All Forum Posts by: Brian Knapp

Thomas S. thanks for the reply. Yes I have conducted an analysis and I am aware of local rents in my market. It sounds like you would like to see the breakdown so here it is... Typical rent for my unit is about $1600 Expenses are as follows: $674 P&I $119 Insurance $243 Taxes (including considering loss of homestead exemption) $125 HOA $100 Misc repairs $1261 Total I left out vacancy and additional buffer for capex. Though vacancy is a concern, I know of several realtors in my area with a list of clients waiting to rent in our neighborhood. Even factoring an additional $125 per month for vacancy I feel pretty comfortable. The original question I had was regarding some of the higher priced items so if I were to leave them alone for now I would add more of a buffer for capex, however if I take care of them now I would feel better with a smaller number. I realize spending upfront on the big ticket items I am wiping out a years worth of cash flow and equity buildup, but I plan to hold this property long term as I am confident in my area's continued appreciation regardless of any mid-term dips in values. Thomas, I am familiar with the term Dead Equity, however not sure how it would necessarily kill my cash flow in this instance. Can you elaborate? Thanks.

Hello, I will soon be moving and we will be transitioning our current primary residence into our first rental property. The property we will be transitioning is a 2/2.5 town home in Boynton Beach, FL. My first few questions revolve around some of the big ticket items needing to be repaired or replaced such as new AC unit, refrigerator & master bath repair/remodel. All of these items are currently working (for us) however they are all old and will likely need to be replaced within the next couple of years. The master bath had a small leak in the shower which was fixed, but not professionally and I would like to avoid any significant damage due to water coming from my upstairs bathroom. My thought is obviously get the bathroom up to speed, however I am back and forth with the AC and fridge. Should I wait until these die or just take care of them now during our transition so they are nice and new for our tenant? All 3 big ticket items will cost a total of around $7k. Are there any tax implications regarding depreciation I should consider when trying to determine my timing on these items? Thank you all in advance for your help!

Thank you all for your replies! I am looking forward to joining the conversations in the forums. Lance Lvovsky where are you in Ft. Lauderdale? I get down there a few times per month and would enjoy meeting up for a quick coffee or bite to eat sometime. Which accounting firm do you work for? Dave Visaya thanks for the tips. I have already been using the keyword alerts for sometime now. Great tool! Mike Snyder thank you for the perspective on renting the house you once called "home". You are absolutely right, I immediately saw a great income opportunity, however my wife and I are admittedly very attached to the home. We will be strictly vetting any potential tenets and yes living a few houses down the street will help! Brian G. Where are you located in Palm Beach County? Any particular area of focus for you? Thank you all!

Greetings! My name is Brian Knapp and I am a new member from Palm Beach County, Florida. I am a Florida native growing up in Broward County. My wife and I bought our first home in Boynton Beach back in 2011. I have poked around Bigger Pockets for several years but have not participated in any of the forums. We have been talking about buying some investment property for a couple of years now, however a now 8 month old child has been keeping us a bit preoccupied. My wife and I were recently presented with an opportunity to purchase our neighbors home and we will be making it our new primary residence. We will be keeping our current house as our first rental. I now have countless questions as we begin the process of transitioning our current home into our first rental property. I plan on posting my questions in the appropriate forum sections and would appreciate any feedback this great community has to offer! Also, anyone in the Boynton, Delray, Boca, etc. areas that would be open to a quick conversation or a cup of coffee, I would love to pick your brains about your experience in the area. Talk to you soon! Brian