All Forum Posts by: Calvin Pringles

When working with a contractor or general contractor (GC) on a remodel or rehab project, clear communication and setting expectations from the beginning are crucial

Begin by discussing and outlining the scope of work. This should include details of the additions, repairs, or changes to be made, and any specific preferences you have for the layout and finishes.Some contractors may have in-house design services or work with architects and designers to help you create a layout and design that suits your needs. If the contractor you choose doesn't offer these services, consider hiring an architect or designer separately to work with the contractor on your behalf.

You get to choose the materials and finishes you prefer! Share your wishlist with your contractor, or ask them to recommend options based on your budget and style. Make sure you both know who's in charge of buying the materials – it can be you or them, just agree on it and put it in the contract. If it is them, make sure they send you a picture of the receipt after going to the store, every single time a dollar is spent. Additionally, A well-drafted contract is key so that both parties understand their responsibilities. The contract should clearly outline the scope of work, timeline, payment terms, and any warranties or guarantees provided by the contractor. It should also clarify who is responsible for purchasing materials, obtaining permits, disposing of construction waste etc etc

STAY IN TOUCH throughout the project. Regularly check on progress, ask questions, and address any concerns as they arise, not afterwards. This will help ensure that the project stays on track and meets all expectations.

Hey Gabe! Congrats on starting out your journey. I also started with house hacking and it was one of the best decisions I've ever made.

We are in a high rate market, so I would definitely recommend shopping around. You'll typically be able to find the lowest rate from a bank or credit union, however banks/credit unions are typically limited to the type of loan "product" that they can offer you. Just have a few conversations with different lenders and banks and you will find out quickly which is the best option for you.

As for finding off market properties, if you can find something off-market it's likely going to lead you into the path of being able to build good sweat equity and taking on some repairs/cosmetic upgrades yourself which is a huge win! One thing you should be aware of - you will not be able to buy a property from a wholesaler using an FHA loan. The reason is is because the title company would like to see what is called "seasoned title".

Seasoned title refers to a property title that has been held by the current owner for a certain period of time, typically at least 90 days to 6 months or more. This term is often used in underwriting guidelines. A seasoned title is important for lenders because it helps to reduce the risk of fraud, property flipping schemes, and other issues that may arise when a property changes hands too quickly. When a title is seasoned, it implies that the property has been owned long enough for any potential issues, such as liens, encumbrances, or title defects, to be discovered and resolved.

If you have the availability to do so, a lender should be able to recommend if FHA 3.5% down, or 5% down conventional will be a better option for you based on your qualifications. You want an advisor in a situation like this, so make sure you take that into account when shopping around!

I hope this helps :) 

I can't answer your question directly as it pertains to Asheville, however I have gotten a few bids for ADU's here in Tampa. For new construction, (building from scratch) we are experiencing around $200/sqft for construction. Ends up being about $80k for the unit, maybe an additional 5k for furnishings, and we primarily target MTR and STR because they are in high demand here.

Total investment 85k and the unit should rent for $1500, so it makes sense. As far as LTR/MTR/STR, it will depend on what is most profitable for your market and cost considered.

Hey BiggerPockets community! 👋

With the real estate market constantly evolving, staying informed and adapting to changes is crucial for investors. In this post, I'll share some data-backed strategies to help you navigate the 2023 real estate market effectively.

1. Keep an Eye on Key Economic Indicators: Pay attention to economic indicators like 
   1. GDP growth
   2. Unemployment rates
   3. Interest rates
   4. Inflation 
      These can significantly impact the real estate market. The U.S. Bureau of Economic Analysis (BEA) and the Federal Reserve are excellent sources for this data.
2. Monitor Local Housing Market Metrics: Track essential housing market metrics, such as home prices, inventory levels, days on market, and rental rates. Websites like Zillow, Redfin, and Realtor.com provide valuable data on a local level. Also, consider subscribing to local real estate newsletters and reports.
3. Analyze Demographic Trends: Demographic trends can influence housing demand, especially in certain areas. Pay attention to population growth, age distribution, and migration patterns. A lot of multifamily investors already, do this and you should too when entering a new market. The U.S. Census Bureau is a great resource for demographic data.
4. Data Analytics: Utilize data analytics platforms to analyze market trends and identify potential opportunities. Companies like Mashvisor, HouseCanary, and CoreLogic offer powerful analytics tools to help you make data-driven investment decisions.
5. Follow Industry News: Stay updated on real estate news and developments by subscribing to industry publications like the National Real Estate Investor, GlobeSt.com, and RealtyBizNews and last, but not least BiggerPockets.com!
6. Participate in Real Estate Forums and Groups: Engage with fellow investors on platforms like BiggerPockets, LinkedIn, and joining your targeted market Facebook investor groups. These forums and groups provide valuable insights, experiences, and perspectives on the current market for what is happening NOW!
7. Attend Real Estate Conferences and Webinars: Conferences, workshops, and webinars are excellent opportunities to learn from experts, network with other investors, and stay informed about the latest trends. Some popular events include the National Multifamily Housing Council (NMHC) conferences, the Real Estate Wealth Expo, and the BPCon (I will be attending my first this year :)).

