All Forum Posts by: Kyle Momany

@Scott Erdmann It sounds like you're about to close on a new property, so congrats on that!

As an agent and investor,

I always tell people it's too complicated to swap over the account to your name. What I have done is, have the current owner message all of the guests and let them know the property has been sold but send them the link to your new listing and you can send them special offers for the same amount.

If it's being managed by a PM company, just hold onto them through the high season, but go ahead and build your listing for when you cancel with them.

I hope this helps!

0 Votes

@Edgar Sanabia First, Congrats on the success!

As an agent and investors, Some things I'd ask myself would be:

Is there sufficient parking for an additional two separate units?
Is there a separate access point?
What's the cost of doing this?
Can you produce the same amount of income if you just turn them into additional bedrooms and have only 2 listings?
How many baths are in each unit?

I'd also look into the permitting & zoning.

Personally, I'd much rather manage 2 listings ( or even 1 if you rent it out as a whole)

Hope this helps!

1 Vote

Quote from @Tyler Neison:

Hi,

I'm looking into purchasing another investment property in the Destin, Naples, or similar area this year to use predominately as a STR. My active income will be at its highest level this year, so the goal with this purchase would be to help offset this as much as I can to reduce my tax liability hence the STR. If the property can produce enough income to offset the mortgage and other liabilities/reserves then it's a win for me. With all of this said, in general, would I find a bigger opportunity for deductions with a SFH property or a condo? I am aware of the qualifications that must be met to be able to classify the income and expenses from this property as active and not passive...

Thanks!

Tyler,

First, congrats on the current portfolio!

Second, I'm not CPA or Tax Pro - But, I can tell you from experience, we were able to depreciate our SFH more than our condo. We did a cost seg to accelerate said depreciation, and the cost vs loss on the condo just didn't seem worth it.

I hope this helps, feel free to reach out with any questions!

1 Vote

Destin, Florida

Quote from @Jamie Clayton:

@Sarah Kensinger did you find something else to purchase? We have moved on from the condos but having a hard time finding a SFH in price range

Jamie,

I'd recommenced looking at Palm Cove in PCB. You could also potentially find a SFH or Town home north of 98 in Santa Rosa Beach ( Close to 30a) for that price point. Just be sure to check and double check they allow STR.

30a is generally a long term appreciation investment though as the returns just aren't as good as other areas such as PCB.

0 Votes

Quote from @Sarah Kensinger:

Quote from @Villy Ellinger:

@Jamie Clayton I would suggest look into single family homes in Fort Walton Beach to use as vacation rental/STR. They can be very successful as vacation rentals. Here are the reasons why I would suggest that over other options in your case:

1) I agree with some of the advice above that finding a warrantable condo that also allows STR on the Panhandle will be really difficult if not impossible. The one complex someone mentioned above in Destin, Gulf Terrace Condos, technically does not allow STR. Yes, people break that rule, but you can get in trouble or worse, be stuck with a property that you cannon use as intended.

2) Yes, in PCB you will find properties more affordable. Yes, townhouses are a good option and there are more of those there. Do keep in mind that most townhouses in PCB are older, built in the 80s, etc. So while they may come with no HOAs and better financing options, they also come with more expensive maintenance requirements like having to replace roofs, dealing with plumbing issues, etc. With no HOA, all of these items fall on the owner. Also, single family homes and townhouses will have significantly more expensive insurance than a condo and may require flood insurance as well.

3) If you want to be under $400k and want to use the property as a vacation rental close to the beach, Fort Walton Beach can offer some very good options where you can use conventional financing with 10% down. You will still have to take care of ongoing maintenance expenses and insurance needs for the property. That will be the case in PCB or anywhere you choose to buy a townhouse or SFR. The reason I like Fort Walton better for using a single family home as vacation rental is because in Fort Walton THERE IS EASY ACCESS TO THE PUBPLIC BEACH WITH LOTS OF FREE PARKING. The is key when trying to attract guests to book a vacation rental that is not directly on the beach. In PCB the beach access points have no parking. So if you buy a SFR or townhouse that is not right by the beach your guests will have to do quite a lot of walking or have trouble finding parking to go to the beach. 30A is even worse. If you have ever tried any type of public parking or beach access at 30A you will know what I mean. There is better beach access in Destin and Miramar Beach, but there are rental restrictions for STRs in the residential areas there. So you are back to the non-warrantable condos and the 25% down.

