All Forum Posts by: Ricardo Hidalgo
Ricardo Hidalgo has started 13 posts and replied 532 times.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @Dustin James:
Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1
Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.
Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
I agree with Jossalyn. Can easily hit 10-15% gross of purchase price with tons of appreciation. We have a personal portfolio that has seen a return of 450% in 16 months by investing on the emerald coast.
Would you mind sharing a deal that was purchased with an 8 percent mortgage, and it earning at these clips?
149 Damon Circle Panama City Beach
Financed 25% down commercial loan at 7.86% interest
Renovation time: 5.5 weeks
Purchase price: $250,000
Cost to buy with fees and downpayment: 67,200
Renovation cost: $40,000
Furnishings: $7,000
After Repair Value: $350,000-$375,000
Grossing 50-55k a year. Feel free to connect about more deals. I bought a few deals 1st quarter of 2023 and looking to acquire 3 more!
im not very familiar with PCB, but airdna quotes a 40k revenue (including cleaning fees), with ADR of $217 and 51% occupancy. A quick look at airbnb for the summer months here in that community and you can get these units for sub $200, which is peak season. I imagine in the off-season due to the supply of these places they can be rented for below $100 if at all. I know it was just purchased and im sure you have some comps for 50k-55k (possibly during covid), but this seems far from a sure range. operating costs seem to be around $2500-$2800 month assuming self management. nobody is going bankrupt doing this, but im a bit skeptical on this holding up personally.
My monthly payment is 1569 a month for principal and interest at 7.86%
It's a commercial loan therefore taxes and insurance are paid separately. Since this is short term flip they will be prorated at closing and I only did a 6 month policy for insurance.
Hoa is 958 a quarter which includes the following: Accounting, Conference Center, Exercise Room, Gated Community, Ground Keeping, Internet-WiFi, Management, Mini Golf, Pest Control, Playground, Pool, Tennis, TV Cable
Complex includes: 11 pools(5 heated), shuffleboards, beach house/café, mini golf, exercise room, tennis courts, playground, WIFI, cable, pest control, termite bond, trash, ground keeping, property patrol, gated community etc
cost to own:
Power $125/month
Water $80/month
Gas $40/month
short term rental Insurance $4000/year
Current taxes $1776
Over head is $2615 a month. Insurance has already been paid upfront for the 6 months. But I did divide 4000 by 12 and 1776 divided by 12 and included it in the total cost to own monthly payment
I disagree with your analysis of $40,000 because some units are already reaching those numbers this year and they aren't as renovated as ours. We replace everything and designed it to sleep 8 people comfortably. I've sold several and personally bought a few.
You need to hire a manager or self manage it and know how to promote it based on local events that gets you big premiums. We went with a niche based rental company that has been achieving these numbers on several units. The big firms are pulling standard data and promoting average results since they are just trying to reach certain targets.
Out of curiosity how does the risk management play into the equation if rental numbers match the airdna projections across the portfolio?
I was referring that if market were to shift this is a small part of our reserve in the event we need to buy more properties or keep higher cash reserves for future bank approvals.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @JD Martin:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @Dustin James:
Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1
Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.
Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
I agree with Jossalyn. Can easily hit 10-15% gross of purchase price with tons of appreciation. We have a personal portfolio that has seen a return of 450% in 16 months by investing on the emerald coast.
Would you mind sharing a deal that was purchased with an 8 percent mortgage, and it earning at these clips?
149 Damon Circle Panama City Beach
Financed 25% down commercial loan at 7.86% interest
Renovation time: 5.5 weeks
Purchase price: $250,000
Cost to buy with fees and downpayment: 67,200
Renovation cost: $40,000
Furnishings: $7,000
After Repair Value: $350,000-$375,000
Grossing 50-55k a year. Feel free to connect about more deals. I bought a few deals 1st quarter of 2023 and looking to acquire 3 more!
im not very familiar with PCB, but airdna quotes a 40k revenue (including cleaning fees), with ADR of $217 and 51% occupancy. A quick look at airbnb for the summer months here in that community and you can get these units for sub $200, which is peak season. I imagine in the off-season due to the supply of these places they can be rented for below $100 if at all. I know it was just purchased and im sure you have some comps for 50k-55k (possibly during covid), but this seems far from a sure range. operating costs seem to be around $2500-$2800 month assuming self management. nobody is going bankrupt doing this, but im a bit skeptical on this holding up personally.
