All Forum Posts by: Eduardo Bilbao

I am wondering if I should make it an Airbnb or to put a tenant in place? I know Airbnb could be more profitable but it's a lot more "headache"... Your thoughts?

Hi Niv,
It all depends on what your goals are. Higher cashflow also involves a higher investment. You will have to fully furnish the property and think of every little detail as a STR. The STR model is more of a hospitality business than real estate. You need to be prepared for problems to arise and they need to be fixed ASAP. In a LTR strategy you have more time to fix and mitigate problems that might come up. A property management company will charge you around 10% in a LTR and around 25% as a STR. Let me know if I can help you in any way. I could help you analyze your potential profit as STR and LTR.

Best regards.

0 Votes

Fort Lauderdale, Florida

Quote from @Apkesh Kumar:

Hello,

My current tenant living in Hialeah is vacating so I am looking for a realtor to help me with renting out the property. Preference given to agents living in the area, honest, and willing to work with me on the standard contract. Bonus points if you have access to an affordable handyman :)

Hi Apkesh,

If you still need a realtor to get your property rented PM. I can refer you to someone to do that for you.

Best regards.

0 Votes

Hialeah, Florida

Hi Adi,

PM and I will help you find one via the Subto community and Gobundance community.

Best regards.

0 Votes

Miami, Florida

Quote from @Alexis Herrera:

Hello all,

I have yet to speak to an accountant (looking a new one) or a lawyer (had one and was not reliable) about this but I wanted to ask. I have a few rental properties that I own. I have LLC's for each one, but only for the deeds. The mortgages are not under an LLC, just my personal name. Do I still get the same benefits and protections by just having the properties on an LLC through just the deed?

Just to piggy back from the above posts.
-You avoid piercing the vail by not commingling funds, having quarterly meetings, and property filling the taxes.
-First line defense should be your insurance policy then the LLC protection. Ideally you want to have the least amount of equity in the property to avoid lawsuits. If a lawyers sees that there is a 1st lien mortgage with very little equity in the property then it is likely that they will not further pursue you after getting the insurance settlement if anything would be to happen.

To answer you above question: My understanding is that you only deed the property to the LLC. You do not change the mortgagor. What the bank cares about is that the debt is being serviced and they are getting their money.

Hope this helps,

Best Regards.

0 Votes

Miami, Florida

Quote from @Ben Matityahu:

What are the thing to be aware of when buying a Multifamily property in a Fema flood zone as far as insurance is concerned?

1. is it very costly ? what are the potential costs ?

2. can a new purchaser denied from purchasing new policy ?

3. does it matter how many units does the property contain (multifamily or single family ) and are they treated the same ?

any information would be very appreciated as I live in florida and flood zones are a consideration in any

Regards,

Hi Ben,
-Yes insurance is in average 3 times more costly than the national average in the Miami area.
-Yes, insurers can deny you coverage and also deny you a new policy once the 1st year has passed.
-Yes, the more properties the more costly it will be. If you a 4-plex (2 on the first floor and 2 second floor) and the area floods and the first floor structure gets damaged then you might need to tear down the bottom tow units, therefore the upper 2 units have also to come down.
Please make sure to talk to a insurance professional and if you need a reference please feel free to PM me.

Best regards,

0 Votes

Miami, Florida

Now that I think more about this I would avoid using business credit card for your personal use (Rehab of your primary residence). In theory if you use your business credit to benefit you personally you are commingling funds. What does this mean? If your business gets into a lawsuit and then they can prove that you commingled funds then they can pursue your business assets and also your personal assets. That is called piercing the vail. Just be careful, get advised from a CPA and/or an attorney.

If this is a SFH that you purchased as an investment property to rent then open an LLC or use one that you already have and deed the property to that LLC and start using that business's credit cards to rehab the property.

Best regards,

Eduardo Bilbao La Vieja

0 Votes

Miami, Florida

Quote from @Samantha Otero:

Hello Bigger Pockets Family,

I recently purchased a SFH in Miami using conventional 20% down, however, since I am a first time home buyer, I am claiming this as an Owner Occupant. I plan on rehabbing the property and "house hacking" one side of the home. My question is: Can I use a business credit card to fund the rehab even though this is not considered an investment property? Will there be any legal trouble with taxes down the road if I do so? Thanks in advance.

