All Forum Posts by: Tchaka Owen

@Joshua Wilson - you're in Palm Bay, keep your eyes at home and take advantage of your area. It is one of the best bangs for the buck. Also, equity building at the expense of cashflow should not be an objective of yours if you're new. The cashflow often protects you in down markets when equity is given back. Once you have a number of homes under your belt, then venture to Indialantic for a duplex by the beach.

@John Doss - I can't say I like either deal.

My biggest problem with #1 is that you'd put in $50k of updating for an ARV increase of $75k. That's not enough (for me); I like to double input, so $50k in means an ARV of $310k when finished.

Deal #2 looks like a nice home and it's great that you have considerably less work, however the rents don't seem to justify the price. You haven't added MI (to either) and your Cap Rate is already under 5%. 

Questions:

1. How much do home prices drop if you venture away from UNCG?
2. If you're planning on house-hacking, what's the reason you have management fees? Wouldn't you manage?

Absolutely! And thanks for chiming in - your input and experience is valuable (to me as well).  

I won't speak for Fountain Square, what I will say is that in Indy, it is unlikely that I would pay $110k for a duplex that's generating $950/month gross. Emphasis on "unlikely". 

There's no one way to invest or single rule, but it's safe to say that a $110k duplex should gross in the $1200-1400 range (and easily could be higher). Again, that's Indy. Each city is different.

Hi @Holly Hudson - I am a practicing real estate agent and am in Brevard. As a heads-up, the county does have multi-units, however they're not as prevalent as in the past. Many have been snatched up. There are SFHs though. Note that in some parts of the county, homes are snatched up within 48 hours of list. Are you willing to put a little elbow grease into a place or turnkey only?

I know several for FL, however the deal has to make sense. They don't throw money out like they did in the mid-2000s.

@Chris Burke - I don't know TX, however most contracts have provisions for 'Acts of God' and this storm would certainly fall within. Check with your settlement company. Good luck!

Please be sure to inform any authorities (definitely Sec 8) about her abandonment of a pet. People like her should not be allowed to own animals.

@Mordechai Perlman - yes.

@Jamie Derasmo - It appears that your friend does not understand how condos work. Yes, some management companies are better than other, however the law is the law. Generally speaking, the owner is responsible for "walls-in"....so the roof is the responsibility of the association. If the mgmt company doesn't do their part, you go to the board (ie, assoc) and things will get moving. If not, you make them aware that you will file a lawsuit.....at which point the roof will be repaired, they'll be liable for your attorney fees and there will be issues with buying when they're forced to acknowledge the association is involved in litigation. 

As far as people below are concerned, friend should let them know there aren't any leaks from within her walls. If the assoc wants to look between walls, they're welcome to do so.

That said, if the numbers work for you, go ahead and purchase. Some investors avoid condos because they don't have full control, however the most experienced investors here in FL (where we have tons of condos) do not eliminate them all. Not every condo deal is bad. Good luck!