All Forum Posts by: Dominick Galinis

There’s already a ton of great advice here, but one thing I’ll say is;

You’re about to embark on a journey where there is a TON of people with a TON of advice and perspectives. And here’s the thing, they ALL work. The biggest thing you need to learn is about yourself, and what is it that YOU want. The best advice on the newest Mid term rental strategy is irrelevant to you if you have no desire to do that. Find what sounds fun to you, and learn that thing.

Quote from @Adam Frocione:

Quote from @Dominick Galinis:

Quote from @Adam Frocione:

@Dominick Galinis@Mary Kenney I'd be very careful forecasting future rent growth in Florida. Orlando and Tampa have experienced top 5 rent growth in the country and have leveled off. Similarly, transactional volume has dwindled considerably year-over-year due to the rising interest rate environment. There are still plenty of deals to be had in Florida but I'd be tepid when analyzing market rent growth and terminal values.

 The problem with being afraid of rent growth is you’re only looking at extremely short term rent. I mentioned years down the line, and even if rent flat lines or goes DOWN the next 2 years, I’m willing to safely bet the rent will be higher in 5-10 years than it is today. All the numbers are pointing in that direction, and a high inflationary moment in time doesn’t change that.

 @Dominick Galinis I'm curious how long of a hold period you're envisioning for this investor. There is no wrong answer but the hold period dictates the importance and relevance of specific return metrics which are then driven by specific underwriting assumptions. Your anecdote above suggests you're a long term holder (10+ years) which is going to draw your eye to the equity multiple. If you're a shorter term investor (3 to 5 year holds) and you miss underwritten market rent growth for the first two years you're going to get killed on all associated return metrics, especially the IRR.

Well.. you decided to comment on my original message, so let’s go back to that. “If you invest in South Florida *you’re going to be playing the long game.*” I said 1-2 years you’ll probably break even then from there it’ll start going up. And if you wanted immediate cash flow then to change the strategy you’re using. 

Obviously based on what I said I believe in holding for the long term, in South Florida. It wasn’t a comment on the market as a whole. It was for this particular investor and what he could look at for down here, and being honest about what’s going on here.

Quote from @Adam Frocione:

@Dominick Galinis@Mary Kenney I'd be very careful forecasting future rent growth in Florida. Orlando and Tampa have experienced top 5 rent growth in the country and have leveled off. Similarly, transactional volume has dwindled considerably year-over-year due to the rising interest rate environment. There are still plenty of deals to be had in Florida but I'd be tepid when analyzing market rent growth and terminal values.

 The problem with being afraid of rent growth is you’re only looking at extremely short term rent. I mentioned years down the line, and even if rent flat lines or goes DOWN the next 2 years, I’m willing to safely bet the rent will be higher in 5-10 years than it is today. All the numbers are pointing in that direction, and a high inflationary moment in time doesn’t change that.

Quote from @Mary Kenney:

@Lucie Tighe our target is middleclass single family and and small multifamily homes. We are just starting out but our goal is to accumulate enough rentals to make it our only business. It just feels like FL, and South FL specifically where we are from, is too expensive to make any rental profit. 

So, if you're looking for South Florida, I'm going to say it depends. You're definitely playing the long term game down here in the multifamily space. What I mean is years 1-2 you might be breaking even, but with our strong rent growth it'll be worth it over time. Because of that fact, I tend to lean towards the MTR/STR space down here. If you're running a STR out of a duplex, it doesn't have to be a killer deal, just better than the LTR to make it worth it.

So, as of right now there's nothing being actively banned. However, there are regulations that are in place that are being enforced. Also, inspectors for STR properties in certain areas are taking a bit to get done. So I'd keep that in mind as well

So, I don’t think it’s an X or Y question,

I think it’s a X then Y question. I’m by no means in the prediction business, but I just have the feeling that arbitrage isn’t going to be a 30 year strategy. You use arbitrage to build up your cash flow/cash reserves to go buy real estate. That’s strictly my opinion and how I choose to use the strategy. 

Hey @Niv Konforty,

this is a good question. And one with a really boring answer. It depends on your goals.

You said it, Airbnb is more profit, but do you want to take the time running it? I run 20 atm and it is work. Not a *ton* but it does happen. For certain people, the extra work from running airbnbs isn’t worth the extra profit. And that’s okay. As long as you understand that the money will be less and the numbers work on the LTR, go for that too. I’m an agent in the west palm area, if there’s anything I can be of assistance with, feel free to reach out

Congrats! Where is this at and how much you looking to get?

Quote from @Zeona McIntyre:

@Dominick Galinis curious why you feel that you need to "Act fast". 

So, I don’t mean to act fast to say irrationally quick or anything. But, I’m seeing more and more people talk about this space, and I know it’s a long way to go to where it gets to “STR levels.” I’m recognizing that MTR is in the beginning stages, much like STR was in say, 2017, and one of the advantages of seeing that is getting into the space earlier, and providing a good product, so that way when more people turn to it, I have infrastructure and a foundation in place. 

little tired today, so hopefully that made some semblance of sense 😂 

Hey Jazmin!

im based out of Fort Lauderdale but I help a few clients in the West Palm Beach area. I would love to connect and see if we’re a good fit to work together.