All Forum Posts by: Seth Nadreau

As an appraiser, I can assure you, increases in actual value MUST be supportable. Usually, you'd run a comps search without the feature and one with the feature and the difference in median value is the contributory value of the feature. Get it?

The deck would likely add value. The door... not at all.

Generally speaking, a deck is added for enjoyment and not value as the cost to build (especially if opening up a wall) outweighs the added value. Of course, in Cali, that deck could double the value. ;-)

As for permitting... YES.

Anything you do on the exterior of the home you should ALWAYS permit. Prevents any issues coming up later when you want to sell the property or when the county sends drones through your neighborhood looking for unpermitted pools/decks/carports, etc to try to raise revenue to cover unfunded liabilities in government spending. ;-)

Welcome to BP! 

When it comes to real estate professionals, personally, I'm a fan of my team. ;-)

We're investor focused for both buy and hold and flip properties. I'm licensed as an appraiser and spend the bulk of my time analyzing just about everything as it relates to real estate. For flips, I excel in valuing the as-is and as-repaired values and produce forward looking valuations based on market trends. With that in mind, as stated above, I'm not the "show you 100 properties" kind of guy either.  My investor clients are chasing returns, not dreamhouses. I'll happily show you potential incomes on however many properties you'd like. 

My wife Mia and brother Treva (think Trevor, with an A) are both exceptionally suited for both buyers and sellers as well and are quick to take over should I be tied up with work in the appraisal world (which does happen as I own a company with 5 employees). 

The delight regarding a wood frame house is that you can usually buy it cheaper than concrete block. In fact, Wade Jurney is building brand new 4 bedroom 2000+sf wood frame homes and some are still priced under $200K. If you figure the rent on a 4 bedroom / 2.5 bath home, it's not too bad (frame vs block doesn't really hit rent much). Yes, your insurance premiums will be a bit higher, but in some pockets, the cost difference could be over $20K... so you save on the front end and pay a bit more in premiums. 

Just get a WDO inspection prior to buying and keep a good pest control company out there and you'll be (mostly) fine.

Peter's good. I won't step on his toes. I also agree with pretty much everything he's said.

Vacation rentals always have some affects from local events. Mountain cabins didn't do so well when wildfires roared through the Smokys. Sky lodge rentals don't do as well during low-snow seasons in the Berkshires. Puerto Rican vacation villas took a huge hit last year.

In short, the market at large is still doing QUITE well and most investors I know are still turning a profit even with the tide and algae issues. 

Very few people in this market can build a home that they can sell for a notable profit unless they are in the business of building or have someone with a contractors license willing to let a portion of the builder's profit go. See, if you hire a company and build a house for $200K all in, why would anyone buy it from you for $250K if they can call the same builder and have the same house built for $200K as well. Theory of substitution at work here. 

Now, if you were to have a friend with a GC license (and some experience building) who would build while cutting out some of the profit, that would become your return on that investment. Make sense?

145 Foreclosure fillings is not a big deal. Factor in how many are related to Irma, irreparable property damage (most insurance rates aren't increasing at the same rates as values over the years), death and probate and it's not that big of a deal. There were at least twice as many single family permits pulled in that same time frame. 

Cape Coral has better lasting returns than much of Fort Myers. Your equity growth potential is typically higher at this point, too. If you want cheaper prices than Cape Coral, consider North Fort Myers, Punta Gorda or Lehigh Acres. A bit more risk, typically, but better returns.

That said, I'm an appraiser and a broker and lived here since 1996. I'm closing on another single family rental in August. I'm not worried.

While this is entirely true... with Lee County's issues with Rocket-Docket foreclosures, tenants likely could have stayed in the house for a year or more. Regardless, nothing excuses theft except maybe to feed a starving child. 

@Quyen Nguyen There are so many canals in Cape Coral that as it relates to value, proximity only matters if you're on the water or not. With the exception of the Caloosahatchee River, you're not really going to get any added land value for that. 

That said, AE Flood Zoning is quite common here and Flood Insurance, while more expensive, is currently a rather manageable expense. 

Value-wise, depending on the location of the property, I'd likely have much better investment tips for $260,000 worth of housing in Cape Coral. If there's no pool, a typical 4 bedroom home would rent for about $1,600. SW Cape could add another $100 a month. Pool could add another $150.

That said, you can buy an entry level duplex (think 1960s or 1970s), 2/2 in average condition for about $225,000. Update each side for about $10,000 (lvl 1 granite, new tile, paint, etc.) and rent each side out for $1,200. Now your $245,000 is making you $2,200 a month instead of having your $260,000 make you $1,600 a month. Not to mention, the added expense of flood insurance.

Sure, single family homes aren't a terrible investment (I'm picking one up this month), but with the limited data I have, I don't think that's the best way to maximize your returns. Of course, if you plan to eventually use it as a primary or secondary home, there's some value-in-use to your plan. 

This actually isn't that uncommon... sadly.

During the crash of 2008, I'd gone in to appraise formerly tenant occupied properties that had gone through foreclosure. I never knew what I was going to walk in to. Sure, you expect it from jaded homeowners who were foreclosed, but it always seemed odd when tenants did it.

If it were me, I'd file a police report and an insurance claim. 

Simple cost/benefit analysis. Are they good long term problem-free tenants? If so, working with them sounds cheaper than vacancy. Are they so-so and you'd not be too bummed to see 'em go? In this instance, you have every right to say yes or no, but I'd look at it financially rather than emotionally.