All Forum Posts by: Clifton R.

Hello All,

I'm looking to crowd source some help in evaluating a potential new build-to-rent purchase in Marion County, Florida. I bought several last year before the surge in prices and closed with an average 4.25% in conventional financing. I'd like to continue to invest in Florida given population increases, overall job market and rental demand.

Now that prices have dramatically increased and mortgage rates have ticked up, those easy decisions are gone. I have only about a year of experience so I'm not sure if I have to adjust my criteria or move to another market. I'm stuck in analysis paralysis mode.

My buy criteria is simply is at least $180 in monthly cash flow (taking into account vacancy and maintenance) and a debt service ratio of 1.2 or greater. I'm investing first for cash flow with appreciation being a bonus.

The property is located in Marion County, FL with a purchase price of $244,900 and expected rent of $1,645. I assumed the following:
3% appreciation (very conservative)
5% conventional loan
5% vacancy
5% maintenance
8% property management
$2,400 annual property tax
$550 annual insurance

You can view the BP calculator results for the complete analysis.

It's still cash flow positive (~$600 annual) but below my initial requirements. Looking out 10 years I think it looks like a solid investment.

I do realize that part of the decision is how the investment fits into long term goals however I'm looking for some perspective. Any feedback would be appreciated.

Thanks.

Hello All,

I'm working on closing on a new construction build to rent property within the next 3 weeks. It's a new market for me and I'm trying to find a good home inspector.

I'm looking for a few recommendations from the BP community.

Based on some research I've come across Allhome Inspection - https://www.allhomeinspection.com/. Has anyone used this company before?

Thanks in advance.

@Erika Sherwood

I would recommend Enterprise Property Management. Only a few months in but very transparent and on the ball with communication.

https://propertymanagementmemphis.com/

@Ryan Lam please note that I assume 5% for closing costs. This can affect CoC significantly and varies with the lender.

I recently bought a new build-to-rent investment property. It's too early to tell you anything significant about my specific performance/experience. Based on the same analysis I ran, it seems like you have deal (depending on your requirements/goals). If you like, you can view the Google Sheet. Below is the 10 year proforma.

Please keep in mind that I just started building my portfolio and there is way more to learn.

@Spencer Gracia

If you provide details on the property (price, taxes, assumptions for vacancy and maintenance), we could provide insights.

@Sammie Baker

Try Enterprise Property Management. I use them for two properties. Thier fees are transparent and they are responsive. I switched to them a few months ago so I don't have a long track record but so far so good.

http://www.epmrealestate.com/