I started buying my first two deals in Tampa, and was fortunate to do so during this current hot market, so in that sense I have been lucky to start this way, but also in need of some reality about other types of markets, and how to respond as markets change. Any advice about changing markets, how to prepare, how to protect, how to respond, would be appreciated.
@Jon S. I think the question needs to be answered different,y depending what you are doing in real estate. For me I'm a buy and hold, therefore if I buy right I shouldn't need to worry about the ups and downs of the real estate market. I'm more focused if the neighborhoods my properties are in are changing, if they are going from B to C I will most likely have more problem tenants and may not be able to charge as much for rent.
I started buying my first two deals in Tampa, and was fortunate to do so during this current hot market, so in that sense I have been lucky to start this way, but also in need of some reality about other types of markets, and how to respond as markets change. Any advice about changing markets, how to prepare, how to protect, how to respond, would be appreciated.
Hello and welcome! If you do not have any problem regarding a hot market I would sell anything I had and do buy and sell stuff and get into owner financing. There will always be a lot of renters that don't get a conventional loan but would qualify for owner financing. I have lately heard and read that things are going well in Florida. There is no way of finding out when things will go bad. Just be aware of what is going on. Owners generally take more care than renters and will give a lot less to worry about. Home owners will pay higher deposits most of the time. I am 59 years old and I found BP about 4 months ago and I am still learning. I graduated from college with a business degree that emphasized in real estate and I got a broker license in 1980. Regardless of that degree I felt more comfortable in the construction business. I have been in the construction business since I was 17. If you think I could help you with anything do not hesitate to contact me at any time. Good luck!
Befriend an investor friendly Realtor... Not because I am one, but because they have access to all sorts of market trending data, and can also make you aware of deals in your local market.
There are a number of indicators that they will track that can immediately show changes.
Good luck...
@Jon S.The fact that you area here asking this question suggests that you are on the right track instead of throwing caution to the wind and over-leveraging yourself. Consider the different exit strategies for your current holdings, take your time to grow and keep asking and learning.
Best wishes!
@Jon S. I think the question needs to be answered different,y depending what you are doing in real estate. For me I'm a buy and hold, therefore if I buy right I shouldn't need to worry about the ups and downs of the real estate market. I'm more focused if the neighborhoods my properties are in are changing, if they are going from B to C I will most likely have more problem tenants and may not be able to charge as much for rent.
I agree with Adrian, a buy and hold strategy is similar to buying stock. If you are in it for the long haul, you don't need to worry so much about short term market fluctuations.
The Tampa market seems to be very strong, and there a few areas that should definitely continue to remain strong for the next 5-10 years. There is a lot of money being spent moving people (of all demographics) into the urban core.
I started buying my first two deals in Tampa, and was fortunate to do so during this current hot market, so in that sense I have been lucky to start this way, but also in need of some reality about other types of markets, and how to respond as markets change. Any advice about changing markets, how to prepare, how to protect, how to respond, would be appreciated.
Hello and welcome! If you do not have any problem regarding a hot market I would sell anything I had and do buy and sell stuff and get into owner financing. There will always be a lot of renters that don't get a conventional loan but would qualify for owner financing. I have lately heard and read that things are going well in Florida. There is no way of finding out when things will go bad. Just be aware of what is going on. Owners generally take more care than renters and will give a lot less to worry about. Home owners will pay higher deposits most of the time. I am 59 years old and I found BP about 4 months ago and I am still learning. I graduated from college with a business degree that emphasized in real estate and I got a broker license in 1980. Regardless of that degree I felt more comfortable in the construction business. I have been in the construction business since I was 17. If you think I could help you with anything do not hesitate to contact me at any time. Good luck!
Thank you Michael, that sounds like something I would consider, you've made some good points. I'm sure it would be incredibly helpful to be from the construction industry, in order to do your renovation estimate and manage or do the projects yourself.
The Tampa market seems to be very strong, and there a few areas that should definitely continue to remain strong for the next 5-10 years. There is a lot of money being spent moving people (of all demographics) into the urban core.