My monthly payment is 1569 a month for principal and interest at 7.86%
It's a commercial loan therefore taxes and insurance are paid separately. Since this is short term flip they will be prorated at closing and I only did a 6 month policy for insurance.
Hoa is 958 a quarter which includes the following: Accounting, Conference Center, Exercise Room, Gated Community, Ground Keeping, Internet-WiFi, Management, Mini Golf, Pest Control, Playground, Pool, Tennis, TV Cable
Complex includes: 11 pools(5 heated), shuffleboards, beach house/café, mini golf, exercise room, tennis courts, playground, WIFI, cable, pest control, termite bond, trash, ground keeping, property patrol, gated community etc
cost to own:
Power $125/month
Water $80/month
Gas $40/month
short term rental Insurance $4000/year
Current taxes $1776
Over head is $2615 a month. Insurance has already been paid upfront for the 6 months. But I did divide 4000 by 12 and 1776 divided by 12 and included it in the total cost to own monthly payment
I disagree with your analysis of $40,000 because some units are already reaching those numbers this year and they aren't as renovated as ours. We replace everything and designed it to sleep 8 people comfortably. I've sold several and personally bought a few.
You need to hire a manager or self manage it and know how to promote it based on local events that gets you big premiums. We went with a niche based rental company that has been achieving these numbers on several units. The big firms are pulling standard data and promoting average results since they are just trying to reach certain targets.
I'm a little confused on your overhead. I get your monthly cost on your PITI and utilities and HOA (though I suspect some of your utilities are low, I have a home in Four Corners and electric is nowhere near $125/month). Where is the rest of your overhead? PM fees (since you said you hired a firm), consumables, capital replacement fund, licensing, etc? For us, for example, in the last 12 months we've spent about $1000 on soft materials - replacement linens, towels, mattress covers, etc. $7k for furnishings must be thrift store/side of the road stuff; we had to replace a queen size bed & box spring earlier this year and even on sale, and being a relatively "economy" mattress, delivered it was $600.
I'm not saying your unit doesn't make any money, just that some of your expense numbers seem quite understated to me based on my experience in Florida.
We don't have to apply for titles or licensing fees for STR in PCB.
This a 972 square foot townhome which is why utilities are lower and I have owners with similar overhead. I did the divide the utilities by 12 for the overall average. Winter months or off season has lower overhead on utilities.
I always encourage self management and have a course to do that with our clients. At the price we bought and value add, we still cashflow with fees but I am flipping this unit regardless.
In the renovation cost and furniture cost total thats already included. You are incorrect about the thrift store. I have contacts that send me deals and other management companies I have connections with. We replace everything entirely new and gutted it.
I'll make sure to send you the MLS once it goes live soon! Feel free to connect with me for more clarity. I've sold 5 deals in this community recently with my clients and I understand your utility cost may differ depending on size of home. Most of our units are smaller and more compact with high efficiency items since we usually do a large renovation take care of everything that is needed.
Management takes the money off the top and there are several things included in their service that they cover us if things are needed! some actually offer good incentives!
Post: Why can't I pick a market?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Alex DeYo:
I have been looking to purchase my first investment property for almost two years now... I have made several offers on properties all over the country but have not closed. In all this time, I still can't seem to decide on a market. I find myself jumping from market to market, state to state, and just can't seem to narrow in on any one place. Grass always just seems to be greener and I end up sitting on the sideline. I want to pick a market and put my blinders on and feel confident that THIS is where I am going to focus.
How do you all decide and commit to one area? Are there tools that you use to help inform your decision? Is paying for tools such as Mashvisor worth it? Any others recommended?
Appreciate the help/discussion!
What is you preferred cash on cash return? What is your desired price point? Are you open to renovating a property or looking for turn key?
Post: New investor looking to start out of state
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Dan Riley:
Hi everyone, I'm a first time investor looking to invest in long-term out-of-state rentals. I've been wanting to get involved for years and have been spending time researching/reading in the interim. The idea of being a first time investor and out of state has certainly given me lots of pause, however, if I don't go out of state, it won't happen (I live in the Bay Area).
Life is busy with a newborn and a long working hours so my time is strapped which presents another obstacle to getting started.
Target down payment is < $70k which puts me in the $250k - $350k range. Is this a reasonable amount to get started? Any areas you'd recommend looking as first time out of state investor? Any fantastic property managers that've made everything worthwhile?
