All Forum Posts by: Ivan Vargas

You've got a whole lot of reading to do... Are you looking to subdivide the lot into 8-10 individual lots or build 10 units in the lot and make it one property with ten units? Or my actual question is do you plan on selling them individually or just renting them out and if you do decide to sell them later sell one big multifamily property? (very rare in palm beach) 

1. Townhouses are not multifamily and in Palm Beach County if you look around, they have their own lot and PCN. Commonly you'll see a townhouse which is actually classified as a condominium. I believe they have a special zoning just for townhouses which requires a special approval to get your lot zoned as a PUD (planned unit development).

2. The lot size will determine how many units can be built on it based on the zoning. 0800 - Multifamily is a use code not a zoning classification. zoning is either RS (residential single), RL (residential low density), RM (residential medium density), RH (residential high density). That code you mentioned means there is a multifamily structure under 10 units.

3. That depends on the zoning and you'll need to read the rules located at the link below to determine the ratio of your particular lot size. 

4. As flexible as any other county. But you'll probably need the right person or company to handle the permitting process. Try WGI The Wantman Group they're handling a 9 acre 33 home project I'm working on and another 40 acre 109 home project up the block. 

I believe you can call the zoning department and give them the PCN and they will tell you exactly what can be done on the lot right away over the phone. 

http://www.pbcgov.com/epzbcommon/asp_html/epzbMenu.aspx?ReferrerID=ezinfo&FROM=EZ&TargetMenuItem=ULDC+Interactive+Code

You may already know this one but in case you don't its a great resource:

pbcgov.com/papa

@Wayne Brooks what happens to the mortgage in this situation? Will the bank bid at the auction as well? Or do they not care because their first position remains after the auction? Assuming they accelerate or call it due, how much time does the buyer typically have to pay them off, before they foreclose?

If its rented out and producing cash flow, that counts as income and your DTI ratio changes. They typically count around 75% of the rental income towards the mortgage payment.

I have not invested but the believe concept is great. You buy your share of 10 rental properties and you get your % of the profits from that rental income based on your % ownership. 

West Palm Beach Handyman

We all know he's referring to Holdfolio. But to refrain from breaking the rules on BP forums he will not mention the name of the company. 

Yes since you put it that way it does seem like bad business practices. Yes she has the extra $5k but as I mentioned I'd do it for free. I guess the right way to do it would be to just flip it to her. However if thats the case then I'd have to make something since I'd have my money tied up for a few months. I was just trying to avoid that.

Has anyone ever assigned a contract to an FHA retail buyer? Does FHA allow it and will they be able to close on the property or will the escrow be lost since its a cash offer?

Although there is a $5k markup on the purchase price, I'm really just doing it as a favor for a friend. Specifically, I have a friend who wants to buy this home as a primary residence, however the seller is not interested in FHA buyers and won't even consider offers contingent on FHA financing. I plan to make a cash offer with my POF for just $5k below asking and assign the contract to my friend for the $5k. (I'd do it for free but hey an extra $5k won't hurt.)

However, I am not familiar with FHA guidelines and I don't know if they will accept that purchase agreement under my company name with an assignment of contract from my company to the FHA end buyer. I don't want her to lose the escrow deposit I will be making with my offer simply because she can't get financing and the agreement is clearly not contingent.

Anyone on here have experience with this type of situation? Any suggestions or advice would be appreciated...

You're "General Counsel"? This is going to to be awesome...

Some HOAs have restrictions on rentals. You may have to wait 12 months before you can rent it out. However, in Palm Beach it is hard to find a "nice neighborhood" that isn't a gated community with an HOA. I would say best rental properties are townhouses. Its like a single family house and a condo at the same time. But again you have an HOA restrictions and procedures. Your tenants may have to go before the board, pass background checks, have minimum income or credit and most likely pay an application fee. This is all the same with condos.

As you already noticed, to find a single family without HOA you'll be in not so desirable neighborhoods. But the prices are usually lower so the returns are relative.