All Forum Posts by: Chinazom E Onubogu

Adelle,

Kudos on taking action and being open minded. As a relatively new REI for the past 3 years, my stance on this would be to go the LTR route...here's why.

Personally, I say go the MF route as someone here mentioned even at a 70-80% occ rate, the right market will cash flow well, there are many of these in FL. Now unless you have a unit in FL that isn't affected by loss of income due to seasonality, then you can opt for a STR as a first investment provided you have intentions to invest in MF, depending on your goals of course. While STRs can be very profitable in certain FL markets, they also require alot of time and commitment unless using a PM company which already cuts into about 20-25% of profits.

A MF presents many opportunities include the ability to have a mixed portfolio, including LTRs, STRs and midterm rentals. In addition to vacationers, you can cater to corporate clientele, work with staffing companies which ultimately allows for consistent cash flow, house military personnel etc. Appreciation, tax depreciation, scalability are some other benefits. A MF allows you to combine all the above options you mentioned and with more properties which gives you more exp as REI. You can buy a distressed MF, fix it up, BRRRR it, use 1 or 2 as STRs if local laws allow it and the others as LTRs, midterm etc. You even have the option to HH.

It really all depends on your goals but I wld say do your research, revisit that goal board, seek mentorship if able before making a final determination.

You can do both right now...Unless you are going to be buying properties with cash and or getting creative financing, you might need that w-2 paying job to qualify for loans in the beginning. And if your field pays well perhaps 6 figures or more this would help you have a low DTI where you can still qualify for many loans even with student debt (if you choose to go this route). Eventually you will acquire enough assets to be able to exit your job and invest solely in real estate (that is if this what you want) and start many other businesses/ passions etc.

Buy real estate now, become a landlord (LTR) or even better a host (STR) and start acquiring positive cash flow. Graduate from college and even supplement your income more. Remember not every investor hits a home run in the beginning and that potential 6 figure paying job might be your temporary safety net until you are able to scale and live off of your real estate income alone. Now unless you are saying that your field is not something you want to do anymore then that's a different story all together.

Jason,

So if you close a loan in an LLC and PG it, are there any requirements for the LLC such as length of operation, business credit established etc. Are rates typically higher ? I would think the main purpose would be liability protection when it comes time to rent to tenants so that the lease can be signed in LLC. So i guess my other question would be if a property is closed under an LLC and the individual as PG, will the individual's personal assets still have protection ?

Based on airdna numbers using the rentalizer here are stats for the house you provided above 3/2 based on 6 person occupancy. Off course you cannot go off these numbers alone. You you have to do a comparison with airbnb/ vrbo to see what avg daily rates are going for. If you plan on renting year round, you want to be mindful of occ. rate as certain areas in FL is not most have seasonality rates that vary during snow bird season and summer time

Annual Revenue

$31,067

Average Daily Rate

$165

Occupancy Rate

52%

I would also check regulations in Charlotte county. You would need a DBPR business license if you will not occupy unit while renting and then registered with Charlotte county Tax collector for the Tourist development tax which is 5% and also registration with state sales tax due from the Department of Revenue of which 7%

Anything on Treeline is great...Bridgetown, Arborwood, Marina Bay, Botanica Lakes. The only issue is the HOA and some restrictions they have. I am in an HOA area hence the reason why I rent seasonally. But I rented for 2 months and made a little over 11k this year

Mcgregor is also a relatively nice area. I would recommend working with a Realtor/Investor who knows the SWFL area well

I think STR is bit slower in Port, I have a STR in F. Myers seasonally and see better returns there. I agree with Naples, high priced and too much regulations for STRs. Homes are relatively priced well in F. Myers and the Cape is great as well.

Hi Scott,

Thank you for your reply. I was thinking to change numbers for maintenance at the very least because this tends to fluctuate depending on varying factors. Or perhaps for water/sewer as that doesn't always turn out to be a fixed expenditure. But I will definitely be asking seller for rent payment records...Thank you

This is a deal for a MFH (Duplex) in Pan handle area. Im new to investing in this area and wanted to get some input from others. I am still doing some research on the area but wanted to make sure the numbers make sense. It is flood zone x and I also need to perform ensure that the property is actually renting for what they say it is. Anyone currently investing in the area? I am thinking I would have to change percentages for maintenance, vacancy & capital expenditures to reflect actual ROI

 View report

*This link comes directly from our calculators, based on information input by the member who posted.

I purchased a brand new construction for 309k last year, refinanced in Jan 2021 from 3.6 to 2.7, home appraised at 325k at the time. Now homes are selling in the area for 480-540k. The 480k was the exact same model as mine and size, the 540 was with a pool i believe...I am considering either a HELOC vs cash out refinance to fund my first rehab deal rather than offset savings. Thoughts?