All Forum Posts by: Bradley Sriro

Hello @Karla Castro... you are correct in that the Miami market is extremely competitive right now... and it will continue to be for the foreseeable future. This is not unique to South Florida either, the market as a whole is pretty much the same across the board. If you are looking for homes to flip on the MLS, you are going to continue to have a difficult time. With the current market environment, deals with profit margins that make sense for first time flippers are extremely difficult to find and even more difficult to get under contract.

As you have already found, there are not many REO properties for sale on the MLS. At the current moment, there are only 7 REO's under $400k in all of Miami Dade County... see link to listings: (Miami-Dade REO Listings).

I think the multi-family approach may offer you a lower barrier to entry. There are definitely more small multi-family properties (2-4 units) available than there are properties to flip. You can also try looking for single family homes with guest houses and/or in-laws quarters. Another option if you are paying cash is purchasing off-market properties from quality wholesalers. I may be able to help you with this depending on your circumstances.

Ultimately, your budget and financing strategy will determine what you will have access to. There are deals out there but they are not very plentiful and require a lot of effort to locate. I have had luck in the last few months finding deals that made sense for several investors that I met here on Bigger Pockets. One of them recently closed and 2 others are currently under contract. Hope this helps & best of luck!

@Jean Rychlik no, I am not a wholesaler. I do come across off-market properties every now and then and I do have relationships with active local wholesalers. 

@Lindsey Clark ok great! Sorry, I missed your other post LOL.

@Lindsey Clark were you able to get the issue resolved with the agent? 

@Hugo Jimenez this is definitely not something that comes up very regularly; however, it is specifically addressed by Florida State Statute 83.59(3d) as indicated below:

F.S.S - 83.59 Right of action for possession- 

(3) The landlord shall not recover possession of a dwelling unit except:

(d) When the last remaining tenant of a dwelling unit is deceased, personal property remains on the premises, rent is unpaid, at least 60 days have elapsed following the date of death, and the landlord has not been notified in writing of the existence of a probate estate or of the name and address of a personal representative. This paragraph does not apply to a dwelling unit used in connection with a federally administered or regulated housing program, including programs under s. 202, s. 221(d)(3) and (4), s. 236, or s. 8 of the National Housing Act, as amended.

Keep in mind that this law is completely civil in nature. Once you close on the property, I think that it would be fine to kindly ask the executor of the estate or the deceased's personal representative to make arrangements to have the unit cleaned out as soon as possible. They may be willing to remove her belongings prior to that. Once the unit is empty, as @Anna Laud mentioned, it would be a good idea to have the executor or personal rep sign a Release to Right of Possession. I would just try to ensure that no other relative decides to move into the unit while they are supposed to be cleaning it out. If this were to happen and then they decided that they were not going to leave, you could be stuck with having to go through an actual eviction worst case scenario. From what you have described though, it doesn't sound like this is likely... But stranger things have happened.  

You also might want to check out Florida Statute 83.67 for Prohibited Practices - Prohibited Practices

Best of luck with your newest investment property and the new learning experience! 

@Joey B. the main benefit to using FHA is that your are able to purchase a home with minimal down payment. The down side is to an FHA is that you have to pay an UFMIP (Up-Front Mortgage Insurance Premium) of 1.75% of the loan amount and an additional annual MIP that is dependent on how much you put down and the loan amount. If you plan on doing 20% down, I would just recommend going with a traditional conventional loan... This way you can avoid PMI altogether and that savings is money that will contribute to your bottom line.

I'm not quite sure that I understand the second part of your question. If you go FHA with 3.5% down, it will take many years before you ever get to an 80% LTV (Unless you pay significant additional principal every month/year)... During which you will be paying mortgage insurance premiums (money out of your pocket). If you refinance later remember that refinancing is not free. Closing costs to refinance run thousands of dollars. Also, there is no guarantee that you will have favorable interest rates in the future. We currently have all time low interest rates.

Say you do 3.5% down instead of 20%... Are you confident that you will be able to invest the remaining 16.5% in another investment vehicle that will generate better returns for you? It just depends on your personal situation and overall investment goals. 

Hey @Joey B. I would lean more toward the duplex if I were you. From an appreciation perspective, over the long-term I don't think one will necessarily outperform the other by a significant margin. With owning the condo, you will have some disadvantages that don't come along with owning a duplex. The condo will have monthly association fees that will significantly eat into your bottom line once you move and rent it out. You also have the possibility of getting hit with special assessments over the years... these assessments can often be in the thousands of dollars. On top of that, while you live in the unit, you will not generate any income to offset your monthly mortgage payment. 

If you opt for a duplex however, you have a few advantages over the condo purchase. 

1. You will be able to house hack and rent out the other unit which should cover a good portion of your monthly mortgage payment. Once you move out and rent out both sides, you should be able to cash flow. It will be very difficult to cash flow with the condo if you do a long-term lease and most condos do not allow short term leases.  

2. You have the option to put less money down and thereby leverage the banks money if you choose. 

3. You don't have any association fees and/or special assessments to worry about... not to mention the general headaches that sometimes come with associations in general. Keep in mind that most association fees are not capped and they can rise significantly over the years. 

As @Malgorzata Sadowska mentioned, trying to buy a condo with FHA is virtually impossible. If you do go the condo route, you would ideally want to find a building that is Fannie Mae approved. Here is a link to Fannie Mae approved condo projects:

Fannie Mae Approved Condo Projects

Hope this helps... Best of luck!

@Matthew Murray my pleasure!

Hey @Matthew Murray, Airbnb bookings and vacancy rates are heavily dependent on the market you are in. If you are in a strong Airbnb market, then you will likely have fairly consistent bookings. In my opinion, if you are renting by the room, there won't be much of a difference on whether you purchase a SFH or a Townhouse. It wouldn't hurt to try your luck with Airbnb first to see how things go and if the revenue it generates is consistent enough for you. Just make sure that if you go the short term rental route that it is allowed where you purchase. Some gated communities and/or associations do not allow short term rentals... this holds true for both single family and townhomes. If you don't get the results that you are looking for with Airbnb after trying it out, then you can shoot for tenants that you would place on a long term lease. In South Florida, you can rent rooms out on average for between $800-$1,000 per month.

I would suggest looking at Airbnb listings in your market for things that would be similar to what you are trying to do. Pay attention to the nightly rates and look at their booking calendar to see if they are booked solid, on and off, or not at all. I hope this helps a little... Best of luck!

@Leaha Widrowicz check with TD Bank... They will do HELOC's on investment properties in Broward. Below is a link for their HELOC. Hope this helps!

TD Bank Investment Property HELOC