All Forum Posts by: Kenneth Garrett

@Kristin Riker

Your are at the bottom of the price range where competition is fierce.  Pick a neighborhood or two in Tampa, that you can become an expert in. This means when a property comes up you already know whether there is enough spread in the deal to make it work.  When I first started I was all over the place and couldn’t move quick enough.  Someone advised me to narrow my search down.  I limited it to 3 neighborhoods and I was able to secure my first property.  I still got beat out some, but it definitely help me to focus by reducing my pool area.

@Jose Centeno

That is to register your property as a business with the state and hence pay your state tax similar to a hotel.  That is different than a local license or from a city or county.  I pay state and county tax.  Your situation, you might pay State and City tax depending on what jurisdiction you are in.

@Jose Centeno

Just to be clear you want to Short Term Rental your house.  Airbnb is a platform to advertise your listing.  There is no State requirement other then to pay taxes.  You need to call the city and find out there requirements.

@Amby Bhagtani

There are a few conditions the room has to meet in order to qualify as a bedroom.  A minimum square footage with at least one dimension to be at least 7 feet.  The residential code says 70 square feet.  Many jurisdictions have changed that to 100 square feet.  The height must be at least 7 feet.  You must have an emergency escape window that when fully open is 5.7 square feet.  Access must be from a hallway.  Bedroom cannot access through another bedroom.  Need a smoke detector, hard wired if possible.  If you are on a septic field, it must be designed for 4 bedrooms.  If you are on public sewer it doesn’t matter.  Of course you will need a closet.  If you can meet these conditions, then you should apply for a building permit.  

 Hey Jonathan, my strategy was to buy 2 bedroom houses with enough square footage to create a third bedroom.  The cost is minimal maybe $5000.  With some sweat equity probably under $2000.  

Converting an attached garage to a bedroom is a lot more work than you might think.  First there is usually a step down into the garage and most would build the floor up with sleepers to match the height so it doesn’t look like a garage that was converted.   You don’t want it to be odd so if you go to sell it, it’s not to unusual.  By building the floor up you can resolve the vapor barrier that’s required.  The overhead door will need to be replaced/siding etc.  Insulate all the walls and ceiling, add electric, drywall to be installed and a building permit.

A detached garage will have many of the same issues. In addition, you will need to address the location of the garage. Typically the setbacks for a detached garage are not as restrictive as habitable space/ADU. Some areas don't allow ADU. Just some things to consider. Contact your local building department to see if it's even possible.

@Mike Schorah

I have two thoughts on your post.

Since the real estate market is always evolving you need to use very current data. If there is a comp that matches your property in bed/bath, square footage, home style, etc same street or very close by hopefully same subdivision that is a good comp. Less then 3 months old. Be conservative on your ARV. Find at least 3 properties. Compare the finishes to what you are doing. I think you should always look at what's currently on the market. If those properties are just as good as yours is going to be you might need to adjust your math.

Forget the 70% rule or any of those other percentage rules. That’s just a back of the napkin calculation. What if a property doesn’t meet that criteria but gets you $30K - 40K profit. Who cares the goal is to make money.

@Jonathan Feliciano

I think the better choice is buy a 2/2 with enough square footage to internally add another bedroom. I have done this numerous times and I was able to increase rent by $300 or more depending on the market. A garage is a big benefit. I've had SFR with no garage. It's definitely harder to rent, but not impossible.

@Aditya Vaishampayan

Laminate is the most inexpensive counter top. I think 15 years is about the life span of laminate. Unless you cut into them, I would say it’s wear and tear. Laminate will also fade over time. I don’t believe that should be on you unless there is other damage not shown.

 It’s all about forcing appreciation through the rehab process.  Whether it be single family or multifamily the concept is the same.  The hard part is finding good investments that have the ability to force appreciation and navigating interest rates.