All Forum Posts by: Ian McKeown

Some property appraiser websites have links to help you download data from their websites.  You can download as .xls, .csv, etc.  You can call the property appraiser's office for details.  Some websites are better than other.

I was in Jax from '92 to '12.  My realtor was a great help selling my home.  She knows plenty of folks.  I worked in banking there for 10 years and can refer you to a lot of folks in that world too.  

Jax is a very stable market with good service jobs.  Not a lot of home runs in the market but plenty of base hits.  There are a lot of good submarkets with good deals.  

Happy to share offline.  

Welcome aboard Ryan.  You're working in great markets.  I've been listening to podcasts and dabbling in the forums.  Great stuff all around.  Feel free to reach out if you need anything.

Negotiate aggressively if you can. That corridor is a great STR market. It took a big hit in the crash but recovered in '12 and '13 and is very stable now. New construction started in '13 - '14 and the market is very stable now. Be mindful of CDD's; they'll kill your RE tax carry cost.

Hello fellow BPers,

I found an opportunity to buy an auction property in Orlando. I want to share my initial analysis and determine if I should try to flip the deal or buy it as a rental. Please review and let me know your thoughts.

The 3,804 (heated) SF home was taken for back taxes and the government selling at auction soon.

The forfeiture was for about $30k in delinquent RE taxes and HOA. The 4 year old home's exterior is in very good shape and only needs minor yard work. I'm assuming minimal interior repairs (full paint, re-carpeting plus a good cleaning) at about $15k. I can't get a detailed interior estimate until after the pre-scheduled inspection.

The property is located in a Top-5 zip code in a growing area. The neighborhood is only 4 years old and new construction will close out in the next 12 months. The home is located on a premium lot with a lake view. The sub-market offers several investment strategies including wholesale, fix & flip and long term rental. The sub-market also has a strong demand from international buyers for short-term rental and vacation home.

I’m using the BP calculators to analyze the fix & flip and rental strategies. I can share them separately. Here are the assumptions in my analysis:

Overall

• 6BD / 4BA, 4,946 SF (3,804 AC)
• $532k ARV ($139/SF) 90-day, 1-mi sale comps
• $15k repair costs
• $30k delinquent taxes & HOA

Flip

• $17k closing cost (going-in)
• $21k closing costs (exit)
• $3,875 monthly holding cost
• 6-month holding period

Rent

• $3,500/mo gross rent
• $316/mo cashflow
• $59k needed
• 8.35% cap rate

At first glance, I think flipping makes more sense than renting. I’d like to know if my assumptions are realistic and if I should drill down further into the deal to make it work. Thanks in advance for any feedback.

@Andrew Holmes

How do you find properties that were sold twice?

No way to deficit fund HOA as Delarant or majority owner? What about a sale/lease-back on the model? 15% profit is good to start. Could you get to 12% on the dirt, 18% vertical for 30% gross? Do you allocate lot cost to house price (20%)?

You're buying for $118/SF in a ~$250/SF SFR re-sale market. Either gut and convert to single family or tear down and build new.

George, is your 1.3 R/V calculation 1.3% rent yield (annual net rent / home price?