To conclude, staying informed and adapting to the 2023 real estate market requires a proactive approach. By monitoring key indicators, leveraging technology, and engaging with the community, you'll be better equipped to make informed decisions and thrive in this ever-changing market.

What are your strategies for staying informed and adapting to the 2023 real estate market? Did I miss anything? Share your thoughts and experiences in the comments below!

Hey BiggerPockets community!

I wanted to discuss a topic that's been on my mind lately – the idea of accepting lower cash flow to capitalize on the high appreciation potential in the Tampa and St. Petersburg, FL market. While conventional wisdom may lean towards prioritizing cash flow, recent data shows that there's a strong case for focusing on appreciation in our local market. 

High Appreciation Rates in Tampa/St. Pete: Over the past few years, the Tampa/St. Pete market has experienced significant appreciation, with some areas seeing double-digit annual growth. According to Zillow, from 2020 to 2021, Tampa and St. Petersburg experienced a 17.6% and 18.1% increase in median home values, respectively. Now I know this was an abnormal market, however we are currently on pace to experience upwards of 12% this year. This trend has been fueled by a strong local economy, job growth, and a consistent influx of new residents. Emphasis on the new residents part.

Why Investors May Accept Lower Cash Flow:

1. Long-term gains: Though lower cash flow may result in less immediate income, the substantial appreciation potential can yield significant long-term returns. In a market like Tampa/St. Pete, investors may be willing to forgo short-term cash flow for the chance at impressive capital gains.
2. Portfolio diversification: For investors with a diverse portfolio, a high-appreciating property in Tampa/St. Pete can balance out investments with a heavier focus on cash flow. This diversification can reduce overall risk and offer varying degrees of returns.
3. Lower management burden: High appreciation investments often require less active management than cash flow properties, allowing investors to focus on other opportunities or enjoy a more passive investment strategy.
4. Florida tax benefits: Florida offers attractive tax incentives for residents, with no state income tax and lower property tax rates compared to many other states. While this isn't the main driver for real estate investment, it's a noteworthy perk for those considering a high-appreciating property in the Tampa/St. Pete area. Remember, I am not a legal tax representative, so consult a professional for advice on tax benefits.

Conclusion: While cash flow remains an essential aspect of real estate investing, it's worth considering the potential long-term benefits of capitalizing on the high appreciation rates in the Tampa and St. Petersburg, FL market. By accepting lower cash flow, investors may access significant long-term gains and diversify their portfolios in a growing market.

What are your thoughts on accepting lower cash flow for high appreciation potential in Tampa/St. Pete? Let's share our experiences and discuss the best strategies for success in our local market!

Thanks for sharing this valuable information, David!

Quote from @Michael Baum:

Hey @Calvin Pringles, not much to say about this but I do like your crisps.

 I've heard this for years lol! Imagine the torment as a child 

Quote from @Andrew Steffens:

@Calvin Pringles

You too! Are you just advising buyers or also managing?

 Gonna be getting into management here shortly (in the works). I am a full time realtor, so primarily advising people.

Quote from @Andrew Steffens:

We manage 4 in incorporated Saint Pete all nightly rentals and never any issue from the city.

I do not advise clients buy in this area as the winds can blow another direction at any time but if they already have a MTR or LTR  I feel they are fairly safe barring their neighbors are not on city council or related to the mayor ;)

It's great to hear you've had success with nightly rentals in the incorporated portion of St. Pete! I have a couple of buddies who are absolutely crushing it, as I'm sure your clients are.

You're right, though—regulations can change, and it's wise to be cautious. All it takes is one angry neighbor to spoil your entire investment.

I personally can't wait to see what happens with Pinellas Park, Lealman, and Kenneth City. Exciting times to be a growing city. I remember back some 20 odd years ago these places were super undesirable.

Happy investing!

It seems like you've done a thorough analysis of potential properties, and your inputs appear to be quite reasonable. In the current market, finding properties that cash flow using the traditional 1% rule is definitely challenging.

As you mentioned, accepting short-term negative cash flow could be an option ONLY if you're confident about the property's long-term appreciation and potential rent increases. I don't think you can go wrong with making this assumption in St. Pete and Tampa, but I may be biased as someone born and raised here. ¯\_(ツ)_/¯

In terms of location, I've found that short-term rentals (STRs) can be very profitable in Tampa, while mid-term rentals (MTRs) are my preferred route for St. Pete and most of Pinellas County. This is due to the different market regulations.

You may also consider looking beyond MLS searches and exploring alternative sourcing methods like wholesalers (the TBREIA is great!), direct mail, or even cold calling absentee owners. These strategies can help you uncover off-market deals that might meet your cash flow criteria.

Remember, patience is key when searching for the right investment property. Keep evaluating potential deals, and refining your strategies.

Best of luck in your investing journey!