All Forum Posts by: Matthew Patton
Matthew Patton has started 6 posts and replied 22 times.
Post: Question about rental rate discrepancies
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
You guys are great. Thanks!
Post: Question about rental rate discrepancies
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
No one has any idea about this?
Post: Pay off mortgage for a large HELOC?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Originally posted by @Emma Powell:
BTW, you only need one. All he rest of my properties have mortgages so I enjoy the predictable cash flow and low fixed interest. We have two just to keep business and personal cash flow highly separated. The HELOC is like a checking account, or a business sweep account. Then we use life insurance as a savings account, but that's another post!
Life insurance as a savings account? Come again?
Where do we make a post on this? Haha. You have my curiosity.
Post: Question about rental rate discrepancies
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Hey all,
Coming here to pick your brains on this rental rate researching.
I have been analyzing like a mad man. To get rental rates for an area I am using the BP Property Insights tool, Rentometer, and then will look whats actually being advertised for rent on Zillow. On zillow I will filter out what isn't comparable to what I'm trying to actually rent out. So for example, I will only look at 3/2 SFHs. Then I'll look at 5-10 of them and figure out a range.
There is an off market home through family that I have the opportunity of buying. I'm trying to get a good gauge of rent.
BP Insights suggests a rent of $1855 with a medium confidence and a range of $1446-$2404.
Rentometer suggests a median of $1800 with a range of $1600-$2000
What's actually currently being advertised on Zillow, when specifically looking at 3/2 SFHs, gives me a range of $2450-$4100 based on taking about 10 homes and figuring out the rent per sqft. This, of course, flies in the face of Rentometer and BP Property Insights.
If it really does rent for even $2400, it'll be a 12.5% COCROI. It's in a good neighborhood and a good school zone. Family is moving out because they are getting relocated down south. They are willing to sell it to me for what they paid for it a year ago ($251k) and has a new roof. It's worth about $275k now.
The only thing making me hesitate is the disparity of the rental rates.
Any insights?
Thank you again!
Post: Multifamily Rental Investors in Florida?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Just closed on my first property in St Pete. I looked hard at multis for a year. Came across a SFH 2/2 worth 270k for 240k that I'll be turning into a 3/2 while living in it and renting out after a year.
It has definitely been my experience that its been difficult to find something that the numbers worked for me. Frustrating in the least. I think consistency is key with checking the MLS and be able to crunch #s and make decisions quickly...
quite exciting to have finally popped that cherry.
Post: Cape Coral or St. Petersburg?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Great info.
Post: A 3/2 with a detached apartment behind it?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Originally posted by @Elias Camhi:
Hi @Matthew Patton, we mange many properties and many of those are exactly what you are describing. If you look around the University of Houston main campus, just across I-45, you will find a plethora of these types of properties. Some are duplexes with added units in the back. Some arequadplexes and more. They are much older properties and as long as they are in good condition and appealing, they will rent. It is funny in that some have converted their attics to additional rooms and they have the most awkward ceilings, but they still rent.
Hope this helps give some confidence.
It does! Thank you!
Post: A 3/2 with a detached apartment behind it?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
@Aaron Montague
Thank you!
Post: A 3/2 with a detached apartment behind it?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
@Kristyn Grimes
Thank you so much for the in depth reply. All of this gives me more faith to move forward on these types of setups.
Post: A 3/2 with a detached apartment behind it?
- Homeowner
- St Petersburg, FL
- Posts 22
- Votes 6
Originally posted by @Aaron K.:
It will rent, maybe not for as much as an SFR on its own but may be very close. Also depends how common those types of properties are, in my area there are some cities where 2 or 3 detached SFRs on a lot is very common.
Thank you!!