All Forum Posts by: Catherine Javier

My partner and I are ready to purchase another property. We are planning to put 5% Down, use a Conventional Homestyle Loan to rehab the property, make a part of the house a mother in law suite for ourselves and then house hack while we are away (we are travel nurses). We have 2 properties to choose from. Both are in the same city, Altamonte, both in good community. Both has 2 car garage, both can offer a mother in law suite. Both can be rented with similar price, but of course computations will be different because of the price difference.

We offered 325k on Property A, was verbally accepted by the seller last Friday. However our pre-approval was 1 day late and here comes the Cash offer. Of course we were beaten... But we agreed to be in second position. I was really crushed when we didn't get this property. Today our agent texted us and informed us that we may be back in the game, cash offer didn't pushed thru. It is past 5 days from the time we signed the 2nd position, we are thinking it could be a problem with inspection. Our realtor asked the listing agent but did not answer directly he just said "buyer wants to renegotiate the price". If we go with this property, this needs full rehab but sweat equity will be ours. I cant find the best Comps but looking at Redfin/Zillow probably it is on 380's - 400 when rehabbed. (all other properties I saw was 1960's up).

Also earlier today, we offered on another property. It is more expensive, but we think we will have to do less rehab. It has new paint interior and exterior. It was listed at 410k and we offered 390k. We will know tomorrow if our offer is accepted. I am assuming seller will negotiate the price. Comps around the vicinity is invalid because most of them have pools. but what I am seeing 400's ++ around this area.

I made a comparison, but we would appreciate any thoughts you have.

We want to ask your opinion how can we navigate on a better deal.

Thanks again!

2 Votes

Thanks @Shawn McCormick

1. We plan to keep this property. Planning to put 5% down, househack & rent the other rooms. My wife & I are travel nurses so we will be seldom stay in the house. We’ll keep 1 room for our stuff, then after a yr, make it as a full rental.

2. Near hospitals- we intend to rent to travel nurses ( furnished home for 90 days) usually it is 13 weeks for an RN travel assignment.
(we currently have have midterm rental-1 in Orlando & 1 in tacoma WA)
** we like 90 days furnished because there no cashflow for LTR

3. 1st property ADU- not sure. Thabks for pointing that out, we need to ask our REA. Laundry hook up- yes. Parking will be shared in the driveway.

4. purchase price:
1st property- turnkey 356k 1700 sqft
3 beds 1.5 bath & studio (adu)
10k will be shouldered by seller at closing
(not sure if the ADU garage is permitted)
Since this is turnkey, checked the vicinity its ~360-380 max

2nd property
2000 sqft (garage 20x21 not included)
350k but theres a wiggle room for negotiation.
2/1 main house
1/1 suite- will add kitchen & laundry
then another studio if we decide to do the garage (but maybe not right now)
but if we’ll do, the income will add >800 per month & recoup the fees & expenses in 3-4 years
ARV for this >380-400k

we appreciate your thoughts! Pls help us see and understand, we are unclear

Quote from @Shawn McCormick:

@Catherine Javier Would need more information on which would be a better deal, lots of variables not to mention how long you plan to hold this. Why is being near hospitals advantageous to you?

Was the ADU on the first one permitted? Does it have its own laundry, parking etc? If they both generate the same income and the second one will take months of planning, permitting, and constructing (both sides) with no income being generated, it comes down to purchase price.

What are comps in both areas for rents and ARV once you are done?

Keep us informed, love to know how it works out.

Best of luck!

0 Votes

Thanks Tyler!

Quote from @Tyler Gibson:

Quote from @Catherine Javier:

Hello BP family! Newbie here and looking for some insights..

we are actively looking for the properties to househack then BRRR, we plan to rent as midterm. I have this 2 properties in Orlando we looking at. Both would generate the same income. First will be a turn key with a garage already converted ADU with separate entrance, ~1700 sqft. All we need to add is a kitchenette and this is about 4-5 miles away from 2 major hospitals.

