All Forum Posts by: Edward Jakubiak

@Rhonda Blue Rental pricing is dictated by supply and demand. My concern is that there are new builds like this and also slight falls in demand during the next recession. I’m working the numbers to see if it still works at current prices.

How much new construction is happening and possible? Is there good Mountain View land available?

@Jason Kotsko Thanks. Do you know a reputable agent that works with investors in the area? I’m coming down in a month and would like to get familiar with the area

@Dave Foster

I appreciate your insights. I may be able to squeeze 2 out when I sell but I'm concerned with dipping my toe into non-local real estate too far. Does St Pete area allow STR?

@Stanford Rowe

I would STR only in vacation spots that allow it. I heard Airbnb is different so I guess your advice is still good. Risk reduction.

@Joseph Firmin

Great insight. I heard that management fees were high but OC MD is only 15%. My first rental property taught me to learn more next time.

I own a relatively local rental that I want to sell and buy a potential retirement home. My daughter lives in Tampa so the gulf Florida coastal area would be okay. Also the Smokey Mountain area. I’m partial to NC in part due to the inflated Tennessee house prices.

What is a good strategy for doing this? STR vs long term rental is an issue. Both are not local but I'm barely breaking even with my local. I heard that Mgmt company percentage is very high in hot markets. Does supply and demand eventually bring it down to reasonable?

Thanks in advance!

Ed from Baltimore

I bought a property to rent to my daugher and roomates 150 miles away so I didn't go to the inspection or final walkthrough.  Among other things that got fixed, the inspector found drooping insulation and some mold on the joists in the crawlspace.  I worked with the agent before and she was there for the inspection and walkthrough a week prior to settlement.  She brought the inspector back for the final.  They okayed the repairs and when I got there after settlement I found them okay except that they only did some touch up of the insulation.  Only then did my agent tell me that it wasn't done and that the seller said they were going to fix it. She told me that "in order to make it right" she would have her handyman make the repairs.  I said that was nice of her to do and said okay.  He stripped the insulation, sanded the joists, painted them, put new insulation up and new ground plastic.  She sent me the $3500 bill showing that she paid and sent an envelope for me to pay what I felt was my part.  I don't plan to buy more property in that area.  It is my the ocean in a vacation area so I could turn it into a weekly rental if my daughter ever leaves. 

I don't feel that I owe anything since she offered to make it right.  Also, I don't agree with painting since it covers any mold that he may have missed.  I had mentioned a bleach solution spray and replacing the insulation that got damp.  The seller did fix the causes of the water getting in (loose door, vents etc).  I assumed it would be a couple of hundred to fix.  For $3500 I could have almost gotten it encapsulated.  The area is about 600 sq ft.  

How should I respond to her?  Thanks in advance.

Ed

I starting using it about 3 months ago for 3 tenants and had issues getting one of them set up to use it.  Generally there are 6-10 calendar days of delay from payment to showing up in my bank.  I just got one initiated on Aug 1 on Aug 10.  It's a nice system if you can handle very long delays.

Marcia,

If a relative is charged below market rent (second home taxation) but 2 others are non-relative renters, wouldn't it be 33% of the mortgage and taxes be deductible on Schedule A and 67% be on Schedule E?  Kind of like me living in the house and  renting out rooms to people.

Then when I sell I would have less depreciation to be taxed on.  

Thanks,

Ed

Al and Missy. You guys Rock. Thank you.