All Forum Posts by: January Johnson

You don't mention your area. I sell to STR investors on the Emerald Coast. If you were talking about a property here, I would tell you whichever one is closer to the beach is better, and if it has a pool, even BETTER better.

So what's the LOCATION LOCATION LOCATION factor?

In general, SFRs appreciate faster and better than THs in my experience, so there's that as well.

Also, what's the TH HOA like? What size are the properties? How many bedrooms? More info is needed from you to give better advice.

Quote from @Jake Cortez:

- Lot rent at $300/month. Total monthly excluding yearly taxes & insurance: $1,350. We own a mobile home dealership 5 miles away, we will make approximately $40k each Mobile home we sell into the park.

- Market Advantage: Below-average pricing for Panama City. Clean, well-kept, Grade B park with proximity to the beach.

- Plan: Fill up vacancies & sell the property within 3 years.

An incredible chance for investors seeking value in Florida's panhandle, attractive to both local & out-of-state investors.

 Hey Jake - I live in PC as well.  Where is this located?

I made a post specifically about insurance in FL.  

https://www.biggerpockets.com/forums/530/topics/1145792-5-in...

If you already have an Airbnb listing, join the Airbnb host community in that area. There are tons of Airbnbs in Galveston/Crystal Beach, and the hosts will be happy to help you out with info and recommendations. It's one of our STR markets.

https://community.withairbnb.com/t5/Local-Host-Clubs/ct-p/en... 

Contact Cathy Craig there.  She's an agent and has vast knowledge about STRs in that market.

If you were going to manage my property, I would insist on you being a cohost on my listing. That way I would own the reviews, which I would not have if my property/listing "belonged" to you.  If/when the owner wants to take it back over, they will have to start over with reviews unless it belongs to them from the get-go.

Don't know if anyone mentioned this already or not, but check to be sure your RE license will allow you to manage property on a commission basis for other people without a CAM license.  Don't risk your license for this!

@Mike Reynolds Go to Enemy method dot com. It's a way of seeing how the best STR hosts around you are performing, what their amenities and reviews are, and assessing where you should be in terms of ADR and occupancy. @Luke Carl is THE MAN when it comes to teaching this!

The words “insurance in Florida” can strike fear in the hearts of investors, but I’ve got 5 TIPS that can help you navigate this expense a little easier*:

1. Pay attention to the age of the property. Nick Massey, Director of Sales for told our real estate team that properties built between 1980 and 1999 are going to have the HIGHEST insurance premiums. This is due, in part, to the prevalence of in homes in this age range. The presence of this material has increased the number of water damage claims, which raises risk—and rates. Know what kind of pipes you have, and consider replumbing if you have polybutylene. Nick also said:

• Premiums for properties built after 2001 are BETTER
• Premiums for properties built after 2010 are BEST
• Properties built before 1980 actually get a little premium BREAK

Speak to your preferred insurance broker about your identified property for more specific details.

2. Get a new 4-point inspection every year. A 4-point inspection summarizes the age and condition of a property’s 1) Roof, 2) Electrical, 3) Plumbing, and 4) HVAC, and it’s only good for one year from the date of inspection.

New systems, upgrades, and/or a new roof can change your premium dramatically. Schedule a new 4-point inspection with your favorite home inspector, and see what your insurance carrier can do for you.

Rusty Johnson, with We Insure (one of my own personal preferred brokers in Panama City) gave me this tip, and I immediately scheduled new inspections for all my STRs AND my personal home. He was able to bring the premium down on my 1960-built primary residence (Note: NOT an STR) from $5,273 (and it was about to go up to over $6,300!) to $2,454. Your mileage may vary.

3. Get multiple quotes. Sounds like a no-brainer, but even different insurance brokers have access to different sets of carriers. It can pay to shop around.

4. Split the coverage. In Florida, owners of townhomes and single-family residences are required to have DWELLING and WIND (HURRICANE) coverage, but you don’t have to get them both from the same carrier. Proper admits its wind coverage is high, and many STR owners have bound their dwelling coverage with Proper but their wind from a different carrier.

