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All Forum Posts by: Christopher Schmidt

Christopher Schmidt has started 16 posts and replied 107 times.

Post: My First Duplex

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

Both duplexes I purchased were about $30,000 a piece. On the edge of less than ideal areas, but I'be been fortunate with keeping better tenants in there and having a great property manager (that was a trial finding in itself).

Chris

Post: My First Duplex

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

So in an effort to build my self-motivation to getting out of my current career and into a real estate career, I thought I would post the story of my first duplex.

At the time, I never owned a rental, but I managed two of my parents rentals. They purchased both while I was in college, I filled them, and didn't have and rents (i.e. room) for several years while in (and post-graduation) college.

I enjoyed not only the property management, but also the rehab involved (although it wasn't ideal 'flip' timeline). Fast forward a few years, I decided I needed to jump and take my own risk, specifically looking for a rental (cash flow).

Now this is 2010 and the area I was in, Florida, was in a bit of turmoil. It didn't seem reasonable to get involved there (though there are a few moves I wish I made) so I looked into other areas. I eventually chose Rochester, not only because it's a city with cheaper housing (relatively) but because I have family in the area. Trips would kill 2 birds with 1 stone.

So after about a few months of searching, I found a duplex I liked. Though it not the nicest area of the city, the property condition and cash flow seemed to work (and I didn't have to manage it myself). The current tenants were long standing and really seemed to keep the place up.

So came the financing. Well I didn't have the cash needed to buy it (I wasn't going to finance it, it would have been a small loan and I think the times probably wouldn't have allowed it). For years, I had received Credit Card checks, 0% until some time, then fixed after. I had worked hard to have no CC debt at the time, so I took the advantage of those 'checks' bought my first duplex on my credit card (no doubt everyone has an opinion on this).

When I first bought the property, they grossed $950/month. In the last 2 years, I've been able to increase that to $1050/month and currently have a tenant transition. I hope to increase that to $1075-$1125/month with the next tenant.

I've also been able to take advantage of the 0% until I found a HML (someone I know who was upset at the CD rates of the time). I offered them a nice rate, with 2 year minimum and 5 year balloon.

If nothing else, I thought it was a creative opportunity to get me started. I've since bought the duplex next door (which grosses $1325, and is my new target) and a SFR in Florida (my primary residence converted to rental). I am in the research phase a 4 family unit...the next 2 weeks will tell. Then who knows what the next deal will be, in my quest to get back to Florida.

Anyways, I hope this was a good outlet, and I hope it helps at least 1 more person take that first/next step.

Post: Newbie in Tampa, FL

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

Michael Smith, wow that is crazy =) If you are ever up here let me know. I can break away for a beverage downtown.

Sendhil Krishnan, I'm partial to Viera since that's where I hailed while in Brevard. I've also watched rents move up there like crazy. I rented my SFR for about 300 over my mortgage in January. They seem to be going another 125-150 above that...that's only 6-7 months ago...btw I only put 3.5% down for my Viera property since it was primary residence...I think Palm Bay has some good opportunities under the 100k mark...I've been keeping an eye on them even after leaving...I'm hoping when I get back to try and do 3-4 flips a year in Palm Bay...but the best laid plans...

Can't go wrong in Tampa or Orlando too it seems:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=290783

Post: Newbie in Tampa, FL

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

Michael,

For most of the time I was here, I managed a couple rentals my parents had (1 in PB, 1 in MLB). The only property I have was my primary residence in Viera that was converted this year to a rental due to a job move.

I'm hoping to build up a network in the next 12-15 months of resources so I can move back to Brevard by end of next year and begin focusing primarily on RE Investing (not necessarily in just Brevard).

I haven't had a chance to get back down there, but need to soon (and why not, it's a tax write off ;)). If you're interested, we should touch base.

Chris

Post: Newbie in Tampa, FL

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

@Sendhil Krishnan & @Michael Smith - I spent about 14 years in the Melbourne Area. I miss it and hope to move back within the next year or two.

I've never invested in a condo, but have heard the associations are troublesome. It took my parents 1 condo investment to swear them off altogether. But cash flow is cash flow...and a friend of mine lives in Tampa and says the market is picking up there.

If you don't mind, where do you both work there? I used to be an engineer at Health First.

Chris

Post: Hello from Greenville SC

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

Thanks for the welcome!

@James Vermillion. Thanks...I hope that the rentals can cover bare expenses while I build up a business. I certainly expect a big lifestyle change at first.

@Frank O. What areas/zips do you invest in? Do you self manage your properties?

@Brian Knox. I'd enjoy that. I've only been in Gville for about 6 months now thought my heart is still in the Florida Coast (which I am hoping this new adventure will offer me the opportunity to return).

@Mehran Kamari. It wasn't easy. It's so hard to find a local property manager, at least in Rochester. I almost quit because the hassle of my initial local PM. I've since found someone I trust (and equally reward) but lesson's learned for other distant markets. Thanks for the book suggestion, I'll have to pick it up.

Chris

Post: Hello from Greenville SC

Christopher Schmidt
Pro Member
Posted
  • Real Estate Agent
  • Melbourne, FL
  • Posts 115
  • Votes 26

Hello Everyone! My name is Chris and I've 'trolled' here a little bit off and on about the last year or two...and decided I wanted to jump in and join. I've been interested in the many areas (and possibilities) of real estate for about 10 years now, but have always been afraid of leaving the 'comfort' of a regular job (Information Technology). I'm starting to feel the burn-out some though and have (soft) decided that I want to be able to get out in 1 year and move towards my goal of a career in real estate.

In the past, I've managed 2 properties my parents owned in Florida (while attending college there). I've basically remodeled them too (though not necessarily fast enough for a flip).

Currently I own 2 duplexes in Rochester NY and a single-family in Brevard County Florida (it used to be my primary residence until last December when I moved to Greenville). I jumped in on the first duplex around 2011, the second in 2012. I'd like to add to that within the next year to bring in some income (as well as save as much as I can) so I can hopefully make that transition.

I think to start off with, I would like to have a combination of flipping transactions and rentals (steady income). Certainly would love to see a company grow into the many arms of real estate, but that's down the road.

I chose now, mainly because my family is still young (4 year old & 1 year old) so if I am going to do anything, now's the best time I think.

Any advice on the transition from 'career' to your own boss in real estate would be appreciated (and hopefully encouraging).

BTW the goal is most likely to move back to Florida and start off there.

Thanks
Chris