All Forum Posts by: Josh Green

Quote from @Tori Magers:

Quote from @Jordan Baratono:

Anyone have contact with experienced real estate agents in St. Petersburg or Clearwater Florida? We are interested in securing long term leases on quality properties in Florida so we can furnish them and put them on the STR market (with terms written in the long term lease allowing this). Would love to hear stories from anyone having success in the area.

Hi Jordan! I am looking for the same thing and will keep you posted if I get any good recommendations. My husband and I are from St Pete (currently in Utah) and are moving back next June! Clearwater / Indian Rocks Beach are quite a bit more flexible in STR regulations from what I can research online and get back from the city but St Pete really is the star of the show in that area in my opinion. Would love to connect on these!

What part of Utah? We should connect! I'm originally from SLC, UT but moved to the Tampa Bay area (Clearwater) for the real estate investing opportunities. I actually quit my W-2 Career (engineer) not too long ago and went full time (instead of just part time) as a realtor. I work with a lot of investors and mainly on STRs and house-hacks here in the Greater Tampa Bay area (Tampa, St. Pete, Clearwater, etc). I actually close on 2 more this month with clients and am renovating mine right now to throw up on the market as an STR come September. I also do house-hacks and general LTR investing as well and can help no only locating properties but analyzing them, getting you set up with PM, amenities list, and local vendors (handymen, cleaners, etc).

Quote from @Nerlande Joseph:

Hello BP investors. 
I am all over the place looking for a market to invest. Norfolk and Virginia Beach, VA because of the possibility to do both STR and LTR with the same property). Memphis, TN and Birmingham, Al for LTR because of low entry market and decent cash flow). Raleigh,NC area because of growth. Jacksonville, Cape Coral, and West Palm Beach, FL because of easy access to property and can do both STR and LTR.

I am about to close on a HELOC with TD bank. I live in Miami, FL and I know I can't Invest here after all my research, nothing on the market makes sense. I currently own a condo rental in Miami that I bought pre-construction. But those days are over.
Now, where do Invest?  As a nurse and in general, I have a high risk tolerance so I don’t mind investing out of state, preferably in the southern US market.  However, I would prefer to invest in Florida due to easy access. 
Budget is up to $400K for multi and $200-$250k for SFR in a B or A neighborhood ( my risk tolerance has a limit 😀. I don't mind a light BRRR, actually, I would prefer that.
I would definitely need a team because I work pretty long hours ( love my profession and my job). 
  My goal is to buy at least one property before the end of the year.  Therefore, I need to pick that market and focus on it.  
Thank you for your help. 

I can totally help find you an STR with 20-30% cash on cash returns year 1 in the greater Tampa area in the $250-$300k range!  Also, living only a few hours away, makes for a nice home away from home and pretty easy to keep eyes on the property.

@Christy Flora thanks didn't know pricelabs had this feature and I'll definitely look into it!

Quote from @Andrew Michaud:

I am trying to evaluate a property, and I'm curious what many call an ideal or excellent cap rate for a rental property. Is it 8%?

Just like other general "rule-of-thumbs" (1% rule for example), there is a general MINIMUM cap rate to quickly determine if a property is likely NOT a good investment. A cap rate below the interest rate of your loan, for example, is generally a bad investment that won't cash flow. Historically, most investors aim for the golden 10+% cap rate for LTRs. That has become increasingly difficult to obtain over the years as the yield on REI has trended downward for over a decade. Although a useful tool, it is sometimes useful to look at other metrics as well, especially on smaller MFRs such as COC return as mentioned above. Depending on the investor's situation, it's best to (in my opinion) take into consideration all the factors by laying out the projected 3-10 yr plan of investing in subject property vs another vs investing in something else vs not investing in that moment at all. Sometimes people over-analyze a "good deal" in the chase for the "perfect deal" leading to a mindset of "timing the market > time in the market" which is not a long-term wise mentality when investing.

Hi All,

I want this discussion to focus on the latter as I've found it pretty simple to understand the pros/cons of Cash out Refi vs HELOC and the strategic purposes each can have. However, I wanted to reach out to those that have dabbled with or looked into co-investing. A basic definition for readers: Co-Investing is basically a way for an investor to give you cash for a share of your projected future appreciation. It acts as a Cash Out Refi in that you can tap into your home equity without refinancing. You are given cash based on your appraisal value with a LTV requirement, and in return are obligated to return equity in the future for doing so.

I am just looking for any details, pros/cons, experiences you have had with Co-Investing.  What companies are competitive in offering this program?  What are the terms generally (% share, how the appraisal before and after sale works, holding periods, penalties, etc)?  I think this could be a useful tool for many investors that have captured attractive interest rates on their properties the past couple years and still leverage the equity without resetting their mortgage and interest rates.  Of course, with every opportunity comes a cost and that is what I'm trying to get a better idea on before setting up a consultation with a co-investing platform.

Hi All,

Looking to see people's opinions on their preferred STR occupancy and ADR analysis tools/methods. Which of the following do you see being the most accurate for you and your area and why? (Rabbu, Airdna, Enemy, other?).
For example, I see the following Pros/Cons for properties in the Tampa area:

Rabbu:

cons - revenue average even after looking at the top 75th percentile seems to underestimate real-world STR performance. Might have to do with their software taking all comps nearby despite several not really being made available 365.

pros - quickly pull nearby comps to get a visual idea of the top performing properties and what numbers to expect (by ignoring outliers in the mix).

AirDNA:

cons - occupancy in most cases seems to be underestimated when I compare to real-world STR owners. Often I do not look at their ADR but sometimes it is spot on based on my analysis

pros - general city stats and subject property analysis for occupancy rate estimations (conservative generally)

ENEMY Method:

cons - I've looked at live listings and their calendars and this doesn't often match up with what the host actually gets.  For example, I look at the next 6-8 weeks on their calendar and it might be 50% occupancy but the host actually gets 85-90% on average annually.  This might be slightly influenced by the seasonality but in many cases still doesn't always explain/justify using this method to get an accurate occupancy rate for a subject property.

pros - I like this method for getting an ADR.  Pull a handful of comps and see the live ADRs.  What you don't get is true ADR because their daily rates at the moment you look may be lower or higher than their annualized ADR due to seasonality.

OTHER Methods??

I know everyone raves about the enemy method on BP but wanted to see others' experience in their markets and what trends they see between these different tools and their accuracy/ability to estimate occupancy and ADR well.

@Nick Velez is a wizard I highly recommend him!  He works with One Brokerage - David Greene's Lending company and also invests in STRs himself.

@Pretty Khare

These are inland, but still in the Tampa Bay area and within 20-40 min to most beaches. Beach front property is tricky for the higher PP, typically HOAs, and flood insurance costs. Not saying that you can't make enough revenue to offset all that and more, but most my clients are better served looking elsewhere 👍🏼

@Zane Abner

I'm in the greater Tampa Bay Area and I'd say most properties me and my clients pursue have the following criteria:

PP: $250k-$400k

CoC return (1yr): 25-45%

~15-25% gross revenue to PP ratio

~15-25%+ cap rates

Mostly turnkey (other than furnishing)

Those values go up or down based on the area and creativity/comfortability of my clients as far as how they want to run their business. As you can see by the numbers, they might not be the #1 top market returns in the US, but they are very good in my opinion. You get an "all-around" investment with good forward appreciation projections, buffer against recession (lots of business, amenities, events, vacation, education, healthcare, etc), and exit strategies (high rent to price ratios generally speaking for a desirable metro). PLUS a great place to also vacation yourself 😎

@Account Closed is top-notch.  He lives here locally and know how to manage properties, tenants and landlords very well.