All Forum Posts by: Dillon Cook

You have the option of paying yourself back or paying the investor back? Do you think the stock market is going to affect your 401k negatively during the next 5 years anyway?

500 cash flow is a LOT for 36k down where I'm at.. curious what type of deal you found.

@Russell Brazil exactly - don't be cheap! I assume this referral is going to eat into their commission and not the brokers split? 

What are the odds the other agent is going to use you to buy a property and ask you for a referral?  Probably not...

@James Wise

Appreciate this post and the time and data you used putting it together.

Agents do need to be more selective when working with investors if they want to make a living wage (or better). Personally I have not had many issues working with out of state investors... But maybe that's because all the good ones are coming down to Florida!

Pretty much what every other agent is saying :) If you have a great PM in Jacksonville, I would learn towards keeping it and refi. If you are self-managing, it's probably more stress and work than it's worth being that far away. 

While SFH are king right now (it terms of renter preference and appreciation), you may be able to buy a quality 3-4plex with that much down if sold.

Some statistics have shown housing prices have increased 60% faster than rents over the last 12-18 months.  The main difficulty you'll have is not with refinancing but finding a deal that allows for you to pull most of your seed money out while still cash flowing after all expenses. Talk with a lender during pre-approval on their cash out products and criteria. 

I agree with @Abel Curiel on house flipping.

You may want to consider a less sexy but long term viable option.. buy and holds with some initial value add potential, wait 2 years for further appreciation and rents to grow (given market uptrend continues at mild rates), then refi into another deal. This can also protect yourself by not overleveraging too much too quickly if worried about a looming correction. 

@Mario Gonzalez

You can cash flow on most sfh. How much is the question. A 180k 3/2 could produce $200/mo cash flow where as a 300k 3/2 might produce $20/mo.

Higher relative returns are gained in the 100-200k range. If you want something a little less aggressive, like a class A neighborhood for example, you could break even the first couple years and start cashflowing year 3. Tampa is similar to some California markets in that most gains are achieved by appreciation, however unlike California there is still some cash flow to be had

Just curious, what type of returns are you willing to accept? BRRRR getting difficult to achieve in Tampa. Maybe other agents have different experiences this past year.

We also saw a very low rate of late or nonpayment the last year and a half. About 10x below national average over a large portfolio. It's great that so little assistance was needed this past year despite the worst case scenario we feared. Nearly 99% of our tenants didn't have issues paying rent, but those that did were temporarily behind, and they got back on track within a reasonable time frame. One decided to break lease due to job loss, and we worked with them to move out and re-lease asap so an eviction and additional charges were not placed on their record.

I feel for those that are dealing with tenants playing the system. Florida is friendlier to landlords than many other states are. Perhaps that has something to do with tenant mindset and gaming the system.

Tagging off what Brian said, folks are moving TO Florida.

I'm in central FL (Tampa Bay) and I know about 20 investors who would die for those numbers right now. So probably not here unless you're willing to lower expectations. With Tampa, and other FL markets, you have to factor in future appreciation. That's not free