Would love to connect with and learn from others who have been on a similar journey!
Appreciate the community help and support.
Good morning, we have townhomes in our area near military bases that bring in consistent income and stability. There are options that need to be renovated which was boost your equity tremendously and cash flow even with the higher rates. Let's connect!
Post: Out of state investing
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Anitha Muraleedharan:
Hello experienced investors,
If a brand new investor from Southern California ask you which out of state market is good to start in today's market for buy and hold what would be a few choices you suggest? Minimal cash flow is ok as long as it's after paying for property management.
thank you
Anitha.
You can find value add or turn key rentals in Panama City beach doing 10-15% of gross purchase price for rentals. We have beautiful emerald waters with tons to do and a growing economy. We are building residential and commercial to provide more jobs and the airport continues to expand allowing more markets enter our area. We have seen great appreciation and expansion over the last 5 years. Even with the higher rates are market continues to turn a lot of inventory!
Post: I have 120K cash and looking to get started
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @Ashley Binns:
Quote from @Ricardo Hidalgo:
Quote from @Ashley Binns:
I am super new to this, but I figured instead of sitting on 120K cash, I should do something with it like invest in my first rental! :D I am looking to do the BRRRR method. I am thinking I need to build a team first and I would like to work with a wholesaler to get started. What is the best way to search for properties? I am open to all and any ideas/thoughts! TIA
I would focus on lowest entry points on the beach that need renovation. This is one of our strategies in the Panama City beach area. WE bought a few properties and up front 40% after value add and cashflow position. 4-6 week renovation but there are turn key options too!
We actually have always loved the Pensacola area. We typically go there on vacation and last year, there were tons of investment properties and homes being flipped for short-term rental. In fact, the Airbnb we stayed in was brand new construction with other new homes for sale in an area that was being redeveloped, so I definitely could see myself revisiting that market to see how it's doing today. Looks like you do a lot in Destin. Do you do anything in the Pensacola area as well?
I do not do pensacola since appreciation is lower and I am equity investor. In addition, I believe anything past Destin to Mexico beach has better development potential and security. All of the money is moving from 30A to Mexico beach with much better returns and a more affluent buyer willing to spend more money.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @Dustin James:
Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1
Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.
Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
I agree with Jossalyn. Can easily hit 10-15% gross of purchase price with tons of appreciation. We have a personal portfolio that has seen a return of 450% in 16 months by investing on the emerald coast.
Would you mind sharing a deal that was purchased with an 8 percent mortgage, and it earning at these clips?
149 Damon Circle Panama City Beach
Financed 25% down commercial loan at 7.86% interest
Renovation time: 5.5 weeks
Purchase price: $250,000
Cost to buy with fees and downpayment: 67,200
Renovation cost: $40,000
Furnishings: $7,000
After Repair Value: $350,000-$375,000
Grossing 50-55k a year. Feel free to connect about more deals. I bought a few deals 1st quarter of 2023 and looking to acquire 3 more!
im not very familiar with PCB, but airdna quotes a 40k revenue (including cleaning fees), with ADR of $217 and 51% occupancy. A quick look at airbnb for the summer months here in that community and you can get these units for sub $200, which is peak season. I imagine in the off-season due to the supply of these places they can be rented for below $100 if at all. I know it was just purchased and im sure you have some comps for 50k-55k (possibly during covid), but this seems far from a sure range. operating costs seem to be around $2500-$2800 month assuming self management. nobody is going bankrupt doing this, but im a bit skeptical on this holding up personally.
My monthly payment is 1569 a month for principal and interest at 7.86%
It's a commercial loan therefore taxes and insurance are paid separately. Since this is short term flip they will be prorated at closing and I only did a 6 month policy for insurance.
Hoa is 958 a quarter which includes the following: Accounting, Conference Center, Exercise Room, Gated Community, Ground Keeping, Internet-WiFi, Management, Mini Golf, Pest Control, Playground, Pool, Tennis, TV Cable
Complex includes: 11 pools(5 heated), shuffleboards, beach house/café, mini golf, exercise room, tennis courts, playground, WIFI, cable, pest control, termite bond, trash, ground keeping, property patrol, gated community etc
cost to own:
Power $125/month
Water $80/month
Gas $40/month
short term rental Insurance $4000/year
Current taxes $1776
Over head is $2615 a month. Insurance has already been paid upfront for the 6 months. But I did divide 4000 by 12 and 1776 divided by 12 and included it in the total cost to own monthly payment
I disagree with your analysis of $40,000 because some units are already reaching those numbers this year and they aren't as renovated as ours. We replace everything and designed it to sleep 8 people comfortably. I've sold several and personally bought a few.
