@Tchaka Owen thanks for the great advice.
The BK property
1. It is a bit overpriced relative to the comps in the area. So there's room to negotiate down.
2. You are right my friend. New Yorkers love to squeeze into these tiny, overpriced units and so obviously there will be 1-2yr turn around on new tenants. This I'm ok with.
3. I went ahead and adjusted the closing cost per your advice.
The WPB property:
1. How do you know the purchase price is competitive? I don't. I just found this property last night. I reached out to the listing agent and got majority of info during the call.
2. Do you intend to move down to Florida to oversee the rehab? No. My brother lives in PBG so I'd have reliable eyes and ears in the area to make daily checkins to make certain that all goes according to plan.
3. You mention "triplex" and allude to a main house + 2 units (this makes sense). However, your numbers have income from a main house ($1600) and 3 units ($550+$550+$700). Is this a "quad" or is income $2850/mo? It's listed as a triplex but the info given covers four units.
4. Your other numbers need massaging too. Closing costs will be closer to $8000 or $9000; ARV cannot be $179.9k, otherwise drop this deal immediately. You should be able to find management for 8%. Why are the closing prices that you're quoting so high? Everything that I've read expresses a different cost. How do I go about finding out these numbers and making them real? The ARV I left at the asking price because there are still unfinished work on the property that I don't have that information for. A quality management team would be nice. All referrals are welcome.
Although it would be nice to work on a place in your town, I don't like that deal one bit. You're relying on appreciation of the property and hoping all goes well so as to cover the monthly payment(s). Some investors go with that strategy, I don't. Many old school don't either. GREAT ADVICE! Thank you.
The WPB deal is smaller and the property will easily provide positive cash flow. Not only that, I do not believe the rehab will cost $30k. You'll probably get it done for $18-20k. Here's the catch: you need to move down while the work is going on to keep an eye on it. If you're not willing to do that, you might want to skip this. I do have experience in South Florida including WPB....efficiency increases dramatically under the gaze of an owner's eyes.
