All Forum Posts by: Daniel Kokodoko

@Dan H., I think ordinarily you would be right. But my long term goal is to do a 1031 Exchange of my current properties (mainly duplexes at this point) into a larger multifamily. The timeline for that is about 7 years. So holding this property aligns more with that goal, as opposed to paying the 20% capital gain tax. 
I do see a drawback here though: now I have to setup a new team in a new market just to manage one property. But I can always hire a PM. Or are we saying a 7 year hold is no longer a good idea in the Tampa area? 

I guess I can also check to see what paying the capital gain now and investing the proceed of the flip + the initial capital into my other markets would look like after 7 years, and see which one of the options will grown my equity faster.
Thanks for the input!

@Ned Carey thanks for the perspective. Yes, it's tight, but cash flow is really not what I'm after on this one, the up front equity is what I think makes it a good deal. Essentially a break even for me is alright. I have rental properties in Utah, Georgia, and Austin. I have been self managing them for about 7 years now. I have not seen this to be too much. And I have a demanding W2 job! I actually the longer I'm doing this, the more I think I'm learning. I can probably take on a few more properties, before I'm at capacity. 
@Mike Dymski, agreed, remote renovation can be challenging. This will be my 5th remote renovation (2 in Atlanta, and 2 in Salt Lake City), and I'm still worried it's going to go wrong! In all cases though, I have had people on the ground I could trust. So that helps. My in-laws live in the area, so I think I have a bit of an advantage. Plus it's a 2 hours flight away for me. But, I definitely would not try this in a market where I don't know anyone on the ground. 

Thank you. You are right on the timeline. The contractor did not yet agree on this, and It definitely may take longer. 

@Jaycee Greene, I'm using a contractor. What is a C2 reno? 

Hi BP community,
this Brandon, FL (Tampa suburb) deal practically fell on my lap, and I’d love to get a sanity check from experienced investors here — especially around risks I might be overlooking.

The property

Zip code: 33510, Brandon, FL

Type: 4 bed / 2 bath single-family

Condition: Needs full renovation (roof, windows, flooring, kitchen, bath, electrical, etc.)

The numbers:

Purchase Price: $100,000 (off-market, cash)
Renovation: ~$100,000
Total In: $200,000
ARV: ~$330,000
Refi: $200,000 @ 7% interest-only (after a year)
Rent: ~$2,200/mo with 2% annual increase or flat
Expenses: ~$8,500/year, growing at 2%

    Insurance: ~1900 per year

    Property tax: ~3000 per year

   Other expenses: ~3600 per year

Hold Period: 7 years
Exit Strategy: sell and 1031 Exchange.

I'm closing on June 20th, and anticipate renovations to take 2 months or so. Could any investor who knows the Tampa area well vet my assumptions on rent comps, expenses, and help me with vacancy, and demographics? Is there a target demographic that would make good long term tenant? I'm planning on self managing I live in Texas, but I have properties in Utah and Georgia, and I have been self managing for over 7 years now. What risks, if any am I overlooking? I know a lot of investors are running away from Florida right now... Refinancing should not be a problem, but I'm also willing to own it out right if need be. 
Any insights would be appreciated. 

Hello, I'm in need of an eviction attorney in Salt Lake City to help me evict a tenant who is 2 months behind and a long history of late payments. Any referral is appreciated. 

Thank you

Hi all, I'm closing on a SFH in Sandy, UT, and I'm exploring making the property available to Section 8 rental. I currently have 2 rentals in the Atlanta area, and for the past 2 years, both have been Section 8 rentals, and I have to say that the experience has not been as bad as the horrors stories I heard. I worked directly with 2 housing providers in the area to vet the tenants. So far so good. I would like to try and replicate the experience in Sandy UT, but so far I have had a hard time finding any housing providers to work with. Does anyone have a recent Section rental experience in SLC (preferably Sandy) they can share with me?

Hi Nathan, thanks a lot for such a detailed response. I have a property in Salt Lake City right now, a triplex with a single gas meter, where I have to do something similar and it works pretty well.
For Atlanta, it looks like I have the choice between 2 gas companies, and multiple rates plans. There are fixed rates, with 6 to 36 months contracts, and cancellation fees and variables rates. Variable rates are almost double the fixed rates, but they require no contract. My initial question was to see what plan would work for me, as a landlord. After looking at this more closely, I'm leaning towards the yearly fixed rate plan. Because it's simply. I will use your option #2 above, with about 20% buffer in case my projections are wrong.

Thanks, Kyle. This is a pure investment property for me. I don't plan on living there.

Hello all, I just closed on a small Single Family home in the Atlanta area (Stone Mountain). I'm currently rehabbing the property and I'm planning on finishing up the basement to make it a stand alone 1BR rental (Long or Medium term) with separate entrance. Unfortunately it may not be cost effective to have separate gas and electric meters for the main house and the basement. I would have to keep gas and electric in my name and handle billing the tenant(s) their portion through the respective leases.

Of the gas and electric plans offered in the area, any one has suggestions on what plan may work best for landlords? Any suggestions on the best way to handle utilities in this situation?