That is what I am hoping! And I am optimistic about the Tampa market. I just don't want to be overly optimistic and then find myself over leveraged down the road.
@Jon S. I think the question needs to be answered different,y depending what you are doing in real estate. For me I'm a buy and hold, therefore if I buy right I shouldn't need to worry about the ups and downs of the real estate market. I'm more focused if the neighborhoods my properties are in are changing, if they are going from B to C I will most likely have more problem tenants and may not be able to charge as much for rent.
Adrian, what would you do in the situation where your neighborhood is shifting from B to C, would you still hold the property, or would you sell? So far, I think I am in neighborhoods that are improving, but that might not always be the case. What are the early warning signs for a negative shift? Thanks
I am doing BRRR; My first property is done and has tenants. I'm in the middle of renovating my 2nd property now. My strategies for sustaining low periods in the market is to secure the lowest finance rates, even if it means refinancing more than once, in order to get the monthly payment as low as possible. I would like, however, to get cash out on the times when the LTV is higher than my total costs. I would use the surplus cash from the refinance to pay down other debt or to fund another deal, as capital at a low interest rate with 30 year terms is hard to come by in any other way, and sometimes the opposite happens, my LTV is lower than my costs. However, borrowing more than my costs would increase the leverage on the property, and the monthly payment. Is that inadvisable?
@Jon S. My oldest rental property fits into the neighborhood going slightly downhill. It was a nice middle class neighborhood before the recession but now I'd say it's a lower middle class neighborhood. I don't think it'll ever fully recover, BUT my rent has gone up and I'm not dealing with hood type people. So I'm not looking to sell. Hope that helps you understand how I am handling this with my long term buy and hold.
I started buying my first two deals in Tampa, and was fortunate to do so during this current hot market, so in that sense I have been lucky to start this way, but also in need of some reality about other types of markets, and how to respond as markets change. Any advice about changing markets, how to prepare, how to protect, how to respond, would be appreciated.
Hello and welcome! If you do not have any problem regarding a hot market I would sell anything I had and do buy and sell stuff and get into owner financing. There will always be a lot of renters that don't get a conventional loan but would qualify for owner financing. I have lately heard and read that things are going well in Florida. There is no way of finding out when things will go bad. Just be aware of what is going on. Owners generally take more care than renters and will give a lot less to worry about. Home owners will pay higher deposits most of the time. I am 59 years old and I found BP about 4 months ago and I am still learning. I graduated from college with a business degree that emphasized in real estate and I got a broker license in 1980. Regardless of that degree I felt more comfortable in the construction business. I have been in the construction business since I was 17. If you think I could help you with anything do not hesitate to contact me at any time. Good luck!
Thank you Michael, that sounds like something I would consider, you've made some good points. I'm sure it would be incredibly helpful to be from the construction industry, in order to do your renovation estimate and manage or do the projects yourself.
Hello! One of the best things to do is to have an exit strategy when you buy. You can not tell what the future will bring. I have recently read some good things about Florida. Just try to do Fix and Flip to preserve your income. Just know the market well and what it will support. The location is real important now so do what you can to make that work for you. Owner financing is also typically the way to go. Even if you have to give something up it is better than getting nothing. That can really help you if you don't do not have good credit. If money is available to you try some owner financing as the way to go. Good luck!
I personally am not familiar with the Market in Tampa.
However, based on my experience with the South Florida Market I've found that if a property's story sounds too good for the price, it usually is. I find that in any market I just takes awareness of what is realistic and what is a money or time pit.
Getting your hands on 2 successful deals as a beginner is really a great accomplishment! Just keep up the good work!
I personally am not familiar with the Market in Tampa.
However, based on my experience with the South Florida Market I've found that if a property's story sounds too good for the price, it usually is. I find that in any market I just takes awareness of what is realistic and what is a money or time pit.
Getting your hands on 2 successful deals as a beginner is really a great accomplishment! Just keep up the good work!
Thank you Cristina! I'm feeling really good about the future of real estate investing in my life. This is quickly becoming a passion as well as an investment strategy.