All Forum Posts by: Ricardo Hidalgo

Quote from @Katie Buell:

Hello!

My husband and I have a STR/MTR in our primary residence in Colorado and ready to take the plunge to buy something in a new market. How would you go about researching this? We are thinking of a duplex, rent out one side LT and do STR/MTR on the other side. I have looked at Airdna.com and FurnishedFinder Stats page. Any other places you recommend using? Or even just personal testimonies of where it's going well.

Thanks!

Katie

 Here are some areas I recommend with actual numbers and tons of gentrification: 

Address 125 Rose Lane, Panama City Beach

Purchase Price: $1,020,000

Grossing $132,000 a year

Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100

Insurance: $6000/yr

Taxes: $2283/yr

Utliities: $250-450/mo, avg maybe $350/mo

Management: $0 (I always encourage self management)

Repairs: 2-4%

Purchase Price: $325,000

Address: 232 Robin Lane, Panama City Beach

Grossing $50,000 a year.

Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100

Insurance: $2000/yr

Taxes: $2283/yr

Utliities: $150-200 monthlyhoa: 950 every 3 months

Management: $0 (I always encourage self management)

Repairs: 2-4%

Navarre: Long term growth and more commercial coming into the area. Affordable in comparison to other markets since it's starting to emerge.

Address: 2247 Janet St.

Grossing $55,000 a year doing short term rentals or mid term rentals to military or travel nurses.

General/Admin: $50/mo (pricelabs, etc.)

Contract Services: $400 (average cleaning-ish/month)

Repairs: I'd plan on like 2-4%

Cable/Internet: $100

Insurance: $3500/yr

Taxes: $2200/yr

Utliities: $180-400/mo, avg maybe $300/mo

Management: $0 (I always encourage self management)

Quote from @David Bewley:

We have 2 properties the house we live in (bought 2020) and a condo we rent(bought 2018) The house is in my name and the condo is in my wife’s name if that makes a difference. The condo makes about $500 a month, we could easily rent this for more and probably make $1000 per month but we have good tenants so we haven’t raised the rent. I plan to retire in 2 years and we want to move into our final home in a different state. I have enough for 10% down at the moment. Our options are sell the house and move to the condo and cash out 160k or move to the condo and rent the house which could bring in $500-700 a month plus save on our mortgage payment another $500 a month. All the California rent laws have me concerned or I would just keep both. The house we are looking at are near a lake we like to visit in the summer so that is the reason we are looking to do this now.

 What are you looking to do on your next investment? Do you have a preferred cash on cash return or equity multiple when looking to invest? 

Quote from @Mike Downey:

Hello,

I am looking to purchase an investment property in PCB that I will use for STR. I have seen a lot of mixed reviews on whether to go CONDO or SFR. I spoke with a realtor in the area and he is saying that a CONDO will have better cash flow due to occupancy rates. I am looking for a place $700k and under. I can get a condo on the beach or a SFR several blocks from the beach from what I am seeing. Does anyone have any SFR in this area that can validate occupancy rates on STR? The realtor is telling me that even for a CONDO I should not plan more than 60% and that if I get a SFR north of HWY 98, it will be closer to 20% occupancy rate.

Things to consider when buying condos and the future assessments: This section outlines the requirement for mandatory structural inspections of condominium and cooperative buildings in the state of Florida. The law requires a milestone inspection to be performed every 10 years for each building that is three stories or more in height, beginning at the 30-year mark from the date the certificate of occupancy was issued. Buildings located within 3 miles of a coastline must have their first milestone inspection at 25 years. The condominium or cooperative association must arrange for the milestone inspection and is responsible for all costs associated with the inspection. The inspection must be performed by a licensed architect or engineer authorized to practice in the state of Florida. The milestone inspection consists of two phases: a visual examination of habitable and nonhabitable areas of the building in phase one and, if needed, a phase two inspection that may involve destructive or nondestructive testing to fully assess areas of structural distress. Upon completion of the milestone inspection, the architect or engineer must submit a sealed copy of the inspection report with a separate summary of the material findings and recommendations to the condominium association or cooperative association and the building official of the local government which has jurisdiction. Condo unit owners may see higher premiums and now face the added cost of flood insurance if they move to Citizens, which is the alternative insurer. Senate Bill 2A and previous reforms are expected to stabilize the market, but officials have said it may take another year or two before the full effect is felt. 

I prefer townhomes or single family residences close to the beach. We current bought one in gulf highlands and 30A! Reaching 10% gross or purchase or more. 

