All Forum Posts by: Jeff T.

@Gene D.  To answer your question, I have property 30-45 minutes outside of Orlando.

I come at this from the perspective of having seen what properties do in quality locations in areas with high paying jobs and no room for additional building.  Look at what properties were going for in your same complex 20 years ago.

@Allan Glass I think has a similar perspective.  I think that I would just examine what you could get in Florida before you make a decision.  It's not as easy to find deals as it was just 6-8 months ago.  Florida has relatively high taxes and insurance rates and relatively low rents, although in my area they have been going up.  I rode the appreciation wave up in 2005 and I rode it down, too.  I think there will be more appreciation, but I'm not buying now.  I plan to sell some when things get ridiculous and pay off my Los Angeles stuff, which I plan to hold forever.

I'm not saying you can't find good deals in Florida and make money on them, but I would think hard (which it looks like you are doing) and have good justification for selling something in Brooklyn that is making money.

Also read David Schumacher's "Buy and Hold Forever" book (or any of the 4 versions of his Buy and Hold book, I have them all, including a signed copy ;) It was also recommended in Jonna Webers BP Podcast

Good luck.

Jeff

@Gene D., I agree with @Neal Collinsin that it depends on what your end game is.  I own property in Los Angeles and Florida.  If you want to hold something long term, then places with jobs and nowhere to build will tend to be better.

There may be places like that in Florida, too, but Brooklyn is something that you know will be worth more in 20 years.

Places in Florida have a good future also, but depending on where you are it'll go up and down.

So I would look at what you can get in Florida, taking into account all costs first.  Then determine what your goals are, and see what better fits your goals.

Hi, @Jeremiah H., thanks for the questions. The house is in Polk county.

I have a 1500 Sq ft 4/2 outside of Orlando Florida that I'm selling for $114,500.

This was a long term rental that I fixed up for sale. It has a new roof (2013), a 2 car garage with new garage doors (around the side), new carpet and is move in ready.  A similar nearby rental is listed at $995. It's not quite turnkey since there is no tenant, but demand is good for rentals.

I'm selling to recover tax losses I've accumulated over the years. I'm holding my other rentals. I have a long term local property manager that I'm still using. It's in the MLS.

The area is between a new university, Legoland, 30 minutes from Disney, 15 miles from new FedEx fulfillment going in 2016.  They are building new houses nearby also.

I'd be happy to give more information.

Thanks,

Jeff

Thanks for all the great responses!

@Nicole A. I appreciate your candor about this. It's hard to tell how something might sound other people when you right it (good thing for BP).

I agree in general with your response. In this case, because he's a good tenant and reasonable and professional, I'm considering just having a conversation with him about the issues.

We are currently month to month. Actually, having the options laid out is a good idea.

@Karen Bickford  That is a good idea also, we had considered that for long term. I would have to check the HOAs to see if it's possible first.  Also, it would be more time intensive, something I am sorely lacking.  The only thing I've had to do recently is deposit the checks.

Worth taking a look at though.

@Joe Trometer  Thanks for the input on seasonal type rentals. It won't sit for months, but it is just easier to rent in the summer and I may get more.  The policy angle is always good, too. If he wasn't such an ideal renter, I would just move on.

Any more input and experiences are appreciated.

Thanks!

Jeff

I am a partner in a beachfront rental condo that I rent to a full-time tenant.  He's been great, very professional, but he plans to move out in the next few months, but that means I will have to rent the unit in the fall or winter.

The unit is under market rent (rents have increased considerably in the last year or so). My thought is to increase the rent closer to market since we are now month to month. Rent is $1495, market is maybe $1800.

I plan to send this to him, what do you think?

"We have been very happy with everything and would like you to stay for as long as you like. The only issue for us is the timing of when you go.

As you can imagine, it will probably take longer to lease a beachfront condo in the fall or winter than the summer. As I mentioned before, if you had decided to sign a 1 year lease, we would have kept the rent the same.

So maybe what we can do is continue the month to month, but at a rent that is closer to the market rent. We don't need to go all the way to market rent, which is something like $1800, but maybe what we can do is $1650."

Any thoughts from experienced landlords out there?

Love it! It looks like you found Mr. Money Mustache. We are doing similar things but not as radical. Good work, I've generally been frugal but have found a whole mindset shift lately. Try the Millionaire Real Estate Investor by Gary Keller. Great ideas. He says to think of everything as an investment. Keep it up Jeff

Hi Anil Samuel I just saw this, so you probably took care of it, but PM me for more info on tree trimming and handyman if you still need it.

@Ryan DosseyGlad you checked out the other one. You can also try The Simple Dollar blog and Get Rich Slowly blog.  My wife is obsessed with those, too :)

It seems like these bubbles go on until everyone starts thinking "Well, maybe it is different this time" and even the skeptical one get in for fear that they will be priced out forever.  Saw that with the dot com bubble in 2000 and the real estate bubble in 2006.  I don't think we are there yet but it kind of feels like 2003-2004 right now, depending on where you are. 

The bubbles are all a bit different though.

I just found myself almost into a triplex deal in Florida on well water in a commercial area with septic tanks with marginal tenants and deferred maintenance.  I thought of Bruce Norris and a story he has about if you find yourself buying a manufactured home on a dirt road, think about how you plan to get out of that if the market changes.

Anyhow, I backed out of that deal.