All Forum Posts by: Brian Langstrom

I posted once before about ending a relationship and buying her out. 

So, we had a duplex in Naples end up with no tenants. Both flaked out and disappeared overnight. I contacted my ex and suggested we spend $50K each and upgrade the property. Of course she is broke and cannot get a loan. So, I offered to buy her out. No, she wants to re-rent as they are and ride it out longer. This is a good time I tell her to upgrade.

SO, she has me convinced to keep it cheap and rent it for another year. Thoughts?  I can remodel the whole building in two months. SO lost rent is about $5000 total. 

When I discussed her cashing out and moving on. She feels she should get fair market value for her half. Which when I take out the loan and recent expenses, leaves a modest amount I would pay. She seems to feel that all the appreciation should also be 1/2 hers. Well it could also drop tomorrow and I would be upside down.  More thoughts?   Remember this was purchased when we were a couple and this was a lifetime investment not a short term investment at her personal life wants it to be.

I just picked up a great pocket listing from a guy I have been following. Everything has been repaired but it is without furniture due to the hurricane. It will take $12-$15K to furnish it. My ex wants to buy it and me hold the note for a year. Trying to figure out if furnished or un-furnished is the better way to sell it. I have a good friend who has a similar situation but his partner wants out. I want to sell it to her as fast as I can, the prices will fall come November 8th. 

What value do I put on furniture? If I spend $12K, do I up the price $12K? It puts it over the comps of furnished similar. I don't want to overprice to a friend, but I see this as a good time to sell it. 

If you see STR as a nightly rental, this is not the market in Naples. The restrictions by City and County will make it miserable. But if you want to do weekly and maybe seasonal (When the old people come down Jan-Mar) it is a great market. My experience is getting a lot of damages from Nightly and weekly renters. So I signed up with a travelling nurses rental program and I am booked to April on all my units.

From a prior post, I am newly single. I was trying to partner with the ex and it was not going easy. So, I made the move and bought her out. Best move of my life. Not hard to do and with creative financing, my mortgages only went up 15%. 

Now that I control the equity, I am trying to decide do I sell them at this peak price time and hold till the next big drop? Or do I buy a couple more dup/tri properties? I have three nicer ones at a newer low price that might work. Tried the Airbnb last season and the property damages just make that impossible. 3am calls because they plugged the toilet and why is this wall blue, just not worth it. But I am signing on with the Visiting Nurses group and that looks promising.

Thoughts on what to pursue in Naples, FL. Kinda worried on STR even for season. Marco Island just made them impossible to deal with. Will Naples and Collier County follow that same route?

Hello Adam

I have two duplexes. Age around 15-20 years old but recently updated.  Compared to my yearly and seasonal properties, the wear and tear was 3x what long term is. I manage them but do have a company that screens the renters. I was using KW for a management company on the LTR but their policies and staff did not meet my expectations. AKA....risky tenants for the KW gain.

I am seeing softness in the STR market till season. Then it is strong as normal. So make your money Jan-Mar.

We all know the cost of buying properties is at an all time high. Historic prices. But many have continued to buy with hopes of continued growth. I am seeing a flattening on demand for Condos and Townhomes. Big discounts to the inflated prices are popping up. Single Family is holding steady for now. But interest rates will soon start bringing reality back.

Has anyone started looking to sell before the drop? A neighbor who owns 7 duplexes and 4 singles has put all of his portfolio on the market. He stands to make $100K per property with less than 2 years ownership. His thought is to sell now, hold the equity and profit for 10 months and then reinvest in something much grander and in nicer neighborhoods. I am tempted myself. If you can turn a 75% or more return in less than a year, sell it and then be prepared to re-invest when the market falls. Likely in 12 months. 

Thoughts?

Collier County is allowing STR's. https://www.colliercountyfl.gov/government/growth-management/divisions/operations-regulatory-management/short-term-vacation-rental-registration Must get a DBPR License if renting more than 3 times a year for less than 30 days each. https://www.myfloridalicense.com/intentions2.asp?chBoard=true&SID=&boardid=200&professionid=2007 A part of this is to set up a sales tax license and report tax.

This form is online once you have the State License. http://efaidnbmnnnibpcajpcglclefindmkaj/https://www.colliercountyfl.gov/home/showpublisheddocument/99044/637806173351970000

Submit this online at:  https://cvportal.colliercountyfl.gov/cityviewweb

I have not found specifics for City of Naples, City of Marco Island.

I will stick to LTR and collect my monthly income. 

With the stock market at record lows, crypto crashing lower every day, interest rates jumping 3/4 a point in a day. This market is going to change. I am curious how AirBNB owners see this working in the long term. Wouldn't a yearly or seasonal and summer lease for 3-6 months give stability to income? I have a couple of friends who jumped into the nightly and weekly markets this past winter season. They did well for a lot of work and damages. So now as they look to the Summer and next season in Naples, they are thinking longterm rentals might be smarter. Plus if this economy busts, they have a better chance of getting some income as opposed to none.  Thoughts?

When the cost to make it liveable is higher than the value of the property. Here in Naples, there are locations, Naples Manor, Bayshore old sections, Normandy Dr area, that the prices are at stupid levels. They are asking $450,000 FOR A 1900 SQFT DUPLEX, 2/1 OR 2/2  and the rent currently is $900 monthly. I spend $50,000 to make it liveable, it is still in a terrible location and I have to accept subsidized rent to even rent it. When the turn hits later this year, the thing will be worth $325,000 and I own it at $500,000. Rent maybe goes to $1200 or even $1500. You do the math, terrible return if I need to dump it. Your loan is based on $450,000...Brian doesn't make profit.

Also location is always key. If you see them dealing drugs across the street, you will not get quality tenants. Burned out cars, pitbulls running loose, no grass, just dirt in the yard....run don't walk.