All Forum Posts by: Mitchell Jaworski

Sounds like you are looking to JV (joint venture) with people and learn as you go. Not a bad idea at all, as for the split a good practice is to have an LLC for the project and then the split can be determined in the operating agreement.

There are plenty of people doing deals in Central Florida.  I'm in South Florida, but have considered looking up in that area.

This is interesting as you surprised me when stating you were doing this for a real estate agent.   I guess you have to ask yourself what the agent will do with this info.  Is he going to sell these properties to retail buyers or does he have a buyer's list of investors? 

From the investor side I can tell you anyone bird dogging I've either done the deal with (they get a % of it) or if they are able they wholesale the deal as their way to make something.

I wouldn't be opposed to doing that with any solid deals up there.

Don't have much feedback on what you should charge the agent, maybe other will.  You can also put out an offer and if he balks, counter.

Honestly your best bet is to call a local insurance agent and get a quote from them.  It's free, no point in not getting it as rates can swing wildly based on structure type, flood zone, etc.

The price for a concrete block structure is way different than of a wood frame (much more expensive) and so and so forth.

@Ahmad Nassar my most recent purchase up in MA was a Bank REO property that was on the market forever because the bank priced it near market and the place needed to basically be gutted. The price dropped several times, they had it under contract at one point, fell out and then they dropped the price again.

The banks love to try and get market for these things and in areas like where I live, South Florida, they often do...however in less booming areas not as much.  Just have to be patient and put in offers.

I ended up paying 9k less than that last price drop to 69K (and I may have still overpaid by 5k!).  They listed the thing at 110K to start and more than a year later sold it to me for 60k.   I did offer and pay all cash with my own capital.  If you were to use a hard money lender they can close in your 10 day timeframe, heck the good ones will close in 3 days.

Initially my thought was buy a new primary and turn the existing one into a rental.  However, what you really should do is discuss with a lender what your options are (assuming you are using traditional financing).   Those options will help you make a better decision.

A bank will not likely count the cash flow on your existing home, thus your debt to income will need to support that mortgage and the new place, as an example

I'd get as much info out of them as possible.

@Susan Franke I'm assuming you ran these numbers through a property calculator to get a clear picture?  I have one you can use if you need.

There are a bunch of other information variables to give a clear opinion on this, but I will say....

Be sure that the tax number you are using is the estimated new taxes after you purchase, not what is currently being paid as I assume the sale of this property will be higher than what the current owner paid.

The $950 rent for the studio I think is a bit aggressive.  Looking at comps for studios in that area seems $900 is the top end on majority of it.

Since you are putting so little down the cash on cash isn't terrible, but also note that I would not be surprised if your reno costs are higher than you expect.  

I'm assuming the inspector has pointed out all the needed updates already and there is no termite issues, which is the biggest concern with wood frame in FL.

I have a few I love....

"You are the average of the 5 people you spend time with most"

"There is no such things as failure, just lessons"

@Christopher Mendes just as difficult here as Miami.   They key is to find off market deals, it won't be easy but there are people doing it.  I'm looking at an off market deal right now in WPB, who knows if it will be a deal or not though lol.

@Robbin Swad I second what eric said.  Especially if you are not local.  I manage my own properties locally but for out of state use property mgmt.

There are a ton of mgmt co's here in Palm Beach County.   DM me if you want a reference.

The good part about South Florida is there is so much rental demand there isn't much advice needed.  All my FL properties are a little north of Miami in Palm Beach County.  I just make them look nice (and I don't mean over improving them) and list them myself on Zillow, etc and have a tenant lined up in less than a month every time.

On the flipside I haven't bought anything new in FL for a couple years now and have been investing out of state as it is very difficult to find cash flowing properties here.  If you are able to find some that is awesome, renting them should not be an issue.