All Forum Posts by: Jed Haslam-Walker

I would add to @Chris Levarek's good point above - understanding the perspectives of scale when interpreting industry reporting is essential. Metropolitan Statistical Areas are by definition large and encompass great swathes of regions and whilst this information is useful background information, remembering that one of the distinguishing features of the Real Estate Asset Class, as compared to other classes, is it's highly segmented character.

The most profitable ( and some would say, risky) revenue streams of RE is appreciation and that's what you're trying to determine when you are looking for how to determine which stage of the RE cycle an area is in but within Sarasota, Tampa and Jacksonville for example, are a myriad number of micro-markets that could provide an asset that over the next 5 years would create a huge loss or a huge gain based on the characteristics of the micro-market.

Hi @Paul Cho,

I work a great deal with investors down here in the Sarasota, Orlando, Tampa and surrounding areas - if you have questions about these markets specifically ask away...

Hi @Andrew Schutsky,

Good job and welcome to this wonderful world. 

Let me know if I can help you in any way.

Hi @Damary Fletcher,

I’m sorry you’re going through a tough time. And good for you for prioritizing your son’s well being.

First question is - if you break your annual lease on the condo you’re in will it cost you  significantly?

If it will and you have to wait a year then it would be wise to invest now - the price points in our market are set to continue to rise and if you invest now you could be benefitting from 3 of the 4 main revenue streams from Real Estate - cash flow, appreciation and tax breaks as you wait for your lease to expire. By the time you come to reposition your living situation you could have built not only investor credentials with a lender - which are important to be considered a good borrower as you scale up- but you will also increase your revenue stream and therefore be in a position when you do want to move to open up more possibilities in terms of the price point you can achieve. At that point a MF hack in a nicer area might be more achievable. If you were to BRRR a property into the bargain you could refinance just as you're ready to move or you could sell and 1031 into possibly a larger MF that you could live in, renovate the other units and that you could then stabilize and refi etc.

Try to avoid thinking of your rent as throwing your money away and instead consider that you are leveraging your capital in a more intensive way by investing outside your primary residence and choosing to let your landlord take care of Maintenance Expenses, Cap Ex, taxes and insurance so that you are able to more accurately predict your cash flows in order to pivot ready for your next move.

If your NPV on the deal is greater than $18000 ( $1500 x 12)  then you haven’t paid your rent anyway right?! 

Hi @Sammi Liu
Vacancy rates: there is no real data available industry wide for vacancy rates in the rental of Single Family Homes as most of the data we have comes from the Multi-Family market - so properties with 2+ units.

Your most accurate sense of the vacancy rates will come from calling and asking current Property Managers and even then it will be anecdotal and possibly biased by the desire to secure your property rather than accurate data you can use to assess your risk adequately but it gives you a 'feel'.

The best way to get a sense of the vacancy rate of Single Family Homes is to test the market. Place an ad and see what kind of response you get.

Additionally, search for a property for rent in the neighbourhood you are considering at the rental price you would like to command and see how many properties are available currently and how long they have been available. This will help you to take the temperature of the market.

I just did a quick search for you in Sarasota of 3 bed properties for rent in the past 3 months and there were only 3. I know for a fact that the Single Family Rental market here is starved of good SFHs rentals and they go like hot cakes when one comes on the market.

In terms of Property Management - I would agree with the other comments above - finding a good PM is probably necessary unless you want to establish your own team down here which people do do - it just depends on how much time you want to devote to it...

@Emy Bernardo

My understanding of the entry price point for condos is currently $200K and the HOAs will be set per builder plat rather than for the whole community so if your SFH purchase price is lower than $200K then you should be coming in below it.

This type of community pricing here generally adjusts significantly each few weeks to market pricing because they track it so tightly.

No prob

West Florida Home Inspection

Brett Shankle

(941) 920-0040 very detail oriented-  very nice guy tell him I referred you. His business partner is very good too.

If he’s not available let me know and I’ll get you another one.

Guys please be aware that North Port has a huge Master Planned Community coming online in the next few years

https://en.m.wikipedia.org/wik...
It’s the biggest MPC (9600 ha) since Lakewood Ranch further north.

They have unbelievable amenities and affordably priced homes - they do have annual/ 7 monthly lease restrictions planned and so AirBnB / Short Term Rentals will be excluded ( at least at this stage - I had a meeting with the Community Manager the other day) but they will have annual rentals- not only will this impact all property prices outside the community but also the rental market available to SFHs outside too.

Here’s a link to the main development site

https://wellenpark.com/welcome...
it is going to be huge.

FYI.

Hey @Chris K.

Sure - depends on the property type Commercial (5+ units) or Residential 4 units or less or Single Family? 
inspectors who are used to working with investors can really help you figure out what will impact your ability to get financing and your NOI and resale/ refinance - whereas Inspectors who are more used to SFHs home inspections normally take A different approach...

Many Inspectors are not able to perform Commercial property inspections..

Can you specify the property type?

Hi @Rickey Davis,

I use Fairway Funding a lot too there are some great lenders working in this market. What are you looking to buy? Fairway are more Residential than Commercial - are you buying less than 5 units?