All Forum Posts by: Tim Delp

I"m an investor here in Jax as well and looking for buy and hold deals here in Jax. Please feel free to include me on anything you obtain for consideration of purchase. Best of luck

James Friedrichsen you reference your peronsal rental property where you say you basically break even and you say that after 30 years when you look at all the interest "you" pay if you sell it for what you paid for it you basically break even.

First problem with your analysis is that you are not paying the interest, your renter is paying off your house for you. So assuming you have no appreciation at all what so ever if you are able to break even for 30 years you own an asset that didn't cost you anything. That's assuming you never have a rent increase and also not factoring in any tax benefits you receive for owning the rental.

Not sure what Ct is like but Florida market is pretty good right now. I guess the question I would have is what are you looking to base your decision on? purely on cash flow, tax advantages of living here one day with no state income taxes, your thought on appreciation etc.
Whether you want to self manage or pay someone else to do it.

Right now the numbers work pretty well on ROI in Florida with the high level of foreclosure but it is getting harder to find properties as inventories are low of available homes for sale.

I would avoid if possible. Added liablitiy and upkeep on the pool without really getting any additional rent or minimal. The liability in and of itself is enough. I say this as I have one, didn't intend to have it as a rental but it is and you are always a little nervous.

As stated above your income will be determined based upon what you pay taxes on. You can add back depreciation since it isn't real money you put out. Also the lender is typically going to average your taxable income over the most recent 2 years of filed tax returns not just 1 year of returns. Sometimes they do get waivers only requesting 1 year of returns.

If you are aware of these programs I would think you can simply ask them if them offer the program you are referencing before giving them any additional information. As for the golden rule when it comes to lending, "though who has the gold, sets the rules"

Sounds like you have the solution above where your broker represents you and pays you. The issue is that Suntrust was doing a fnma loan but being a little more liberal with the guidelines and now you are most likely dealing with a fnma direct lender and they are going to be very strict. One issue that they have to contend with is verifying the buyer has at their own 25% down payment in to the transaction and an investment property typically limits the seller contribution to 2%. The seller paying you the realtor a commission that is going to be used to pay closing costs is construed as you the buyer getting more than 2% of the purchase price paid by the seller.

You already explored the option of lowering the sale price which the new builder doesn't want to hurt appraised values and lowering the sales price doesn't help you the same way as you lower your loan amount so it doesn't help much with your cash to close.

sounds like you have a good solution though.

Good luck and congrats on 5th purchase.

You have to determine your cost basis. You need to know what you paid and what your improvements were that were included in your cost basis. Then you factor in that you have been depreciating the property each year on your tax returns so that lowers your cost basis. The difference between your cost basis and your sales price becomes your capital gain. That is the cost of making money, you do have to pay taxes.

I am part owner of a condo on Clearwater Beach, FL and home a coupe properties in Tampa/St Pete area and was a Loan Officer in that area for several years before moving to Jacksonville. Really nice area, it depends upon where you are looking as to the construction type. Pinellas County (Clearwater/St Pete) is one of the most densely populated counties in the country but it is a great place to live, there are some limitations on how much new construction there is over there. As you get in to Northern Pinellas County (generally north of Clearwater area) there has been a lot of issues with sink holes so that is one thing to be aware of. If you ever want anymore specifics on the area feel free to reach out to me or if you are heading down that way and are looking to rent a nice 3 bedroom condo on clearwater beach let me know.

As mentioned above you might have to qualify for the new house payment without being able to use any offsetting rental income from your current home. Since you do have a history of renting and managing the duplex you might find a lender that will accept a lease and count 75% of the rental amount to offset the mortgage.

I understand where msot responders feel that you should sell and buy something cheaper with possible better cash flow as most of the home we live in ourselves our not the ideal properties for cash flow. While I agree you can look at if from the perspective of could you buy less expensive better cash flowing properties that would produce better roi and you might be able to and for some that might be the best thing to do. One thing you have to factor in if thinking of doing that is the cost of selling (realtor commissions and closing costs) and the costs of buying (closing costs and possibly higher interest rates since your new houses your will replace this one with will have to be done as rentals) and really net out what your goals are.

You would also want to consider what you feel the appreciation potential is if you find that important as well as the ease of renting. Maybe you feel more comfortable renting your current house and the types of renters you will get there than lower income/highr roi properties.

I think these are all factors that only you can fully decide what is best for you.