5. Condo insurance is different. Yes, condo owners "only" have to insure the CONTENTS of their units because the price of Dwelling and Wind coverage is baked into the HOA fee. HOWEVER… Older condos can have insurance-related issues or claims that cause their coverage to go up, and that will be passed along to owners in the form of higher HOA fees or special assessments OR BOTH. Sticking with newer condos (those built in the 2000s) should mitigate (but not completely eliminate) this risk to some degree.

BONUS TIP: 6. Flood insurance is often transferable. If your property is in a flood zone, your lender will require flood insurance. If the current seller has a federal (FEMA-backed) policy, it should be transferable to you at the same rate the seller is currently paying. That doesn't mean it won't go UP in subsequent years, but it's good to start with the current rate vs. a higher premium for a brand new policy.


* DISCLAIMER: I am NOT an insurance professional - just a professional who’s been asking a lot of insurance questions lately. The information above came to me from very reliable sources, but please confirm any and all of it with licensed agents and ask them for the most up-to-date data, rates, and rules.

The words “insurance in Florida” can strike fear in the hearts of investors, but I’ve got 5 TIPS that can help you navigate this expense a little easier*:

1. Pay attention to the age of the property. Nick Massey, Director of Sales for told our real estate team that properties built between 1980 and 1999 are going to have the HIGHEST insurance premiums. This is due, in part, to the prevalence of in homes in this age range. The presence of this material has increased the number of water damage claims, which raises risk—and rates. Know what kind of pipes you have, and consider replumbing if you have polybutylene. Nick also said:

• Premiums for properties built after 2001 are BETTER
• Premiums for properties built after 2010 are BEST
• Properties built before 1980 actually get a little premium BREAK

Speak to your preferred insurance broker about your identified property for more specific details.

2. Get a new 4-point inspection every year. A 4-point inspection summarizes the age and condition of a property’s 1) Roof, 2) Electrical, 3) Plumbing, and 4) HVAC, and it’s only good for one year from the date of inspection.

New systems, upgrades, and/or a new roof can change your premium dramatically. Schedule a new 4-point inspection with your favorite home inspector, and see what your insurance carrier can do for you.

Rusty Johnson, with We Insure (one of my own personal preferred brokers in Panama City) gave me this tip, and I immediately scheduled new inspections for all my STRs AND my personal home. He was able to bring the premium down on my 1960-built primary residence (Note: NOT an STR) from $5,273 (and it was about to go up to over $6,300!) to $2,454. Your mileage may vary.

3. Get multiple quotes. Sounds like a no-brainer, but even different insurance brokers have access to different sets of carriers. It can pay to shop around.

4. Split the coverage. In Florida, owners of townhomes and single-family residences are required to have DWELLING and WIND (HURRICANE) coverage, but you don’t have to get them both from the same carrier. Proper admits its wind coverage is high, and many STR owners have bound their dwelling coverage with Proper but their wind from a different carrier.

5. Condo insurance is different. Yes, condo owners "only" have to insure the CONTENTS of their units because the price of Dwelling and Wind coverage is baked into the HOA fee. HOWEVER… Older condos can have insurance-related issues or claims that cause their coverage to go up, and that will be passed along to owners in the form of higher HOA fees or special assessments OR BOTH.  Sticking with newer condos (those built in the 2000s) should mitigate (but not completely eliminate) this risk to some degree.

BONUS TIP: 6. Flood insurance is often transferable. If your property is in a flood zone, your lender will require flood insurance. If the current seller has a federal (FEMA-backed) policy, it should be transferable to you at the same rate the seller is currently paying. That doesn't mean it won't go UP in subsequent years, but it's good to start with the current rate vs. a higher premium for a brand new policy.


* DISCLAIMER: I am NOT an insurance professional - just a professional who’s been asking a lot of insurance questions lately. The information above came to me from very reliable sources, but please confirm any and all of it with licensed agents and ask them for the most up-to-date data, rates, and rules.