You need to hire a manager or self manage it and know how to promote it based on local events that gets you big premiums. We went with a niche based rental company that has been achieving these numbers on several units. The big firms are pulling standard data and promoting average results since they are just trying to reach certain targets.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @Dustin James:
Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1
Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.
Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
I agree with Jossalyn. Can easily hit 10-15% gross of purchase price with tons of appreciation. We have a personal portfolio that has seen a return of 450% in 16 months by investing on the emerald coast.
Would you mind sharing a deal that was purchased with an 8 percent mortgage, and it earning at these clips?
149 Damon Circle Panama City Beach
Financed 25% down commercial loan at 7.86% interest
Renovation time: 5.5 weeks
Purchase price: $250,000
Cost to buy with fees and downpayment: 67,200
Renovation cost: $40,000
Furnishings: $7,000
After Repair Value: $350,000-$375,000
Grossing 50-55k a year. Feel free to connect about more deals. I bought a few deals 1st quarter of 2023 and looking to acquire 3 more!
im not very familiar with PCB, but airdna quotes a 40k revenue (including cleaning fees), with ADR of $217 and 51% occupancy. A quick look at airbnb for the summer months here in that community and you can get these units for sub $200, which is peak season. I imagine in the off-season due to the supply of these places they can be rented for below $100 if at all. I know it was just purchased and im sure you have some comps for 50k-55k (possibly during covid), but this seems far from a sure range. operating costs seem to be around $2500-$2800 month assuming self management. nobody is going bankrupt doing this, but im a bit skeptical on this holding up personally.
My monthly payment is 1569 a month for principal and interest at 7.86%
It's a commercial loan therefore taxes and insurance are paid separately. Since this is short term flip they will be prorated at closing and I only did a 6 month policy for insurance.
Hoa is 958 a quarter which includes the following: Accounting, Conference Center, Exercise Room, Gated Community, Ground Keeping, Internet-WiFi, Management, Mini Golf, Pest Control, Playground, Pool, Tennis, TV Cable
Complex includes: 11 pools(5 heated), shuffleboards, beach house/café, mini golf, exercise room, tennis courts, playground, WIFI, cable, pest control, termite bond, trash, ground keeping, property patrol, gated community etc
cost to own:
Power $125/month
Water $80/month
Gas $40/month
short term rental Insurance $4000/year
Current taxes $1776
Over head is $2615 a month. Insurance has already been paid upfront for the 6 months. But I did divide 4000 by 12 and 1776 divided by 12 and included it in the total cost to own monthly payment
I disagree with your analysis of $40,000 because some units are already reaching those numbers this year and they aren't as renovated as ours. We replace everything and designed it to sleep 8 people comfortably. I've sold several and personally bought a few.
You need to hire a manager or self manage it and know how to promote it based on local events that gets you big premiums. We went with a niche based rental company that has been achieving these numbers on several units. The big firms are pulling standard data and promoting average results since they are just trying to reach certain targets.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
I'm about to put the unit I bought on the market for short term rentals. It was fully gutted and everything is brand new. We believe we will out perform those numbers based on the upgrade, theme of short term rental and presentation.
Post: First home buyer - where to buy first STR?
- Real Estate Agent
- Posts 552
- Votes 254
Quote from @John Carbone:
Quote from @Ricardo Hidalgo:
Quote from @Dustin James:
Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1
Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.
Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
I agree with Jossalyn. Can easily hit 10-15% gross of purchase price with tons of appreciation. We have a personal portfolio that has seen a return of 450% in 16 months by investing on the emerald coast.
Would you mind sharing a deal that was purchased with an 8 percent mortgage, and it earning at these clips?
149 Damon Circle Panama City Beach
Financed 25% down commercial loan at 7.86% interest
Renovation time: 5.5 weeks
Purchase price: $250,000
Cost to buy with fees and downpayment: 67,200
Renovation cost: $40,000
Furnishings: $7,000
After Repair Value: $350,000-$375,000
Grossing 50-55k a year. Feel free to connect about more deals. I bought a few deals 1st quarter of 2023 and looking to acquire 3 more!