All Forum Posts by: Christian Orellana

Thinking of doing a 1031 exchange and getting into a Triple N investment. Does anyone have experience with Triple N leases? Pros and Cons. Anyone have really bad experiences? Do you recommend it? OR Should I buy 4-5 single family homes instead? Would really like to hear from your experience.

Thanks in advance.

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Hi,

I own a small 16 rent stabilized unit in NyC. The dept of finance has my estimated gross income over 150k then what it really is. I Just provided them the info stating that their estimated gross income is extremely high. I can’t keep up with the taxes. They came back to me saying no.

Has one been successful in lowering their property taxes in NyC? If so please help me out on how to do it.

Thanks!

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Quote from @Josh Green:

Quote from @Christian Orellana:

Family owns a property in NYC. We are thinking about selling it and investing in Tampa through a 1031 Exchange. What areas in Tampa do you recommend for a decent cash flow. We want to buy single family homes for rent.

If Tampa isn’t a good idea, please feel free to recommend areas in Florida.

Thanks in advance

1) Focus on good areas for both appreciation long-term and strong rental demand. When markets are up, everyone is feasting but when it slows like right now, the C and D class neighborhoods are having the harder time to fill vacancies. There's pockets all over the greater Tampa Bay Area that are B class and up but balancing that with a decent cap rate is going to be tricky unless you either have low cap rate expectations or are will to do value add to the property or being more creative such as using a short or midterm rental strategy or even room by room with padsplit.

2) Verify as well the 1031 is going to allow "like for like" into a single family. You didn't mention if those funds are from a residential real estate rental or commercial.

3) Shameless plug for Tampa: you will definitely find higher cap rates in cheaper places. Maybe Jacksonville, smaller towns, or other places "less desirable". However, Tampa+Orlando are projected to lead the state in appreciation over the next decade so that's why I personally chose to put all my focus and even moved across country to invest in the Tampa Bay market. Appreciation is far more valuable for the seasoned investor and it's no mystery why the BP podcast has been talking about that over cash flow a lot in there more recent episodes.

Its a single family home, i think i should be fine buy multiple single family homes. I have 3 properties in the Kissimmee area. I would love to venture out into Tampa, but avoid anything near the bay. Flood insurance would be ridiculous. I need to do more research on what the rents are looking like.

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Tampa, Florida

Quote from @Elise Hazzard:

Hey Christian, Feel free to send a message if you come to SP/TPA for scouting. Fellow investor here with properties in Hillsborough and Pinellas sending an FYI to use caution in flood prone areas. FEMA changed the flood maps a few years ago and took some by surprise. Not to mention the new mandate by Citizens insurance for those covered by citizens insurance to keep flood insurance even if their property is are NOT in a flood zone. Many nuances realtors do not want to discuss, which they probably should not as it is not in their lane. All that said, life in paradise is great!

I agree, if i have done my math right, i should be able to buy 4-5 houses with the 6th house having a 250k mortgage due to the 1031 exchange rules to avoid the boot. From what i have heard, taxes 2% of the sales price, insurance varies between $3-5k, and HOA also varies. What i need to know is if the rents are worth it to cash flow. What are the rents currently like for 3-4 bedrooms?

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Tampa, Florida

If Tampa isn’t a good idea, please feel free to recommend areas in Florida.

Thanks in advance

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Tampa, Florida

If Tampa isn’t a good idea, please feel free to recommend areas in Florida.

Thanks in advance

1 Vote

Quote from @Dave Foster:

@Christian Orellana, the 1031 exchange will allow you to do that and still indefinitely defer any tax due on the sale. Because 1031 is a federal statute and is practiced the same nationwide.

Here's my laundry list for why we moved our portfolio (and ourselves) from CT to FL years ago.

1. Cheaper price point

2. Cheaper property taxes

3. better tenant/landlord laws

4. No snow shovels

Did you buy single family or multifamily?

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Orlando, Florida

I would like to stay away from beach areas and flood zone areas. Insurance premiums are going to kill cash flow. I like central florida, i have some experience there. i have considered Tampa, Miami, Fort Lauderdale.

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Orlando, Florida

Thank you for this.

I'm not moving to FL any time soon. Based on what you said it seem like a good move. My next question would be should i invest in a multifamily or 5-6 single family homes in the Orlando area. I have also been looking into Tampa but would need to do more research as i am not familiar with the area. Miami i think its too expensive to see a decent return.

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Orlando, Florida

Hi Everyone,

I currently have a single family in NYC which i had planned to sell to buy a multifamily in NYC. With all the rent laws in NYC i have been considering taking the money and buying single family homes in Florida. My family currently owns 3 houses in the Southchase area. Based on your experience in the Florida market, do you think this is a smart move?

Thanks in advance.

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Orlando, Florida

All Forum Posts by: Christian Orellana

Christian Orellana has started 12 posts and replied 22 times.

Post: Triple N Leases Investment

Post: NYC tax review request

Post: Investing 2M in Tampa

Post: Investing 2M in Tampa

Post: Investing 2M in Tampa

Post: Investing 2M in Tampa

Post: Selling in NYC to buy in Orlando area?

Post: Selling in NYC to buy in Orlando area?

Post: Selling in NYC to buy in Orlando area?

Post: Selling in NYC to buy in Orlando area?