All Forum Posts by: Josh Green

@Nathan Gesner

Good insights here. I will say, at least here in Florida, there definitely is a distinction between mid and long term rentals. For example, insurance policies will specify rates depending on average tenancy length. For a standard landlord policy, they quote typically no more than 3 leases a year. While some may get 3 mid term stays, most will not and need a more flexible insurance policy geared toward midterm rentals / corporate rentals.

For my input to the OP, you've got 3 variables for mid term rentals that will be needing to be addressed. 1) advertising, 2) insurance, and 3) tenant screening. I personally have a solution for each that you can dm me about.

@Brian Leonard

@Jared Prevost I would recommend reaching out to 27 properties.

@Zachary Franklin

Financing is going to be your first constraint. You're looking at 25-30% down for a DSCR more than likely and rates for those are probably around 10%. In addition, expect higher closing costs so for a $450k purchase you're closing costs could be as high as $18k. Not including your furnishing budget or emergency funds you're looking at at least $120k to close in that price range. My advice? Consider a house-hack that you can short term rent to get into a deal much cheaper and on your own money rather than borrowed money and gain that experience.

Hey this is awesome! My wife actually does reselling full-time (we both were engineers and both of us now do our own businesses full-time). Love the hustle spirit! We moved from SLC which has been a top 10 metro the past decade in appreciation. Not to be biased, but I think you should start your REI journey here in the Tampa bay area. If you look at any charts you'll see that Tampa was one of the hottest markets in growth and one of the lowest among those in decrease. This is because the demand has been, is and will continue to be outpacing the supply. This is because of the desirability, price-to-rent ratios, job and infrastructure growth/outlook, and more. The BEST way you can start is with a solid house-hack. You can still get deals here that, as a house-hack, eliminate most of your entire PITI (principle, insurance, taxes, interest) even with a low-down and higher interest rate environment (relative to the past 3 years, but not high historically).

What that means is you're able to comfortably cash flow when you move out and while living it in aggressively save.  This is how my wife and I started off our investment portfolio and were able to save at a pace for 1 property/year and now are are able to increase that pace.  Couple this with the current environment: the herd mentality of normal buyers (and a lot of inexperienced investors) is that now is a bad time to buy.  Well, that's a perfect time right now to actually get a deal for at or below appraisal value AND get some seller credits (unheard of a few months ago).  So, you're actually able to get these cashflowing properties with less out-of-pocket than you could 6-36 months ago and are able to immediately increase your profit once the herd mentality returns (rates will dip, demand will flood back, prices will go even higher) and you go to refinance to a lower rate, with higher rents, and higher equity through appreciation.  In addition, the TB market has outstanding opportunities to increase cash flow through short and mid term rentals.  I actually do a lot of those now and can help there as well.  When you decide to move, I got the best PM out here that will take care of your property if/when you leave!  If that sounds like a plan to you, I'd connect with @Raymond J. Rodrigues right away to figure out what you can qualify for and if you qualify for any special programs to reduce your downpayment or closing costs even further!

@Drew C Grossman

St Pete has a variety of areas and cash flow metrics. Like most high appreciation metro markets, it's no longer very easy to just buy a relatively turnkey small multifamily and buy it will minimum down and expect to cash flow as an LTR.

Luckily, there are ways to cash flow outside of an LTR but this is definitely an appreciation market. As far as numbers needing to correct - I doubt that St Pete and most metros like this will drop in prices enough to offset interest rates to suddenly cash flow more. Good news is the rents here have been keeping up quite well with housing - we saw a 20-30% increase in rent the past year.

 The OP posted this 4 years ago haha

@Paul De Luca

Yeah that's a tough one in metros where I am because the median income is low (lots of retirees) so you could qualify for basically any MFR.

@Bryan Senk

Okay well if I'm understanding correctly and the appraiser did not count the completed garage as heated sqft then you really got the deal won here. Because all you need to do is get the permit and you'll raise the value of the home significantly by getting that added as heated sqft. It's like sweat equity without the sweat.

@Bryan Senk

Question - assuming this was purchased conventionally - did the appraise mention or count the garage space on the appraisal report as heated sqft?

@Paul De Luca

Ah yes I spent a lot of time looking for these portfolio loans early this year. Ended up calling around 25+ different mortgage brokers and originators and sadly most of them erroneously thought they could do 5-10% down conventional on multifamily. Found 1 lender that had them in the past but had strange requirements such as a min loan of $500k and the program was shutdown last year anyway. He was also only able to do it locally (it was Chicago).