All Forum Posts by: Kenneth Garrett

@Sheeva R.

The Emerald Coast numbers have really risen over the past year.  You can try Panama City Beach.  The numbers are not as crazy there as they are in Destin/Miramar Beach area.   It will definitely take some hard work to find the right property.  Make sure your numbers work.  Let other people way over pay for property.  

@Jeremy Schrader

I own a three bedroom house in a gated community two blocks from the beach in Miramar Beach.  Bookings are just starting to get going.  I agree with @Joshua Strickland the numbers do vary on how you manage.  To be conservative, I use 50% occupancy and anything over is a bonus.  

@Patrick Knapp

A few thoughts; if you raise rents all at once without any improvements to the property, are you prepared to have vacancies.  The cost of the vacancy is not just lost rent, but all the improvements as well.  If they have been long term tenants, the rehab could be $5000 or more. I agree with @Bruce Woodruff raise the rents incrementally.

@Phillip B.

I think your revenue numbers are pretty accurate. It's your expenses you need to watch. If I had hired a property manager, my cash on cash return and profit would have been reduced dramatically. Nothing against property managers, but I feel the amount of time to manage a STR or a few STR's is not as high as people make it out. I self manage my LTR's as well. I just believe the amount of time and or stress is exaggerated. Nothing teaches you better to manage then by doing it yourself. If you find your not cut out for it then by all means hire a manager.

@Phillip B.

I have a STR in Miramar Beach. I bought last year. The market is very competitive. My STR is a 3/2 single family home two blocks from the beach in a gated community. It cash flows great. The buy numbers are very crazy. I'm trying to buy another when the right opportunity comes my way. I'm glad your running numbers. If your numbers include paying a management company, I would urge you to self manage, It doesn't take that much time. Provided you have a good cleaning company and reliable handyman, it will be worth your time.

@Christina Colon

I like the Florida Panhandle Destin area.  The economy is driven by tourism therefore very few restrictions.  

@David He

In looking at there zoning code as long as your not in zoning districts R-6, R-9 or I-1 duplexes are allowed.  There GIS allows you type in the address and it will provide the zoning district, which then you can check about duplexes.  Typically, cities also have non-conforming uses which means it could be allowed in a single family zoned district due to the rules changed after the duplex was established.  Most people refer to non-conforming as the grandfather clause.  I always as part of my due diligence confirm zoning as part of the inspection or attorney approval has expired (contingency).  I send in a FOIA request (Freedom of Information Act).  It’s free and then you have it in writing from the city.

Good Luck.

@Keith Schulz

I have a number of LTR in Illinois. Not the best state for landlords. I bought a STR in the Florida Panhandle. It does fantastic. The economy is driven by vacationers. To eliminate them or make extreme restrictions would hurt the economy. Be careful where you invest. Yes, there's competition, but the numbers speak for themselves. I'm cashing out of Illinois and reinvesting in Florida.

Good Luck.

@Kyle Mullins

You will need to consider by raising rents you may have the tenants leave.  Are you prepared to have vacancies and then fix up the units?  There is a cost to replacing tenants and then the cost of rehabbing the unit(s).  It may be the better option to make some improvements and then raise the rent nominally.  When I take over a building I have the tenants fill out my application.  You may find the tenants can’t afford your increase. 

Market rent is important to your cash flow, but so are vacancies.  If the tenant leaves and the cost to update is $10,000 (haven’t been updated for years) plus the vacancy you will need to do the math.  60 days to rehab plus the vacancy.  Might cost $12,000.  Raising rent to 600 is an extra $175 a month.  It will take 6 years to recoup your money.  Keeping tenants has a value even if the rent is under market.  Raise the rent $25 a year might be the better move.  Incremental adjustments.

Just some things to consider.

@Kayla Utley

If it’s a single family home, I have the tenants cut the grass, shovel snow and pay all utilities.  I do not furnish LTR.