All Forum Posts by: Darren Lenick

@Katie Miller $1 million is not much in many markets around the country such as California and South Florida. That being said, it can grow fairly quickly if invested properly.

My strategy would be to split it 40/60 between rentals and flipping.

I would use 40% to purchase duplexes to have a regular flow of cash. The reason for 40% is based on the current economic climate, I’m anticipating many who can’t pay their rent and therefore relying heavily on asset appreciation in the long run.

I would use the remainder to purchase extremely run-down properties in good neighborhoods to flip. They take longer but offer higher returns if you buy them right. My most recent completed project just sold in the Orlando area. I bought it in 2016 for $46k cash and sat on it for a couple of years. Invested another $65k cash in renovations and just sold it for $192k.

The source for either type of purchase would be from panic sellers looking to liquidate due to uncertain economic times and the aging population who are liquidating for retirement. Cash is king for buying these properties as leveraging them could eat up any and all gains.

@Maria M. LeBron welcome to BP!

Having termites is no big deal as long as you treat/repair the issue and get a bond. I've dealt with 2 homes with termite issues and both sold without issue.  The key is to get a bond from the pest control company, which will be transferable to the new owners.

If you're comfortable with Orlando, look into Eustis, Zellwood and Apopka areas. There is a brand new Hospital in Apopka that's perked up values and they have announced another one just north of there.  This along with the toll road extensions has increased values dramatically.  But to get a good return, you have to be willing to take on a complete gut job, which are time consuming and costly, but provide great profits.

I have a great Realtor I'm working with on my full gut Apopka flip who lives in Apopka and works with a lot of investors.  I can send you his info if you're interested.  You might also be better off partnering with someone on a deal and he may be able to hook you up.  He works with a few people like me who do one home at a time with all cash.

Good luck and hope you find your first deal real soon.

@Nathan G. Nice find! Best I ever found was an old wooden trunk that was empty. My daughter turned it into a nightstand.

@Gary Reven I’m originally from Toronto and now living in West Palm Beach area.

I know it’s common to have basements in Toronto used as rental space, but curious as to why you would do a basement here in South Florida?

Here, as I’m sure you know, we have water issues. The state is built upon mostly sand and our water tables are high. Combine this with the amount of rain we get and a basement spells disaster.

I think I know the area you are talking about as I’m moving that way personally. If you use the York University model that Tribute Communities did when they built their townhomes, I think you’d be successful. If it were me, I would build to sell as student housing for married couples, singles and investors that have the option of adding additional bedrooms to rent by the room with common area. (Disclaimer: I worked for them a few years back)

There are a bunch of new student housing buildings going up already in Davie and Cooper City along University Avenue to support University of Florida and the entire Nova campus, but I believe there is still opportunity due to the popularity of our destination as well as for people moving to take jobs at the new Hard Rock Casino and Hotel.

@Nikolay Kolev I’ve used Pelican insurance for almost 3 years and they’re great. Kat is amazing and very responsive.

@Charles Hirst welcome! I’m in South Florida and happy to work with others.

That’s not a crack. It actually looks like a possible foundation issue as the brick has dropped away.  If there is a basement, see if the crack continues down. If it’s a slab, go to the room connected to this wall and see if a golf ball rolls on it’s own showing a slope in the slab.

Hi @Jordan Ray,

There’s a great monthly meeting in Delray that takes place 2nd Saturday of the month. Next one is July 13th. You’ll meet a lot of newbies as well as seasoned pros. It’s a mix of investors, private lenders, realtors and contractors.

Contact @Jon Huber for more information.