All Forum Posts by: Justin Jocewicz

I like 1/1 condos in PBC.  2/2 at the largest.  

Thanks.

There are a lot of factors. I own three units in a large complex (about 300 units) which is 91% rented. The values have gone up pretty significantly (30%) as of late (last 18 months) like a lot of other parts in the country. The dynamic of the neighborhood is largely based upon the screening process. It is imperative that the HOA have a strict process because there are a lot of landlords who either don't know or don't care who is in a unit. More specifically, PMs who are managing a portfolio for a large investor.

The great thing about the HOA, at least in my experience, is that they will become your PM.  I had a noise complaint issue in a unit.  The CC&R clearly prevents it along with an acknowledgement of the rules when a tenant signs up.  So the PM for the community is out there at 2 AM to hear the noise instead of me.  How awesome is that?

Again, for me, it simply depends on what you relate to the best in order to be the best landlord you can be.  I like 1/1s and 2/2s.  Larger homes come with more people, possibly more drama and more upkeep along with major expenses (roof).  

Mmulti-family prices are ridiculous now and have been for about two years...even on the residential (up to 4 units) side.  I stopped looking.  If anyone has some secrets that they are willing to share, by all means :-)

Typo on the property tax. It is $90 per month. You have to ensure that the HOA is running a good ship which means a good reserve, building and liability insurances and a solid tenant screening process.

Interesting about the appreciation play.  For me, I've never even thought about it since I won't sell until I'm 70.  

IMHO, I don't like to have to worry about the upkeep of the outside structure...or pool, or gate, or garage.  I'll pay the fee and be happy.  Again, for capex, repairs and vacancies, keep a minimum account balance.  For me, it's $15K for 7 units.  But I also have renovated units with new appliances...so, it may need to be more for others or SFHs too.  

Either way, in the end, you need to do something.  If you can have someone pay off a hard asset AND make money each month, it's a no-brainer for me...and should be for you too :-)

@Jeffrey Duck...these are nice units.  I do know that down south is more expensive to live.  Since you are having trouble, here is my two cents.  

You have a gorgeous color pallet, nice flooring, a frameless shower door and floor to ceiling tiling in the shower.  The kitchen seems out of place for a renovated unit.  This looks to me like a B/B+ area too.  The lack of granite countertops and stainless steel appliances may be turning off qualified tenants that will get that in another unit for a similar price.  Not a sermon, just a thought :-)  Do let us know!

My philosophy is to create the best offering for the best tenant in the neighborhood. The HOA covers building insurance and external property maintenance. In the end, it just has to make sense and the PP determines that. Here is the last 2/2 I did.

PP - $51K
Rehab - $15K
Investor fee - $3900
All in - $69,900

Rent - $1,100
HOA - $325
Debt Service (70%) - $250
Property Tax - $490
Net Cash flow - $435

What I do is keep a minimum of reserves in the investment account to cover capital expenses or vacancies.  Since I rehab all of the properties and put in new appliances, toilets and clean A/C units...I rarely get a call for anything.  

I hope this helps.  

You are doing the correct thing.  Much better vacant waiting for a qualified tenant than to put someone in there that doesn't meet your standard.  For me personally, I have found that lower end and higher end are not for me.  I simply relate more to the average joe with a $900-$1600/mo rental range for B-/C+ properties.  

About 75% of my rentals are condos and I love them.  No insurance or outside maintenance worries, and decent to nice shared community resources.  You also have a bit of light property management too.  Generally, condos will have stricter rental requirements, which actually falls into best practice anyway....so for me, they are great!  Just my .02.  

Amount is really too low for a company.  This is a buy with a personal loan and rehab on your CC, the rent and refi out and get all of your money back deal.  There is a meetup in Delray on Saturday, you could ask...but need to get it under contract first.  If it is an actual deal, it will go fast.

Utilities are in the tenant's name.  If they are paying rent, they are paying electric.  How would you know if they are paying electric, yet not running A/C?  Perform quarterly check-ins.  Make it a day trip and enjoy the west coast while checking on your property.