All Forum Posts by: Nat C.

@Jesse Allen

There's a ton of MFR in Florida. However when you say Florida, are you focusing on one or a couple of cities? Florida is a huge state and almost like it's own country in my opinion. There's definitely some great places to invest. Unfortunately I think South Florida has gone up so much that I don't see much opportunity for a good cap rate or further appreciate there.

@Peter Walther

It needs to be resolved either way; even more so if I were to sell it.

Wouldn’t rejoining the condominium resolve the title problem?

@Mark Tanner

I hope you don’t mind me chiming in but I’d highly recommend you read “The Book on Tax Strategies for the Savvy Real Estate Investor: Powerful techniques anyone can use to deduct more, invest smarter, and pay far less to the IRS.”

It will clarify many issues for you. I got a lot from this book.

@Yamundow Camara

Like others have mentioned, leverage as much as you can!

I wish I could. Using your cash to buy 3 properties instead of one, will get you a lot further in your investing journey.

The return on your cash is far greater through this method. Your tenants will pay off your mortgage for you and in X years when it’s paid off and you own 3 properties instead of one, you can refinance those properties and pull money out to buy more properties.

The other big benefit of leveraging is asset protection. If you only have a small amount of equity in a property, it’s far less desirable to a potential creditor after a lawsuit.

@Jourdain Francine

Honestly, it sounds reasonable to me, although I’m curious to know what his hourly rate was.

I was ready to criticise the contractor when I read your headline but then upon finding out he charged only 2% of his tool value, it seems acceptable enough. I was expecting to read 20% etc.

I have started a contracting company recently and the overhead costs are enormous. The multiples insurances are a killer, plus the other expenses for tools and work attire really adds up.

Generally these costs are factored into the hourly rate, hence why I’m curious to know what his hourly charge actually was.

My only criticism I have about your contractor is the non disclosure before coming. I always like to inform people of charges in advance, so there’s no surprises. He should have said before coming that he charges X amount per hour, plus Y amount for mileage and tool usage.

@Peter Walther

I think I’ve developed an emotional attachment to it after all of these years.

The ARV is well over 550k, in a B grade area with excellent rental return. Also, walking distance to the university. It would be a great one to hold.

Now that this whole situation has been fleshed out by the amazing members on BiggerPockets, it's time to move forward with a plan of action.

It has been ascertained that the building cannot exist on its own legal parcel and obtaining a variance from the City will be a futile exercise. The City currently considers the building part of the Condominium. The County attorney informed me that they have not officially recorded the separation and he spent an hour on the phone trying to convince me the only sensible solution was for the building to remain part of the condominium.

The original purchase contract stated-

"Buyer shall have no obligation for Association fees, from and after closing"

So I would like to think I won't be levied with any fees or dues but I am not so confident about this because I am sure they will try to find a way to make me pay something. 

If rejoining the condominium is to occur, I would like to either find a partner to take 50% equity in exchange for completing the remodel or I can sell it. 

Any thoughts or advice on the above would be appreciated. 

@Peter Walther

Peter, if you get time, I think it would be highly valuable for the community if you post details of what you explained to me on the phone. There's now a number of people following this and @Justin Abdilla said he may do a legal studies video on it. 

Alin, your thinking is unique and funny! What you are describing with properties falling into disrepair and blighting the community is not uncommon. What I have seen happen, in this case, is the City will issue violations to the owner until the dollar amount in liens is higher than the property value itself. Then they will foreclose on the property and demolish it. 

I forgot to add that I did a background check on the seller and he looks like a very wealthy property developer who owns a lot of large buildings