All Forum Posts by: John Karg

Great post! Very encouraging to see Florida continue to outpace the rest of the country. 

Great post (and an excellent photo to help people spot this all-to-common Florida foundation issue). Some jobs just aren't worth it! 

No need to read books--just search for the 63 hour course online and get started! You can do it at your own pace and when finished, there is a state exam that you can also take from your computer. Once you're licensed, you just need to choose a broker and they will handle your training from there on (I have recommendations for brokers, feel free to message me once you're licensed). Good luck!

What you've mentioned is pretty standard. I've found that property management is usually cheaper when the fee structure is a flat fee per property rather than a percent of the rent. The best I've found is $99 per unit per month and 75% of the 1st month's rent every time there is a vacancy. The average is between 7-10% of rent collected and 75-100% of the first month's rent per vacancy. Make sure that if they are charging you for the vacancy, that they are listing the property on the MLS listings (not just zillow rental network), as in theory this is what the fee is for--paying the buyer's agent's commission.

Hi Michael, 

In case your plans restart, I'm always here to help with the lending side. I've got access to 100+ lenders with specialty investor programs like bank statement only, DSCR < 1.0, and fix and flip. Let me know if I can be of assistance!

 That totally makes sense--with a family house hacking usually isn't practical. 

Getting a HELOC on your current primary home is very easy--the fees are low to open one, and there are different options for length with the most common being a 3 year draw period, and 20 or 30 year amortization. The rate is always variable of course, with rates usually around 1 - 1.5% higher than the current 30 year fixed rate. It depends on credit score and the size of the line of credit however, so if you'd like I can get you an exact number.

There is also the option to get a fixed-rate home equity loan (2nd mortgage), however if rates go down you would have to refinance to take advantage of the lower rates, as with the HELOC it will float down automatically.

I'm always here if you have any questions! 

From my understanding, an out of state LLC needs to get a "certificate of authority" if transacting business in Florida. I'm not sure however if that would show up on Sunbiz.

Hi Kyle, 

Welcome to the site! If you've owned your own property before, then you are already well ahead of most beginners, as you already know what it takes to maintain a property. Now all you need is to study your local market with some basic principles in mind, and you'll be collecting rent checks in no time! 

As far as lending options, it all depends on the amount of cash you have available for the down payment and the property type. Personally, I think house hacking is a great strategy and it's how I bought my first property (buying a 2-4 unit property and living in one unit while you rent the others). This allows you to get the lower interest rate associated with an owner occupied loan, while also being able to use the other units' rental income to qualify for the loan. Starting later this month, it will even be possible to buy a 2-4 unit property with only 5% down on a conventional loan. 

However this isn't the only option, as I know there aren't too many 2-4 unit properties up in Destin. You can also always buy any 1-4 unit property as an investment property without having to live in it, with down payment requirements starting at 15% for a single family.  

There's a lot of different options, and no right answer--it just depends on your personal situation and goals. It can be overwhelming, so you are totally free to call or message me anytime to talk through any ideas or different options! 

Hi Matthew, the LLC shouldn't be an issue. DSCR loans are available however they carry a higher interest rate than conventional.

Hi Khassangali, 

Welcome to the community! You have a great plan in place. For cash offers in the 100-150k range, you'll have more options in Jacksonville than Tampa. Make sure you have ample cash left over for the renovation as well. Feel free to reach out with questions!