All Forum Posts by: Patrick Bavaro

@Tommy Ray great question and I would say It depends! Are you just looking for cash flow? Or potential appreciation as well? For just cash flow, I’d probably say the Midwest has the best opportunities, but there is very little appreciation typically. For cash flow and appreciation I would say TX, AZ, and FL but you have to think outside the box to find the up and coming markets. I invest in FL and I’m currently focusing on Ocala and Cape Coral.

Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. So, I find myself in a position to sell and make a quick $100k return potentially, or keep It and rent for the cash flow and future appreciation growth. Not a bad position to be in! I’d be happy to connect to share experiences. Good luck!

@Terry Garza this is also helpful from the article you posted. Seems like new constructions aren’t experiencing the problem, and if It was as widespread as the media claims It to be, the city growth would be at a standstill but people continue to flock to Cape Coral, IMO.

“You’ve got a lot of people moving here and they have new construction being built, they’re drilling wells and those wells are going deeper. The ones usually from ’06, ’07, those are the ones that are typically going dry because they’re older wells.”

@Terry Garza the assessment, when It does happen, will be well worth the cost IMO to increase home value. The assessment probably won’t be for another 5-7 years for my location after speaking with the city. Lot of time between there and I may just end up selling for a quick $100k return, who knows. Will cross that bridge when I get there. Would love to connect!

@Kevin Lanphear just got to keep searching! I’m sure they’re out there.

@Kevin Lanphear underwriting does need to know any plans for an STR as a 2nd home, plus there wouldn't be a qualification anyways. At the end of the build you can also just refi and potentially have the extra 10% of appreciation in this market to avoid PMI and therefore get out of the 2nd home mortgage. Just giving some different options that are outside the box

@Kevin Lanphear and if you’re not, depending on the loan product if you close on the front end and it’s a year until your build is complete you also meet the requirements to rent LTR. I’d speak to your REA regardless.

@Kevin Lanphear if you are doing STR, It meets the guidelines for a 2nd home mortgage

@Holly Barrett the solution, although probably unpopular opinion, is that you can live in the guest quarters and STR the full house? Depends on what your goals are and what you'd be willing to sacrifice.

Currently I'm building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 LT and climbing but I may switch to STR. Not sure yet. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. If I play my cards right I will be able to do a cash out refi, still cash flow decently and take all my equity out to do it again. I'd be happy to connect to share experiences. Good luck!

@John Castolene hey John, first congratulations! I too started out the same way you did through the old fashioned savings. It took me 2 years to finally pull the trigger and move into REI, and after a year of It I'm proud to say I'm at 3 rentals and growing! Im starting to see the snowball effect 😬. Not sure if you're planning to invest in state only or if you'd consider OOS or what you're requirements/goals are for that matter. I ve started to go out of market for my deals as SoFlo is ridiculous.

Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. If I play my cards right I will be Anel to do a cash out refi, still cash flow decently and take all my equity out to do it again or sell and have a super nice equity position come back to me. I’d be happy to connect to share experiences. Good luck!

@Kevin Lanphear hey Kevin, depends on what your goals are for the new builds and the exact loan product. Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. I managed this through a 2nd home loan (vacation home loan) but there are rules. Technically speaking, there is a second home rider (a document/rule that you sign at closing) that states something the nature of “the home must be used and available to the borrower as a second home at least 14 days out of the year, For AT LEAST ONE YEAR from the date of execution of this rider. The way my loan product was setup, I did a construction to perm close on the front end back in July and the build is expected to be complete around next July, so 1 year. I spoke with my REA and according to the rider I’ve met the requirements. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. If I play my cards right I will be able to do a cash out refi, still cash flow decently and take all my equity out to do it again. Probably planning to either rent as is or sell to get a nice chunk of capital and buy some other properties! I’d be happy to connect to share experiences. Good luck!