The second one is a 2000 sqft with 2 garage. The main house itself can be converted into 2 living space, and the garage can be converted too. Needs rehab It is about ~8-12 miles away from 2 major hospital, but is about 5 min away near to a 300+ bed hospital..

What would be a better deal?

And if i choose the latter, any idea how much do i need to prepare to covert 20x21 garage into an ADU in Orlando?

Thanks everyone!

At a contractor the other day tell me if you can't do the rehab with $25,000 or less than it'll cost you at least $50k. Converting a garage is going to require you to pull electrical permits plumbing permits and permitting can take a really long time in Orange county. Additionally if you're going to be splitting the main house into multiple units make sure that you're getting that permitted as well so that everything is reflected correctly on the Property appraiser's website or you will face challenges when trying to sell the property down the road.

1 Vote

Hello BP family! Newbie here and looking for some insights..

What would be a better deal?

And if i choose the latter, any idea how much do i need to prepare to covert 20x21 garage into an ADU in Orlando?

Thanks everyone!

0 Votes

Hello BP family! Newbie here and looking for some insights..

What would be a better deal?

And if i choose the latter, any idea how much do i need to prepare to covert 20x21 garage into an ADU in Orlando?

Thanks everyone!

0 Votes

Thanks @Scott E.!

The one that we like in Casselberry states it is Zone R9, from redfin it says it does not allow ADU.
are there resources you can share where we can find if that county/city allows ADU in FL?

thanks again!

Quote from @Scott E.

0 Votes

@Shawn McCormick thanks for your insights!

We looked at the schools and its 7’s & 5s. It is near a golf course, I am thinking its in a B class area, really unsure…

if we will buy a SFH, we plan to buy with a bigger sqft and make an ADU.
my bad, it will not be a per room.

Quote from @Shawn McCormick:

@Catherine Javier

I would be willing to have a rental with a pool, but it would be neighborhood and demographic specific. I would want it to be in an A or B+ area and hope to get a higher quality tenant. That doesn't mean accidents won't happen, but it might mitigate some of the risk. You will get more in rent, but justifying the insurance and maintenance costs may not earn you enough for the risk.

You mentioned renting it by the room and that is where you lose me. Now you have 3 or 4 tenants, all with different ideas of safety and accountability that will have access to the pool and your risk goes way up.

Hope this helps, good luck!

0 Votes

Thanks @Tyler Gibson

we plan to rent it out as Mid term 90 days. But with additional maintenance, that’s another thing we need to think about…

thanks again!!

Quote from @Tyler Gibson:

Quote from @Catherine Javier:

Hello Everyone,

We are planning to buy a primary Residence in Orlando FL and house hack. We saw a house that we like that has a pool. Do you think it is a good idea to have a swimming pool? Or there will be more legal/ liability implications and additional maintenance cost, especially if we rent it out eventually.

We travel most of the time, probably we will rent the rooms. Thanks in advance everyone!!

If you plan to rent the home out long-term I would suggest avoiding homes with the pool. When you're living in it and house hacking it might be nice and not that big of a deal but it will have additional maintenance expenses. Although you can probably find a pool maintenance company for around $100 a month. Pools do require larger expenses for maintenance over time such as refinishing the pool or replacing the pool pump. If you're not living in the property it certainly creates some additional liability with tenants that may have children. While this could be a draw for some families I would personally steer away from pools in rental homes unless it is a higher and luxury home. One of the things to remember is that tenants are rarely going to take care of a home like it's their own which means they will not care for the pool like you would. You will need to have a pool maintenance person once the whole home is rented out and it could cause additional expenses for insurance when using it as a long-term rental.

0 Votes

Hello Everyone,

0 Votes

Thanks!

0 Votes

All Forum Posts by: Catherine Javier

Catherine Javier has started 27 posts and replied 93 times.

Post: Help! Which property to choose?

Post: Garage Conversion ot

Post: Garage Conversion option

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Post: Pros & cons of a swimming pool

Post: Pros & cons of a swimming pool

Post: Pros & cons of a swimming pool

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Post: How screen a tenant for midterm rental