All Forum Posts by: Thomas Sutton

Just moved from Richmond about 5 months ago @A.J. McKinney and one thing i will say about that market is that although purchase prices are higher than your used to, the rents are pretty high as well! Location is king just like anywhere else and renters are willing to pay dearly for it there sir. For example, in Northside i was renting a 3/1.5 for $1250 and that was a deal! Lived on Marshall right behind VCU and rent was $1675 for a large 3/2. Be careful if your buying in Church Hill though! It's still got a long way to go back on the lettered streets. (N st, O st, etc.) If there's anything i can do to help pm me. Good luck!

Great topic and question @Michael Doherty! I'm working on the same thing right now. One thing i'm keeping in mind with my analysis would be what i'm currently paying for my apartment/home vs what I'd ultimately be paying for "my unit" in the multifamily home. I'm currently paying like $927 with water/sewer/trash for my apartment so if i can get a mfh where i'm paying say $550 give or take, and the other (Using a duplex for an example) rents for $1000, with my monthly payment for PITI being like $900 i'm not only cashflowing from the rented unit but, i'm saving nearly $400 on my living expenses! Of course these numbers may be somewhat idealistic but, i feel like i don't hear many people mention the $ your not spending renting someone else's unit not only goes toward your own mortgage but, may in fact be much cheaper for you to live in! I'm super interested to hear everyone's thoughts on this!

Thanks for clarifying that @Tony Georgiev. I thought that's what you meant. I'll see if what i can find that makes sense. Thanks @Paul Moore i'll check that stuff out! 

@Mike Lukach Yeah, triplexes and quads are ideal but, the right duplex deal could still be a winner for you if you buy it for the right price, in the right area, and use it as a means to reduce your expenses to continue saving. Do you know what your long term goals are in REI yet? Are you looking to buy larger multifamily, get into commercial properties, build a portfolio of small multis, etc? I ask because you're a somewhat high earner so with some saving and a little extra income you can probably be making a much larger investment within 5 years or so. Not, that a small multifamily couldn't or shouldn't be a part of that strategy but, i'd keep the end goal in mind. Hope this helps! I'm just starting out too!

@Tony Georgiev I apologize but, i'm just a little confused by the wording. Are you saying you would go for multifamily or single family in St. Pete? 

@Mark Allen

I definitely wouldn't hold that long at this point in the cycle and especially in this area. Florida got hammered in the last downturn from what I gather. Basically, I was only considering getting a foreclosure, finance FHA/203k, and sell immediately following the owner-occupancy period which i believe is 1-2 years. It would only be to generate cash faster for larger deals and/or have more $ for a down payment or to have more favorable financing going forward.

Hey Mike welcome to BP! After browsing the MLS in your area it looks like the rents are really good (high) in your area when compared to the purchase price. If you're good with house hacking it looks like a great area! I also agree with @Patti Robertson get as much scale (units) as you an to protect you from vacancies and give you some extra cashflow.

@Kevin Siedlecki

Yeah i was shocked to see how low they rent for vs how much apartments in larger complexes are going for. I'm currently in a 1bed/1bath w/ a 20% employee discount for $927.00 and i'm 15 to 20 minutes from the city. Really the only reason i'm even considering a sf flip or a small mf building is to build capital as my current jobs income is just to low to save enough in a timely manner. Thanks for your help Kevin it's much appreciated 

@Kevin Siedlecki 

I'm not really against the idea having a few small mf houses early and later selling the portfolio to get something larger. To me (A newbie) it's just seems like having several small mf houses add more complication (Multiple mortgages, structures, locations, etc.) for potentially less returns and more vulnerability to vacancies robbing you of your cashflow. One of the reasons i've been considering buying a sfh and doing a long flip to get cash faster for larger deals is due to the fact that small mf units have pretty low rents in my area when compared the prices of the properties. Most units rent for $650-$950 but, cost $175,000 for a duplex and need work to like $300,000 for a quad that rents around the same and could still use updating. Granted, these are MLS prices.

In my quest to own large multi-family properties, I've been debating whether to take advantage of low out of pocket FHA/203k financing for a sfh for a short-term hold and then selling after the owner occupancy term in an effort to gain the capital necessary for larger investments in the future. I'm considering this vs using the same or similar financing for a small multifamily to house-hack in the meantime and possibly exchanging into something larger when i've built enough capital. Obviously, there are pros/cons to both but, I'm just curious on yours thoughts in regards to which approach would be more viable to generate capital for larger investments faster in the Tampa/St. Petersburg market.