All Forum Posts by: Dillon Cook

I'm an agent in Tampa who helps investors look for these opportunities.  The service fees end up being around 20.75% if you hire a "host" or property manager to make the investment as passive as a long term rental.  Even with a 25% fee, you're cash flowing better than a long term rental, so the fee should not deter anyone!  There are a lot of nuances with this type of investment, but between Padsplit, your GC, and an agent, they can guide you through your first couple successes. 

I've got the privilege of being an agent in the Tampa market while it's doing so well.  

First, Tampa historically is never hit directly by hurricanes.  It takes a very rare track to actually hit Tampa the way we're positioned.  Sure we get tropical storms and edges of other hurricanes (since their width can span the whole state), but nothing like what Puerta Rico or Miami sees.

Secondly, there are rental investments strategies available in Tampa and nearby markets that allow you to cash flow very well on top of the appreciation Tampa sees.  However if you go the traditional long term rental route, they are getting harder everywhere to find in fast appreciating and larger markets with just 10-25% down.  In Tampa, you really need 30-40% down to see any cashflow.

Are we all calculating cashflow the same? To me, it's after reserves, PITI, and PM fees.

You will have some level of difficulty finding a suitable area searching for a duplex. Zoning for multifamily hasn't put them in the most desirable areas and they haven't built a significant amount of new ones in the last 20 years.  Probably better off looking in Pinellas, but I would get a search going and look at everything that comes in on a case by case basis and you'll come across a few pretty quickly.

I haven't heard of a condo allowing short term rental around here unless its actually on St Pete Beach or in a nearby zoned area for these rentals. Not sure which beach you're off of, but I think that's going to be your issue. I wouldn't want to have a HOA with a rental anyway even if they allowed.

Anticipate interest rates dropping again.. Might just pay cash now and then finance it later when rates drop a point.  You'll see better cashflow in the meantime (obviously).

I assume you DONT want to househack a multifamily.  

There's usually no cash flow on year one when financing even at 25% down.  If you want cash flow, you'll need to pay high % down on turnkey (30-40%), buy very distressed and renovate, or househack it and let the 3 units subsidize your monthly living expenses.  

Mid terms are great, but are you going to furnish it?  St Pete is ~40 min drive to most MTR spots in Tampa.  Are they going to be coordinating maintenance, inspections, furnishing the place, handing over keys to tenants, etc?  Maybe you have a plan already, but some management companies can do all of this at decent pricing. 

So what's the normal $/sq ft in Carollwood?  I'm sure it's over $200 and maybe even approaching 250 for this size and area.  Sounds like you're fine, but kinda tough to tell from this post

This is something I've been thinking a lot about as well.  Cash flow generally does not exist on year one.  You can buy a large rehab deal, but you'll still need 6+ months to get tenants out, renovate, and refi.  Anything close to turnkey or light cosmetics just won't cash flow for probably a couple years.  The goal is to at least safely break even and hold out over inflation and rent growth.

@Michael Haynes, you would still invest in real estate to hedge against inflation.  If one thinks the interest rates will come down again - even by 1%, they'll probably capitalize on increased values further and/or be able to refi to actually cash flow quicker.

Target land towards builders looking for deals for their new construction builds. 

Are you a buyer?  Investor or otherwise?  Maybe the easiest thing is to find an agent to walk the properties with you that way you're not inconveniencing anyone.  Guns are also a great equalizer in bad situations.  Good news to those of us in Florida, constitutional carry will be effective starting July 1st, 2023!!  No permit needed to conceal carry.