All Forum Posts by: Julie Sisnroy

Hi,

Is this still true??  Also wondering if there is anywhere left in the Orlando area.  What is Poinciana like?  Looking at new builds open to investors! 

I am not in the RE career, so this is just my experience from an investor's perspective only.  "It depends" is the answer.  Everyone already mentioned the pros/cons.  PM companies will of course respond with "YES!" and those with dozens of properties in their portfolio as well.  And the pros and cons are spot on, but it is not so black and white.

I have done both and here's the "why."  The properties I self-managed were my primary residences.  I lived in the homes, I still was local and the houses were fairly new. I have also been an OOS investor, but the house was upper middle class and I personally met/interviewed/background checked her.  The rent was far too high ($2300) to justify paying someone 10% a month to collect rent.  I used Cozy and it was automatic rent collection. Sure, there was occasional maintenance, but no middle of the night calls.  Unless there is a busted pipe or the house is on fire, most maintenance can wait until morning. I addition, I don't know of many PM offices that take 2 am calls either.  We also had an agreement that if she felt it was an emergency, she would get it fixed and I would reimburse her.  Honestly, with the properties I self-managed, they were usually long-term tenants (2-3 years) with kids/pets and little turnover.  I may have spend on average 3-4 hours a month dealing with the properties (sometimes no communication for a couple months).  HOWEVER...

Other properties I do use a PM and they are crucial.  The properties have a higher turnover, I am OOS, and houses require more maintenance since they are older properties.  They are also lower rent so fee is not so bad and we negotiated to 8-9%.  I think if you are several time zones away, you have never lived there, and don't know the neighborhoods, most definitely.  But just know, it is not always as much work as some people portray, especially if you choose a newer home and quality tenants up front who will likely stay longer! Personally, in most cases, I think 10% is rather high, especially if you are renting at $1400-1500 a month--it really cuts into your cash flow, but many will argue that.

I am interested as well.  My goals are long term buy and hold (A/B neighborhoods), so appreciation in growth areas with good schools, longer term tenants, even if it means lower cash flow in the beginning.  Also, are there any new build open to investors?  Sold PM with reasonable rates.  Thanks!

Also, interested in the near city suburbs... A/B neighborhoods that are growing?  Any new builds for investors?

I thought I would participate in this discussion.  :) I have thought about JAX, but I am not sold yet. ;) Can someone tell me the "good" zip codes/areas?  For me, good is good schools, more modern newer homes, etc. As an OOS investor, a solid PM is KEY, which I am also in the hunt for, preferably a smaller company.  I am looking for long-term buy and hold with quality renters.  So, are there A/B neighborhoods you can get cash flow?  But cash flow/1% rule are not as important as long-term appreciation.  Instead of "pockets," or "block by block" are there areas where you don't have to worry if block A meanders over to your home on block B? Like whole neighborhoods that are safe??  If not, are there better places in FL to look than JAX or other areas in SE?   My never-ending search...

I have not seen any responses here, so I thought I would revive this discussion as I am considering them as well. @Justin Jesus Sayler Have you invested with them?

Glad I came here!  Was seriously looking at them.  Is there another new build outfit out there anyone has had luck with.  What about just going to the builders themselves and see if they are open to selling to investors? Also, may look at Norada.  Thanks!

I just wanted to ask if anyone else had experience with them?  Thanks!

@Joshua Emmons  I HIGHLY recommend you look at mortgage lenders who regularly deal with investors.  Of course you can get a mortgage on an investment property, you will just usually have slight higher rates and a higher down payment requirement. There are plenty lenders here on BP willing to help you.  If you are interested in another property, you can do a cash out refi, but otherwise, it's not necessary to do a cash out - enjoy owning a property clear and free!

I am not sure why you have an LLC for one property unless you use it for other business purposes. It is harder to get a loan under LLC. Of course, there are always two sides to owning vs not owning an LLC, but it seems most say it really is not necessary. Don't worry too much about it--there are worse "mistakes" you can make in RE!

Good to know! Now is this for STR or LTR?