two possible deals...

[Merideth McNamee]

I have two possible deals I am considering for my first investment. The first would be a flip. It is a duplex in a 55+ community. It is a 2/2, 1250 SF, and only requires cosmetic updates (flooring, paint, popcorn removal, cleaning etc.) I estimate the rehab at about $10,000. I hope to purchase it for $200,000 and sell for $250,000. I am an agent so RE fees will be low. I estimate my husband and I can do the majority of the work in about 4 weeks, but I am planning holding costs for three months. Properties in this price range are starting to move very quickly in Palm Beach County.

The other deal I am considering would be a buy and hold. The property is 2 small homes on a canal lot 3/1 & 1/1). Both are currently rented until later this year. There is no HOA so eventually I could turn them into STR due to busy fishing season in the area. However, properties are much farther away so much harder to manage on my own. Again, I'm the agent so I would manage properties and find tenants as needed. Properties are currently cash flowing about 800/month (according to current owner).

I welcome any and all thoughts and suggestions! Thanks

[Corby Goade]

Welcome!

Curious why you wouldn't consider a BRRRR on the duplex? Seems you'd be pretty close to cashing out in full.

On the second option- are you sure there are no municpal regulations for STRs? HOAs are only half the battle and many cities are cracking down on these. 

Every current owner cooks their books- properties are never performing like their proforma says they do. Definitely ignore those numbers and due your own due dilligence. 

My final bit of advice- STRs are high risk, high reward propositions. If this is your first investment, LTRs are much more predictable and passive, might be a better place to start. 

I have a few STRs and its very seasonal- some months I make a killing and some months I lose money. It's not like that everywhere, but you'll need to prepare for lack of predictability for sure. It can be really stressful for newer investors. 

Best of luck!