Quote from @Michael A.:

Quote from @Ricardo Hidalgo:

Quote from @Cory Manoogian:

Quote from @Ricardo Hidalgo:

Quote from @Michael A.:

What would be the best way to invest $100k and achieve financial freedom. If you had $100k what would you do with it? How could you scale $100k to making $10k per month in passive income? Looking to hear about different strategies. 

 Here is how we grew 100k to 550k cash from flipping and building in 16 months! This was our first deal! 

43 Summerhaven Trail Miramar Beach

Financed Property with conventional loan 15% down.

Renovation Time: 5 weeks

Purchase Price $247,000

Cash invested with downpayment and bank fees: $51,497.45

Renovation cost $48,300

Sold for $485,000

Net Profit $170,000

Sold with 12 Days on market

No comps but we knew the area was a prime location with nothing under 500k available

 You didn't turn 100k into 550k, you turned 100k into 170k, so you made 70k in 16 months (net profit - capital investment)

 That was our first property... we've done 4 more... I was showing an example of our first one. How we invested 100k and netted 170k. We've gone larger and larger with our current projects and returns. Now we are moving 150-250k cash per project on capital with a 45-55% return. 

 That’s a nice first deal. I wanna invest my cash with you. 

 Let’s connect! Send me a request or DM for messages. 

Quote from @Cory Manoogian:

Quote from @Ricardo Hidalgo:

Quote from @Michael A.:

What would be the best way to invest $100k and achieve financial freedom. If you had $100k what would you do with it? How could you scale $100k to making $10k per month in passive income? Looking to hear about different strategies. 

 Here is how we grew 100k to 550k cash from flipping and building in 16 months! This was our first deal! 

43 Summerhaven Trail Miramar Beach

Financed Property with conventional loan 15% down.

Renovation Time: 5 weeks

Purchase Price $247,000

Cash invested with downpayment and bank fees: $51,497.45

Renovation cost $48,300

Sold for $485,000

Net Profit $170,000

Sold with 12 Days on market

No comps but we knew the area was a prime location with nothing under 500k available

 You didn't turn 100k into 550k, you turned 100k into 170k, so you made 70k in 16 months (net profit - capital investment)

 That was our first property... we've done 4 more... I was showing an example of our first one. How we invested 100k and netted 170k. We've gone larger and larger with our current projects and returns. Now we are moving 150-250k cash per project on capital with a 45-55% return. 

Quote from @Hunter Janes:

Quote from @Ricardo Hidalgo:

Quote from @Hunter Janes:

I am a new investor looking to get into the RE market. I am having a hard time finding properties where the numbers make sense. I am qualified for $250k for an investment property. I have found a few nice homes but the monthly cost on these homes is higher then what I am being told I can rent them for with a long term lease. For example, I found a 2/2 home for $250k, with 15% down and an interest rate of 7.62% the total monthly payment is around $1850. After speaking with my broker and realtor, they both informed me that I could rent this property for $1500-$1600 / month. With these numbers, this just does not seem to make sense to buy. I have had a few others homes that I have looked at with the same situation. I have considered doing airbnb for these properties as that would seem to be the only way I would have a chance at making my money back, or at least covering the cost. Is anyone else running into this situation? or should I approach things from a different angle. Any help/guidance is greatly appreciated. 

Here is a property we bought in Panama City Beach for STR.

Numbers attached below: 

149 Damon Circle Panama City Beach

Financed with interest only loan

Renovation time: 5 weeks

Purchase price: $250,000

Cost to buy with fees: 55,000

Renovation cost: $40,000

Furnishings: $15,000

After Repair Value: $350,000-$375,000

Gross rents 45-50k a year

Great work, that’s awesome. Definitely gives me some perspectives on spending money for an investment

 Absolutely! We are transparent with all our cost so people know the amount of leverage time and output for results. We want to be aware of risk management and value adds!

Quote from @Mackaylee Beach:

Hey Everyone!

What City are you from and what is a current R.E project you are working on?

I love working with out of state investors and helping them find cash flowing investment properties. 

Lot 16 Anne Santa Rosa Beach (Build a Short Term Rental)

Finance lot and home construction together

Build Time: 5-6 months

Purchase Price of lot $177,500

Cash investment with downpayment and bank fees for lot purchase: $37,598

Lot appraised for $220,000 (I have made 105% return by just closing on lot.)

Construction Cost $375,000

Architect Plans $6,000 (paid upfront)

Cost to furnish $30,000 (paid upfront and not wrapped into loan)

Interest and Fees to build $12,000 (carrying cost)

Total Cost of capital: 240,698

Final Loan amount when construction is done: $361,900 (add loan amount of construction and lot together. 30% downpayment is the requirement for construction to perm loan.)

