All Forum Posts by: John McCormack

Hi BP'ers,

We're looking for  any help or info you may have on lenders who have delayed financing products in the South Florida area. We've discovered one lender, "Paradise Bank" who does offer this.  Also, any firsthand info about how the process worked would be greatly appreciated! Thanks much in advance.

John

Hello BP'ers,

Hoping someone can refer us to a great insurance broker that you've personally used for landlord insurance policy. We're looking for policy on SFH and (currently) owner occupied duplex. Thanks much in advance for any info you can provide!

Best,

John

Can someone please clarify for me how calculating CoC return is helpful particularly when using the BRRRR strategy.

I'm reading how it is really only a calculation for the first year only??

During the first year of the BRRRR there may possibly be 3-ish months before renters are in. Wouldn't this skew calculations? Or do you use "potential" 12 month income in order to calculate "potential" CoC?

We tend to be buy and hold cash flow investors, so would calculating cash flow after renovation be the best method for determining a good deal?

 @matthew copeland I guess there's only one way to find out.  We'll probably call the city tomorrow to see what their answer is and determine best course of action. 

Hi, 

We're located in a duplex in South Florida and wondering if anyone has separately metered just their irrigation line to reduce the overall sewer bill.  I believe it's been done before but remember the cost to do so in some places can be very high.  Simply thought of it as an idea to reduce the bill. 

That being said, I'm guessing most people will tell me to contact the city and ask them.  Just wondering if it's common to do and time/effort.  Thanks much for any insight you can provide!

John 

Ahh, OK well that's good news then! Hmm...does it make sense? There seems to be so many variables to that question.  Does the structure lend itself to being modified without putting too much into it? 2 story or 1 story? So on and so forth. Do you happen to have a link to the home we can view?  So you think there's no potential for short term rental? Are there desirable activities/attractions to the location?

I can only speak for myself, after owning an 1920's and 1930's home...I will probably stay away from them in the future.  For us old = possibility of more unknown issues.

Hmm...I not in your area at all (South Florida) but do have some experience in historic homes as we own what's called a "contributing structure". We wanted to do some exterior improvements for something as simple as siding (we wanted to replace rotted wood with Hardi Plank siding: much better) and I had to present a 30 min argument to the city which they shot down and I don't believe even had any intend of changing. 

My point is that  you'll have to probably jump through many hoops in order to comply  with the city. First find out if it's a contributing structure and get in touch with the local historic preservation board maybe? 

Alternatively, we instead of making the home a long term we've turned it into a vacation rental as that type of home is more appealing to short term vacationers. Do a quick check on VRBO/HomeAway or AirBNB and see if there's anyone doing the same close by and what they're getting for rent. However, before you do that see what the local municipalities rules are on short term rentals so you're not operating illegally.  Hope this helps!

 Hi Jonathan,

I think alike to everything you've said but guess I was just looking for confirmation bias ;-) I think I will do a simple letter that takes little of my time and see what happens.  Answer is always no unless you ask I supposed! Thanks for the feedback :-)

 Hi Amanda,

Yes, I supposed you're right in regards to wanting the property...but more of me just trying to be more aware and recognize what could be opportunities right in front of me :-)

So today there was a property we live (very) close to that appears the tenants almost burned down tonight (fire dept, smoke, police etc) and we've also seen police come out for an overdose. All in all not the most "ideal" tenants...understatement.  

That being said, what would be best approach to currently property owner/landlord.  I've already found out they are local and own another property in the same town/city they live in as well under a trust. If my detective work is any good, it appears the owner in 73 and has held the property most of their lives. 

I'm guessing a letter would be the best bet to begin with? I look at the place and think, man I could put such great tenants in there!  However, we're in a very hot market and priced out of most anything where the numbers work.  I know it's all about solutions when trying to help a seller get motivated so maybe I should just try and find out the story on owner/property first?