All Forum Posts by: Michael Haynes

Hello Carrie Mims, I live just South of Sligh Ave off Nebraska, behind the Post Office. I am fixing my 1950's, 1000 sq. foot, 3/1, block home with two sheds in the back, to look like new, Rental Ready, but, not full of new bling like the rehabs you see on Zillow. Asking $199,900 in a month and it will be Tax-free sale of my Residence. The one thing that I would not do, is to buy a home that I would not live in. Your in Orlando, a Pro and you want to buy a big, old, fixer upper in the War Zone? Sulphur Springs is where my girlfriend grew up and when we drive through there she says she misses her friends, but, would never go back. Where the River winds around going East of Nebraska about six blocks, there was a Brand New 3/2 with garage For Sale last month for $250,000. That's our competition in this area. Three months ago I went Searching for a Pool Home in the area where I want to move to and I found six of them for under $200,000 that I could fix up on my own in a month, that would be worth $250,000. All of them have been Sold and I am now thinking to just buy, all Cash, a 3/3 Townhome with at least 1500 sq. feet and a garage. I need to move my stuff so I can refinish the terrazzo floors in my 3/1 and complete the Sale. I can move in and as my Residence, get a low interest HELOC from Republic Bank for 80% LTV. With that money I am setting up to buy all Cash, a 3/2, 1400 sq. foot, two car garage, with a popped pool that is Off Market and fix it for my one Rental. I can also get it ready in a month for cheap and rent for $1800 a month. Then, I can get a Mortgage on that one and I will make an offer on the property my friend has not been able to sell, for all Cash, to Flip or make it Airbnb. The 4/3 across the street is renting almost every day as Airbnb for $230 a day. I am Closing any day now, on my 4 Commercial lots in S. Tampa, just off Dale Mabry Hwy. I will clear $350,000 and use up the rest of my Deductions from the 2008 Economic Collapse. Then, I will make $50,000 off the sale of my Residence and you only need $200,000 to find and fix up some of the properties that I have been finding in Hillsborough County. There is no reason to look for a bad area to fix up an old wood frame structure and try to make money. You know you get the best Financing to move in and make it your Residence for one year. Problem is that no one wants to move and take advantage of the rules. I have more properties outside of Rio and all those are going to be fixed up and ready to rent and sell and you can buy another property within 90 days in Brazil and it is Tax-free transfer. Your an Agent. You should have people knocking on your door asking for help to sell something in Orlando. No? Agents who do Flips, have connections.

Hello Jesse Gaytan, My friend started out 30 years ago as Rental Manager for a businessman who owned 500 rental properties in Tampa. He learned the business and started buying single and double wides and manufactured homes on single lots with their own wells and septic. Richard would look for cheap, single lots, mostly in Lutz and move on a doublewide trailer that he could buy for cheap...like $3000 and dig a well to put in septic and set up another rental. You could find some homes that were going for $3000 and put $3000 in them, trim the trees, build a front porch, new insides throughout and rent for $1000 a month. He found a couple of cheap trailer parks in New Tampa and Holiday to buy. My handyman did a lot of the work and one trailer even had an oak tree growing up through the livingroom. Richard would prop up the box and strip out all the wallboard, flooring and install PVC water pipes, new wire and everything just like a renovated house. New septic field if needed and pump for the well or drill a new well to get them going. Richard ended up with 90 separate trailer lots around Hillsborough County. He manages everything on his own, driving around 24 hours a day collecting the rents etc. You start out with your own Cash and get one lot going. When that is producing Free Cash Flow, it helps to Finance the next one. As things got going Richard would Bundle single mortgages into Jumbo loans at better rates for more Cash back and buy more lots. Richard is the only Investor I know who survived the 2008 Economic Collapse without losing any properties. His business is a huge Cash Cow. The problem at the moment is finding single lots with manufactured homes For Sale. My roofer is wanting to move from Thonotosassa near to Brandon and I did a Search last week for him for single lots with manufactured homes and there are none. I did find a good one in a small Community where you own the lot and it has a really nice manufactured home, ready to go. There is an HOA fee as there are facilities in the Community with pool and they can Finance the property if you need. To start out, this one is really close to a Turn Key that would work for a rental that I have found. I have a booklet from an old timer from the Investors Club in Clearwater that shows you "How to make a Million with Trailer Rentals." Do your Search online for youtube videos to show you the way. The problem with the Parks and Land Lease without owning the Lot is that it is the Land that Appreciates over time and not the home. The other problem is your clientele...

