All Forum Posts by: Dyanne C.

Thanks @Josh Whitney

The second PM recommended Ormond Beach as well but it's so close to Holly Hill that I wasn't comfortable picking anything out there.

Port Orange, New Smyrna, Ormond beach, would you consider those class A neighborhoods? 

Property is located in Daytona Beach zip code 32114 Fairmount Rd. Would love to hear from a local!

Asking Price 42k

Rehab 5-10k depends how much I put in cosmetic upgrades.

Closing 5k 

All in 57k.

Rent $800

Taxes $83.33

PM $80

Insurance $125

Repairs $80

Vacancy $80

Cashflow $351

I intend to buy it in cash and cash refi/heloc some of the money back out. 

What is making me nervous is that I have gotten mixed feedback from two different PM companies on the neighborhood. One company assured me they could place a good tenant in that property for 800-850 and it was a decent neighborhood. The other advised I stay away and look towards Holly Hill or Port Orange instead. I intend to call a third company tomorrow and would love to hear from a BP member in Daytona. :)

I personally think we are heading into another bubble here in South Florida due to all that new construction (again). Those new ultra modern condos aren't for the locals, yes there are some young professionals moving down for jobs, but many of these condos sit vacant since they are purchased by foreigners as a way to park cash. The older buildings away from the Brickell area actually make decent buy and hold units. 

@Eddie T. Thanks I'll look into it. :)

@Eddie T. I've considered it. I would like to invest locally in the future, however right now Miami is over valued (in my newbie opinion of course)

I don't know anyone in Orlando who could work with me and manage the property for me. Plus insurance is so high in FL that I found it difficult to make the numbers work for most of the property I found.

@Eddie T. Property is located in Ohio.

@Donny Widjaja I don't believe it's required but it seems like at the very least updating the service to 100 Amp is a good idea as far as getting it insured in the future.

Also, unless I'm calculating something wrong, it seems like it'll take about 10 years to recoup by initial investment. Is that the average for buy and hold properties? 

First deal, I'm sure I made some mistake, thus the post!

Duplex - C Neighborhood 

40k - Purchase Price - 25% Down ~10k

4k - Closing

6k - Roof Repair

1.7k - Misc Upfront repairs

Monthly Expenses/Income

Unit #1 -  $450 - Currently rented

Unit #2 - $450 - Vacant

157.40 - Mortgage

129.17 - Taxes

90 - PM

60.42 - Insurance, although this might change

66.67 - Water

90 - 10% - Maintenance and Capex

90 - 10% Vacancy

45 - Lawn Care/Snow Removal 

Net Income - 171.35

The initial inspection showed a few issues, biggest ticket item being the roof which I was already aware of so I decided to proceed. Insurance company that first gave me a quote decided to not insure the property due to it having 60 Amp service and Knob and Tube wiring. So I'm currently shopping around for another insurance and I'm not sure if I should now add the electrical/upgrades to the list of repairs on the home. As it is now at least the property cash flows.

Should I include the costs of upgrading the electrical in the deal analysis? This was something I hadn't even considered at the beginning (because I'm a newbie and didn't know to look for it). Seems like it's something I'll have to do eventually to make the house easier to sell down the road. Or maybe it's unnecessary?

Also the house was constructed in 1900, so is 10% too low for repairs and capex? 

Any feedback is greatly appreciated! Thanks! :)

That's Miami for you. 

This sounds great. Looking forward to it. Good to know I can catch the replay if I can't make it to the live chat.