Help and Feedback Needed! First Time in Florida!

[Rhonda Greenhaw]

Hello everyone who has more experience than me (which is basically everyone),

I have a LOT questions about the path that we are starting down in REI and want ANY and ALL feedback on it, PLEASE!!! We are going to convert our home we are currently living in into a STR. We are right between Miami & Fort Lauderdale, 5 miles from the beach, 2 miles from Hard Rock Stadium where the Dolphins play and where the new F1 racing is, near casinos, and 15 mins. from the airport and cruise terminals. Our home is also on one of the few lakes in the area on which you can have a motorboat.

We have about 175,000 in equity that we can pull out with a HELOC. Our plan is to use the HELOC to convert our carport/pantry/laundry to a new master suite, do some landscaping, and then add a patio roof and a hot tub. We figure this will translate into a big increase in the value of our home turning it from a 2 bed/1 bath to a 3 bed/2 bath.

We then want to Refi and pull the money back out and purchase my sister-in-laws house - she just lost her husband and is older and cannot take care of it - we will move in with her and take care of her and then when she is ready help her get a condo. We will use the money from fixing up our house to fix up her house - it is in a great area but has many years of neglect. We are hoping to turn that into either a LTR or a business rental for traveling nurses or the like. Then BRRRR that and get a fourplex with an FHA loan.

Please give me any criticism or thoughts on this! This is my entire family's future and I am so scared of messing up!

[Nathan Grabau]

It sounds like you are on the right track to me! While I am not familiar with how much more money you will get for your current home as a STR for the extra bed and bath, skipping that reno might be worth considering to help give yourself more margin of error on future deals. You can also always do a light reno today, and then do a more significant one further down the road. Having more cash 6 months from now could give you some more flexibility than and extra bedroom and bathroom!

Either way it sounds like your plan is well thought out and it is incredible that you are moving your life around to help your family!