All Forum Posts by: Tony Oliver

So in my area it's really difficult to not find a property with some kind of HOA. Because of this, I'm guessing it's just something that needs to be vetted to avoid bad situations. How would yo guys vet one? I ran into a situation where I'm trying to sell a unit and the HOA held up my sale because of a reserve they couldn't meet

wow! I am impressed. Personally, I want to get on the buy and hold path and this sounds like no matter what you guys did, it would have worked out that way or in your case flipping. Just curious, how many flips have you done before this one and what were the challenges in this flip?

Hey Javier,

I agree with you on townhouses approaching the 1% rule since that has been my experience. The things that worry me are HOAs mostly since they are just an extra layer of beaurocracy to deal with and if managed improperly can lead to hassles. 

Right now I am dealing with a sale where because the association has less than 10% of cash reserves, the bank on the seller side would have normally walked from the deal. Luckily, they are willing to put up with it as long as the association pays up $1,500 for some cost involving the loan. Hopefully though if its just a matter of payment I can coax the bank and just pay for it myself. I know its not really optimal but given the situation (portfolio lender, FHA is no go, buyers ok with property condition) Id rather pay to grease the deal than get stuck after being so close to making this deal happen.

Hit me up Javier when possible since I would like to pick your brain on investing in Hollywood and maybe partner up.

Correction: I actually think as a personal residence because of the proximity to highways and travel around. 

So earlier this week I had a deal fall through because I was not quick enough to come up with a contract offer but I still decided to consider an evaluation for the unit.

Background- I was walking my neighborhood to try and burn some calories from my taco dinner when suddenly, a For Sale By Owner sign appeared. Just to see, I decided to call the owner and found out the following:

-Unoccupied for 3 years by owner

-Being put up for sale by nephew since owner doesn't live in the area anymore

-HOA fees are $280 (includes property insurance)

-Asking for $140k

-FHA not allowed due to being a Condo

At first it sounded like a good deal since area rents average around $1,400 for something like this based on rooms but the HOA fees eat into a lot of the potential income. Here are the numbers based on an interest of 5% and a down payment of 20%

Cap rate: 8%

Cashflow/investment: 1%

Rent: $1,400

Taxes: $2,900

Repairs: $1,000

NOI: $8,267

Cashflow before taxes: $636

Taxable net income (loss): -$1,529

So, it may have been an OK property for single guy to start 

IMO HOA fees make cashflow properties difficult to find here or needing higher down payments to mitigate the cost of borrowing. I live in Miami and am managing my moms rental here. One of the things I would think is best is to find newer properties if they are attached with a common building element (i.e. roofing on townhomes) and then after 5 years reconsider selling and putting the equity into another unit like a SFH or even a duplex.

I for one am having a difficult time competing with cash buyers here, which typically are foreigners from south america. I had one deal just this week fall on me because of this situation but oh well lol.

Hey Miguel thanks for the input! I calculated the $2000 as a one time thing for major appliances. The landscaping would be covered by the HOA which is typical of communities here. Im not going to use property management if it were me since I feel I can do a better job than a potential manager. What have you seen as typical insurance costs?

Hey Guys,

So I found this property online and it sounds promising. Its in 2312 Van Buren St. and the area is pretty good as a bachelor pad. Its a 1/1 and looks like a decent place for someone who wants the South Beach kind of lifestyle (i.e. walking to the beach). Its good as a first time investment from the rough estimation of the numbers. 

Cap rate=11%

Cashflow/investment=26%

Cashflow/Assets=6%

These numbers take into account a 20% down payment on the sticker price of $76,500. (Im sure if you can negotiate better, the numbers will be better) 

I also estimated renting it at about $1,000. Rentometer has the area listed at around $835 as the average with numbers tilting higher by a hundred dollars. The neighborhood looks to be up and coming as I go there a lot for entertainment as well as dates with girls.

If I had the money, I'd jump on it but I dont have a 20% down payment. Plus I dont know if it needs new appliances or have seen the interior. I got the screenshot below using this sites excel sheet. BTW the numbers include the HOA fees stated in the listing with the taxes estimated at $1000 per year and a budget of $2000 for new appliances (washer, dryer, fridge, if needed). Yearly, it should produce $3,279 net after mortgage taxes and other first year expenses. Add in the $2k from the appliance assumptions and its a $5k net yearly cashflow.

I cant seem to figure out how to upload the images of my calculations so please take my word for it lol.

thanks Antonio! That helps alot. I should. Clarify that since my house is in the community  ihave access in the gated community. It's a decent neighborhoods mostly young professionals and a couple of small families. I saw that the bank has an info sheet but with nothing there. I'll try giving then a call. Antonio if you're in Miami Lakes send me a message I'd like to pick your brain. The deal is in this area.

hey guys!

So I went to go pick up the rent at one of my moms properties and took a quick drive around the block. I noticed theres a similar style property (townhome) that was repossessed by the bank. How do I find out who the bank is, get info to analyze the deal ??? BTW it's in a gated community in Miami Lakes.