* Inherited a 9 Unit Multi-Family in St Pete Beach, FLA* Help!

[Alysa Phalen]

Good day,

In 2009, I inherited a 9 unit multi-family apartment complex with a pool one and a half blocks away from Upham Beach in St Pete Beach, Fla. (Photo attached). The units are all one bedrooms, almost 600sq ft except there is one efficiency at 400sq ft.  They have been excellently maintained and I have been renting them on an annual basis since 2009, slowing increasing rents.  The problem is, my property is appraised for $1,000,000 but after property taxes, all the FLA insurances (flood, hurricane, wind, etc), upkeep, I am only netting $30,000-40,000 a year, which is not much.  

I live in Denver where I think the time has passed to buy an affordable multi-unit to do a 1031 exchange, so I am just kind of lost as to what to do.  I know I can convert the apartments to condos (I have the old paperwork to do so) to make more money if I sell but I have no investment knowledge as to where to invest in real estate.  I'm also not sure if real estate market in St Pete Beach is recovering so I have reached out to a few agents to get their opinions.

Are there any real estate consultants for hire (I did contact Jeff Brown -bawldguy.com) that can guide you through a sale and guide you where to purchase new real estate or do you have any other recommendations on what you would do if you were me?  I wish I had the time to learn more on my own but I don't.  

Thanks in advance for your advice!!!

Alysa

[Michael Gunn]

Here's what I would do If i was inherited that free and clear; I would refinance, pull all of the equality out to purchase another multi family doubling your income.  Now, don't use all cash to purchase the new multi-family. Get financing pay the 20-30% down with your refinance money, then put the rest of the refinance cash in your pocket for a rainy day or better yet buy another property with more lending and another 20-30% down (rinse and repeat). Just create more income by the leverage you can have available through the refinance and a good lender for new loans. I have a performing asset based lender if you'd like to use him to purchase more. 

Good Luck, 

Mike Gunn