All Forum Posts by: Matt Leber

@Adam Frocione I haven’t quite figured out how to estimate the non-ad valorem part so that’s why I added about $200 bucks to my yearly tax number to account for it. The non-ad valorem tax rate “varies” according to the county tax bill but was only $101 in 2019.

Yes, I am assuming value reassessment at year end each year and am assuming a constant millage rate based on county tax records for the municipality @ 18.9. I don’t think the millage rate moves too much, just the value assessment and the non-ad valorem. I figure by paying in November I can pretty much wipe out the non-ad valorem amount. I also am planning to pass on any future tax increases (via assessment increases) to my tenants in their monthly rent.

Have you experienced the millage rate moving in your area or do you have a better way to project non-ad valorem tax other than just adding a bit of cushion for the year?

@Robert Kirkley thanks man! Hope all is well with you and your investing/business endeavors!

@Jeff Andre you just need to start talking to lenders to see what they can offer you. Everyone is different situation. Since we started investing in 2016, rates have been low - gone up - and the come back down. Today they’re at historic lows so 3.75% could have probably even been lower. All my loans are between 3-6% and I consider it all cheap money. Getting on the lower end of that bracket is just icing on the cake.

@Joshua Wilson yes, we are always looking for deals in those areas. I’ve never met someone on here from PSJ! Our first ever investment property was in PSJ, a house near the Circle K station. Prices have gone up since then, but rents have followed up quite a bit too. I would buy another there again in a heartbeat if I found another deal.

@Bernadeau C. Sure thing!!

@Kiera Underwood the tax millage rate for Melbourne FL is 18.9 so I take the millage multiplied by the property valuation in thousands (call it 95-105k) to arrive at an estimated tax amount for my analysis. That puts me at 1800-2000 per year depending on what the county tax appraiser values it at. This year will be much lower because we’ll be on the sellers previous tax schedule. It seems like the tax appraisals, in reality, end up lower than sales price. So, I’m usually on the conservative end while doing my due diligence.

Yes, our other properties are in FL. We have our primary in Lake Nona Orlando area that we plan to make a future rental. 3 single families in Melbourne, West Melbourne & Port St John (Brevard County) & 2 duplexes in Jacksonville (Duval County).

My wife and I were born in ‘93.

1. Strategy is to use our W2s to save up 20-25% down payment on each rental with the goal of acquiring 1 per year. Target is single family under $150k and small multi family under $50k per door. Each rental we plan to hold I definitely unless another opportunity presents itself and we need to trade.

2. Been investing for 4 and a half years and we are up to 7 rental units consisting of 3 single families and 2 duplexes. We also own a primary home that we have rented a room out to friends from time to time.

3. Big lesson is that the 1% rule can only help you build a funnel of deals to analyze, but the decision to pursue a deal is deeper. For example, I would rather not pursue small multifamilies that barely crack the 1% rule. I need at least 1.5% for the headaches to be worth it. Also, always run property management fees in your up front deal analysis bc you don’t know if you’ll always want to self manage those headaches.

@Kerry Baird Mid FL Credit Union. They were amazing to work with. I honestly thought I was getting toward the back end of the allowable # of loans and it might be difficult to get another mortgage. Turns out they were able to write me my second lowest interest rate yet @ 3.75% and close pretty quick in 32 days. Wish I would’ve found them earlier. DM me if you need my contact who I worked with over there.

@Nicole Marshall it’s off E Florida Ave near FIT. Probably a C+ neighborhood, but my street is in the furthest corner away from University Ave, so it feels closer to a B-. Plus I have no rear neighbors. I actually have a lakefront view in the back, which all of my prospective tenants have really liked. Really pleased with the amount section 8 will pay, too!

@Sanjeev Sharma 1% is tough in Orlando right now. Although my wife and I live in our primary in Orlando, we’ve done a lot of our investing in a neighboring county, Brevard county & further north in Duval county. Just closed a deal for $95K that will push the 1.5% rule in Melbourne, FL. I recommend continuing to keep an eye on Orlando in case a “diamond in the rough” property comes your way, but also expanding your search to surrounding counties.