All Forum Posts by: Edgar Rodriguez

My recommendation to most people is to invest in vehicles that more people can afford. The segments of real estate that I believe will be affected (if at all) will be luxury apartments/condos/flips/etc. People, even in a crash, have to live somewhere. So if you purchase a duplex and charge $1000 a side, I do not think you will have issues filling that vacancy or with collecting rent. However, that young millennial that works at a bar and lives paycheck to paycheck may have issues paying his $1700 a month "luxury" apartment rent in South Tampa. I could be 100% wrong in my thinking but that is the thought I have had. 

Continue to buy and invest in properties that make sense for you and, in the long haul, you will be fine. 

@Elvis Albarracin

Congrats on taking the first step. One opportunity that I see is what some people call "wedge" deals meaning they are too expensive for investors to flip but not in a good enough state to sell to end buyers. They come in all shapes and sizes and require varying degrees of work. However, if the sellers are open to fha 203k renovation loan, it could be something that you could purchase and get immediate equity. 

Now, there are additional hoops to jump through with the 203k. You have to get multiple contractor quotes for the repairs of the property. The home + repairs has to appraise for that amount based on comparables in the neighborhood. The main hurdle is the openness of sellers to such a situation because they are harder to close and take a little bit longer than a traditional loan. 

I hope this helps! Good luck in your journey!

@Account Closed the best bet is to contact the county. As far as I am aware, they do not allow stays for shorter than one week. Right now, with the virus, it could have changed. You would also have to file with the DBPR (Deparment of Business and Professional Regulation). However, I have not verified that since earlier this year (around December/January). 

@Account Closed Neighborhoods with HOAs have very strict regulations when it comes to rentals. Most will not allow tenants to sign leases for less than a year, if not six months. In my experience digging into the entire Tampa Bay area in regards to STRs, your best bets are within the city limits of Tampa and a single family home or small multi. Highest demand and daily rates are areas close to the airport and other attractions such as Raymond James Stadium, Busch Gardens, etc. 

Hillsborough County, outside of the city limits and as of earlier this year, do not allow STRs unless they are in the correct zoning. 

South Tampa, Seminole Heights, Westshore, and West Tampa have been areas that I have seen properties that can generate a lot of revenue but the profitability obviously depends on the prices. Other areas are beach communities in Pinellas County. Some, not all, allow STR and only in certain zoning. The city of St Pete is essentially a no go unless you get the ace in the hole property that is zoned hotel or resort.

It honestly has a lot to do with responsiveness, knowledge, and empathy. If an agent is always trying to keep you in a deal that does not make sense or convincing you a deal makes sense when it does not, that may be a red flag. I always make it my mission to never push people toward anything when they are purchasing or selling. I provide the pros and cons of the home, area, future problems along with my opinion. I will tell you what is a good or bad deal in my opinion and experience and reasons why.

After that, it is completely up to the client with how fast/slow they want to move or if they want to make a move at all. I have definitely lost some deals by not being super "salesman" but that has been more than leveled out in my opinion with the relationships I have with my people along with the peace of mind knowing I have not pushed people into a bad situation for a check. 

@Craig Joseph Understood. I obviously do not know your ultimate goal but I always recommend factoring in at least a small percentage of the rent towards those things for a rainy day. If you already have 25k, that is perfect. 

Depending on how large you want your RE business to be, I would always analyze your deals as if they would be managed at some point. 

@Craig Joseph I would make sure to factor in repairs/capex/vacancies even if the properties are renovated. Besides that, I don't think you missed anything. 

Are planning on self-managing after you move out?

@Cole Agner With that starting amount of money, I would suggest possibly house hacking at least to start out. Move into a triplex or quadplex and have your other units pay your mortgage. You can do that using an fha loan with as little as 3.5% down. You can still have a manager run those other units and pretend you are just another tenant (one that doesn't pay rent) but it will get you into a property that will hopefully cash flow once you move out with as little money into it as possible.

My other suggestion would be to invest with partners or in a syndication. The issue with that is you have less control over the asset and to receive the $3600 a year on an investment of $20,000 is not repeatable in my opinion. I do have less experience with syndication so I could be wrong there. The benefit is that it is completely hands off, especially with syndication, and you are investing in a much larger, more stable asset as a result. You do not have to worry about losing money one month because on tenant did not pay in a 150 unit apartment complex for example. Comparing that to a single family or a small multi, one tenant not paying could mean cash out of your pocket to pay the bills.  

Hey @Cole Agner

I love your forward thinking. I really think your goal is within reach in today's market by investing in some areas. There are obvious hurdles of course such as what happens in the future in real estate, interest rates, overall economic growth, etc. However, if you are clear on your goals while maintaining flexibility in your strategies, you can make it happen. Properties can be purchased in any economic environment as long as you use the correct strategy. 

I think it is a great idea to learn as much as you can from your friend. Try to see what you like and do not like about investing. I truly think that, if you find areas in investing that you enjoy and delegate tasks you do not like, you will have a much better time and will be more motivated to make things happen. 

Congratulations! That urban redevelopment at University is going to drive a lot of growth in that area. You picked the right time and place!