All Forum Posts by: David Collier Jr
David Collier Jr has started 6 posts and replied 85 times.
Post: First Multifamily Looking in South Florida

- Pompano Beach, FL
- Posts 93
- Votes 59
Watch your insurance costs and get your quotes fast during inspection. If the asset needs updating etc you may be severely limited in carrier options until upgrades are made. Flat roofs, old roof age, old electrical, cast iron plumbing and non impact openings will mean much higher premiums.
Also certain distances from the ocean and/or flood zones can drastically increase premiums. Insurance alone can have a big impact on cash flows. Cash obviously means you have no need to carry windstorm. I see a lot of that here as insurance cost can throw a deal off.
I own two duplexes in Pompano Beach and pay $7k per duplex in ins with new plumbing, new AC, newer roofs and all impact windows/doors. Remove any of those updates and it would be higher. Also taxes are to be considered. Guesstimate is around 1.5%.
Post: Stats info: pricing evolution, etc. (Florida, Broward County)

- Pompano Beach, FL
- Posts 93
- Votes 59
Redfin has good data, not certain if it is county specific. Also obviously the MLS via a Realtor.
Post: To Lease or not to Lease

- Pompano Beach, FL
- Posts 93
- Votes 59
I personally will let leases go into month to month when I know at some point I want to get in and remodel the unit in the next 6-12 months. I always give the tenants plenty of notice vacate. Normally 90 days.
If I was planning on keeping the unit as is and had no plans to sell, I would require a lease be signed.
Post: Right Location for New Construction in Broward county

- Pompano Beach, FL
- Posts 93
- Votes 59
Pompano is growing rapidly. Prices are up 25% in two years and are now leveling off. Future is uncertain 12-24 months out but demand will always be here.
I don't think you're buying land, demolishing a house and building a 1500' 3/2 within a mile of the beach in any of the area's you are mentioning. Buying and rehabbing maybe.
Post: Right Location for New Construction in Broward county

- Pompano Beach, FL
- Posts 93
- Votes 59
Still way to broad. Whats the comps in each area? What is your strategy ie sell new construction, rent, vacation rent etc.
My properties are in pompano and I grew up and live here. Almost close to beach can mean varying ratings of areas depending on being 1 mile to beach or 1 block.
If you're less than a mile to the beach you can do very well in vacation rentals. I'd say a 3/2 under a mile from beach in right area can do $5-$7k per month in vacation rental gross rev.
Post: Right Location for New Construction in Broward county

- Pompano Beach, FL
- Posts 93
- Votes 59
"Fort Lauderdale or Delray" is still too broad. West Delray is much different than east and same goes for Fort Lauderdale. Probably twice the lot purchase price and build costs as the further east you go the higher end of final product you'll need to build.
I think your question should include a total budget.
Post: Starting New STR and Nervous About Market - Would LOVE Feedback!

- Pompano Beach, FL
- Posts 93
- Votes 59
I respectfully disagree with "most hosts in FL are struggling" and say the reality is more than likely the exact opposite. At least for me and many hosts I know in Broward. There is plenty of strong demand and S FL will always have a strong travel mkt no matter the current state of the economy.
During the financial crisis FL saw a visitor drop of less than 3%. There are over 120 million visitors per year (around 80+ million in 2008). If you can't get a small share of that market you're either in a very bad area, offer a poor product or have pricing issues.
I don't love the area you are describing (lived in Broward 38 years) but if you can see active comps in your immediate area go off of that.
You mentioned you've almost paid off the home. Take the total principal paid + expected remodel costs. As long as there is room to force appreciation your worst case scenario to me seems to be you have a home worth more than you've paid into it and you will have an increased monthly cost of $600. Point is, don't spend $100k in remodel costs to increase the value of the home $75k. Know your numbers on comps and DO NOT go overboard.
I would advise against the jet skis. The liability assumed is not worth the potential increase in rental income they may add (which you won't be able to measure anyway).
Bottom line its all about active STR comps in your IMMEDIATE area. Search around airbnb/VRBO and leave the travel dates blank. Click the calendar on local comps and see what their availability looks like. If nice homes aren't rented often don't think you'll be able to do anything different. Better to take the HELOC and buy a property in a better location.
Post: Help for an overthinker! - STR/Short Term Rental Markets

- Pompano Beach, FL
- Posts 93
- Votes 59
I own two duplexes in Broward County. Like someone mentioned earlier, it is a very STR friendly state and continues to become even more friendly as our state depends on billions in tourism rev.
Don't worry about sea level rise unless you're looking into Miami area. Do worry about insurance and property taxes. If you buy an older home in the $750k range you're going to be looking at around $8500 in property insurance (I pay $6500 per $300k duplex). With that said that's 1 mile from the beach.
Plenty of demand here and I don't see that changing with so many reasons for travel other than vacation. For example I do well with traveling nurses considering the number of hospitals in the area. Also strong long term tenant demand as a fall back.
If you go smokeys you lose some of that traveling worker and long term tenant market should a recession hit but with that said, I travel during recessions as do millions of people.
Post: Moving to Broward County next year

- Pompano Beach, FL
- Posts 93
- Votes 59
Grew up and still live in the area. Home prices have increased significantly but the strong rental demand has appreciated rents as well. It's a big area so many places you should and should not consider. Generally if you are East of I-95 you'll want to be east of dixie hwy. That changes in some areas closer to downtown fort Lauderdale.
In regards to condo they are a dime a dozen but there is demand. Just so many new construction condos the older buildings are having to compete with. Also of course HOA to consider if you plan to rent your unit eventually. If you go condo, stay away from Fort Lauderdale beach. It's gone way down hill. Downtown area is growing rapidly (Broward Blvd and US1).
Post: Airbnb in Flordia?

- Pompano Beach, FL
- Posts 93
- Votes 59
I have two duplexes a mile from the beach in Pompano Beach. I would say you first need to decide if you're going beach or inland like Disney. When considering both, keep in mind that when you are close to the beach your insurance costs are going to be significantly higher. For example I pay $6k per duplex for wind etc. But it is justified by the rent I command.
Also, your entry price is going to be higher closer the the beach especially in SE FL and you will get less for your money in comparison to Orlando. Obviously check the city regs but most in FL are STR friendly.
In regards to demand, my demand is very high even with foreign travelers. I see many fleeing the strict rules of Canada.
Another market to consider when deciding on where to purchase is vicinity to hospitals. The traveling nurse market is ON FIRE and they pay high rents generally renting 1-5 months. The rent is comparable to STR ADR considering there are no platform fees or vacant days.