All Forum Posts by: Brian Garrett

@Whitney Ortiz I believe what Steve meant was that property taxes are high in many parts of Florida so this cuts into cash flow for rentals but as long as you account for that when you run your numbers you'll be fine. Just remember to base your numbers off what the new taxes will be after the sale once the property gets reassessed.

HML telling you to pay $3,000 up front for access to their software and services is a major red flag for me.

It's going to be tough to find properties to do what you're looking for here in South Florida.

This is not a good market for BRRRR as the price to rent ratios simply don't justify it making sense.

This is a very common strategy known as value-add multifamily.

There are a lot of posts and examples that you can find and read about.

The biggest challenge is finding these value-add deals at a price that makes sense.

They are typically found through commercial brokers and by marketing directly to owners.

These are typically funded through commercial/portfolio lenders or agency debt on larger deals.

It's a great strategy to force appreciation by increasing NOI and capturing that equity gain once stabilized.

Good for the economy, bad for Coronavirus.

Typically the buyer would be responsible for these.

The cap rate depends on the specific market.

Two different cities in the Midwest can have greatly different cap rates.

Reach out to a commercial broker in the area who deals with similar assets and ask what the going cap rate is.

4.24% sounds very low especially for the Midwest unless this is maybe an A-Class area.

You could consider buying with a HML so you can also offer "cash" to compete and then refinance into your conventional loan afterwards. Of course you just have to make sure the deal can support the HML up front.

I would suggest speaking with @Dave Foster regarding the 1031 exchange.

The value of a single family home is ultimately based on comps and not income.