All Forum Posts by: Nick Velez

Another vote for Florida lol. Best part of our market is most of your STR locations have definitive rules already in place.

In my local market of Gainesville, I have 400k properties generating 95k-100k in gross revenue. Clearwater Florida can generate 110k-140k on 600k properties and  have seen equally impressive numbers in other states as well. 

With the current STR market, being better than the competition is a must along with rethinking what makes a successful STR. There are so many battle tested and well known markets where some people are continuing to cash flow, and newbies are barely breaking even.

Having operators in your chosen market that own/manage SUCCESSFUL properties is a must. 

I was able to take advantage of bonus depreciation when it was at 100% and 80%, and it was extremely beneficial for my finances and allowed me to roll tax savings into additional properties. 

@Kyle Badger

Congrats on taking the first step! Your financial position and future goals will dictate what route makes the most sense but in your example, if you want to use the homes equity to continue to buy more real estate, it likely makes the mosts sense to leverage. 

Sure, you might cash flow more if you buy a cheaper property cash (but not always the case), but it is going to take a long time for the cash flow to equate to another down payment. 

I would figure out what strategy you want to utilize and from there decide whether its better to dump the money into one larger property, or a few cheaper properties. Tampa offers a lot of options and I highly suggest you connect with a local expert such as @Josh Green to help you strategize. 

Best of luck!

@Shaun Ortiz

The local town operates around the university and because of that, you have an endless amount of strategies you can utilize when it comes to rentals. There are not many areas in Florida where you can pluck a turn key property off the MLS and cash flow but in Gainesville, you can do so through rent by the room which is a very popular strategy or short term rentals which is what I do.

No town is recession proof but university towns tend to be more resilient as the main driver is not something that relies on discretionary income, which is why I am very bullish long term.

@Adam Misseldine

Hey Adam,

Great to meet you! I am local to Gainesville and own 5 properties here that consist of STRs and LTR's. Gainesville offers a lot of opportunities still but cash flow will be limited if you try to stick a turn key property up for rent in any market. If you are willing to get creative such as rent by the room or STR's, you will have plenty of options to choose from. Feel free to PM me if you want to discuss further!

Florida as a whole is not one market, each area is different and is driven by a different set of economic factors. I have clients still competing with multiple offers on well priced properties in areas such as Clearwater and St.Pete. In my local market of Gainesville, we are approaching busy season and I have plenty of clients submitting offers on properties. 

Invest in local markets that are continuing to grow and flourish! 

@Alex Mcfarlane

Congrats on starting the investing journey, it is a very rewarding one. I highly suggest connecting with a local real estate expert who ALSO invests in your area, such as @Josh Green.

An agent who knows the market is an invaluable asset as you start this endeavor. Best of luck!

@Yair Zarmon

You will find that most desirable markets will be "saturated", there is no hidden gem like we all wish there would be! The key is finding a market where a superior property will stand out against most of the competition, which is do able in most locations. 

I work in a lot of markets and I am a huge fan on the clearwater area, mainly because I have seen many clients execute to a high degree in that area and have great success. The main reason for that is the local STR expert, @Josh Green!

@Seth Donnelley

Kudos to you for taking the first step! House hacking is an amazing strategy when utilized correctly, and can set you up for future success. My first house hack involved me living in an enclosed patio while renting out all of the 3 rooms of a townhouse which was extreme, but I would not have the portfolio I do today if I did not take that first step! 

@Ken Almira

The market you pick will really depend on your long term goals and the strategy you decide to implement. You will find that people are successful in every market you mentioned but depending on your cash position, a successful rental in one location or the other might not be as ideal for you. 

Out of the markets you mentioned, I am extremely bullish on Tampa and surrounding areas. If you are considering looking in that location, I HIGHLY suggest you connect with a local expert like @Josh Green