Hello Mike Sullivan. Did anybody watch Robert Kiyosaki videos? I just watched one where he gives you the list of the 7 best Real Estate Investments and Single Family Homes was the number 1 WORST because they almost never pay for themselves. Kiyosaki's message is that you must study and read and learn what is the Truth and find a Mentor to get you going in the right direction. If you look at the 1% Rule to quickly evaluate a property to Rent, then, that will keep you out of trouble. You said that you want to, "buy and hold Turnkey properties to Cash Flow..." Real Estate Investing like that, without doing any Sweat Equity to get a fixer upper to produce positive Rents is something that Real Estate Agents look for. That's why later on they get a Brokers license for the discounts and so that they have the local connections in the Market and people come to them with properties to sell for cheap. "Family member died or went in a Nursing Home and we have to sell their home." Essentially, vultures with their eyes on the Market. Acting from a distance to Target Turnkey single family homes that Cash Flow positive using Wholesellers and not doing any of your own research? Have you added on the cost of Property Management? You want your cake and eat it too! I have two properties that I am going to buy with all Cash. They are both owned by semi-desperate = Motivated Sellers and I will get them at a discount because I can solve their problem and they can move on. You don't get that with the Wholesellers from a distance. There is a Trick to doing what you want to do and it is up to you to learn how to do that. 

Hello Reese Newell, I can see where you got your FMR of $1575. But, that does not answer your questions. I don't know how your quick breakdown numbers work, but, I live about a mile from that triplex that Eric Aldrige was asking about in the 33605 Zip Code on East 28th Street. All you have to do to actually see how much houses in that area are selling for and then how much they are renting for. with pictures and all the data you want is on Zillow. My Agent gave me access to the MLS in the new area that I have targeted to move to and it has shown me absolutely nothing in two months. All the homes that I have on my Target list came from Zillow with pictures. I take them to my Agent and get her to alert me to the ones that are Pending that I would rather have, if one comes out with a new Active Listing while I wait for the Closing on my Commercial property. Single family homes in Tampa have almost never produced positive Cash Flow from rents. How are you going to make money on a house that has already been fixed up for $200,000 when you expect to get $1575 per month on the rent? You need 20% down and a Score of 740 or better and a JOB that has not been interrupted by the the Virus shutdown. 30 year fixed loans can be 3.28%. Then, the Governor is giving renters 90 days to not pay their rents with the idea that they might go back to work and have enough money to pay off the three months or more that they are late? You think that idea works for you? Your bank may let you slide on one months mortgage payment with the idea to catch up later, but, don't count on it. With the sale of my Commercial property I will be back to where I was in 2008 before the Crash. Everything I do from here on will be with my own Cash. One fixer upper at a time.

