All Forum Posts by: Frank Macias

A good rule of thumb is that land entitlement essentially doubles the value. 

Quote from @Jorge Reyes:

Frank, contact https://soilconcretellc.com/ , they will be able to help you. 

All the best,

Jorge R. 

 Thank you! I just sent them a message for my needs. 

Hello everyone, 

I have a 1 acre vacant land in Bonita Springs, FL. I am looking for someone to draw up some plans for a house I want including a detached garage. Do you know of anyone in SWFL that would be able to draw/render a layout using my plot of land but that is also familiar with the setbacks and other things needed to draw it according to code? I would need plans for a well and septic placement as well. Thank you in advance for your suggestions. 

Hello everyone my name is Frank Macias. This will be a bit of a long post but if you care to read through it thank you in advance!

I am a pharmacist in my late 30's, I have a wife, a 3 year old daughter, and a 2 month old son. I purchased a vacant lot in 2023 for $155,000 for the purpose of building a primary residence on it. Fast forward to today, we have decided to scrap the idea and now want to sell the land. I will wait until we've held the lot for at least 1 year to avoid additional taxes owed per my CPA's advice. The value of the lot is somewhere around $350,000 and for the sake of simplicity let's say I profit $200,000 from the sale. What should I do with this money?

My initial thought was to put enough in savings for a 1 year emergency fund (am I pharmacist so I am risk averse!) and dump the rest into a brokerage account which holds ETF's invested in essentially total stock market indexes (VTI, VOO etc.). But now the investor side of my brain is saying WAIT a second, why don't you do a 1031 exchange!? As you know this will defer the taxes owed on the profit of the sale, which in my case, would be pretty substantial given my salary as a pharmacist. 

Other pertinent info, I own a duplex that we currently house hack but will be moving into a new home in Babcock Ranch later this year. So we will convert our side into a long term rental. In addition, our new home will have an attached in law suite in which I intend to rent out as well. By 2030, I plan on moving my family to Poland (my wife's native country) and so I am unsure what I will do for income then. Perhaps a mixture of rental income/brokerage account gains profits/dividends or finding a remote job I can work in Poland. Also, we have no consumer debt, car loans, or student debt. The current mortgage rate on my duplex is 3.5%.

So I just don't really know what to do. Invest the profit into the stock market and get 6-10% return on my money without lifting a finger but taking on the additional tax burden of the profits? Or rolling that profit into another property(s) to obtain more rental properties to increase monthly income? What would you do if you were me? Thanks for reading my long winded post, I realize with situations like these there are no "correct" decisions only different decisions that yield different outcomes. But I am interested in your thoughts. Thanks again!

Frank  

Quote from @Erik Estrada:

Quote from @Frank Macias:

Hello all,

Looking for a creative way to finance a new construction of a primary residence. We plan on living in the home but also building an attached mother in law suite and a detached garage both of which we would rent out for income. 

I currently own a SFH and a duplex in which we live in 1/2 of the duplex. We have a lot of equity in the properties as well as the vacant lot we own but my DTI is too high and so I don't qualify for a conventional mortgage. Any suggestions? Thanks for your time and responses.

Frank

 Hey Frank, 

Have you looked at doing a cash out or second mortgage on your other properties to finance those improvements? 

What you could do is buy as a normal primary residence with 5% down, (as long as your DTI permits it) close on it, and do a cash out with a DSCR loan on your other investments

 This project would not be an "improvement" it would be an entirely new build. I'm sorry I could have made that more clear in my post. 

Not looking to refinance or do a cash out as rates are outrageous right now. Do you know anything about commercial loans for residential builds?

The vacant lot is the place we plan on building the home on. Not selling the properties. DSCR loan is for existing homes not for new construction homes.

Looking for maybe a commercial loan for residential builds that allows for owner occupied.

Hello all,

Looking for a creative way to finance a new construction of a primary residence. We plan on living in the home but also building an attached mother in law suite and a detached garage both of which we would rent out for income. 

I currently own a SFH and a duplex in which we live in 1/2 of the duplex. We have a lot of equity in the properties as well as the vacant lot we own but my DTI is too high and so I don't qualify for a conventional mortgage. Any suggestions? Thanks for your time and responses.

Frank

Hey Ryan, 

Bonita Springs here - I have a couple of STR's but no where near the value of your home. I would suggest reaching out to a couple of local property managers of luxury short term rentals. Ask them for comps of similar properties in the area. I don't know what your goals are but even if it broke even that might be worth keeping? Anyways, best of luck.

Sam,

I love the idea of transforming the backyard into a sandy beach. I live in Bonita Springs- can you share what company you used to do the backyard transformation?

Quote from @Lisa Donner:

Hi Kristin,

I can highly recommend Rick Donner with Donner CPA, PA. He is a real estate investor as well as a CPA. He is located in Cape Coral.

I called this guy and he seemed like I was bothering him. I wanted to ask him some questions about setting up my STR and was trying to set up an in person consultation. He said "his time is not free and that it would cost money". I told him I wasn't expecting a free consultation and that he was recommended on BP. After a brief telephone interaction with him, I could tell I didn't want to do business with this guy. He might know his stuff but he came off as rude and that I was bothering him. Like dude, you're a CPA - I'm looking for a CPA and advice - why are you annoyed when a new customer calls and asks for your business? Oh well, I guess he's too busy to take on any more clients. I wish him well. 

I use Ray Kiddell & Associates out of Bonita Springs. So far, he seems like he knows his stuff and I had a free consultation with him and he's always available via email for any questions.