Buying my first property (Florida)

[Marc Latreille]

So I am finally looking for my first buy. Looked a long time at wholesaling, raising money and all, looking for a 'perfect' solution.

But now that my other business is doing well, there are some deals I can now do by myself, without raising money or anything.

Being from Canada, where RE prices are just waaaay too high, and winter is pretty cold, I am looking for a place to spend some time in the winter months. Florida is a state I like, low taxes, business-friendly, not so expensive, warm.

I am looking at doing a BRRR on a SFR or duplex, anywhere in Florida. I have looked mainly at the Tampa and Orlando markets. I am looking for a B- area or so, block construction. As my play is a BRRR, I am looking for a fixer-upper, but not a major remodel. I am a contractor myself and will do this with my partner, an electrician, so would most likely pay (almost) only for materials.

We have roughly 30k to invest, figuring an owner-financed or other kind of low money deal (counting 10k down payment, 20k repairs) and would also have some spare change for closing and holding costs.

Ideal numbers would be around 45k purchase price, 20k repairs, refi for 65-70k, rent 1000$/month... is that realistic? 

Now, here are my questions

-Any areas/neighbourhoods to suggest/avoid

-What is realistic to pay in these places?

-What about my numbers?

-Is section8 recommended?

-Any market you feel is better than Florida (I am independent of location)

-What should be my first step?

-Should I Direct Mail, buy from a wholesaler, an agent, FSBO?

-What is a realistic timeline from Purchase to Refi?

-Or anything I am missing?

Thanks all in advance for your replies

[Tom Parris]

Hi @Marc Latreille,

To be blunt, what you're looking for doesn't exist. I just checked my MLS to see what's for sale under $50k, and all I got was mobile homes in the middle of farm land, 30 minutes from any activity, as well as vacant land in D neighborhoods. I haven't seen any wholesaling sell anything around that price point either.

I believe you will have to get a loan to leverage yourself into a higher purchase price. If it's an investor loan, count on having to put down 20% and have closing costs. Depending on your citizenship and job location will also have an impact on your downpayment requirements. 

I think you're looking at the middle ground of Tampa and Orlando in Lakeland. Those properties are going to be around $100k give or take for something that's going to get you close to what you want in a monthly rent. Or go south of Tampa and head to Bradenton/Palmetto. 

Shoot me a PM or an email if you have more questions,