All Forum Posts by: Stetson Miller

@Noah Nelson @Filippo Baldo I can second Fort Myers as well. On top of being a great investment itself, Bradenton is an hour north and Tampa is 2 hours north. Miami is about 2 hours east depending on where you're going, all with great cities to invest in in between! Because of this, I really think Fort Myers is one of the best locations to live in because it will put you within a 2 hour drive of some of the best investment cities in Florida.

@Corazon B. Ideally, your investment should net you about $100 a unit after deducting your mortgage principle, interest, taxes, and insurance, as well as factoring in management, repairs, and vacancy etc. Because of this, even with no outside income supporting your investment, the income produced from the rental should completely cover all expenses and then some. Because you have a decent amount of cash on hand, my recommendation would be to find a distressed property with good potential for forced appreciation, put 20% down on the property and finance the remainder with a conventional loan, leaving a substantial rehab budget. This would further ensure that the value of your property would far exceed any loans you have on it, eliminating much of this risk you take when financing a property for near the full amount with no opportunity for forced appreciation.

@Corazon B. Association fees are most often included in the rental cost from what I've seen. There are several nicer areas in Lehigh as previously mentioned that are well worth investing in, but it's really left to your personal preference. Are you completely against getting a loan though, and if so why?

@Corazon B. How set are you on buying a condo? Because there are many snowbirds in this area, winter condo rentals are a great way to make money, but come with their own set of drawbacks. Because there is a heavy snowbird season, prices can be raised over the winter months, but the rest of the year you would have to find a great deal to break even on costs. You'll also have to research the HOA fees associated with most of the condos here. I was definitely surprised at how much those can be for a seemingly average building. Another thing to consider is future assessments that the HOA may impose for building updates and other amenities. Although not impossible, it takes a lot more dedication to be successful in condo ownership in this area. However, you also mentioned that you were interetested in single family homes as well, which come with the same pros but without outrageous monthly fees and other demanding drawbacks. Because you're a cash buyer, it would be fairly easy to pick up an off market single family home or duplex in the North Fort Myers or Lehigh areas. But, if you were interested in working with a real estate agent, I would be happy to help you there as well!

@Liz Fisher what I would suggest is picking a condo that you and your husband both like, and then working backwards from there. You can find simple mortgage calculators online, so start off by seeing if you will have a positive gross income after deducting the principle, interest, taxes, and insurance. If the unit still checks out then, research a bit more to see just how much the condo will cost to rent out including repairs, ongoing maintenance costs, association fees and assessments, and management. Finally, once everything checks out, post back here and give a detailed analysis of the unit you're interested in purchasing. Other members will be quick to point out any mistakes you may have made, but it's a foolproof way to ensure you will at least break even through this deal. Good luck and don't be afraid to keep asking questions!

@Stanley Cenatus sent you a PM

@Destin Naly The first thing I ever made a formal investment in, when I was in your exact situation, was tax lien certificates. These can be bought in a few states through online auctions, a very simple process. The first one that I ever bought was in Arizona, for $30, and holds 16% interest for up to 10 years unless I decide to forclose sooner. For me, this was a great way to really change my mindset and focus on investing as the big picture goal. Additionally, because you have debt still, it is a smarter investment due to the higher interest rate that you will be potentially earning in relation to the interest you pay on your current loans. However, there are some downsides to this type of investing. You do have to do a large amount of research on the property you're interested in bidding on to ensure its a good investment. You also have to understand that there are only two ways that you can get your money back: the owner of the property pays off their debt and you receive a check in the mail, or you foreclose on the property and sell it. Be sure that the money you're investing will not be needed in the next 2-10 years. As always, be sure that you have the money to make all minimum payments on your current debt and you should be set! I would also suggest not spending all of your money on one certificate, or all your money on tax lien certificates in general. Break it up a bit and bid on a few from several different price levels based on your potential return. Good luck and let me know if you have any questions!

Welcome to the area, let me know if I can help you out with anything!

@Oriana Campbell I'm sorry I can't be of more help in answering your question, but a great place to start, if you haven't already, is looking at the data provided on the Lee County property appraiser website leepa.org. Here you can find market and tax values, total taxes paid by year, and several other things that are very beneficial to you as a potential buyer. Because many of the things you have listed will vary depending on the location of the property, it's much easier to find a property or neighborhood that you are interested in investing in, and then doing further research to see if the property or location will fit in with your buying criteria. Hope this helps!

@Nick Brown That's exactly what I was going to suggest! If you find and properties in the area that you would like me to go take a look at, just let me know and we can work something out