All Forum Posts by: David Collier Jr

Hey @Mike S., happy to help. We handle everything you just mentioned and have been for over a decade. Have many clients with SFR and Multi family portfolios. I am also personally closing on a duplex next week. I'll PM you my contact info if you'd like to speak further.

Afternoon Carlos, I am an Independent insurance agent with over 10+ years experience. I have clients with SFH rentals as well as multifamily. I also am closing on my first multi family this month in Broward. Any questions regarding DP3 policies for rentals or other coverage types happy to offer any help I can.

Everything @David Sicherman stated is 100% accurate. It took me months to find a fair market value property in a good neighborhood in E Broward. When a good deal finally came to market I made a full price offer sight unseen within minutes of it being listed. Have a realtor set you up on an auto email with your criteria. Spend the time learning your target areas so you are in a position to act fast. Get it under contract and ask questions later. 

In the interim make offers at the number that makes sense to you. Worst case you get rejected and move on. You can find a deal here and there but it is most likely not going to be in a neighborhood you want to move into. That limits you so as David mentioned, you may have to overpay. As long as you plan to hold the property long term and don't over pay by too much, the deal will make sense. 

If you are trying to get into a good Broward neighborhood I wouldn't expect cash flow. I'll be breaking even on mine and that is after rent increases. It is also in a speculative neighborhood with many new private and city projects breaking ground. That is a deal in my area. Buy in up and coming areas. Lot of construction going on. Don't skate at the puck, skate to where it is heading.  

If you have questions on specific neighborhoods E of 95 Im happy to offer any insight I can. Hope that helps. 

Hey Jupshy, I used Diversified Home Inspections 954-252-9980. Ask for Russ. He shoots you straight. I am in property casualty insurance so work with a few inspection companies for homeowners policies. I used Diversified for my duplex and my girlfriend's RE brokerage uses them for their clients. 

Another one I use is Genesis 954-325-8077. Hope that helps. 

@Ashley Lynn I think it is ok in a competitive market. The owner of the property I currently rent has been lending his advice to me throughout this process. He owns many multi families here and in Canada. His property I am renting is in a great area by the beach. He said he had to over pay for the property. The appreciation in rent but even more so value has made it a phenomenal investment for him long term. 

In my inexperienced opinion, if you can cover carrying costs and are confident in the rent/value appreciation, a deal that looks bad at first glance can make sense long term. I think this only applies to very competitive markets like S FL. If I waited for a "deal" down here id never make a move. 

@Ashley Lynn MLS. One thing I've done is get a good understanding of competitive market rents per unit in each of my target areas. Many listings have under market rents from what I've seen. So a listing at first glance may not seem like a great deal based on current rents however that may change when considering available rent increases.

So don’t get discouraged when reviewing deals where numbers don’t make sense on current rents. Instead run the numbers at what you know the property can rent for (sometimes after updates). At first it may seem like you are overpaying but once the property is operating at peak financial performance the deal makes sense. 

You may have to “over pay” at first but if the intent is long term buy and hold the deal may eventually make sense with rent increases and appreciation. In my opinion this makes sense only when in very competitive market where deals are few and far between and you know exactly where you want to buy. Over a 20 yr buy and hold period im not too concerned if it doesn’t cash flow for the first 1-2 yrs. Especially if you are buying in an up and coming area. That doesn’t mean buy anything of course. 

The deal I have under contract is currently $600 under market rent and makes no sense as is. Long term tenants and not many updates have allowed for small rent increases. I intend to make the necessary changes to bring the property to cash flow positive. The area is also going to see some nice appreciation with many new construction and city projects already breaking ground. If I did not know market rents for the area I would have passed over the property as another overpriced deal. Read between the lines. Hope that helps. 

$299k full ask site unseen lol. Ive been analyzing properties enough to know numbers made sense. Everything in this area that is a decent neighborhood to live in is $300k+. $250k maybe smaller duplex such as two 1/1s. A property the same size as the one I'm closing on just listed for $389k down the street (granted its a list price not a closed sale price). Another one just closed for $330k (3/2 x2). 

Smaller duplex at $250k west of US1 isn't unheard of. You can also consider the Oakland biz district by the brewery Funky Buddha. Very up and coming area. Can find duplexes that need work in that area and its not a bad place to live at all (Oakland Park just W of dixie N of Oakland Park Blvd). 

Hey Amy, I'm in Broward as well. I am closing on a duplex in Pompano near atlantic blvd this month after a few months of trying to get a property that made sense #s wise. I personally feel that the Atlantic Blvd A1A area is going to see a lot of appreciation with all the new construction projects to include retail, restaurants, new pier etc. After 35 years Pompano is finally making moves. There are a lot of condos in that area. 

Im no expert on condos but that could be a good place to start looking. I feel that area could be the next Lauderdale by the Sea. Big flood of northern residents each year. 

@Corina Eufinger Thank you for the reply. I do like the idea of paying her security deposit at the new rental. It makes the financial obligation of moving into a new unit seem less burdensome. 

@Account Closed Thanks Hannah! Do you often see buyers being able to contact tenants prior to closing? That is my main hurdle right now. I am waiting to vocalize my intentions until we are inside the 90 day time limit she has to renew, which is 13 days prior to my closing but I would need to get an agreement in place prior to closing. 

Not certain how the property manager (listing agent) is going to react. To me his client has tasked him with selling the property so I'm thinking he will be willing to assist. 

I have a duplex under contract that I plan to move into, preferably FHA (immediate occupancy) or Conventional (60 days). Current tenants lease is good to Aug 31st, closing 06/15 which can be pushed back to end of June. Her lease states she must submit intent to renew within 90 days of renewal (June 3rd). I was considering discussing my intent with the listing agent (also prop manager) in hopes he would help me communicate w tenant. I'd need an agreement with her prior to closing technically and a notice to vacate.

The rent is currently under market by about $300 with minor updates. Moving in will allow me to update the unit up to market and of course house hack for 12 months. Tenant has expressed that she wishes not to move and has been at the property 3 years. 

In return for her agreement to break the lease, I was wondering what you think is fair? I was considering a full security deposit refund (including pet deposit), paying for movers, offering my Realtors services and $2,000 cash. Maybe that seems like a lot to offer but my thoughts are a few thousand dollars is minor when considering the life of ownership of this asset. 

What's your play here? Thank you in advance for taking the time to read this.