All Forum Posts by: Michael Stoyanov

Happy to help!

Hi Jose,

I hate to break your mojo, but I agree with the rest - it seems that you are buying a job for a minimum wage.

Walk away from this one.

I am currently buying brand new duplexes outside of Fort Myers for around $500K each and renting them long term for $2,400/mo each side (57,600 Gross Operating Income) - no need to do any work. Just closed on 4 of them in the past month.

This might be a better option for you. 

Message me if you have more questions, but I hope you reconsider the Hollywood deal regardless.

Hi Daniel,

I am not familiar with JWB Real Estate Capital, but from looking online, it seems that they are REIT.

I am not sure what return on investment they offer, please reach out to them and find out, but do not look at IRR - it is a very confusing number and I do not recommend that for starting inventors.

Here is something for you to compare with:

Location: Outside of Fort Myers, FL

Type of Property - Duplex 

Year Build - 2023 (brand new) with 1 year builder's warranty

Size - 2,400 +/- sq ft, 3 Bd, 2 Ba on each side

Price  - $500,000 - $550,000

Rent  - $2,400 /month per side (Gross operating income $57,600 annually)

Leases: annual, residential, tenant is responsible for all utilities, yard maintenance.

I am sure you can do the math from here and please compare to what JWB has to offer.

These properties are hard to come by, but I was able to close on 4 of them in the past month and they are all rented currently.

Message me if you have more questions and also to let me know what you find out about JWB - I am curious to know.

@Samuel Pascal, 

I am sure you already know that the STR market in that area is heavily saturated. The good news is that it is still a popular destination and there are a lot of visitors annually.

I have been  in the vacation rental industry for almost 20 years now and have been personally involved in hundred of thousands of reservations. Here is the bottom line - in order to be successful, you need to stand out and have a competitive edge - that includes the home itself as well as the amenities offered by the complex. Currently vacation rentals nationwide are  definitely experiencing a downturn, but eventually that will settle at some point, so do not let it prevent you from doing it.

I would rather see you purchasing a 1 EXEPTIONAL property versus few mediocre townhomes - that way you are multiplying your problems.

I would recommend maybe 9+ bedroom home, which is already themed, at least 5,000 sq ft with private pool and hot tub ( they are not that expensive) and look into a complex that has a LOOOOOT of amenities - lazy rivers, multiple pools, golf course, fitness center, game room, etc.

The income from such property, will likely exceed the income from 2 or 3 properties purchased for the same price and your expenses are going to be less- you still have 1 kitchen, 1 pool, 1 set of appliances, etc. to maintain.

Please DM me if you have more questions or need assistance- I would be happy to answer them for you.

Hi Louis,

I would highly recommend purchasing cash the 1 apartment.

Few reasons for that:

1. Properties without mortgage cash flow fabulously. If you stretch and things get a bit south, you will find yourself in a quite a pickle, versus having the stability and security with owning outright offers.

2.Less restriction  - since you do not have a mortgage you would have more leeway in terms of what you do with the property - you can self-insure it, sell, rent as you please, bring partners in  and can also borrow against it in the future if you would like to.

3.I am not sure if US institution will finance the purchase of  property in Spain, so I assume that you will look for a lender overseas. Here is the thing to consider ( I am from Europe originally)  - the ECB ( European Central bank - the equivalent of FED) has a different approach. In the US the mortgages are usually with a fix interest rate for the 30 year period. In Europe, mortgages are usually for 20 years and they are not fixed, but rather the rate is the  Current Base rate as determined usually by ECB plus a margin ( example - the ECB rate is 3% and the margin is 2%, your mortgage will be 5%). However if the  base rate changes, which it is right now and slowly, but surely it is going up, your mortgage payment goes up immediately - from next month.  This is one of the reason why interest rates in EU have been lagging substantially  behind the US.

To summarize, since it is your first time, I think you should go with the strategy - the best offence is a great defense. If you can do all you can not to loose, the chances of winning increase substantially.

I hope that helps...

Hi Simone,
Welcome to the club.

I see you have the case of FOMO - no worries, we all do have that sometimes. But please know that you have not missed out on anything. You can start when you feel ready and comfortable.  There will always be good opportunities. You just have to find the one that makes you feel comfortable.

I see you are interested in flip or rentals - either one can be a good idea, depending on your current financial and life situation. Flip will be much more hands on involvement but could be much more lucrative. Rental will build you wealth over time, it will require quite a bit less time on your part, but the key phrase is over time ... If you would like to share more  personal information or ask a specific question, please feel free to  message me and I would be happy to jump on the phone with you and  share my experience  - I am not licensed in GA, so I am not trying to sell you anything or offer my services - simply trying to help as much as I can, although I am sure you will do great anyways!