If you need proof of what I wrote :-), go on Airbnb, look into vacation rental house in Fort Walton Beach that are further into town (not on Okaloosa Island) and read the guest reviews. You'll that if a rental is well managed tourists really like those :-).

That's interesting about the Gulf Terrace Condos, are you sure they haven't changed the policy on STR? We almost purchased a condo there 3 months ago before we decided we liked Sandestin better. Anyway, we had all the paperwork for that complex, by-laws, rules and regulations, financials, etc., there was nothing in there against STR. Not to mention I think almost half that complex is vacation rentals, and there's no way HOA is missing that!

I'm surprised you find away from the barrier islands seems to be better. We tried going further off the coast, but our realtor kept discouraging us from that because the annual gross rental income drops considerably. After research we found that to be true. Two plus bedrooms on Okaloosa Island, PCB, and within 1 mile from the beach in Destin, did almost double the ones back off the coast.

I sold a condo in GT recently and their docs didn't seem to have anything different for me either. Although, the price on them doesn't exactly pencil out at this point.

Where is Sandestin did you buy?

0 Votes

Quote from @Jamie Clayton:

Thank you! I will look for a local lender. I am not real familiar with seller financing so I will look into that. We will just keep looking until we find something that works.

Lean on your agent for the potential seller financing opportunities. One good way you can look for them is to pull the property records on the units you think would perform well, and see how long they have owned the home. It's not a guarantee, but if they own the property outright it's much easier!

0 Votes

Quote from @Jamie Clayton:

Hi! Looking to buy a 2nd home/vacation home in Emerald Coast, FL area that we would also use for STR. We are able to put 10% down and have conventional financing approved. Budget is under 450K. We were looking to go the condo route and found one we liked but found out it is non-warrantable due to percentage of investors vs owners. Now we are thinking this will be the case for most condos in this area. Is it possible to find a condo that is warrantable? We aren't opposed to non-warrantable but don't have the means to put 20% down. Is it possible to find townhomes in the 30A area for under 450? New to the real estate investing world!

Jamie, Congrats on getting started on your search!

As mentioned in some other comments, warrantable condos can be hard to find in the panhandle.

As an agent & investor, one thing I've come to realize is that it's also going to depend on the lender. Most lenders have a standard condo questionnaire that lets them know if the condo is warrantable or not. But, there are some lenders that will hold the loan in house and have their own questionnaires, typically with less regulation/questions. Last year, I closed 10% down in multiple complexes ( Gulf Terrace, Horizon South, Commodores Landing, etc.)

Also, consider seller financing! I've seen and closed on some this year between 10-20% down.

Best of luck to you!

3 Votes

@Sophie Grizzle

Congrats on the jump to the Gulf Coast!

There are tons of local meetups where you can meet local agents, lenders, wholesalers, or investors.

@Matt "Roar" Gardner has one in the Destin area once a month. Dates should be released soon for that.

@Melissa Haworth is your go-to for the wholesale side.

I look forward to connecting!

2 Votes

Destin, Florida

As @John Underwood mentioned, I would consider STR in the Tampa area.

There are tons of different areas that do/don't allow it. I tend to lean on @Matt "Roar" Gardner for further insight and info in the Tampa area!

1 Vote

Orlando, Florida

All Forum Posts by: Kyle Momany

Kyle Momany has started 3 posts and replied 138 times.

Post: Transfer of ownership

Post: Transfer of ownership

Post: duplex hack ?

Post: Larger Cost Segregation opportunity with SFH or Condo?

Post: Warrantable Condos FL Panhandle

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Post: New to Investing in/near Pensacola!

Post: Considering investing in STR properties in Kissimmee, FL or Tampa from California!