All Forum Posts by: Alvin Taveras

@Shoshana Shulman you are officially banished from the forum. lol

These are all great questions. I'll start by saying that 300k for a build-to-rent is waaay too high. You definitely want to be below 230k. Yes, picking the right location is always key. The main benefits of new construction (besides less brain damage) is the amount saved over time as fewer repairs are needed and the higher rental rates. Appreciation has been great as the population continues to grow (over 10%). Also, because you can advertise your rental before the completion date, most are rented before they are even completed. 

For someone out of the state or country, I would definitely advise going this route. No need for rehabs and you get the best tenets. 

Best of luck!

@Andrew Craswell thanks for the shoutout. I greatly appreciate it. 

You were going down the right path and I'm happy that I was able to show you some options that you weren't yet aware of. We also improved the completion date from "unknown" to just a "few months". Now let's get some tenants in this first one and go buy the next one! lol

@Jason Foxx

I agree with @Stetson Miller. The supply is in part determined by zoning code. Each city will have its own maps showing where these types of properties are permitted. Here is an example for Cape Coral; https://capegis.maps.arcgis.co...

The second part is the demand. This is determined when the price per unit and rental rates start to hit a good balance. We are in that market now. Another thing to consider, these types of properties aren't often publicly advertised as being for sale. I am aware of two small apartment complexes (8 & 10 units) being sold and they are not listed anywhere. I just know the guy. You can expect to pay around 170K per unit and get 1250-1300/monthly. 

Let me know if I can provide any further assistance. 

Many HOA has its own restrictions on seasonal rentals. Look at their bylaws to see what is permitted. Many Community Association Managers have it publicly available on their website. If you cant find it, reach out to your agent. Any good agent would be able to figure this out pretty quickly.

As a guiding principle, you should make sure that you have a decent exact strategy or backup plan if you are planning to do seasonal rentals. 2020 was a weird year and nobody would have predicted some of the challenges that some landlords had to face. 

What HOA were you looking at?

@Veldin Miskic

Congrats and welcome to Cape Coral. Yes, there is a lot of opportunities here! I look forward to connecting with you!

There are several areas within and around Naples that are great for investors. Usually, the key is to buy an undervalued property, next to a hot neiborhood and make improvements to increase rental rates. You also want to have a solid understanding of the season inflow/outflow. 

From my experience working with first-time investors, I can tell you that many investors often underestimate their costs. Make sure to include turnover rate, management fees, and repairs. 

I wouldn't go by just Zillow for rental rates. Reach out to your property management company, check rentometer.com, and ask your agent to pull similar rentals on the MLS.

If you need additional help let me know. 

@Stetson Miller covered the most important aspect of this question. 

In general, you don't need to do a lot of things. It's more about understanding your risk and understand the cost of protecting against those risks. Your mortgage requires you to have standard homeowners insurance to cover their investments. If you pay cash this is not a requirement. Some areas require flood insurance while others don't. I think both are often a good idea because of their coverage vs cost. I would call your insurance agent and ask him to provide quotes for various coverages. These policies can often be adjusted to provide the right amount of coverage.

Some investors require that tenants pay for renters insurance. Others have a cash reserve to "Self-insure" the property in case something happens. Over time you'll find the system that works best. 

Congrats on your house hacking plans. Let me know if you have additional questions.

@Madigan Tumilowicz

We currently have a 2 month supply of inventory in Lee County. Normally we would be around 5-6. So we actually have a shortage of new construction. Looking at historical trends, we can expect to see large population growth in FL as a whole for many years to come. 

If you buy right, you can weather short-term price fluctuations. I always run my calculations as conservative as possible. Going new construction also helps keep repair costs low and provides the highest rental rates.

Hello @Andrew Craswell,

Great question. I can't comment too much publicly as my team does quite a bit of build-to-rent ourselves. You are definitely thinking about this the right way. Some may be inflated and you might have an opportunity to reduce some of your costs but you're not too far off. The reason to buy new construction is to keep more of your money and reduce brain damage. As Cape Coral continues to fill up we can anticipate some excellent appreciation as an added bonus.  

Please advise if I can provide any further assistance. - Thanks!

I have been using and recommending Josh Chapman from State Insurance for many years. I often tell my buyers to shop around but they almost always end up going with Josh. Let us know who was able to help out the most!

Josh Chapman

Website: www.StateInsuranceUSA.com