All Forum Posts by: Daniel Fischer

Hoping to hear from folks on both sides of the equation in respect to SFR rentals - what is the pro/con analysis of finding, renovating, and managing income properties yourself locally, versus purchasing from a turnkey income property solution?

My initial first thought is the possible loss of a few points in net cap rate, possible higher purchase price, etc. However what is the opportunity cost loss by having to find, fix, and rent these SFR properties yourself?

Has anyone started out by doing it themselves and switched over to a turnkey solution, or visa versa? 

Wondering what investor preferences and opinions are on new roofs. I personally love a nice, new metal roof, but understand that a lot of folks do not. Shingle, barrell tile, metal, etc? Do you find that you realize more equity with a higher end roof, even if the comps have a basic shingle roof?

I work with hundreds of real estate investors, each one unique in their strengths and weaknesses. Often, I'll have an investor reach out to me, hoping that I can play matchmaker for them. Whether that be a handyman that needs a private capital partner, or a private capital investor looking for handymen. 

If you are an investor in Pinellas, Hillsborough, or Sarasota, and are looking for the perfect partnership (marriage) with someone who completes your investment puzzle, please let me know and I will see if I can make something happen!

I have dealt with many hard money lenders and usually see about 11-12% interest just starting off. That doesn't include the 3 points at closing and additional closing costs, etc.

They all seem to be about the same. Wondering if anyone can recommend a company or has been enjoying better rates.

@Anuj Anand Why do you prefer condo to SFH or multifamily?

I am a wholesaler, and have 2 offices in the area with 12 dedicated acquisitions agents, along with a beefy marketing budget, so while we do not buy our properties at Wal-Mart, we also do not buy any properties that have CAP rates below 12%...anyone can find properties that cashflow below that. If you want 7,8,9,10% CAP rates, you can literally go anywhere else in the nation. Don't shoot for those kinds of returns here.

@Peter Palmer

Tampa market is competitive, but you can consistently get 15-20% CAP on triplexes, duplexes, and SFH rentals here. More competitive in the flipping side of the market, so there are definitely gems out here for buy and hold.

How do you plan on financing?

@Account Closed

What you're seeing is not an anomaly. The Tampa metropolitan area is getting very competitive. I have a hard rule of 75% of ARV after ERC, with labor and misc. cost included in the rehab. Can you beat my estimated labor cost? Can you find a more efficient layout than I plan for the property? Can you be ok with making a 27% margin instead of 30%? Should you stay out of the business because of that lost 3-5% margin, or is the opportunity cost of not doing the deal higher than that lost profit margin?

I know that in some markets like LA and South Florida, investors are even becoming content with 10-15% return. Just to put it in perspective. 

@Randy Rettinger See if you can start a partnership LLC with someone with great funding and credit score. You can piggy-back off of them and do most of the work on projects. This way, your partner and you are splitting profits through the company. You can have a separate LLC that you can sell properties to from the joint LLC if you want to do something just by yourself.

You'll gain an expert and funding.

@Elliot Lamson That makes much more sense! You must have a pretty large marketing budget. I can understand making decisions and estimating based on pictures and videos. Wondering if you might be able to give me some GC referrals. I always like to have more vetted contacts for my investors.

What states besides Florida and California are you working in?