All Forum Posts by: Maxwell Lee

@Mitchell Jaworski Yep. And it seems the HOA fees down there can vary drastically. Yes, Jacksonville is pretty good. We've invested heavily in Jax and are very happy. I'm just at the capacity now where I can't find enough of what I want in Jax. And we're wanting to diversify geographically.  Also for good measure, we will be moving to Miami later this year so Jax won't exactly be backyard anymore, though I plan to be up there frequently and of course we do have many teams in place. 

@David Faulkner Sure an answer to the more complex question would be great...but anytime I ask a complicated question about different markets nobody responds. So now I try to keep it simple and then I can do my research from there. Re: Jax, see my response to Mitchell above. 

If you have good cash flow, you will have plenty of financing options. From my conversations, you are the the client that all banks, big and small, want to loan. Commercial real estate to be owner-occupied by a successful business. 

Anyway, seeing as you are on an REI site, you will probably be advised to seek a property that you can landlord as well as occupy. And for such a property, yeah I would want to be in a central location with the highest traffic counts. You pay premiums for that but so will your tenants.

Good luck!!

@Meghan McCallum Fair enough. BRRRR is part of my strategy. But I'm trying to find the market that will consistently give me the highest rents in decent neighborhoods for around 120k all-in. That is the question.

@Mark Allen Thank you for the simple answer. That's the impression I've had for Dallas so probably no reason for me to invest long distance there since I'm looking for cash flow first. 

@John Thedford Thanks for your reply. Yes I know it will vary widely I'm just wondering who is finding consistent numbers at 120k all-in and $1500+ rents. I can consistently do ~$80k with $1000+ rents but I'd like to move up a class slightly as I have a lender looking to loan to me in that range. Thanks!

@Michael Haynes Thanks again for your interesting answer. :)

@Justin Jocewicz Those are pretty good numbers for Palm Beach I would think. Thanks for sharing! (I don't really like condos but seems hard to get around that in South Florida for these prices) 

@Jarrod Benson Yeah, I was saying that I'd expect a little more than 1% for Orlando. And it sounds like that's what you're doing. Sounds good! 

I'm really hoping to find a market that's somewhat consistently all-in ~120k renting around $1500. Anywhere in the cities I've listed??

Yes, this is common. Make sure the title company's wiring instructions are correct by calling them. There has been an uptick in scams where hackers send out false wiring instructions from the title company. 

Hi guys, 

Sorry this is essentially the same question I asked in another thread yesterday, but I think my title was dumb and unclear. So I am trying again...

Hypothetically you have a construction loan allowing you to purchase and rehab one property all-in at 120k, what is the best rent/return you can expect in your market for a B neighborhood or C+ neighborhood that's transitioning. You can reduce that all-in number to as low as 80k, I'd just like to find the best % ROI for this price range.

Happy to hear about anywhere (since this is hypothetical after all ;)) but for my purposes I'll really only be considering Houston, Dallas, Chicago, Atlanta, Jacksonville, Orlando, Tampa, South Florida. 

TIA!

Thanks for the replies!

@Justin Jocewicz So I guess you're saying 120k all-in can yield as much as $1200/month in Palm Beach? And those are condos with monthly fees I'm guessing?

@Jarrod Benson Thanks, so Orlando also you're more or less looking a the 1% rule? I was hoping for better cash flow out of Orlando. 

in a stable B class or gentrifying C class neighborhood for purchase and rehab price of around 80-120k? For this question I am limited to considering Houston, Dallas, Chicago, and basically the entire states of FL and GA, although I would lean towards the large markets of Tampa, Orlando, South Florida and Atlanta. 

Thanks!! 

@Lisa Landivar Welcome to Jax, if you ever do make it down here! 1031 exchange is a way to defer taxes on profit when you sell property. As long as you take the proceeds and invest into actual real estate you can continue to defer your capital gains. I am no expert and there are guidelines and deadlines you must follow, but that's the basic idea. 

I skipped over half the comments so apologies if I'm repeating somebody else. 

I think the 50/50 proposal is not fair to you, but at the same time if you cannot find another investor to work with this may be all you've got. My counterproposal would be to pay yourself some kind of management fee for the work you are doing. I can understand him wanting to control an equal amount of the asset that he's paying for, but maybe you can just compensate yourself a bit for the work you are doing. That said, it's really not sustainable for future deals if you don't have the capital to continue. Unless he is willing to fund 100% of future deals and, again, pay you a management fee, whether in actual cash or with a small share of equity. One other option if he's amenable is a preferred return and then a profit split. If you go 50/50 with him, you both share the first whatever you decide, say 7-8% profit, and then any profits above that hurdle get split 50/50. Therefore you, as a sponsor, get compensated with 50% of profits above 8%. 

Just my 2 cents, anyway good luck!