All Forum Posts by: Josh Green

 Hey Daniel,

Here are some questions you should get answers to when determining how to proceed with a flip:

1) What is the ARV (after repair value) of the property?

2) How will I fund the property and the renovations?  How much will it cost to hold while renovating?

3) How long will the renovation take?

4) How long will it take to sell?

5) Who will represent me in the purchase, renovation, and sale?

6) Is it profitable based on the above?

A good realtor is step one to help you find and build a team that can get you accurate estimations on these questions - let me know if you have any!

Steven, it is true it is difficult to find a traditional multifamily property right now that cash flows. Often times, the CAP rate right now is lower than the interest rates and thus the property does not cash flow. Have you considered short-term rentals? I do STRs in the Tampa bay area and there is absolutely opportunities here to get high cash flow. Considering your situation, it would be wise to acquire more buy & hold real estate to offset the taxable income for you as well as build net worth and capture both appreciation and cash flow through REI. For example, it isn't unreasonable to purchase a property here for $270k-$450k that will cost you around $2300-$3000/mo and generate $4500-$7000/mo in revenue through an STR. Most cases I'm seeing a 30-50% cash on cash return with my clients and most are out-of-state.

@Emerson Pariona

Go to airdna and use the "rentalyzer tab". Put your subject property address in there and you'll get a good estimate of the occupancy rate there. Then, go on Airbnb and look at comp properties and get an average daily rate. Multiply that by your occupancy rate and you'll get your monthly revenue. More than likely if it's a good STR area, you'll see around or greater than 3x revenue over an LTR

@Harleen Kaur

Florida is a great sweet spot for both cash flow and forward projection on appreciation. Depending on whats more important to you, STRs are well outperforming LTRs in general and the cash flow is wild. It's not uncommon even in this market to find a deal with 30-50% cash on cash returns in 1 year.

@Joel Lazar

My guys @Jay Michalec will impress you. He's a honest and hard worker with extreme ownership and accountability you'll want someone like this in a role like this.

 Hey Garrett,

I would first narrow down your list to areas you want to live in - house-hacking can be done successfully in most places in FL but it's important to live somewhere you want to.  For me, that was the Tampa Area due to the balance of amenities, growth/projection, and affordability to rent ratio.  

Once you have your list (I used Youtube and read online blogs about different areas), open up some websites to see what property prices look like and what kind of rents to expect.  You can quickly determine which areas are going to have the numbers that you want to meet your criteria.  

Without jumping into details too much, I'd say that MOST MFRs in the Tampa Bay area are currently overpriced - the cap rates are lower than the interest rates which is a tell-tell sign of negative cash flow. I work with clients like yourself and I'm seeing good opportunities in the SFR+ADU space where the prices are less inflated, competition for these properties is lower so you can reasonably get under contract, and you have several exit strategies. As far as making it a profitable house-hack, depends on your comfort to profitability scale and goals. There is definitely high cash-flow potential through a House-Hack STR (doing it myself) but a lot of little tricks to it which is where a good realtor comes into play. Between zoning, insurance, setup, and identifying the numbers on a property, those are all things I can also help you with in this area as I specialize in house-hacking and STRs here so feel free to connect if you have any further questions!

 Hey Teresa,

Other than actually physically checking the property/area out I like to do the following two things to check for the potential of a subject property as far as "safety" goes:

1) Google Maps street view.  Are there loiters?  Are there an excessive amount of cars parked in the streets?  Trash/litter? Go down a few blocks - what do the stores in the area look like?  Liquor store on the corner?  All this indicates if the area is a C or a B type area.

2) Google "Pinellas County Crime Heat Map" and you can find a heat map that shows crime rates and types of crimes in different parts of the Tampa Bay area.  

@Marvin Scott Butler HELOC is a great option to buy a property quickly but the point is to not hold the HELOC for extended periods. The intent is best served to quickly value add or flip the house or BRRRR it to pay off the HELOC within a short period of time. In a scenario like that, it would be better to use the HELOC than a conventional mortgage or hard money loan assuming you refi and can pay off the HELOC.

 Could you pass on that agent's info?

I would consult this with a licensed professional (tax accountant and real estate attorney), but I will say it's more than likely you're going to want an LLC established in the near future. With that said, I'm a big fan of action - just go and create that LLC is you're planning to purchase within the next 12 months. It's a pretty simple and usually inexpensive process so might as well jump on that and take the next steps while that is under approval. Hope that helps!