Hello Eric Aldrige. Are you in Portland Or. trying to find a multi-family property to rent for positive Cash Flow? Like you don't know the Ybor area, East of the I275 highway? My helper, Allen, lives on 28th just a couple houses away. A new 3/2 was just sold across the street from him that was a City sponsored improvement project for cheap. Three more are being finished just North of there in the alley. Ybor City is under the Gentrification Process for a very old, run down neighborhood, by the Fippers who ran out of affordable Flips on the West side of I275, all the way to North Tampa. The main question is if you would live there if it does not work out? I would not. Did you see that it Sold on 8/9/18 for $52,000? They are asking $396,999 and there is a Pending Offer. There is only 2511 sq. feet of construction and it was built in 1920. If you figure the lot is worth $20,000 and new construction cost at $100 per sq. foot would be $260,000, the whole place is only worth around $300,000. Did they termite tent and upgrade all the electric etc? The pictures look good, but, it is still an old bungalow house. Every other property within two blocks is worth $200,000 or less...I have noticed that the Investors who are looking for Duplexes and Tri's are looking on the East side of I275 because there are not that many on the West side all the way to MacDill AFB. The time to show a Profit is when you Buy and not wait ten or more years to gain Appreciation with the R.E. Cycle, which is at the top right now. 1% in Rent from the Sale Value would be around $4000 a month. Good luck getting that and if you did find three tenants to pay that much, good luck getting the second months rent. Did you look at the Parking? There is only room for one car to park in the back and parking on that narrow street is not going to work. Are you the kind of person who would live in the front house and rent the two apartments in the back and put up with the neighbors? I am Closing any day now, on a $380,000 half acre down near the AFB. I will clear $350,000 Cash. In Tampa you only need $200,000 to make money doing Flips. Duplexes and Triplexes are usually found in St. Petersburg. If you live in Portland, there must be lots of opportunities out there that don't involve, long term Tenant nightmares. If you don't own your own Home, then, that is the first place to start for a fixer upper and sell it two years later Tax-free. I am fixing up my ten year, 3/1 Rental that I moved into two years ago to make it my Residence to sell Tax-free. It is just a mile up the street by the I275 and Sligh Ave. exit. I need another month to get to refinishing the terrazzo floors and I will ask $199,000 to make a $50,000 Profit. I always tried to clear at least $100 per month on each Unit. I don't look to be a Landlord anymore as it took another 11 years from the 2008 Crash in the Economy to get back to where I am Debt Free! and Flush with Cash to do simple Flips, one at a time. I have four properties on my Target List that I can fix up and move into and have a $50,000, upfront Profit when I Sell two years later. The Market has slowed down, but, there are still Pending Offers on some properties and some do get Sold. If you do your Due Diligence, you can find Fixer Uppers that are affordable if you have the Cash to snatch them up. Your competition are the new 3/2's with garages that they sell for $250,000. And they are building new Townhomes, 3/3's with a single garage for $190,000 in some areas. Would you want an old bungalow or the new home across the street? 

