All Forum Posts by: Ricardo Hidalgo

Quote from @Kelly Cynamon:

Hello- I am based in Southern CA and there are limited options for getting a good deal here. Curuous where everyone is investing? cities/neighborhoods? and STR and LTR and why? I have one investment property that was originally purchased to live in but turned into a rental so I am not the best at evaluating properties yet. Would love the input. Thank you!

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.

Short term rentals are doing great in these areas and I am seeing a lot of value add. 

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

Quote from @Albert Blair:

Hello,

Anyone that has an STR in the Destin area can you please provide information. I see homes and condos available in the area. What are the pros and cons of owning a condo or home in the area for a STR.? It seems that the condos are right at the beach whereas the homes seems like you have to drive to the beachfront. Thank you for any input. H

Here is one we bought and it was doing 45-50k a year!

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.

MLS Link to Property: https://www.flexmls.com/share/8RVUY/43-N-Summerhaven-Trail-2-Miramar-Beach-FL-32550

Quote from @Nick Loukas:

Hey there, I’m Nick and a LTR investor in Pa.

Looking to purchase an STR in the florida panhandle to use for the winter months and rent as an str in the busy season. Would love to connect with an experienced realtor who can help me run some numbers on a SFH close to the beach but doesn't have to be on it. 500k purchase price and looking to at least break even but ideally a 15% return. Will self manage to help with returns. Anyone with experience who owns in this area (PCB, destin, Navarre, fort Walton etc.) or who is an agent I'd love to hear from you! Thanks !

Good afternoon Nick, here is my personal portfolio. 

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.

MLS Link to Property: https://www.flexmls.com/share/8RVUY/43-N-Summerhaven-Trail-2-Miramar-Beach-FL-32550

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

MLS Link to Property: https://www.flexmls.com/share/8RVUp/1822-Whispering-Oaks-Lane-Fort-Walton-Beach-FL-32547

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

MLS LINK of lot: https://www.flexmls.com/share/8RVVr/LOT-16-Anne-Avenue-Santa-Rosa-Beach-FL-32459

Comparable Sales: https://www.flexmls.com/share/... 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

MLS Link: https://www.flexmls.com/share/8RVU2/149-Damon-Circle-Panama-City-Beach-FL-32407

Comparable Sales: https://www.flexmls.com/share/8RVUL/Selected

Quote from @Rebecca Allan:

Newbie here still on the hunt for my first investment. Haven't seen a lot new on the market in the areas we're focusing on. What time of year do people usually list? and what would you say is the best time of year to buy an STR? Focusing on the gulf coast (Fort Morgan, Gulf Shores, Orange Beach).

 Have you looked into the emerald coast? Typically September through February is the slower season but less options and vice versa during the summer months. I buy based on property performance and if it can meet my returns. I don't focus on seasons and more on the opportunity. 

Quote from @Rachel Simpson:

Hi all. I am analyzing a deal that is outside my comfort zone and I am very much in my head and overthinking it. I am hoping for insight from more experienced investors.I currently invest in a class C (probably C-) area that provides fantastic cashflow but will likely not appreciate as well as other markets. 

I have the opportunity to purchase a duplex (Class B neighborhood) in an area that is seeing job growth and with steady increase in both rents and real estate prices. Professionals/ hospitality workers are moving to the area as they are being priced out of the nearby tourist areas where they work. It is also near a large naval base that is going to be adding more jobs, as well. Large development of very nice single family homes being planned for in that area. 

Here is the catch. Right now, it will cashflow MAYBE $50 a month when considering capex, maintenance, etc (Thank you, interest rates). It would be an appreciation buy, mostly. INSIGHT PLEASE! I feel like I need a property like this to balance out my doors in a less savory market.

 Have you looked into Panama City beach? It offers cashflow and appreciation. You can easily make more than 50 a month. Sometimes I am seeing as much as 10-15k net profit depending on the property after all expenses and down payment amounts or value add. 

Quote from @Charles Shealy:

Thinking of of investing in a condo in Panama City Beach. Any advice about the market trends in the area? Should I put the property in a FL land trust or claim the poperty under an LLC and pay to operate in FL?

 Things to consider when buying a condo in PCB: 

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.

Quote from @Rafael Castro:

Every market has these— a brokerage that deals with investors or are investors themselves. 

Or agents that deal mainly with investments. 

Who are they in the Dallas/surrounding areas? I’m looking to do business and your help is appreciated!! 

 I cover the navarre beach to Panama City Beach area if you ever want to connect! We have great returns in appreciation and cash flow depending on the city. 

Quote from @Bethany Tran:

I live in Houston but I think it's not worth investing in Houston because property tax is so high and keep increasing every year. Additionally, renting market is very competitive. And, appreciation here is not so good. I am thinking about properties in another state to invest in. Can you guys with knowledge and experiences plz help me to suggest some good states for investment within my budget? I highly appreciate any comments. Thank you very much:)

I recommend Panama city beach since you can find options on the beach for 500k or less that are producing 10-15% in gross rentals on the purchase price. We recently bought one for 330k that was doing 50k on the books with nearby beach access, pools, tennis courts and other amenities. 

Quote from @Keith Tarasiewicz:

Hello!

I have been tasked with picking new markets to take our flipping/wholesale business to and was wondering what parts of the country investors are having the most success finding good deals in? We're currently in a handful of states on the east coast (Virginia, Maryland, DC, Pennsylvania) and prefer to branch out from there, but are open to suggestions.

I've liked the data I'm reviewing in the southeast but my fear is so does everyone else and those markets will quickly become saturated.

Thanks in advance Bigger Pockets community!

Best,

Keith
 

 Have you looked into the Emerald coast? We do flipping and building in our area. New construction is pushing the highest premium on the beach and properties under 500k for short term rentals are moving in less than 14 days if staged and renovated correctly.