All Forum Posts by: Jeff T.

It does seem like you can get good cashflow, but there are some areas to stay away from.

It's similar where I own in Florida. I know the area pretty well.  I called my agent about a cheap duplex I saw in what I thought was a sketchy area and he said "You'll get shot going over there, I would take that if you gave it to me". So needless to say I passed on that one.

At any rate, I will need to make sure I understand the area I get into in St. Louis. I think it has potential when the Aerospace industry there picks up again. It's cyclical just like real estate.

@Ryan Dossey Thanks! I expect to get some information on that today and I will let you know.

Jeff

So my financial advisor wants me to sell my Florida rental house and buy 2 in St Louis.  Should I?

Florida SFR - Worth about $75-80k - no mortgage

Expenses - 4256/yr or 355/mo plus maintenance and CapEx

Prop tax - $1800/yr

Insurance - $1400/yr

Prop. mgmt. - $1056/yr

Rent is $810/mo

My net is maybe $250-300/mo

I think there is good appreciation potential in that area of FL over the next few years.

So St. Louis:

Advisor says he can get deals with 10-12 Cap  with 25% with Cash on Cash return of 18-20% in the $100k range.

$833/mo all cash or  $375/mo 25k down if I did that right.

That sounds good, but is that realistic in St. Louis (i don't know the market)?

So I might be able to double my cash flow, but at what cost and risk?

Any thoughts about the St. Louis market? These are rehabs of early 1900's houses.

Thanks for any input.

Jeff

How was the meetup? I couldn't make it that day (wife's birthday), but I'd be interested in meeting up some other time.

Hi @Peggy Liu and @Mel Jeffrey . Good to see some BP members close by.

@Larry Fried  You are right, it's a tough market, but if you can get in on the downturns, it's great longterm.  At this point, I think I should be glad I bought something. :)

I imagine Oregon is similar.

@Ali Boone  Yep, Culver City.  I bought in Long Beach. I wish I'd bought more than just my house in Culver City back in the day.  The Florida stuff is in central Florida outside of Orlando.

@Joshua McGinnis   My eventual goal is get some property closer to home, but I'm not sure when that will be, might take a while.

Right now I'm trying to figure out what the market will do here and in FL and what to sell eventually and what to hang on to.

I'm going to the Bruce Norris event on Jan 31 to see what he has to say.

@Shane W.  It is tough. I bought a short sale condo in Long Beach earlier this year, well last year now that it's 2015, but it still doesn't cashflow well.  I feel like I kind of missed the boat on SoCal for the most part.

I've been lurking for a while and thought I'd finally introduce myself. I've listened to about half the podcasts and they are "Awesome!" :)

I've been investing for over 10 years in Southern California and Florida with mixed success.

I bought more recently and am hoping for better buy and hold returns going forward.

I would be interested in talking Real Estate (my favorite topic) with investors in SoCal and Florida markets.

I wish I'd found Bigger pockets about 5 years ago!

Jeff

It's probably an older wood frame house.  Newer concrete block houses are not as expensive (but not cheap).  

You can go with a cash value policy that doesn't cover replacement cost 
(plus some other stuff, so check the coverage) if you don't have a mortgage. (DP1 vs DP3 I believe).  Last time I checked DP-1 was about half or less than DP3. Insurance rates have gone up tremendously in FL since the 2004 hurricane trifecta. You can also increase the hurricane deductible up to 5% and increase the standard deductible as well to save some cost.

American Integrity and Florida Family are a couple of insurance companies that may be writing policies.