All Forum Posts by: Mike Terry

Hi Chris,

I own a protfolio of single family and duplexes in Valdosta and surrounding counties.  I have been pleased with the market.  I intended on buying here for cashflow and not expeecting much appreciation.  The appreciaition in the 4 years I've owned has been a big positive surprise.  The key for me was finding a good realtor, property manager and banker.  Feel free to reach out if you want any specifics. BTW I live in Southwest Florida also.

I live and work in the swfla market, just south of there.  This is an emerging market for sure.  Please learn about flood and property insurance and get quotes before you make offers, or at least during due diligence.  Also be carefull with septic and wells.  Educate yourself on utility assesments also. all of the above can make a good deal bad fast.

Thre are lots of Ready to assemble cabinets you can purchase and asseble if you are a do it yourselfer.  Search for RTA cabinets in your market.  Sunshine cabinets are good in Orlando.

Your competing with big national lenders that are offering financing with low rates by buying the rate down.  Your costs are fixed and so you probably can't provide discount financing.  Lower your price to match your competition or try the rental route.

 @Jonathan Greene this is excellent advice.  Find a below market deal in a market where you can afford a property, while maintaining a capital cushion.  You will learn a ton and I firmly believe that doing is the best teacher.

@Dave Foster is right on.  when I was comparing your portfolio reporting to mine. I noticed you don't account for repairs, vacancy and capital expernitures.  This gives you an inflated cash flow number.  I subtract those off the top to compute cashflow.  When you consider those expenses your cash flow to your equity is pretty low.  I would definetly sell 3 and 4 because I think in many years they will both be cash flow negative.  Redeploy that capital for a better retrun in another investment (stock etf? private lending).   Hell your 530k in equity will produce more return in treasuries... right now almost 5 percent.  I know that is not a long term solution, but at least look at the math.

Thank you so much.  That is a great explanation!!!  Easy to understand.  I thank you for your willingness to share.

Mike

I think the national leadership situation also contributes.  This once proud nation is going to led by either a immoral and corrupt, self-serving, con man or a less than effective senior citizen that even the most partisan supporter is concerned he will make it through a 4 year term.  The divisive nature of our politics and the loud but nasty minority are bullying the majority of good americans.  There seems to be little concern for the average american. the extremes on both sides of the political spectrum are tearing the country apart. The only issue I have seen any agreement on is that most don't want either of these leaders in the Whitehouse.

So am I understanding this correctly.  The seller is walking away with 10k of their original 80k investment (assuming 20% of 400k)?  How do you increase the loan amount from 320k to 382k?  I get the savings on a tradition purchase at the same amount, I just don't understand the seller's position going into the deal.

I have west coast (gulf of Mexico) ocean access properties.  They rent well the value dynamics are different thean dry front properties of course and the factors that @Wayne Brooks mention are important.  As for a potential risk,  Flood insurance is an ever evolving risk, consult with a good insurance agent on the ins and outs of flood.  Know the elevation, the possibility of a LOMA exemption (flood insurance requirement exemption), the assumability of the seller's flood policy etc. Combine all of these factors with typical location considerations. I have no regrets about my waterfront properties and that is after two hurricane Ian and Idalia. Good Luck.