but there are areas within an hour's drive of Orlando where you can still find good investments.
@Tyler Gibson is spot on. Anecdotally, I recently turned a 1/1 rental unit in one week with 200+ inquiries and dozens of applications received. Rents continue to climb here at a rate greater than the rest of the country. If you haven't see it, you may find this CNN article a good read - it calls out Central Florida specifically: Read in CNN Business: https://stocks.apple.com/Ao7CRHI3ZQweWZkP2N7Atgg
<https://stocks.apple.com/Ao7CRHI3ZQweWZkP2N7Atgg>
So, what might not provide much cash flow today looks pretty good 2-3 years from now if you consider a higher rent growth rate in your calculations.
Post: Am I doing my analysis wrong?
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @David Parathundil:
When doing calculations on a STR airbnb in Kissimmee, on a 4/3 townhome with nice amenities and a pool the property produces negative cashflow. On airdna the property makes 40k in NOI bc they inflate the daily rent. I am wondering how are investors in Kissimmee making money?
I even ran numbers on a 300k house which has less amenities and no pool but still does not cashflow. Even on the properties that cashflow the spread is so small it would be better to take my capital and invest it elsewhere. How are you making deals work in Kissimmee?
If anyone is able to run numbers on this property, and show me what I am doing wrong I would appreciate very much.
On AirDNA the numbers are NOI: 34,814 Cap:9.46 65% occupancy and it is 18 minutes away from Disney
My own numbers showed negative cashflow and basically show that any property off the MLS in Kissimmee will not produce income. This is the property address.
4449 Le Reve Ct, Kissimmee, FL 34746
David -
Reach out to qualified property managers in the market to help you with running the numbers. @Jay Breitlow operates in this market and knows the numbers well.
Hope that helps!
Post: Out of state investor looking for STR/LTR in Florida
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Dmitriy Koval:
Hi All,
I’m from WA, Seattle area new investor looking to invest in outside of my state. Real estate has gone extremely high here.
I've been looking at a few markets in Florida, specifically Sarasota, Orlando, and Jacksonville. Not being familiar with those areas can be difficult to know what areas to avoid and how the rental/STR market is doing.
I’ve been to St. Pete’s and Clearwater and Sarasota this year, felt in love with those areas but problem with some of those would be STR regulations. I’m not limiting myself to just STR if there’s areas where the deals can still be found. With STR it would be nice to have in a nice area to stay and vacation (seriously considering moving to FL near the future)
Please suggest any other areas to consider in the hot market. The budget is between 400-500k.
I would love to connect with investors in those areas.
Please suggest me any RE agents familiar with Florida market in these areas., lenders and insurance brokers.
Hi Dmitriy -
STR in Central Florida (greater Orlando) is primary focused in the area that is 10-15 miles from Disney in Lake, Polk, and Osceola counties. Orlando, which is is Orange County, is not friendly to STR unless part of it is owner occupied.
The short story is that STR demand remains extremely strong there, as is the competition... but there is still money to be made. Generally, 4 bed homes or bigger is the best investment for returns.
Hope that gives you a flavor of our STR market.
Post: Can I refinance a rental with no other stated income
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Erik Kostyuk:
Hello all, I have the opportunity to buy a rental in my area off-market that makes sense for the first time but I want to know if I will actually be able to refinance it if I get it. I am a college student with no debt, but my income comes from flipping cars as well as other side jobs. I've saved enough to put 20% down as well as any other repairs that may come with the property and I know I can get a hard money loan. Before I go for it I just wanted to make sure I can actually refinance it or is there no one who will approve me.
There are a lot of different flavors of lenders out there, each with different requirements and covenants. The best way to find out is to simply start contacting them and provide your brief and ask. Consider talking to a mortgage broker - their job is to find a lender to meeting your specific requirements, and they only get paid if they perform. Finally, private and hard money is also a good path because they typically are basing the loan on the value of the business, not your personal debt-to-income ratio. In all cases, you may only be able to get 65-75% loan-to-value, so you may need more down payment. But again, just start grinding out inquiries to lenders and you will learn a ton from their responses.
Hope this helps!
Post: Brrrr Project Gone Right!
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Anthony Cross:
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $135,000
This 4 bed 2 bath house was in shambles. 135k purchase prices with 45k in rehab, refinanced with 10k cash to invest in the next place after the 80% LTV. This one is now rented and have $0 into it.
What made you interested in investing in this type of deal?
The potential for a cash out return after a n % LTV
How did you find this deal and how did you negotiate it?
Found it by seeing signs of vacancy and reaching out to the owner on Facebook. Started the negotiation process and ended up settling at a good price that worked for all.
How did you finance this deal?
Used cash up front and then refinanced it to a commercial loan.
How did you add value to the deal?
Lots of elbow grease for the rehab.
What was the outcome?
No money return on investment after refinanced.
Lessons learned? Challenges?
It takes persistence to get things done. Rehabbing this place was very challenging because of the supply chain issues we ran into.
Great job, Anthony! Thanks for sharing this.
Post: Are there any unconventional ways to get a mortgage?
- Real Estate Agent
- Clermont, FL
- Posts 31
- Votes 35
Quote from @Bob Ross:
I would like to purchase a single family home that also has a trailer on the property with tenants. My bank said they don’t finance trailers/mobile homes and another said the trailer on the property will not be able to be added to the appraisal.
Are there any other ways I could try to get a mortgage? I was thinking a private lender? How do those work? Wouldn’t want to do hard money.
Thanks
Hello Bob -
Private lenders and hard money lenders tend to be much more aligned to investors and unique properties like this.
Search the BP network for lenders (there are several) and then just start reaching out to them with your project. My experience is that they tend to be very willing to help small investors get started and work through unique projects, because you are likely to use their services again.