All Forum Posts by: Adam Schooley

@Michelle Gomez the rental market in Ft Lauderdale is very strong.  It sounds like the best strategy for you with no savings at this time would be to do what we refer to as House Hacking. You can buy a MF property up to 4 units as your primary residence and only have to come up with 3-5% down.  I've use daily this same technique for the last few years to buy rental properties in the Ft Lauderdale area. I'm an investor friendly agent so feel free to contact me with any questions.  I'd be glad to help you out.  Hope this helps. 

@Jason Schimer I agree with what @Robin Maza has said. There are deals everywhere you just have to keep looking. If the only place you are looking is on the MLS you are probably not going to find a deal. You have to think outside the box. Find neighborhoods that you like that have MF's in them. Find the owners and call them. Your best friend will be a for rent sign in the front yard. Call it! Ask the owner if he would like to sell the property. If he doesn't. Does he have another property that he wants to sell? If you call and it's a PM company ask them if the owner would like to sell or if they know any other owners who would like to sell? The PM could make a commission from the sale so they would be willing to help you in most cases. It's a numbers game. Get used to hearing NO. If you are a good talker you can still get good info from the owners that will help you along the way. You might even find a mentor out of it. It might take you a year of repeating this process to find one good deal but its worth it. It only cost you some time on the phone. This is how I find deals. I just talk to people. As far as your first couple properties go, they should be local. There is something to be said about managing your own properties for awhile. The experience will help you when you're ready to find a PM to take over your properties so you can sit on the beach and drink pina coladas. Hope this helps.

@Wayne Brooks my thoughts exactly.

@Gregory Lamarre it's a great plan.  I just did the same exact thing in 2015 with a duplex in Fort Lauderdale.  The MF market is over inflated for sure.  You have to make sure you can float the monthly expenses on your own just incase you have vacancies which will happen.  If you have looked out your window and seen all the new construction on every corner. You will see all the new rental units coming to market which should be taken in consideration when your purchasing.  Feel free to contact me for more info.

@Jon Peragine There are a lot of factors to consider.  Generally if you buy MF in lower income areas you will get better cashflow but less appreciation and will have to deal with section 8 type tenants.  If you buy in higher income areas like near the beach you will have less cash flow but the property will appreciate more over the years.  Fort Lauderdale has both of the areas I just mentioned.  Price range is a big factor also.  I own a duplex in east Fort Lauderdale that I got off market that has done well on both ends of the spectrum. Hope that helps. 

@JM I. Your interest rate is going to be right around 3.5% with that credit score.  I am a realtor and I am an investor so I would be happy to help you find a good cash flowing property in Broward.  I completely agree with not living in Miami-Dade county.  The traffic is horrible to say the least.  Working in Miami-Dade and living there are two different things. 

@Gabriel Amedee has very good points. Time is money.  I believe you're going for the house hacking strategy.  I did the same thing in Fort Lauderdale with a duplex and it worked out great.  I saved a ton of money while I was living there.  I bought a another property this year and have both sides of the duplex rented out and the property cash flows every month.  The 1% rule here in the tri-county area is almost non existent unless you buy a duplex in a neighborhood that you probably don't want to live in. The property that you are talking about would cash flow a little with the numbers you have given if you decide to move so thats a good thing.  Your $2,700 seems a little high to me on a loan amount of $375k. What interest rate are you using?  If you are buying as a primary residence and have good credit the rate should be around 3.5% right now. Don't forget that you can homestead only part of the property and not 100%.  Also don't forget to check for separate power and water meters.  Many of the older duplexes share utilities and you need to factor those monthly costs also.     

@Francesco Barbati welcome to BP! You are on the right track. It's great that your wife is on board with your plan also. When I first started it helped to go to local REIA's where I met like minded people and made local contacts. Look them up there are several here in the tri-county area. Good luck.

@JM I. How much would the unit that you will live in rent for if you were to move? 

@Lisa Malservisi Cornillot   It's pretty complicated!   Lol.  I just talk to people.  Last night I went trick or treating with my kids and there happens to be two duplexes right at the end of my block with the same owner.  I know cause the first thing I did when I moved is look them up.  Well the mailing address in public record is incorrect.  So while my kids were collecting tons of candy I started a conversation with one of the tenanst and come to find out he is married to the owners niece.  Long story short I will be contacting the owner in the next week or so to see if he is interested in selling.  The duplex that I just bought in Fort Lauderdale kind of fell in my lap. I helped the owner buy it in 2008.  After deciding that he didn't want to be a landlord anymore and he wanted to buy a house he called me.  I worked out a deal and it's now mine and cash flows every month.