All Forum Posts by: Dillon Cook

Looks like you said it's up for auction.  You probably have to buy through the auction and you'd need to ask what kind of financing is allowed if any.  There's always hard money if you really want it..

Tampa has some specific requirements.  Curious as well what your issues are. 

https://www.tampa.gov/special-...

Consider a short-mid term rental in the Tampa Bay area.  Justify the first purchase by taking the occasional trip down to stay in your rental.  Hire a solid PM and agent to find and review your first deal to make sure you won't be making a big mistake.  Tampa is an appreciation heavy market.  As rents increase, you become grandfathered in to some great cashflow.  On top of that, short-mid terms should cash flow more than long term.  Will definitely help you feel non-complacent!

Are you working with an agent?  Are you actually in a flood zone in Brandon?  Most of Brandon is not, there are just a lot of little bodies of water that create a small flood zone radius.  Even if your lot is on a flood zone, as long as the structure isn't, usually you're ok.   Hope you're calculating taxes correctly and not copying what Zillow says!  Otherwise doesn't look too bad

Truthfully, even the adjustments seem off.  Are you positive the rent is really 3.5k/unit?  Usually with higher end units, your vacancy rate is higher too which I would move from 3 to 5%.  It looks like you'll barely cashflow with.. 40% down?  That's about right.  It is for sure more of an appreciation than cashflow performance. 

@Chris Webb  maybe it's like .5-3% annual until you sell.  Then the average hopefully increases to well above 10%.

@Bob Stevens Be careful about advertising Cleveland so much.  You don't want to be too effective if you're investing there, hah!  

Holiday-Port Richey was great for awhile up until 2021ish.  Still not terrible, but prices really evened out during the Great Covid RE Surge of 2020-2022.

It's really about cashflow vs appreciation when deciding on location and investment type.  Tampa Bay is turning more into a "LA" type market and further away from the nice hybrid we had for awhile.  

A 4/2 SFR in Wesley Chapel has some amazing appreciation potential. ie when homebuyers bought new builds between 250-300 and sold for 50-100k more 1 year later - essentially flipping new builds as WC expanded. However as a long term rental, you'll be bleeding cash flow each month. Strictly a long term appreciation play since most HOAs there, to my knowledge, won't allow short or mid term rentals.

That type of conversion shouldn't be an issue for you to close in Tampa. I've seen a SFH with an unpermitted garage-to-bedroom conversion go through without any problems from title, insurance, or lender. If you're concerned with "legality", this is a much different and lesser issue than, say, converting garage to a studio/2nd unit. I would be more concerned with condition and if the inspectors saw any physical problems. Hopefully this property is not within a HOA...

 I'm personally on a brokerage that's a part of a property management company.  We get leads all the time from owners who are ready to sell.  Sometimes they're ready to buy more.  

For others, finding a small property management company without the skill or time to sell could be invaluable.  You can pay them a referral for leads sent or closed which would motivate them to capture more leads instead of letting their owners find a random agent in the area and they lose an owner on the PM side AND get nothing. 

That's a neat idea, but how frequently do you do that?  Weekly, daily?  Mine has been building strong relationships with property managers.