All Forum Posts by: Ricardo Hidalgo

There are many benefits to buying property in Panama City Beach, Florida, including:

1 Location: on the Gulf of Mexico, offering beautiful beaches and crystal clear water.

2 Investment potential: Property in Panama City Beach can be a good investment, as the area is popular for vacation rentals, commercial development, sports complex, new home developments with great cash flowing opportunities.

3 Amenities: Panama City  offers a variety of amenities, including shopping, dining, and entertainment options.

4 Entertainment: is known for its nightlife, with a variety of bars, clubs, and live music venues.

5 Outdoor activities:  offers a variety of outdoor activities, including swimming, fishing, boating, waterfront restaraunts and water sports.

6 Family-friendly: offers a variety of family-friendly activities and attractions, such as amusement parks, zoos, and aquariums.

8 Accessible:  is easily accessible by car or air travel, with the Northwest Florida Beaches International Airport located nearby.

9 Proximity to other Cities:  is close to other popular destinations such as Destin and 30A, making it easy to explore the surrounding areas.

10 Affordable: Panama City Beach offer a more affordable option compared to other coastal towns in Florida, making it accessible for first time buyers or retirees.

 I prefer to build when the majority of the inventory is older and new emerging building are getting premiums with less insurance cost. I am seeing the majority of buyers opting in for new construction to ride out the recession into 2024 or next vacation rental season. 

Have you looking into the Navarre Beach or Panama City Beach Market: 

1 Location: Located on the Gulf of Mexico, offering beautiful beaches and crystal clear water.

2 Lifestyle: Navarre Beach is known for its laid-back, beachy lifestyle, making it a popular destination for vacationers and retirees.

3 Investment potential: Property in Navarre Beach can be a good investment since there is tons of new construction occuring on the beach and inland.

4 Community: Navarre Beach has a strong sense of community, school systems with many local events and activities throughout the year.

5 Natural beauty: Navarre Beach offers a variety of natural beauty, from the beaches to the state parks and nature preserves.

6 Quieter: Navarre beach is a quieter alternative to the busier beaches of Pensacola and Destin, but still close enough to enjoy the activities and amenities of those areas.

7 Military friendly: Navarre beach is home to Hurlburt Field Air Force Base, making it a popular destination for military families and veterans.

8 Affordable: Navarre beach offer a more affordable option compared to other coastal towns in Florida, making it accessible for first time buyers or retirees.

Rentals, appreciation and gentrification is happening in these areas with new price point emerging due to infrastructure being built out. 

Here are a few things to consider with non warrantable condos (which is 99% of condos in Destin that are STR)

A non-warrantable condo is a condominium complex that does not meet the guidelines set by government-backed mortgage companies such as Fannie Mae and Freddie Mac. Because of this, it can be more difficult to obtain a traditional mortgage for a non-warrantable condo.

The loan requirements for a non-warrantable condo can vary depending on the lender, but in general, the following may be required:

• Higher down payment: Lenders may require a down payment of at least 25% or more for a non-warrantable condo.

• Higher credit score: Lenders may have stricter credit score requirements for non-warrantable condos.

• Higher interest rate: Non-warrantable condos are considered higher risk, so lenders may charge a higher interest rate.

• Proof of income: Lenders may require proof of income, such as pay stubs or tax returns, to ensure that you can afford the mortgage.

• Condo questionnaire: Some lenders may require a condo questionnaire to be filled out by the homeowner association to ensure that the complex meets certain standards.

 I like Exp for the following reasons: 

16k stock payout for being an icon agent and 5% of income invested to EXPI for long term growth in stock market. 

Revenue share from brining on agents. 

You can be a mentee and acquire more agents to grow team. 

International presence with leading innovation techniques that will expand the brand. 

Low cost for fees. 

You cap out very quickly. I recently join and have earn a tremendous amount of stock that has 2x since the market bottom. 

Single unit properties under 300k typically do best for LTR. 

500k to 1 million do well for STR or MTR.

1-3 million would probably be an appreciation play with limited cashflow unless it was multi family units, townhome development or commercial structure. Luxury properties are typically held to hold value if it is in a specific location near the beach since replacement of that asset is hard to replicate due to limited land near water. 

This is based on my areas market from Navarre to Panama City Beach. 

 Good afternoon, our area does really well in cashflow and appreciation. What is your preferred cash on cash return you are seeking? Do you have an amount you are trying to invest? would you be open to rehab or building? Do you own any current investment to see if it would be a good addition to your portfolio? 

 Try to build a bigger multi family unit or commercial structure that can qualify for commercial lending since the valuation will be higher as numbers continue to increase into the future. I prefer to build or buy in bulk then subdivided into single units to resell for a 5-10% premium more than selling its a package. Easy way to gain back capital and still hold a part of the asset. 

The market seems to be downtrending in some areas or even holding steady. I am seeing many investors starting to long positions by taking on bigger projects that will last 8-14 months to build since flips are hard to come by and older inventory seems to be adjusting quickly. What are you thoughts about building in prime locations through the recession then holding those properties for 2 years to later 1031 exchange into a bigger development? Who is currently trying this out or current success in the current market? Would anyone be interested in sharing their thoughts? 

Good afternoon, what is the average cash on cash return you are seeing in your market? After this market rebound what would be your ideal return?