Hello Angel R. What was my biggest lesson from 2008? I am 71 years old. From the time I was 15 the only thing I wanted to do was to learn how to make Money on my own. Money is Mobility. The problem with Real Estate investing is that it is not Liquid. When you want to Sell or have to Sell, you can't. With Stocks and Options on Stocks and ETF's and Futures you have a system set up to get you in and out...NOW. I saved up $100,000 when I was working on Oil Tankers for 11 years with Mutual Funds, to buy a small portfolio of Rental Duplexes and houses in S. Tampa, 30 years ago for my retirement. This was my Buy and Hold investment instead of Stocks. I have done the "Buy five Rentals and then buy five more to accumulate ten Rentals in ten years. Then, fix up the worst five and sell them to pay off the remaining five and end up with a Million dollars of property and $3000 a month Net Rents." I did that twice and in 2008 I find myself wanting to Sell with the Market collapsing as all my renters lose their JOB's. The President of our Mayor's Development Council just told me that he, as a Broker and Builder, lost everything in 2008. He just finished building out 15 prime acres with 500 Townhomes and Houses that he is now going to start selling. So, the biggest and the brightest and most capable did not pay attention to the Real Estate Cycle and when at the top...Sell, Sell, Sell. When 2008 hit my friend had just bought a $250,000 Penthouse facing the inside of Tampa Bay in S. St. Petersburg. He told me that his mother warned him to get out now and he started lowering his selling price $5,000 a week until he sells. He sold for $150,000 and moved to the Phillipines. I saved three of my Rentals and two with my girlfriend including her home that I fixed up. We sold one of our Rentals downtown for a $100,000 Profit three years ago. Then, we lived in our River property and sold that for $150,000 profit, Tax-free as our Residence. Then, I sold one of my ten year rentals for $80,000 profit. All that time I am paying off Debt and now I am waiting to Close on the sale of my Commercial property next month for $380,000. I profit $350,000 and use up the rest of my Carry Forward Deductions. I am fixing up my current Residence to Sell and I should make $50,000 Tax-free Profit in a few months. I want to move outside of the City Limits of Tampa to Brandon. I will have around $400,000 Cash which I have been waiting for eleven years to get back to from 2008. The lesson concerning SFH's etc. in Tampa is that in my 30 plus years I did not find SFH's that paid for themselves. You really had to Buy at the bottom of the R.E. Cycle or like I did, Creatively Finance with Financed by Owner or find a Motivated to the Max Seller who would sell for Cheap. We did not build a lot of Multi-family. Tampa was built up after WWII for the Military from MacDill AFB. 2 and 3/1 wooden houses full of termites after 50 years. I made out by sticking to the ten year Plan and the Rents have to produce more than $100 a month Free Cash Flow for each or apartment. That is impossible if you pay someone to Manage for you, so, I ended up as a Burned Out Landlord. In my time you could use just an all around Handyman. Now, even those have to be Licensed and you have to pull Permits and do Inspections. I just saw an ad for an AC outfit who charges for the estimate! Not!! I am doing all the work myself on my home to sell next. Do you know how to fix everything in your home? Sweat Equity goes a long ways towards your Goal. I signed up with a Broker in Brandon and now get email notice of every new property that goes on the Market in my Target Area. Your looking for a Deal? How do you find a property to fix up that will be worth a lot more when you are done? Well, I found more than one last month and I am kicking myself because they are Foreclosures and I can only make an offer if I have Proof of Funds. The best one is selling for $150,000. It is a 4/3 with a fully enclosed huge pool in the back and all I can see are cosmetic repairs. It is worth $250,000. My neighbor has two houses on the same lot next door. He already Financed by the Owner, two of my first Duplexes and I plan to make him a Cash offer when I Close on the Commercial property. If he accepts my offer after the Virus and not renting for a year etc. I can fix the rest of the problems with $30,000 and Sell for a $50,000 Profit. Then, I plan to go Townhome if I don't get one of my Target houses after that, for my Residence. Because there are soooooo many Foreclosures and I have Cash to offer, I should be able to get at least 10% off the selling price. Goldman Sachs just predicted that we will see a 4% downturn in property values and then Flat in 2021. So, I would still have an upfront, Profit Margin. After I establish the new home as my Residence, the manager at Republic Bank says he can give me a HELOC at the low rate and at least 70% Loan to Value. I am retired, but, I trade Futures online and I will have a lot of Cash to deposit in the Banks. Remember, the FDIC Limit is $250,000 per Bank. If, I bought a fixer upper and it was worth more when I move in and I get at least 80% LTV, I can get most of my Cash back and continue on...one property at a time. In Tampa at this time if you have $200,000 Cash, you can be make things work for you and not have to deal with the Banks. You can slowly, make a living without a BOSS and do it Tax-free and Tax-Deferred. God help everyone to make it through this Epic Stress Test.

Hello Richard Mace,

You know that there are many way to skin a cat...David Greenes "Long Distance Real Estate Investing" may be one of the worst ways I can think of. The one thing you want to have with your Money is Control. What control do you have as an Absentee Landlord? We were at the top of the Market before Covid Virus hit and now we are looking to have a reduction in property values as everyone is out of work. If you can save your money for a year and do your research, then, find an area you want to live in and wait for the prices to come down to make your offer to buy something. "He who has the Gold at a time of Crisis, makes the Rules."

