All Forum Posts by: Dillon Cook

@Sandra B. In Tampa Bay - SFR nearly all end up negative right now without putting more down or buying down interest rate. MFR is going the same direction, but is much better right now than SFR due to how rents on the lower end have increased faster than your typical 3/2 SFR. Because Tampa has shifted to a more appreciation vs hybrid cashflow investment area, you'll need to be comfortable with putting more down on your investments or letting them sit slightly negative/breakeven for a couple years while rents increase further.

Would agree with 3k/mo cashflow being unrealistic for first time in this market.  If you're looking to replace your income, you'll need a few deals and time to pass (with rent increases) to add up to where you want to be.  I'm in Tampa and while I don't work with short terms that often, I know the west central FL area is filled to the brim with options.  In the long term market, rents are strong, but buying right now is incredibly hard to cash flow.  

Don't expect cash flow immediately. You'll have tenants paying off your large mortgage and probably break even for a year or two on cashflow. You need to be willing to put more down to see cashflow or invest in bigger problems with more efficient contractors. Builders don't seem to like building multis around here. They keep building more and more SFH, so I wouldn't expect demand for multis to drop for a long time.

DOM matters.  How many times they've been under contract matters.  Today is much easier to negotiate post-inspection than a year ago like another guy mentioned. 

You want to have a structural engineer and/or inspector look at the property once under contract.  Ask questions before sending over your offer to see if there are any disclosures they know about.  

I have my thoughts on which the fed will choose, but who knows!?  I have a feeling if push came to shove, they would fight a recession instead of inflation and reduce interest rates again.  Inflation is extremely high already.  Interest rates are high, but haven't affected pricing as much as you'd think in the Tampa area.  Is past inflation keeping the prices high amidst high rates?

Kiyosaki recently said our economy is going into an "aerodynamic stall".  Curious to hear opinions bounce around because IF rates were to drop again in ~ a year, that would affect the way investors viewed deals right now.  

Hi @Jeffrey Reynolds I'm in Tampa and I've assisted investors like yourself on BRRRRs in the area.  It can be scary pulling the first trigger on an out of state investment with basically strangers working with you.  I've found you can read and learn only so much until you start virtually looking at actual properties in an area with an agent, asking questions, and learning the nuances (tax reassessments, benefits, how to analyze cash flow).  Once you've done that a couple times it's easier to pull the trigger.  

Local agents can give you comps now, but kinda hard to give comps for value in a year.  You need to factor in a bunch of data on population growth, business trends, any mass layoffs in the area, etc.  I'm in Tampa as well, not south Sarasota, but I do think Sarasota/Bradenton is going to be a good location to hold.  As far as your specific property, I wouldn't know.

@Jayleen Soto I agree with you.  It's the best and worst of both worlds.  At least you have the option to rent out a room if you choose though

@Jayleen Soto Local credit unions like Suncoast are a great place to start with their great rates for first time home buyers. They often have low % down options and occasionally offer no PMI options at 3-5% down which is much cheaper monthly than FHA. This will allow you to live in a SFH and house hack it with little down. For your first house, there's so much to learn that I'd personally avoid a duplex for your first property. Multifamilies also have lower supply and less locations to pick from compared to a SFH.