All Forum Posts by: Isabela Montalvo

@Jhon Restrepo how do you get the numbers for South Florida condos to work? I've been looking at condos recently, and between high asking prices, high association fees, and often spotty unit condition, it's difficult to get the proforma rent to align with what the market is actually willing to pay and still make the oftmentioned target monthly cash flow of $200. I'm also a little worried about the risk for long-term or indefinite special assessments that can a cash flowing unit into a cash draining one. Any advice?

If no one bids on a lien, the lien reverts back to the county (hence "government owned").  If at any point the property owner pays off the overdue property taxes before the lien expires (period may vary by state), the county is the party that earns the interest.

Properties that are owner-occupied (as indicated by a homestead exemption showing up on the annual tax bills) or have a mortgage are most likely to be bid on because they have a higher likelihood of being paid off either by the homeowner or the mortgagee (the lender); the homeowner probably doesn't want to lose his/her place of residence and the lender probably doesn't want to lose its investment.

If no one has bid on a lien, there are likely issue(s) with the property that, in the eyes of bidders with investor mindsets, render the property valueless, for example:

• the property has no direct access (landlocked or waterlocked),
• the property is too small to be built on as-of-right per the municipality's zoning codes,
• the property is contaminated (a Phase I environmental report would scour records on the property to see if contamination is likely, and if so, a Phase II environmental report would be done and soil, etc. samples would be taken to confirm the contamination),
• the market fundamentals indicate little probability for profit given the level of risk, such as high vacancy rates, low rents, or slow sale/rental velocity,
• the property is in a "poor" location due to many of the types of things that turn off people looking for a home in which to live, such as high crime; poor or nonexistent infrastructure, such a streets, water & sewer, etc.; too rural/too urban; neighboring uses detrimental to the property's value, e.g. railroad, warehousing/industrial district, jail/prison, cemetery, etc.

I hope that helps!

There is a meetup held the last Tuesday of each month at the Union Beer Store in Little Havana:

https://www.biggerpockets.com/forums/521/topics/576146-whats-brewing-miami-rei-meet-up

Thank you, @Thomas Franklin!  I'll definitely reach out to you.

Thanks, @Marty True and @Marc Bresseau!  As the holidays wind down, we can set something up.  I think a small group meetup would be apropos so that several of us can get to know each other at once.  Any future repliers to this thread are also welcome.

Thank you, @Michael S.!

Hello to the BP community!

My name is Isabela, a future student rental investor-manager.  I currently reside in and have been working as a real estate financial analyst in the Miami, Florida area.  I have about two years' experience in this capacity and feel like it's about time that I pursue my passion of real estate investing.

I joined BP last month and have built up the courage (and knowledge of BP's traditions) to finally introduce myself.  The real estate bug bit me long ago. Having gotten my MBA to help fulfill this passion, as well as read article after article and attended webinars here on BP, I've got my primary goal pretty solidified and hope that the BP community will help get me there:

What:  60 buy-and-hold rental units (more in the future, hopefully!) in small-scale buildings (6-20 or so units per building) each cash flowing a minimum of $100 per month (per @BrandonTurner's personal rule of thumb)

Where:  college/university markets, beginning in Florida and then branching out to the rest of the Southeast.  Miami is a no-go—at least for the moment—as asking prices are exaggeratedly high, especially in comparison to assessed values.  (Man, how I wish I lived in a different market!)

Who:  student renters as tenants (duh)

When: over 6 years (this would average to 10 units per year; I know it's reasonable and doable, but I still find it ambitious and overwhelming)

How:  I realize I may need partners or creative financing to reach my goal (hint, hint!), but I intend to venture into my first deal with conventional financing unless a better opportunity presents itself.

Why:  I am more of a long-term player, hence the buy-and-hold rental strategy.  I've always been attracted to student rentals because of the asset class's specificity; the tenants (students), the market (college/university towns), the leasing cycle, the potential demand (by analyzing on-campus housing versus enrollment statistics), the unit sizes, the lease structures (cosigners and by-the-bed, in some cases), the expected/desired level of amenities and finishes, etc. are all either known in advance or can be determined via focus groups or further research.  The more I know ahead of time, the better I can prepare for things.  I am very analytical and get very excited when thinking about ways to organize and systematize procedures, and the repetitive and well-defined nature of the student rental business is right up this alley.

I could go on and on, but I thought it'd be a good idea to introduce myself in this way so that my goals are known from the outset so that we can all get the most out of our networking.  For more info on me and my background, check out my profile.

Looking forward to getting to know my fellow investors and potentially future partners and lenders!  Thanks!