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Updated over 5 years ago on . Most recent reply

User Stats

149
Posts
58
Votes
Suzie Remilien
  • Rental Property Investor
  • Seattle, WA
58
Votes |
149
Posts

My First Foray in Out-of-State Investing

Suzie Remilien
  • Rental Property Investor
  • Seattle, WA
Posted

About 7 months ago I posted my intention to invest out of state on BiggerPockets, and today I'm pleased to announce that I have purchased two properties in Florida in September 2017 and November 2017. I found both properties on the MLS, and they will be managed by a property manager.

Overall Goal:

As a buy and hold residential real estate investor, my goal is to acquire 5 rental properties within 10 years (2014-2024). Then I will turn my attention to buying performing mortgage notes. I already own a rental (a condo) in Washington state, so these two Florida rentals bring me more than halfway to meeting my goal of buying 5 rentals. The reason that I gave myself 10 years to achieve my goal is because I have a day job that limits the number of hours that I can dedicate to real estate; because I have a low -to-moderate tolerance for debt and planned to save for most of my down payments; and because I’m naturally cautious and wanted to give myself the time to weather any setbacks that should arise.

How I Did It:

Among other things, I ___.

  • posted my intention on BP.
  • listened to BP podcasts and followed the local forums.
  • asked for colleague requests and I followed up on the advice of these colleagues.
  • used savings and HELOCs for down payments, closing costs and repairs.
  • interviewed Florida realtors, property managers and contractors by phone.
  • visited the two rental markets, attended REIA meetings and met with property managers and contractors.

Lessons Learned:

  • When buying an older house in Florida, get wind mitigation and 4-point inspections. They are required by many local insurers.
  • Don’t be afraid to invest where it makes sense. A $40,000-$50,000 down payment can buy you two houses in some parts of Florida. The opportunity to cash flow was also a big incentive for me. That kind of money might get you one house in Seattle. Emphasis on might! My money goes a lot further in Jacksonville.
  • Don’t be too afraid to take on a little debt when building your portfolio. I had huge reservations about using HELOCs for down payments, and I still do. However, I would not have been able to purchase two properties in the same year without those HELOCs.

Thank you BP and special thanks to Marco Santarelli and @Maxwell Lee whose contributions pointed me in the right direction. I am now confident that I can buy the two remaining properties before the 10-year mark!

Property 1: Fort Lauderdale, FL - closing September 2017

2/2 condo, 1,002 square feet, short sale, no mortgage, paid all expenses with HELOC

Purchase price: $48,000

Repairs and closing costs: $15,000

Total monthly expenses including HOA: $700

Monthly rent: $875

Before Picture

After Picture

Property 2: Jacksonville, FL - closing November 2017

3/1.5 house, 910 square feet, REO

Purchase price: $75,000

Downpayment and closing costs: $21,000

Estimated repairs: $5,000

Mortgage: $60,000 over 30 years @ 5.25 fixed interest

Total monthly expenses: $732

Estimated monthly rent: $850

Most Popular Reply

User Stats

4
Posts
2
Votes
Ron Jon
2
Votes |
4
Posts
Replied

How do you make money?  It seems like after all the expenses you are pulling in a couple hundred bucks!?  Is it even worth it?  How do you account for annual condo special assessment that could be up to $5,000 that these condo make you pay.  If you don't they will take your condo away from you..  How do you account for the taxes? U didn't put any of these in your expense? Why is that.   

I just like to keep it real.. EveryOne is praising this post but not asking the tough questions.   I just don't think going through all this to only make a couple hundred bucks/month is the ok.  

I just don't like it when people post their positives and not the negative to make it look like real estate is a pretty game.  Its mostly negative and more people are losing money than gaining. 

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