All Forum Posts by: Neil G.

Hey Sebastian, I DMd you. Thanks!

I'm under contract on a my first property. It's in Tampa, FL and I'm planning on using as a AirBnB short term rental. Very excited!

However, preliminary inspection feedback is just coming in (full reports working). There are quite a few issues, but as a 81 year old house, that's to be expected. I'm still in the inspection period. How would you handle a price negotiation based on the following issues? I've never done a negotiation on a home purchase before.

- Roof and some inside remodeling was not permitted

- Some cracks in drywall and flooring/wall joints

- Lead based paint on front of home

- Electrical wiring hookup outside of home is fire hazard and should be moved (so lengthen metal pole) - Not sure what the metal pole note means, but I was told moving electrical hookup is pricey.

- Some termite damage in main house (will need tenting and underground treatment) and shed will eventually need to be replaced due to damage.

- Electrical panel not attached to home, so failed 4-point inspection

As I will be sprucing this place up for Airbnb, it will also need cosmetic work like landscaping and some painting. 

Should I wait to get the full inspection reports, and then get quotes for all essential fixes (electrical, termite, drywall repairs) and then negotiate the price down based on that total? I.e. $10K of essential work, bring price down by $10K? Any advice is appreciated!

 Good point. Resale would be tough. Good luck in your search! 

Hey Luiz, did you ever pursue this? I went to one of their sales presentations. They're still about 2.5 years out from opening, but they give a good sales pitch. What I'm concerned about is that condos in Miami haven't appreciated in years, according to what I'm seeing. And when they're being beat up as an Airbnb, and they're in a building with 439 other units they could even lose value over time. So it may be just a cashflow play. I was seeing something like 5-10% CoCr doing STR with 80% mortgage and 3% interest on the loan. Not bad, but if the asset doesn't appreciate it's not that exciting.

Anyone else have thoughts on condos appreciating in Miami? There's such an oversupply.

@Jim Blackburn how's the market for 400k condos? I saw that some values have actually gone down over the oast few years. Is there an oversupply?

Duplex with a pool sounds great. Any neighborhoods in particular that have this type of property?

Hey Miami folks! Is it possible to find a turnkey (or near turnkey) short term rental property that cashflows (with a mortgage) in a walkable/desirable area of Miami? I want to use the property for 4-8 weeks per year and then rent it out while I'm away. I am willing to invest up to $80K if the place is at least able to break even (I increase the vacancy rate to accommodate my stays). 

For my personal use, I'd prefer a centrally located area that is walkable and exciting. I've been looking intensively in Tampa, but there's practically no inventory in neighborhoods that work here.

I am considering listing a potential unit on Furnished Finders, which has an average length of stay of 90 days. AirBnB/VRBO is also an option. 

Any Miami neighborhood recommendations or business model tips? Thank you!

 

Oh wow! Maybe I should sign with TurnkeyVR to get grandfathered in on their 18% rates... And yeah, I'm excited to get involved in the STR market here. It's just hard to make the numbers work with the home prices where they are. Seems that in order to make more than 2-5% in Tampa with mortgage + STR, you have to rehab something.

50% of gross rents sounds outrageous. I spoke to Vacasa and TurnkeyVR in the Tampa area and they are 25% and 18% respectively.

Anyone have a recommended Airbnb management company in Tampa?