All Forum Posts by: Melissa Jolley

@Kurt Alder

I lived in Panama City Beach while going to school. You are not wrong. There are some sketchy parts of Panama City....mostly in the older areas. Interestingly, these are the areas that got hit the hardest.

There are some C+ multifamily on the market now where the cap rates are around 7%. Certainly tempting. I think the landscape will change completely. When rent shot up several in lower income housing left town for Alabama.

@Heather Rodden I am a local real estate agent in the Destin area. The benefit of a vacation rental in this area really depends on the strength of the marketing skills (photography too), the number of nights the owner plans on staying at the property and whether or not you can self-manage.

Closer proximity to the beach and the number of beds will be the basis for what you can charge. Full-service property management runs anywhere from 18%-25% here. Some have additional fees on an annual basis for marketing.

If you are looking into a condo...make sure the association is keeping adequate funds for capital expenditures. Condo-tel type rentals sometimes do better with owners who can't self manage but don't want to pay HOA fees and PM.

Let me me if I can help.

@Kristina Modares

Homes generally go for slightly less during the cooler months and are certainly easier to show. Prices are higher (for the most part) than they were when this thread was generated.

Proximity to the beach and number of beds determine rental rates. I like Seaside and I believe Inlet Beach (west Panama City Beach) is the next mid-high end market. I like single family homes for the area because they can easily go on a 3-6mo. lease in the off season. Property management costs can sometimes make or break the deal....so I suggest self-managing if it is feasible for you.

Let me know if you want to take a look at something- happy to help you hunt.

Check out Dinwoodie Construction. They can be found on Facebook.

Vicky,

If you currently have a rental that is paid for, you are carrying that through the whole "chain". The paid for home is just a new address each time. DTI is based on debt obligations versus the income to pay them. It sounds like your income is going to be increasing more than your debt each time. Also, as you buy additional properties, you can explore putting them into an LLC and refinancing with a commercial loan product. This will allow you to start over with conventional financing. There are several great resources on BP for scenarios like yours. Use the search function to see what others have done. Good Luck!

I think that by the time a multifamily property that still qualifies for owner-occupied financing hits the MLS, it is priced outside of what an investor would want to pay for it. When the market is like it is today- I feel like deals are made...not just provided to you. Figuring out if the units are rented at market and what you could do to increase rents are keys to making these deals work for you. Also- a lot of investors ignore the list price. I prefer to work backwards like the calculator for flips on BP. What is the highest I can offer? I live near several military bases since my husband is active and I have seen the 1% often. They always need a little work but it is a seller's market and a landlords market here...specifically during the summer.

@Tom Carmody

We have several condo-tel type complexes here in the panhandle. Like everyone else mentioned....they are hard to finance but there are a few lenders here that do it. Rates are normally higher. I heard someone get 8% a week ago. Some don't require you to have a property management company because they operate like a hotel. HOA fees are usually higher but compared with a 25% management fee,at another complex....condo-tels can be profitable for sure.

@Tommy Calkins good luck to you!

@Matt Bazydlo I know of a group in Chicago that might be able to help. Message me if you would like the contact info. Good Luck!

John,

Let me provide a real-life example:

My husband and I built in Clarksville, TN. We loved the home and thought we would be there for a while...we occupied the home immediately as our primary residence. Fast-forward 18months. Orders to TX 6 weeks out. It has been a rental since 2013. The real issue is intent. This is more of an ethical thing, IMO. We intended to keep the home as our primary residence, Army decided no..nope. If you know for a fact that you are moving in less than a year....I would say no VA loan. If you intend to occupy the property as your primary home and realize that you could have to move in a year or so...depending on too many factors to name....then I would say VA loan.

I am not a lender but have heard from several that the intent is the key. I love VA loans....we have used ours 3x.....but we have never purchased knowing that we were moving...as in...had a date we knew we were gone.