All Forum Posts by: Alvin Taveras

Hello @Jordan Bean

Yes, I will be in attendance. The event will include a lot of high-level discussions with several major lenders and developers. It should be a great event.

@Kelly Orth

There are a lot of ways to be successful with STR in SWFL. If you are looking for the property to be your retirement home, I would focus on what's most important to you. Chances are you'll have the same taste that your tenants have. Bonita Springs, Fort Myers, Cape Coral & Port Charlotte are all great markets. Wide mix of new and existing inventory.

-Cheers!

@Raymond J. Rodrigues Thanks for the recommendation. It you have any financing questions, Ray is your guy.

@Luis Pineda, I'm originally from NJ too. Florida is waaay better. I can walk you through the best regions. PM me to set up a time. Cheers!

@Jennifer Skeen, Thanks for the recommendation! I'm surprised I'm just seeing this now. I guess with your second property now closed, it's not bad timing!

@Preston H. I would love to set up a time to chat. I just Pm'ed you!

@Casey Briscoe First, congrats on being in a great position.

Selling is easy but you forgo all of the learning and wealth-building. Personally, I would choose to develop in phases (maybe 3). This reduces your risk as you are not trying to develop everything at once. Once phase one is complete and stabilized, you can refinance and use the new cash to start developing phase 2. 

Additionally, once you own the land and have a plan, you can begin to raise funds.  You can pay off investors with the refi. 

Congrats again!

Hello @Pratap Singh

Thanks for sharing your question. We have inventory throughout Southwest Florida including Cape Coral. The area is great and rental rates keep going up. You should be getting more than $100 per month in cashflow. I don't have all the details, but it seems like you could beat that. Feel free to message me to discuss offline. 

Please advise If I can provide additional assistance.

@Qiang Chen Great question!

Both Florida and Texas have a steadily growing population and will have to continue to build new construction to meet demand. I personally prefer Florida just outside of metros. Areas where land is still cheap and growth is obvious. The term we use is "path of prosperity". In Florida, these areas tend to be coastal cities that feel special. We only recommend properties that do not require flood insurance. Unless you are on the water, your tenant won't pay more because you have higher insurance costs.

We have current inventory in Port Charlotte, Cape Coral, Jacksonville, Punta Gorda,  Lehigh Acers and even more on the way. Would love to send you our full list of inventory and connect soon! Thanks,

Hello @Qiang Chen,

Yes, Build 2 Rent in Florida is an excellent model, especially for an out-of-state investor. Because there is high demand for resale properties, many of my investors have immediate equity at closing. Furthermore, with a new construction, you can anticipate having lower operating/repair costs and higher rents. I am sending you our full list of Build 2 Rent Inventory now. We currently have properties in Port Charlotte, Punta Gorda, Lehigh Acers, Cape Coral & Jacksonville, FL.

Please advise if I can provide further assistance!

@Andy Kornacki Great work. I wish my parents own a condo on the beach. lol

@Stetson Miller Thanks for the research. I was going to look it up as well. Not too many opportunities like this. ; )

Hello @Lauren Garritano, Congrats on all your success so far. You guys are on an awesome journey. 

(1) To get more cash I'd recommend doing a cashout refinancing. You would keep the property, lock in a lower interest rate and get a large sum of cash (tax-free btw). The cash could be used to increase your emergency fund and fund this project. I don't recommend selling anything unless it's causing you problums or doesn't cashflow.

(2) Construction loans for investment properties are becoming more difficult to get. I'd recommend reaching out to local lenders and making sure you get both a preapproval and the loan guidelines before looking to buy land. 100k for a quadplex lot is incredibly cheap, especially in a long-term growth market. I'd work with the builder/agent to confirm the cost of land in an area that would make sense to build in. As you pointed out the downside of going this route is that you are financing the construction. This means that you have the construction loans, end loan, holding cost, paying for all the connection fees, taxes, have to spend the time to figure everything out (can feel like a 2nd job), and close 14 months from now, even if your property doesn't appraise or if we experience a downturn. 

(3) Because of the downsides mentioned above, I generally recommend purchasing new construction investing properties from a spec builder. In most cases, the spec builder purchased the lot several years ago and is financing the construction themselves. Generally, all you have to do is review their list of properties currently under development, put 10% in escrow and close on the property once it's completed the same way you would a resale property. We have over 50 properties currently under development in Florida, that we sell directly to investors. At the moment, we don't have any inventory in NC. But there are others that do.

I hope this helps. Let me know if I can provide any additional assistance!