All Forum Posts by: Deb S.

@Valerie Jean McCloskey it's not a bad deal at all when you calculate cash on cash (COC) return. My estimates come up with these numbers: mortgage @ 30 yrs $550, HOA+Taxes $455, insurance $60, vacancy/repairs @ 3% each $82. Estimate closing costs at $4000. Based on these numbers, I come up with cash flow of $233 with rent at $1380. With a down payment of $20K and closing costs of $4K, you COC is 11.6%. That's a pretty good number for COC. Now, will it get you rich? No. So it depends on what your goals are if this is a good deal for you.

Because the market is high right now, I would not buy anything that I didn't plan to hold for at least 10 years.  If the market corrects, it may take that long to get your initial investment back.  So, if this is a short term investment because you may want to scale up or buy something else in the near future, make sure you have some reserves in place or a plan B.  

I have personally bought and rented a condo here in Florida - have since sold it. The HOA fees of $3300 are cheap compared to most places. Will they go up? Probably. You need to get the financials from the HOA board and look to see how much $$ is in reserves, what the budget is for the year AND definitely make sure there are no outstanding or upcoming assessments. My condo fees were similar to yours-cheap and it was because it was a well run HOA board and the property management company was also very good. That is key.

Best of luck to you.

Become a private lender for truly passive RE investing.  If you lend out that $600K at 8% - which is low, you'll generate $48K in income and that's not counting points you would charge on top of the interest.  After 2 years, you have another $100K to lend out and so on.....

So you want to provide a convenience for your tenants by allowing them to use a washer/dryer you provide but don't want to collect quarters every few weeks?  My experience has been that some tenants are not tech savy.  They may have a cell phone but that's all they use it for is phone calls and maybe pictures.  I had coin based machines in a multi-family I owned and didn't have any issues.  I would collect quarters monthly when I went to collect the rent - had Section 8 tenants.  More often than not they would ask to exchange some cash they were giving me for quarters to save a trip to make change later.  

If you have automated rent payments, I would still go by and collect the quarters each month.  It provides you the ability to check on your property, see what's going on and address any issues that may not have been brought to your attention.

Just my two cents.

Investment Info:

Other buy & hold investment.

Purchase price: $100,000
Cash invested: $101,650
Sale price: $126,000

Updated fully furnished move in ready 2 bed/ 2 bath condo, just under 900 sq ft in Punta Gorda FL. This was a buy/hold in my SD IRA. Sold just under 2 years of owning for net sale price of $114,700 plus monthly cash flow of $590 for 20 months totaling $11,800. After sale profit $13050 + net rents $11800 for net profit of $24850.
On to the next one. Multi-family preferred!

What made you interested in investing in this type of deal?

Fully renovated condo in great area/location. Low monthly HOA fees and no maintenance.

How did you find this deal and how did you negotiate it?

My real estate agent Debra Hanson at Coldwell Banker in Punta Gorda sent me this after 30 minutes on the market. Made full cash offer and it was accepted.

How did you finance this deal?

Cash from my SD IRA

How did you add value to the deal?

Offered cash and waived inspection. Figuring it being a condo the major items are covered by the condo association.

What was the outcome?

Seller accepted my offer and we closed after 30 days

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Debra Hanson at Coldwell Banker in Punta Gorda. She busts her butt and it shows. Always returns calls promptly and makes sure the i's are dotted and the t's are crossed! 941-681-6402

@Zane Steward  Not sure what you mean by 'PS' but....  I ignore the DNC list when looking for property.  Why?  Because I'm not selling anything - I'm looking to buy!  The only thing you should be concerned about scrubbing for is people who are 'professional litigators' - aka love to sue people! Just keep calling and if they ask you not to call again or to take them off your 'list' then you can.  Hope this helps.

@Daniel Murphy There are so many places it really depends on your budget.  Some places that come to mind near the beaches are Sarasota, Englewood, Venice, Ft Myers, Clearwater, St Petersburg.  I live on the west coast so I'm more partial to those beaches! Hope that helps.

@Nicole Sugrue Is it possible for them to refinance since rates are so low?

@Bao Chau Tran yes they do

@Bao Chau Tran my insurance company is American Integrity Insurance Company of Florida

@Daniel Cabrera If I were you I would consider buying a duplex or larger multi family so you can live for free (or close to it - and maybe even make $ as well).  Then save up for what ever else you want to invest in.  You'll get the benefit of writing off just about everything on your taxes AND living for free.  Just a thought.

As far as AirBnb, I would hold off on that until this pandemic is under control or a vaccine has been distributed, etc.  Airbnb is definitely not at capacity write now due to this.  I Airbnb out a bedroom in my house and I'm half booked compared to last year.  You may want to check out the competition in whatever area you are considering by looking at properties on Airbnb and seeing what others are charging so you can get an idea of what your income may look like for a similar property in the same area.  Hope this helps!