Purchasing my home in FL

[Karoly Holczhauser]

Hi all,

So I am quite new in real estate, but I am motivated and dear to dream BIG:)
I live in New Jersey right now, but I would like to move down to Florida in the near future (within 2-3 years).

I am wondering what could be the best strategy to start in order to acquire my next property. 
From the top of my head I have the following ideas:
- buy from market (expensive and I believe there should be a better way)
- auctions
- try to buy directly from the banks
- look for tax deed auctions? 

I would like to ask for your advise, what strategy would you recommend in order to purchase a real estate out of state. 

Thanks,

Karoly

[Gabriel Amedee]

Originally posted by @Karoly Holczhauser:

Dear all,

First of all thanks for your ideas and replies, I am very grateful.

I am considering Tampa area and/or Miami area too. Duplex and the vacation purchase is a great idea, I loved it. 

I am not a handyman myself, but I could afford some minor maintenance on the house after purchase. 

Do you recommend to negotiate on REO with banks? Is it comes with lower price?

Hey Karoly!

REO's and banks are not rampantly letting go of inventory like they were 5+ years ago. Like another poster mentioned, they typically have their number in mind since they pay for a professional to determine the market value of the property before putting it on the market. Very often I've seen better deals negotiated with distressed sellers on the market than foreclosures and short sales. These type of listings tend to bring more traffic since they attract the most entry level investor and even home buyers looking to save a buck.

As for the Miami market, you will need to incur some maintenance and repair costs if you plan to purchase a MFH under $350,000. Nonetheless there are still deals to be found if you know how to be creative and are adamantly surveying the market.

Hope this added some insight, feel free to reach out if you have any future questions. Happy investing!

[Mya Toohey]

Well, being from out of state if you purchase from auctions or tax deeds you really won't know what your buying until its too late.  Most don't allow inspections or time to back out of a deal if needed.  Off market properties are good if you start reaching out to wholesalers, but they want 10-15 day closes and cash offers along with high escrow and also no inspection periods.  It all depends on how you plan to purchase and if you plan to do work on the property.  One of the smartest things you could do is purchase a property and use it as a vacation rental.  You will make money during the year and have it to use when you want it.  Also, it becomes a tax deduction to visit your property to "check in on it".  Ask your accountant about it.  There are management companies that handle all of your affairs for very reasonable prices.  Then, when you are ready to move down here, you have a home that has made you some money and becomes your residence.  

[Anthony Yannucci]

You could also look into purchasing a duplex, live in one side and rent out the other side so you at least break even with your mortgage, if not a little more.  Then, you can get the lay of the land here in FL to see exactly what area in FL you want to live in, then you could find homes that suit your investment style, and then still rent out your duplex bringing in some positive cash flow.

[Jermaine Chad Ingram]

@Karoly Holczhauser where are you planning to move too?

[Karoly Holczhauser]

Dear all,

First of all thanks for your ideas and replies, I am very grateful.

I am considering Tampa area and/or Miami area too. Duplex and the vacation purchase is a great idea, I loved it. 

I am not a handyman myself, but I could afford some minor maintenance on the house after purchase. 

Do you recommend to negotiate on REO with banks? Is it comes with lower price?

[Tim Crosby]

Always negotiate whatever you can. When it comes to banks, they've already got a number in mind as to what they need before they can sell a property. They're main goal is to cover or mitigate the losses from the foreclosure, but of course, they're never going to tell you what that minimum offer number is, you just have to get that through trail and error. That said, if there are other people bidding on that same property, you know they're going to want more. Also, I'm not sure exactly how true this is, but I've been told that most banks refuse to pay commissions or closing costs like other sellers would. They want the buyer to cover any extra expenses. Just something to think about.

[Gabriel Amedee]

Originally posted by @Karoly Holczhauser:

Dear all,

First of all thanks for your ideas and replies, I am very grateful.

I am considering Tampa area and/or Miami area too. Duplex and the vacation purchase is a great idea, I loved it. 

I am not a handyman myself, but I could afford some minor maintenance on the house after purchase. 

Do you recommend to negotiate on REO with banks? Is it comes with lower price?

Hey Karoly!

REO's and banks are not rampantly letting go of inventory like they were 5+ years ago. Like another poster mentioned, they typically have their number in mind since they pay for a professional to determine the market value of the property before putting it on the market. Very often I've seen better deals negotiated with distressed sellers on the market than foreclosures and short sales. These type of listings tend to bring more traffic since they attract the most entry level investor and even home buyers looking to save a buck.

As for the Miami market, you will need to incur some maintenance and repair costs if you plan to purchase a MFH under $350,000. Nonetheless there are still deals to be found if you know how to be creative and are adamantly surveying the market.

Hope this added some insight, feel free to reach out if you have any future questions. Happy investing!