All Forum Posts by: Dustin Baldwin

Thanks for the welcome gentlemen! @John Kent@David Ebbeson

@Bob Ebaugh

Thanks for the quick reply. The property is in the Azalea Park neighborhood by the Tyrone Square Mall. Less than a block away from the park. The only reason I brought up flood insurance is the rates going up in a year or two will cause more demand for houses not in a flood zone (this property). 

What do you mean by unknown investment amount? I didn't have to put anything down in cash if thats what you mean. Just had to utilize my VA home loan.

If I sold for $190 I would end up with roughly 20-30K depending on closing costs and other costs of selling. 

So, since I am new to the world of real estate investments and I am trying to set my rental home business up the correct way, I need some advice. 

I bought a home in St Petersburg, FL as my primary residence 3 years ago. Its a 3/2 and I rented out the other 2 bedrooms at $500 a piece, essentially covering the mortgage, taxes and insurance. I did not put anything down on the house because I used my VA home loan and everything was financed. Original Loan amount: $165K

A year after living in it, I moved for a work opportunity and rented out the master bedroom for $600/mo. I now have it rented by room for $550, $550, and $600 ($1700/month). 

My dilemma: I have 3 options and I need some advice here to figure out what the correct investment decision is. 

Option 1) Continue to rent it out by room. I have very good tenants. A Police Officer, Financial Advisor, and a security guard. My expenses are $1038/mo and I clear $662 in cash flows. Renting it out by room seems to be easier than by house so far. 

Option 2) Rent the entire home out for about the same amount. Less tenant turnover which will be good once I start purchasing more properties. May be able to get $1750/mo 

Option 3) Sell the house and use the funds to start purchasing homes that are better suited as rentals and meet the 2% rule. (as this one does not). My original loan was for $165,000, currently $156,500 owed. I have not put any of my money into paying the mortgage, it has been all tenant. The public record lists the home valued at $195, CMA at $175. Realistically I could probably list it for $190 and sell it within 30-45 days.

My only hesitation is that the flood insurance rates are supposed to increase by a lot in the next 1-2 years in Pinellas County. This house is not in a flood zone, a mile from the beach, new movie theater and mall, and is the area is growing quickly. 

Pro's of selling: Free up VA Loan, cash the equity out, buy a cheaper home for the purposes of renting vs Primary Residence, TVM.

Con's that I can see: Risk selling too early in a Sellers Market when flood rates are going to force people to move into non flood zone properties and demand is going to skyrocket. This is only a theory. 

Sorry this post is long, but any suggestions or help is greatly appreciated! 

@Account ClosedI may reach out to you for some more information. Need to get my license first. Thanks for your service! 

Hi everyone! 

My name is Dustin. I am a University of Florida Graduate in Finance and Real Estate, a Marine Corps Combat Veteran (still in the reserves), prior Financial Advisor, and a current MBA student and a business partner in a Private Prisoner Transport Company. Pretty diverse, i know!  

I first got involved in Real Estate Investments accidentally about 2 years ago after I bought my first home in St. Petersburg, FL to live in. I was forced to move shortly after for a job opportunity and I didn't have much of a choice but to rent out my property at the time. It's created a small start to some passive income. About $700/mo in cash flow/additional income. 

Since then, I have a friend who recommended the BiggerPockets podcast and i've been hooked for about a month now. Not to mention I can't put down Brandon Turner's new book on Rental Property Investing. With that said, i'm about a week away from sitting for the Real Estate License Exam in FL, and I am very interested in starting to purchase some rental properties and creating some passive income with some 3-5 year buy and hold properties. 

I have so many questions and so much to learn. I am very excited about the opportunity to connect with all the experienced investors, real estate agents, contracts, etc. on this forum and learn from some of the best! 

Looking forward to networking with all of you! 

Semper Fidelis, 

Dustin Baldwin