All Forum Posts by: Cristian Aviles-Morales

@Lynsey Dreis $250 PSF holy moly. So for 1,000 SQFT it's a quarter of a million? 

That's crazy. 

Yesss. I'm glad you are documenting this. Following.

@Patrick Britton What title and escrow company did you use? 

What is your CoC % like? What type of deal did you get into, did you need to put more cash upfront for it to cash flow or did you find a bargain?

If this is your second out of state, are you using two different property management companies or are you going through a big national one? 

Hey, I'm wondering how you're calculating a ARV of 150-160 in that area? Recently sold comps are selling for no more than 75-90k.

Would love a break down to help me determine your conclusion of properties value!

I know this may not be the answer most people agree with but...

If ultimately only YOU are putting money in the deal and your 'partner' has no skin in the game, in the sense of MONEY/RISK.. then you shouldn't split profits at all.

You should PAY HIM for handling the rehab. Like a contractor. Here's $10,000. Make it happen.

That's just my opinion though. I have found myself in a similar position with a acquaintance who knows ALOT about house work AND has the contacts. But wants no desire to put money in. 

If that's the case, I'll just pay him for his time. 

Am I wrong in thinking this BP? Now would be the time to tell me because I'm still green myself, haha.

Nice post and thanks for your service. Was a 25B for a short time and got out after my first contract just last October. 

If you follow Anthony's guide, you'll be better off than 90% of the rest of the armed forces. But we all know in our line of duty we can find ourselves leaving sooner then expected for any random thing. Be it our job is tearing our family apart or we get medically separated. 

So I would like to offer a perspective that with every PCS you ought to buy a new property and continue that, so that the day you do leave you have the option to liquidate from all those states and consolidate your funds. Properties by military bases are a blessing and a curse. Blessing because you know you'll always be renting them out normally. But curse because dependent on who you rent to, you can have some serious tenants who damage your property. 

@Jack Bobeck can you expand on what you meam about the seller holding 10% of the note? I am still green and am having a hard time visualizing that deal. If you have the time of course to explain it that is!

Originally posted by @Andrew Schaefer:

Originally posted by @Samuel Ruelke:

@Andrew Schaefer Thanks for the feedback!

I am new the REI, so no, i have never owned real estate before; not even a primary residence. I am currently renting an apartment with some roommates.

You sound like me a few years ago. I live about 2 miles east of Orange & Central (for non-locals, that's considered our CBD's bullseye) in a 3/2 that I had rented with roommates for 5 years but then purchased from the owner nearly 3 years ago. It's gone up in value about 50% since then, more due to the market than to my repairs/improvements. My PITI 30 year mortgage is about $400/mo. less than what it'd rent for today as a 3/2, and about $800 more than what it'd rent for as a 1/1 and 2/1 as separate units which is do-able with its layout. But if I bought today @ FMV it'd be closer to break-even with the monthly escrowed payment before factoring in repairs, improvements, vacancies, etc.

That's the only way I'd do it... and have done it that way with roommates in the past. Get a SFR and roommates, or a SFR with a separate rentable portion (aka a "mother-in-law suite" or accessory dwelling unit) and you'll be subsidizing your own housing cost.

Sounds like me again for my primary residence. I bought it because I saw the area trending the right way (without giving away my exact neighborhood think Audubon Park or College Park) and I could afford it with or without roommates. Be certain that you can do the same since you're far outside the original discussion of 1% rule at this point. 

Don't be in a rush to buy. Do the numbers IN WRITING like a business if you intend to treat it like one, even if it's house hacking and not a 100% rental. Then before looking at specific properties be sure to have a pre-approval letter with a local lender in hand. Feel free to ask me for referrals to lenders and a RE broker who will oversee your transaction/buyer's agent if you'd like good ones I've worked with in the past. I have a RE sales assoc. license and would get a referral fee on the latter since I don't use my license for anything other than that and my own transactions. 

Be honest with yourself that you're betting on price appreciation and hedging against inflation because the neighborhoods with a large share of 30-somethings renting or owning in it that are fairly safe are going to be about break-even with rent prices at best. As long as you're OK with that offsetting of various risks depending on where the local market and local economy trend then I'd still consider buying. But don't do it if you're looking to simply earn a return on your money; you're house-hacking to make your cost to ante up to buy into the market less than the alternatives of either not playing or buying elsewhere with a higher ROI but still paying a variable rent for your own personal residence.

 Very informative. It's actually quite humbling. I've been running numbers here in our city and what you're saying rings true even though I don't want to believe it. Everywhere you want to live, everything is break-even or slightly negative. Only way it will work is if you put in enough cash to cash flow it. Or take the hit for a few years and then refinance for a lower monthly payment. 

By the way, about the short term rental changes coming to Orlando.. what qualifies a short term rental? 
I have a primary residence that I may be leaving. Was planning on renting out all 3 bedrooms to tenants at 700/800/month in my area which is a definite Class B/30 something year olds type area.

Will that no longer be viable? 

Originally posted by @Jacob K.:

I would have to agree with Caleb above. I recommend that if you want to be a real estate agent and work with buyers and sellers, then get your license. If you're trying to get your license for "learning more" about being an investor, I would say skip it. Getting and maintaining a license costs thousands of dollars a year. There are plenty of great resources on BP that will teach you what you need to know to be successful as an investor.

 This hurts me.

Reason is, is because I am taking courses this semester that relate to real estate and yes includes the pre-course requirements to then go and take my state exam here in FL. 

And no, I have no desire to work commission. I make good money now. I have a broker who is willing to hire me part time, thankfully so maybe that is my silver lining. But ultimately, I just want to grow a portfolio of long hold properties and collect rent. 

So in a sense that does work for me since I'll save on commission. But really, that's it. Unless my part time (weekends.) work with my broker can pull in additional income, like a few thousands each month, then nothing else really is worth it. 

Oh, and access to the MLS too, I guess.

Hey Lisa, welcome! 

From South Orlando and get ready to see a super hot market, haha. Hope to meet you one day if you ever go to the local REIA meetups!