Hi Samantha,
-How recently did you purchase this house? Depending on when you purchased it you might've accumulated some equity in the house therefore allowing you to get a HELOC on that equity. Do you own any other real estate that might have more than 20% equity? You can also pull equity out of other properties for this rehab. Maybe your parents have a lot of equity in their property and you can ask them to get a HELOC and you pay for the costs.
-Other option would be to open an LLC and apply for a Lows and HomeDepot credit card. In this same scenario you can open a bank account for the business, you apply for a DUNS number and start applying for more business credit though different vendors.
-Friends and family might also be open to lending you money for a determined amount of time to complete this rehab.

I hope this helps, please let me know if you have any questions.

Eduardo Bilbao La Vieja

0 Votes

Miami, Florida

Quote from @V.G Jason:

Quote from @Hugh Thompson:

make sure you educate yourself on the new "surfside" law going into effect 2024 that will affect condos up and down SE or SW coasts of Florida. Condo association fees will rise significantly to cover mandated reserves that normally could be addressed with deferred special assessments.

This. I don't know a single places assessment that will not skyrocket. I've been told to put aside well over $100k for mine. I'm selling my place though here next month. I love Miami, but it's past my time here.

VG may I ask you if the possibility of higher HOA fees in the near future is the reason for selling? Is there anything else to this decision to sell?

0 Votes

Miami, Florida

Quote from @Hugh Thompson:

For the ones wondering what this law is:
Senate Bill 4-D
-By the end of 2024 it will require condos that are at least 3 stories and within 3 miles of the coast to be inspected by a licensed engineer or architect when they reach 25 years of age. Condos more than 3 miles inland will require the same when they reach 30 years of age.
-By 2025 condos will no longer be able to wave the reserve funds for maintenance. Therefore they will have to fund hundreds of thousands of dollars for maintenance to be able to keep up with the integrity of the structure.
-At the same time new regulation will also require condos that are 6 stories and higher to install sprinkler systems by Jan 2024.

Those are some of the main concerns that are affecting future buyers or current owners. HOA fees are likely to skyrocket and many people will be displaced due to this and other factors.

Best regards,

Eduardo Bilbao La Vieja
Real Estate Advisor

1 Vote

Miami, Florida

Quote from @Matthew Metros:

Hey there! So, I've been thinking about investing in small multi-family units in the Coral Gables area. I actually lived there for about seven months, and I know the area pretty well. I'm looking for a property that needs a little fixing up but isn't a complete overhaul.

I've been considering financing options and I think a 203k loan could work for me (or some form of a rehab loan). It would allow me to cover the rehab costs and make a lower down payment (around 10-20%), which is perfect for me.

Right now, I'm in the process of building a team. I need a lender, agent, contractor, and a HUD consultant. I'm looking for people who know the area and have a good track record. Do you have any recommendations?

Overall, I think investing in small multi-family units in Coral Gables is a great opportunity.

Hi Matthew,

I can help with multiple contacts for lenders and contractors in the area if you need a reference. South Florida continues to be a very hot market at this time for residential and multifamily properties. Would you elaborate more in regards to your $203K loan? There are currently 6 multifamily properties in the MLS ranging from $1.3M to $2.5M in Coral Gables. In the current state if the economy lenders are now asking from 20% to 40% down payment to be able to lend at lower risk.
Let me know if there is any way that I can help. I am investor friendly and invest my self in multiple states.

Best regards,

Eduardo Bilbao La Vieja
Real Estate Advisor

0 Votes

Miami, Florida

All Forum Posts by: Eduardo Bilbao

Eduardo Bilbao has started 3 posts and replied 62 times.

Post: Airbnb STR or LTR Tenants?

Post: Looking for a real estate agent for a home in Hialeah

Post: Knowledgeable real estate attorney needed

Post: LLC for rental properties

Post: Purchase in a Flood Zone

Post: Business Credit Card to Fund Rehab - Owner Occupant

Post: Business Credit Card to Fund Rehab - Owner Occupant

Post: Where to buy a 2-2 apto in Miami for investment

Post: Where to buy a 2-2 apto in Miami for investment

Post: Team recommendation for small multi-family unit investment in Miami