All Forum Posts by: Paul Pratt

In a nutshell, the last two years we've seen an uptick in out of state investors. The issue I've seen is some of the properties they purchased were in awful condition. Warped roofs, wood rot and area selection among other things. So, in my view it seems they are unloading properties they shouldn't have bought in the first place (or should have had more info about).

As a local realtor who works with investors from all over I will say this. If you are an out of state investor, these things will save you money, time, and make your investments sound. Make sure your realtor can solidify these for you.

1. Property construction- CONCRETE BLOCK, this is what you want here (if it's not a primary residence). We are a very wet humid state that can wreak havoc on wood framed properties (wood rot, termites, storm damage). Most states in America have a majority of framed housing. But in Florida it simply does not do well from an investment standpoint.

2.Flood zones- If you are in a flood zone (or if the house has flooded previosuly) be aware not only will you incur new flooring, drywall costs etc. but if you want to flip the home, NO LOCALS are wanting a home that previously flooded. Thats why some homes are sitting on the market for months...

Those are some big ones for sure. Feel free to message or connect if you have any other questions. But insurance if your property is solid and not in a flood zone still isn't that bad. Hope this helps!

Texting you!

If it is a "hassle" I couldn't agree more with you. Sell it and go into the S&P and you will have a better idea of what you are getting yourself into. Real Estate investing got popular the last few years, but with so many moving variables it's easy for people to find themselves in bad situations.

Hey all,

I recently had a seller get rid of their Airbnb (to buy the commercial building their main business runs out of. However, it wasn't on beachside (lower insurance) and was still bringing in good numbers. It was a 3/2 pool home averaging about 6k a month. I have the financials (income and expenses) and would be glad to share if anyone has thought about investing in the area, and wants to see the potential. I know most use AirDna but for some that's not quite enough to go on.

Agree with Scott. In my area mortgage delinquencies are low, people have equity in their homes and most people know what they have in terms of value.

@Lucas Ferrado Quílez Hey Lucas, feel free to shoot me a message I've got a few recommendations for you.

 The growth of Florida isn't due to business. Very simple, It is due to retired people moving here. 75 million baby boomers are going to be retired in the next 7 years. What do they want? To be warm, play golf and not be taxed heavily. Florida is the place for them. That is the bulk of our influx.

I do, shoot me a message and I'll send his info!

Always good to keep tabs on the property, and to prevent issues from arising for example, wood rot, ac drain line/filer cleaning etc. 

At the end of the day they are expenses, but keeping them in good shape will greatly extend their life. Also, when you do update them, make sure to have a 4 pt inspection sent to your insurance agent. This will lower your premium sometimes enough to mitigate the upfront costs over the next few years.

 Yeah, like I said. Depends on property/condition and how up to date you are. It's easy to see insurance as a losing battle instead of getting creative!