All Forum Posts by: Jeff Scully

@Jeff Scully it is very unlikely that you will be able to cashflow at all with a 1/1 condo/apartment in South Florida at that price point. The numbers won't make sense and you will likely be in the red. Also, in terms of short term rentals, a lot of HOA's prohibit them. If that is something you plan to do, just make sure that you verify that it's allowed. In terms of conventional financing, there are some intracacies involved with condo financing. Check with a lender but you may end up having to put down 25% if the association is not FHA or Fannie May approved. See below link for approved Miami-Dade Condos:

Approved Condo List - Miami-Dade County

It sounds like you may be leaning toward South Florida more for personal preference and the desire to use the unit as a vacation property as opposed to it being a solid first time investment. Just make sure that if you do purchase something, you know what you are getting into. Bigger Pockets has a great rental property calculator under the tools tab at the top of the screen (desktop version). You should be able to accurately crunch all of your numbers there. Best of luck!

This was very helpful. Thank you. Question though and sorry for the redundancy, by cash flow you mean the money remaining each month after tenant pays rent and all expenses/utilities are covered correct? I was always under the assumption that this was not the primary driver in rental investing. Is there something I'm missing?

0 Votes

@Dorian Weber

I see Dorian, thanks that’s pretty helpful. Now this might sound like a really stupid question but assuming I just bit the bullet and did the 20%, id be better leveraged and their wouldn’t be as much risk with the cash flow from it ?

0 Votes

@Allison Bridges hi Allison,

I’ve considered that but with my first investment property I’m a little hesitant to do anything with rehabbing as I’m relatively new to all of this. It’s definitely something I’ll have to look into more. Thank you!

0 Votes

@Josh Beller good point. Thank you josh!

0 Votes

@Caleb Brown

Hi Caleb, I’m sure I could but not in that area. If I did I feel as though the property would need some significant rehab which deters me a little as it would be my first investment. But I’ll definitely look into it. Thank you!!

2 Votes

@Nick Brown

Ah, I see what you’re saying. Yeah, I’ll have to review everything again. Especially when it comes to pursuing a specific unit.

0 Votes

@Nick Brown

Hey Nick,

Thanks for responding. Yeah, the Philadelphia/Southern NJ market is just not appealing to me, and although South Florida isn’t perfect, it’s appealing for a lot of obvious reasons that won’t be changing any time soon.

As far as your comment regarding cash flow, the properties I'm looking at are pretty small- <1000 SQ feet, and some have HOA's, but not all. How do you figure it will be negative in terms of cash flow ? I know repairs can be significant regardless of the size of property, but it seems as if most won't be THAT costly.

Thanks again,

Jeff

1 Vote

@Josh Beller

Hi Josh, thank you for the response. My wife is also on our current mortgage with me. Would that make a difference ? If not I would absolutely pursue this. I’m guessing on the flip side this would also lower my cash flow if I have a lower down payment ?

Thanks again.

0 Votes

All Forum Posts by: Jeff Scully

Jeff Scully has started 1 posts and replied 12 times.

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?

Post: First Investment- Am I on the right track?