All Forum Posts by: John Dersoe

After some deals have settled out and debts paid, I'll have 100k to invest in Tampa area.. maybe the surrounding areas like Riverview, Plant City, Brandon or Clearwater, Largo etc. Am I missing something? I run the numbers and a +/-280k SF property (2/2) with 80k down and some left for improvements and an emergency fund.. it's around 950 a month for the mortgage. Home insurance is 180 a month (insane and seems like it's going up by the day).. landscaping 150.. I guess you see where I'm going.. I'm well over $1200 on a place before the rest of the bills are paid. Seems like I'd only make a couple hundred dollars a month being a landlord. I figure if one thing (roof, A/C craps out) I'm screwed that year.

Rents in Brandon, for example are about 1600-1800 for a 2 br unless the property is brand new, modern, upgraded appliances, etc..  then the rents are 2000+ However, my initial purchase price would be more like 325k instead of 280k. What do you think? Is it even worth it?

Side question.. would any of you consider a condo/apartment instead of SF where the expenses/landscaping/insurance is less if the HOA was a reasonable amount? Pros/Cons?

So many armchair "experts" in my neighborhood have advice about Tampa and the surrounding area. When I ask if they have any properties or have anything on the horizon, they all say no! I'd like some input from some of you that might have actually invested or plan on investing in the area. Wait for a possible correction or invest soon? SF or multi or townhouse/condo? Rent or flip? Airbnb? Thanks. 

 Sure, but factor in that I take them to and from school every day, can't even claim them as dependents on my taxes, provide full medical, dental and vision coverage.. and they stay at my house overnight 50% of the time, and I'm probably paying too much. Child support is the biggest scam going. 

A friend mentioned something similar to this. Run the property "at a loss or even". I'm currently exploring options around Tampa, Clearwater etc.

Good assessment. I am 47. I just can't get my head around using this money to generate more income to "give" away 20+% of it after paying 15-20% taxes. I'm already paying thousands a month in child support.. and I'm currently financially stable. So eliminating debt might be where it goes. It sucks to have to think "I shouldn't make more money because she'll take 20+% off the top".. and believe me, it's not being spent on the kids.

I have bounced quite a few questions off this forum and thought I had a plan. Then, I spoke to my lawyer and accountant and the plan might be out the window. I relocated from NY to Tampa, sold the house in NY and wanted advice about what to do with the left over proceeds of the sale. (350k) That amount would pay off the new house AND the 6 year car loan.. some of you suggested that was the way to go.. but, many of you have suggested that I use it for investments to generate income that is equal to or greater than the money I'd save monthly. Good advice from all sides. So, now I have a question.. would you rather be debt free or generate income with the money if you had to give 20% of ALL additional income towards child support? I NEVER considered this when I asked the original question and only realized when the accountant and lawyer brought it to my attention. Basically.. if the money is used for income, every 2 years we go over taxes and she WILL DEFINITELY ask to modify based on the new numbers.. my support rate is about 20% for two kids.. 5 and 7 years old. Then, there's the taxes I'd pay on the income. Seems like between support and taxes, I'd be out 30-40% of the income right off the top. Ideas?

Ok, the time has finally come. Retired.. in my late 40's. Pension of 8k per month, no other income. Closed on the house in NY, moved to Tampa. Proceeds from the sale left over total about 300k, which includes me setting aside some $$ for cap gains. So, the 300k would pay off the new house AND the 6 year new car payment COMPLETELY, total of over 2100 per month. Of course, my financial advisor says to put it all into the portfolio and if I need the $$ monthly, I can draw 2k per month as a "payment" to myself. I'm thinking "won't I get killed in taxes on that?".. So, a real estate investor says "300k could get you a cash flowing property that could make just as much or more than 2k per month after expenses".. I'm thinking.. "yeah, but then I have to be a landlord and have a cash reserve for problems and vacancies".. what do you guys think? My idea is a hybrid.. pay off the house, the car and take 50k and buy ONE townhouse somewhere that I can make a few hundred after expenses.. maybe and Airbnb or something. Thanks for any advice. BTW, it's hot in Florida! 

I have a feeling that within a few months of settling in, I'll have a grasp of what the monthlies will really be.. and then invest any funds I have left after I am debt free. I figure it should be no less than 50k.

I just can't mentally grasp taking the proceeds of the sale and putting it down on 3-4 properties.. taking on more mortgages and responsibility, hoping that they are profitable to try to make up for the cash I'd save by paying off my debt. 

A financial advisor said this.. "well, you've consistently made 7-12% on your portfolio, so why not invest it since the rate of return will likely be higher than your 4+% mortgage interest" After initially agreeing and thinking about this, I realized I already have 6-700k growing in different portfolios and they have done well.. but the hope that the funds will "likely" outpace the mtg interest when I'm already at the top of my limit on monthly bills is scary.

Thanks again for the conversation. The ideas here are gold.

Good replies here. So, I am almost 50, retired already, pension of 7800 w/ medical benefits. 

The monthly bills are usually..

Housing -1600 MTG 1250 Tax/ins/util/misc

Child support - 1300

Car - 475

Credit card (groceries, gas, etc) average 2500 paid in full every month no matter how much it is.

Income 7800.. average bills total +/- 7125 monthly.. if I used the proceeds from the sale to pay off the mortgage.. I save 1600. If I use additional proceeds to pay off the 4% car loan, I free up an additional 475 monthly and have absolutely NO DEBT. I'll still have +/-50k left over from the sale to save or invest, plus the 700k in various other investments growing where they have for the past 20 years. This is what I was leaning towards, but there are good minds on this forum that provide excellent ideas.

I am in process of selling in NY. After mtg paid, commission, taxes, cap gains, etc.. I'll have +/-425k left over. 

My new 30yr mortgage in Tampa is 1600 a month. 324k total. My monthly income is around 8k.. BUT, my bills top out at around 7-7.5k. Not a good feeling to almost be right at what you earn. 

Would you guys use 324k of the 425k left over proceeds to free up 1600 a month and be mortgage free for extra cash flow? Side note.. I already have +/-700k in various investment accounts. So my real question is, at almost 50yo, would anyone prefer to be mortgage free with a nice monthly cushion between income and bills or use the proceeds from the sale for something else?