Hello Eylan, If I had to start over again, I would take the lesson for a single investor and find a neighborhood with the types of houses I want to fix up and live in, that produce profits up front from my sweat equity. I follow Posts in Bigger Pockets and I don't understand why Newbie Investors do not buy a Home first and then a Fixer Upper to Flip or Rent later. The advantages you have from being Owner Occupied for Financing and making your home your Residence for two years make it a Tax-free sale two years later. You first need to find where you want to live and I would never buy a house to fix up that I would not live in. The neighborhood has to be a good one and I want there to be other properties to do Flips or Rent so you would want an area that you could "Farm" for the longterm. When you stay in the same area you save tons on gas and travel time to get the work done. The problem with finding Deals is that they will be spread out over town or in other towns and not having a Team to do the work and maintenance for you, makes it harder to profit. One thing to remember is that one should never invest in something that you are not familiar with. I trade Futures online and even though I can make money trading Stocks, Options, ETF's and Futures, there are only a couple that I would that I daytrade because they meet my criterias for trading easily and produce profits from short term holding. You have to look before you leap and plug in the numbers to see if what you are thinking of doing, will really show a profit. And remember, you should show your Profit up front and not depend on Appreciation on the back side. 

Hello Alfred Costanzo. All the numbers that go into what makes a good House Hack are needed to see if it will work as far as producing rental income out the back end. What about the front end? "The place to show a Profit is up front." Did you find a Deal that is below Market Value and with all the work you have to do, will it be worth substantionally more when your finished? Your Goal is to Rent and then Refi and have the Rents pay all the bills to give you at least $100 to $200 a month in Cash Flow for each house or apartment. Why would you Rent your Home and then try to BRRR? You can find a fixer upper and have an up front Profit when you move in. Then, Refi for a low rate with a HELOC based on the new, increased Value to do another Deal. In two years the Sale of your Residence is Tax-free. The other consideration I have at this time of Corona Virus is, "do I Rent to start a Portfolio of properties and then Refi or do I just Flip one at a time?" Here in Tampa the Tenants don't have to pay Rent for 90 days and the Mortgage Company cannot start Foreclosure or charge Interest on the loan. The City is shut down with employees trying to work at home. I am waiting for a Zoning to Single Family in order to Close on my Commercial property in South Tampa, which will give me enough Cash Profit to continue from here and not have to ask a Bank for a loan. All Cash Deals from here forward and I don't want to get back into Rentals. Can you imagine that?

Hello Sofia, it appears that someone convinced you to start a Business and not be a Sole Proprietor in order to lower Taxes? Depending on how many properties you intend to have in your Rental Portfolio is whether or not it is necessary to register an LLC. I could see it if you were a Flipper and you had a Team of Subs and were protecting yourself from being personally liable on your properties. If you were like me and just wanted to do the "Ten years to a Million" plan with ten rentals that you fix and manage yourself? You may now have the LLC in order to have a formal contract arrangement with your partner, which makes sense. So, you can Quit Claim your brother, even at a loss for him, to be off the one property. You have to be careful not to trigger the Mortgage payoff in full, clause, until you are ready to pay it off. Than, you would require a transfer to your LLC? Sounds like you started one way and now are convinced to LLC the portfolio. If you were living in that property, you could go, like I am doing, to Republic Bank in Temple Terrace and get most of your money back with a HELOC at the low interest rates we have now. The second property is with your fiance and it is going to be transferred to your LLC. That is with Stewart Title and Chris Campbell will have all the details on how to do that. Your question is if you need to renew the Lease in the name of the LLC and get the tenant to send checks to the LLC? They are on a month to month. How long do you want them as tenants? Is it time to make a new lease or not? In Tampa you could extend the current lease for another six months without it being under Hotel Tax Rules. And make the new contract in the LLC name. Or I would think that for a few months you could continue month to month with the check in your names and deposit them in the LLC account as if you were just the Rental Managers. It sounds like you are looking to build a big, longterm, Rental Portfolio. Good luck.