All Forum Posts by: Chris Brady

Hi Isaiah, 

I am based in Fort Lauderdale and can speak to the local market directly.  

Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. When running your numbers, if purchasing a home that isn't new construction and less than $1MM, I would estimate 1% - 1.2% of the purchase price as your annual insurance premium. Additionally, FEMA updated the local flood maps here in July 2024 and much of the area now requires flood insurance. All told, cash flow will be a function of your down payment and your management of the property.

FL tourism continues to flourish.  In '23 the state set records for tourism revenues and visitors to the state, a hat tip to your point about year-round demand.  Both Fort Lauderdale and Pompano attract a lot of visitors.  Fort Lauderdale has higher purchase prices and nightly rates, but Pompano has had an influx of investment and continues to improve, specifically by the beach.  Major brands like Ritz Carlton and Waldorf Astoria are currently developing property there, where they have traditionally developed in Miami, Fort Laud, and Palm Beach. 

Both Fort Lauderdale and Pompano have fairly relaxed STR rules and regulations. The licenses are easy to attain and the cities have departments designated to STR. They are much less restrictive than other municipalities in South Florida that are actively trying to reduce the number of STRs.

Let me know if you'd like to talk further on the topic!  All the best!

Hi Tristan, 

@Heidi Braunhardt with Lokation crushes it with investors.  If you want an agent who can help your clients get under contract and close, I highly recommend her. 

Good Luck!

@Samantha Gray A realtor partner of mine recently had a Canadian client who closed with RBC on a second home here in South Florida in about 30 days time start to finish.  I would give them a shot.

Hi @Lorri McIntyre, RBC will utilize your credit and assets to purchase in FL.  They won't offer fix and flip type funding, but I have a realtor partner who just closed on a home in south florida and their buyer used RBC.  Good luck!

Hi Janelle,

@Heidi Braunhardt is a great realtor in Fort Lauderdale and has experience in short sales.  She's active in the BP community as well!

Good luck!
Chris

Agree with what has been said here that you should use a mortgage broker. Most brokers will have more than one DSCR lender they send business to, which means they will know the nuanced differences in the respective lender guidelines and recommend the lender that makes the most sense for you. A mortgage broker based in the area you are a looking to purchase is a plus. Good luck!

Hey Sher! Thanks! For the foreseeable future, we will keep it as LTR with lower cash flow because we are so pleased with current tenants and ease of ownership. To revert back to STR we would bring in a property management company to take on the day-to-day, at which point the cash flow disparity would be much less.

Our local market is seeing strong rental price appreciation so I expect our LTR figures will improve over the near future.  An additional consideration, we have a commercial mortgage on this property which adjusts in Nov22.  If adjusted today, our interest rate would lower by a full percentage point, which would create even better cash flow.  Fingers crossed rates don't increase too much over the next 11 months!  After adjustment, we have another 5-year fixed term, so we are looking at 6 more years in a favorable debt position.  If we make a decision that changes the profitability of the property in the next 6 years, like cash out some of the equity, that would be the time we would re-consider the business model for the property.  

Hi Derrick! Thank you so much for your service! I firmly believe that you should use your VA benefit and purchase one of your properties using the VA Loan program. There is a stigma from listing agents to focus on cash/conventional, but I can tell you that I have clients who are purchasing with VA loans on a regular basis.

The main benefits are obvious: you can receive a loan at 100% LTV and receive great interest rates. A VA loan requires that you are an owner-occupant, so I believe you have two options here: 1) purchase your primary with a VA loan w/ 0% down and use your cash to purchase an investment property after the fact or 2) look to purchase a multi-family property with your VA loan. The VA has a condition specific to multi-fam purchase that requires you have "experience as a landlord" (or work in property management, etc) but if your income covers the DTI ratio that condition is waived.

Having great credit and a full VA entitlement puts you in an excellent position. I truly believe you shouldn't shy away from using the VA program. Good luck and let me know if I can answer questions!

Hey Michelle!  I’m an investor and lender in Fort Lauderdale.  Welcome to BP!  The community is great and helps me continue to learn. 

Great to hear that you’re focused on a goal of your own agency and ready to begin real estate investing.  I’m happy to be a resource for you in the future for any questions!  Good luck!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Fort Lauderdale.

Purchase price: $582,500

We purchased a 6-unit building and spent five months on the renovations. All six units were then rented full-time on Airbnb, operating as a successful short-term rental. We managed the STR business personally, so it was a LOT of work and it generated a ton of money. At the outset of covid, we pivoted to LTR due to cancellation and local restrictions on STR. As LTR, it remains profitable and the income is now MUCH more passive. This additional time has allowed us to focus on new projects.