Value of new construction $825,000 to $850,000

Property 2

Bought Property: 05/01/2023

149 Damon Circle Panama City Beach

Financed with interest only loan

Renovation time: 5 weeks

Purchase price: $250,000

Cost to buy with fees: 55,000

Renovation cost: $40,000

Furnishings: $15,000

After Repair Value: $350,000-$375,000

2 projects we are working on! passing permitting on a few more lots to start building. 

Quote from @Michael A.:

What would be the best way to invest $100k and achieve financial freedom. If you had $100k what would you do with it? How could you scale $100k to making $10k per month in passive income? Looking to hear about different strategies. 

 Here is how we grew 100k to 550k cash from flipping and building in 16 months! This was our first deal! 

43 Summerhaven Trail Miramar Beach

Financed Property with conventional loan 15% down.

Renovation Time: 5 weeks

Purchase Price $247,000

Cash invested with downpayment and bank fees: $51,497.45

Renovation cost $48,300

Sold for $485,000

Net Profit $170,000

Sold with 12 Days on market

No comps but we knew the area was a prime location with nothing under 500k available

Quote from @Neil Smith:

Hi BP friends,

I am looking to invest outside of Colorado, where I live. My wife and I have some properties in Colorado for the long-term equity play. And I'd like to invest outside of Colorado for cashflow. 

3 questions for you experienced investors:

1) Which markets are you investing in?

2) What metrics do you look at to inform market selection (job growth, tax rates, red VS blue states etc)?

3) Do you see any markets where cashflow is strong and the potential for appreciation is decent?

Thanks in advance for any insights. 

Neil

 Here are some markets we have personally invested in! Short term rentals are 10-15% of gross purchase price! 

43 Summerhaven Trail Miramar Beach

Financed Property with conventional loan 15% down.

Renovation Time: 5 weeks

Purchase Price $247,000

Cash invested with downpayment and bank fees: $51,497.45

Renovation cost $48,300

Sold for $485,000

Net Profit $170,000

Sold with 12 Days on market

No comps but we knew the area was a prime location with nothing under 500k available.

Property 2

Bought property: 09/20/2022

1822 Whispering Oaks Lane Fort Walton Beach

Bought it cash

Renovation time 4 weeks

Purchase Price $190,000

Total cost to buy with fees: $192,160

Renovation $33,000

Sold for $275,000

Net Profit $43,000

Received Multiple offers and Sold within days on market

Property 3

Bought property: 03/15/2023

Lot 16 Anne Santa Rosa Beach (Build a Short Term Rental)

Finance lot and home construction together

Build Time: 5-6 months

Purchase Price of lot $177,500

Cash investment with downpayment and bank fees for lot purchase: $37,598

Lot appraised for $220,000 (I have made 105% return by just closing on lot.)

Construction Cost $375,000

Architect Plans $6,000 (paid upfront)

Cost to furnish $30,000 (paid upfront and not wrapped into loan)

Interest and Fees to build $12,000 (carrying cost)

Total Cost of capital: 240,698

Final Loan amount when construction is done: $361,900 (add loan amount of construction and lot together. 30% downpayment is the requirement for construction to perm loan.)

Value of new construction $825,000 to $850,000

Property 4

Bought Property: 04/01/2023

149 Damon Circle Panama City Beach

Financed with interest only loan

Renovation time: 5 weeks

Purchase price: $250,000

Cost to buy with fees: 55,000

Renovation cost: $40,000

Furnishings: $15,000

After Repair Value: $350,000-$375,000

Panama City Beach has various grant programs aimed at supporting economic development and revitalization. Some examples include:

1 The Economic Development Incentive Program: This grant program provides financial incentives to businesses that create new jobs, increase capital investment, and/or develop new facilities in the city.

2 The Downtown Improvement Grant: This grant program provides financial assistance to property owners and businesses in the Downtown Redevelopment Area for eligible capital improvements to their buildings or storefronts.

3 The Community Redevelopment Area Grant: This program provides funding to businesses and property owners within designated Community Redevelopment Areas to make eligible capital improvements to their properties.

4 The Beach Renourishment Grant: This grant program provides funding to help restore and maintain the city's beaches, which are a critical component of the local tourism economy.

These grant programs can help businesses and property owners in Panama City Beach access the funding they need to invest in their properties, create jobs, and contribute to the local economy. Additionally, they can help attract new businesses and visitors to the area, which can have a positive impact on the local economy over the long term.

Appreciation and rentals have stayed strong since we have a limited supply of land with tons of infrastructure coming in! Our rentals can do 10-15% gross of purchase price.