All Forum Posts by: David Collier Jr

2/2s are harder to find in older builds so you will definitely limit the number of properties that meet your criteria. I am under contract on a second duplex 3/2 and 2/1. I am very familiar with my area in Broward and there are not many 2/2's. You are also not going to see a huge rent bump for a 2/1 versus 2/2. So if you find a 2/2 just make sure the price isn't drastically higher than a duplex with a 2/1 i.e. that extra bathroom must be justified. 

Happy Memorial Day Weekend all! The owner of the duplex next to mine is finally ready to sell and the property manager (also the broker) has reached out to me to discuss. Currently rented.

Im looking to come up with 3 offers to present and would appreciate any insight and opinion.

I prefer to do an owner financed deal as I am currently looking to purchase a live in flip SF (no longer want to live in my duplex). So an owner occupied low down conventional loan is out as it will effect my ability to purchase a SF with conventional financing. I do have access to low interest PM to do a 20-25% down conventional for this purchase.

Owned free and clear. She wants to clear $300k after commissions, fees etc. As this is an off mkt deal I would not be receiving commission (I'm licensed) however prop manager would per the deal between the owner and himself.

Price: $315k

Mkt Value as is: $350k (recent comps)-

I paid $300k for mine same condition 18 months ago and mkt has appreciated since.

Current gross rents: $2650 (under mkt by $350)

Monthly expenses/holding costs to include tax/ins: $1,420

​Net Rent without financing costs: $1230​

​So essentially I have $1230 per month to work with in an owner financed deal. She is used to netting probably around $1600-1700 not withholding for Vacancy, Cap Ex and repairs.

I need to come up w/ down payment and monthly payment terms, that includes 2.5% for the property managers broker fees.

​I do have access to about $100k in private money. I prefer to keep my own funds for my SF primary res deal. ​

What are your thoughts on finance structuring?

Hey @Nicole Frierson, welcome! I second everything that was said prior. Also check out the now Zoom meet up, Coffee with Investors hosted by Jon Huber . Used to be at a coffee shop in Delray but is now Zoom once a month on Saturdays. Meets once a month. Great conversations about who's doing what, networking etc.  

Also watch all the tools webinars such as how to analyze properties etc. They may be a bit more useful to you at first versus the podcasts focusing on who's doing what. Get a good base of knowledge down first and the podcast guests will make more sense to you. 

Any insurance questions Im an independent broker 12 years. Ive helped BP clients. The tri county market is a mess right now in regards to purchasing and insuring older homes so it is something you will need to consider when putting a deal together. 

Good Luck! 

Hey @Shemar Gooden, it's great that you're getting the itch early on. My recommendation is to house hack a multi family such as a duplex or triplex. Having a duplex with a tenant and a roommate in your unit will take care of most of your fixed costs. 

Use an FHA 3.5% down payment loan. Get pre-qualified first and figure out what you can afford. If you aren't having much luck qualifying for financing figure out where you need to be in regards to income and credit score and work to get there. Analyze properties in the meantime so that when you're ready you have the tools to act fast and get a deal under contract.

@Mitch White Yea I believe there are two periods to watch, now and 6-8 months out. The pandemic of course has caused some sellers to hold off on listing and the buyers not on a timeline to pause temporarily. I feel sellers and buyers will begin to enter the market shortly. What will be interesting is to see how the above median earner begins to act if you start to see continued negative sentiment in the market, GDP, inflation earnings reports etc in 6-8 months. 

@Mitch White appreciate the breakdown on the numbers. Where is that data from specifically? The Feb/Mar will be very interesting to compare to March/April and April/May. My Realtor friends have been somewhat biz as usual but its obviously very early and their buyers are above median earners whom are not as effected just yet. 

@Ricky Solon I own one multi now. Currently considering my strategy as the current economical situation unfolds. Have you flipped or had active investments recently? 

@Riley Breck Id say anywhere as far as Summerland which is about a 30 min drive or even further but being able to say "30 min drive to KW" would help. Driving in the keys is pleasant i.e. the views are great so its not something people scoff at while on vacation. Lot to stop and see along the way. 

I would make certain it has a pool or at the least a hot tub or room to build one. Also if there is space for a boat trailer up to 30' and a near by ramp. Maybe even a marina that will allow for dock rental for someones boat. Lot of people travel down with their smaller boats. 

Multi unit or SF that both have good potential for vacation rental when you leave. Ive been fishing tournaments and renting homes in KW for over a decade. It will always have a strong vacation rental market but you'll need to buy correctly i.e. location. Most locals that work in KW actually live off the key in stock island etc. Even the keys just to the N have a good vacation rental market within driving distance to KW. 

Great story! I recall seeing your early forum posts when I joined back in 2018. Do you invest in any other areas outside of FL? I am in FL myself and have a couple of markets that ive been researching. I'll send you a PM.