All Forum Posts by: Dillon Cook

Something does not add up with the timeline given and the clerical error.  

Thanks everyone for your input.  

@Eliott Elias, where and when do you post these flyers?  

@Flue Hasipi Hi, there are a few areas, but Largo would be my first choice for the flexibility of long to vacation renting.  It's close to Clearwater and within a short drive to the beaches.  If you're living there first for at least a year, I certainly wouldn't do an investment loan.  Get a better rate with some other options.

@Josh Green Some good points.  Your first paragraph I agree with and is what I see.

I think most of your 1-5 is towards institutional buyers, which I 100% agree (I recommend 30-35% down).  This post was mostly referring to the newer or mid sized investor who is just venturing into Florida.  e.g. the only possible way you can make a SF cash flow is by buying distressed (not just a light cosmetic refresh), but I see some investors want a turn key @ 15-20% down; there's some disconnect somewhere.  Sometimes this disconnect actually comes from BP.  Perhaps an older podcast episode where interest rates were a lot lower when shot.  

Good points @Brett Deas

Perhaps I've lacked in the marketing department.  The experience is a big thing, I agree, but what if no one shows up?  The way I see it is the first time homebuyers are constantly looking online for properties.  Seeing one listed on zillow (and the 10 other top websites) and seeing the "open house this XX day at XX time, they may choose to come or not.  I agree 100% that most activity comes from online sources.  

I think pricing is also very important?  I've had one listing where in hindsight, we were overpriced by maybe 10k (not that much of a bridge to gap at the 300k price point) and had 0 turn up for two open houses.  The last thing I want to do is split marketing costs with a lender and 0 people turn up again!  Perhaps I was just unlucky

Has anyone had bad experiences with open houses in Tampa Bay?  Any tips you'd share on how to improve traffic?  Marketing?  It seems like open houses are dying, even for the owner occupant buyers... change my mind!

Hey All,

I am still shocked that so many investors are still looking at SFH, condos, and townhomes to invest in right now. Specifically single families tend to cash flow negative right now once you factor in reserves (which everyone should be doing). A couple ways to get around this will not apply to many investors, but you can buy and live-in for one year with a non-investment loan or househack, perhaps find a BRRRR unicorn, or modify a SFH to do room rentals.

I run numbers and speak with investors all the time and I've found that most newer or new-to-Florida investors get tricked by several things.  One, not realizing the property taxes on the listing are inaccurate to what they'll pay.  The only long term rental type I have found that consistently cash flows neutral or positive are Multifamilies.  

I am curious to hear from other agents and experienced investors in the West Central FL markets.  Are folks just not factoring in reserves to their single families now? Are they unaware of insurance and tax reassessments?  Is there a lot of regret from the last year where buyers find out they are negative monthly?

There's always the risk Buyer B wastes your time and then you lose out on both offers.  The advantage you have with a strong back up is the confidence to not give additional concessions to buyer A.  You are stuck with the contract as a seller unless the buyer backs out or has an appraisal issue as mentioned (which buyer B would also have that appraisal issue unless paying cash).

Good luck finding a SFH or condo/townhome that cash flows at all right now - though maybe better luck later this year when you're ready to buy. Right now, I would look into a duplex under the 350k mark.

Might be a good idea to manage yourself for a short period of time to gain some experience to better yourself for future STR if you think you want to pursue more or for the reasons @Mason Hickman mentioned.  Most of the investors I know here in Tampa started short-terming after they had established long-terms in place.  A local PM would know your area and situation better to advise you, but I would imagine it's more lucrative.