All Forum Posts by: Jonathon Van Dine

I am looking for good farm land in the South FLorida region within 60 minutes from Boca Raton. Looking for at least 1 acre. So far, I have only found residential/agricultural land in loxahatchee region for about 100k/acre.

1. Where are there good deals on farm land?

2. What price should I expect?

3. how to get a good deal?

4. creative ways to make offers/find land?

5. what are the zoning rules? What is zoning for agriculture called in So Flo?

Thank you for any help/information :D

CHeers

Jonathon

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I got a tip from a Community planner that Loxahatchee is getting 500,000 new residential houses in the next few years built. This will obviously change the landscape of the lox region.

Anyone else have any predictions on development for the South Florida so we can make informed purchases?

Also interested in buying raw land for farming. Lox may be gold.

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Hi!

I am looking to buy a property in the next several months all cash. Looking for duplexes or multi family places in the south florida region that have upside-mangement issues, vacancies, cosmetic issues, or low rents.

I want to stay away from warzones and have family friendly environment locations.

Anyone looking to make a profit in making this happen? More deals to come.

Need an agent with investment experience!

Cheers!

Jonathon

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Originally posted by @Thomas S.:

You left out the return on your cash invested. Since your own cash will be generating the majority of the income, as opposed to the property itself, you should first deduct a 10% return on your cash before deducting any other expenses from your rental income. The first $833 of your rent pays the return on your cash (100K). This way you will have a idea of the "true" cash flow from the property by separating off the cash flow from your equity.

My guess is your property will likely be negative cash flow as is the case with most cash investors. The property itself will be a liability and you would be farther ahead to put your cash in a REIT unless you are in a very high appreciation market.

It rarely makes financial scenes to invest with cash unless the properties are valued below 50K and financing is not possible. Cash investors earn very low ROI.

Hi tomas, thanks for your reply!

Where did you get the number $833 of my rent?

A liability? Hmm. I am curious what numbers you are running to get this. Can you look at how I am visualizing it and correct it if there are errors?

Cash Invested: 100,000

Rental Income: 1600

Monthly Expenses

HOA: 250

Taxes: 75

Insurance: 100

Vacancy: 80

Management: 160

Cap Ex/Repairs: 160

Utilities: 50

TOTAL EXPENSES : 875

Net cash flow: rent income-expenses: 1600-875=725$/month

725x12= 8,700$ yearly.

ROI: 8700/100,000= 8.7%

Hold for 5 years: 8700x5=43,500.

Assume I sell it for the same price=143,500 = I made my 100k make 43,500 in 5 years.

I am trying to find a better deal than this. I am curious what numbers you crunch to find negative cash flow!

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Originally posted by @Megan Greathouse:

"Lastly, since i will not have a mortgage, or interest, all i will have to pay is for taxes, insurance, vacancy, cap ex, possible HOA/condo association, correct? did i leave anything out?"

A few things to consider... first, I would say regular, monthly maintenance is different from your capex, and you should make sure you're accounting for both. Depending on the condition of the property, I generally set aside 10 - 15% for both... I pay for regular maintenance & repairs first, and then move whatever is leftover to my capex account. So if I budget 10% total for repairs and capex, and I only spend 2% on repairs this month, I set the other 8% aside in my capex acct.

Second, depending on your area and how certain utilities are metered, you may need to pay for some utilities and/or lawn maintenance. In my area, I pay sewer on single-family properties... but for multi-families I pay water, sewer, trash and lawn maintenance.

Finally, you should account for property management costs (generally 8 - 10% of rents, plus leasing fees whenever you renew a lease or turnover tenants). Even if you plan to lease and manage on your own, you need to "pay yourself" for those activities. Also, accounting for leasing and management costs ensures that your properties will still cash flow even after you're tired of managing them and decide to outsource management.

Best of luck! The best way to learn is by doing, so run your numbers carefully, but don't take too long to jump in!

Thank you a million times, Megan! This is so helpful its insane that people respond like this to help me out randomly from across the country. Blessings!

1 Vote

Originally posted by @Ryan Cox:

@Jonathon Van Dine

I would be careful about "putting all of your eggs in one basket" If you are not in a position to get a loan, I would look to partner with someone locally who has experience with SFR buy & hold. You can start off with a smaller investment and learn the business from someone with experience. Protect your capital!

Ryan, what exactly would it look like to partner with someone in a SFR buy and hold? also, what is the best way to find someone willing to do that? I am currently going to 2 real estate investment groups for the first time, I guess I will ask if anyone is looking to partner in a deal. But I want to make sure I'm smart about this..!

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Hi everyone,

I am looking to buy my first real estate investment in the south florida region! I have zero experience renting my own place, or buying a place. I have been reading around the forums and watching videos for about a month, and have read the ultimate starters guide.

I must go all cash based because of my situation, so I really am putting all my eggs in one basket. So I have to make sure that this is a smart deal I am making that will cash flow.

Can you shoot holes in my strategy?:

1. looking with 3 realtors for a duplex, single family, or condo that is around 100k, ~60 minutes from my residence, that will rent out for around 1500 or more if it is a duplex.

2. learning and reviewing all the videos on analyzing a deal, and using the BP calculator to crunch the numbers. I am going to run my numbers multiple times and show them to investor friends and see if they agree to check my work.

3. learning the ins and outs of making the right leases, getting the right tenants, landlording, how to get payments, security deposits, how to manage properties and tenants and FILL vacancies.

Please let me know if I am leaving anything out.

Also, what is the best way to learn (resources) the details of landlording?

Lastly, since i will not have a mortgage, or interest, all i will have to pay is for taxes, insurance, vacancy, cap ex, possible HOA/condo association, correct? did i leave anything out?

Thanks for your time :D

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Hello, my wise new friends.

Name is Jon Van Dine, I'm new to investing, new to site!

Looking for networking opportunities with investors in the South Florida Boca, Delray, Deerfield regions.

I can offer you free health services if you can teach me real estate hands on. I heal people's aches, and prevent them from dying early by helping them be healthy (weight loss, exercise).I'm a certified health coach, personal trainer, I do stretch and massage therapy.

I want to meet amazing people who have a love for life, and are successful in many areas of life.

My goal is to become a wiser/enabled/more skilled overall person, my real estate goals are to:

1. buy my first rental property before end of this year

2. do a rehab deal, wholesale deal, manage >3 properties, learn landlording within 1 year, learn HANDS ON

3. have 12k/year after first year passive income, 100k/year after 5 years passive income

I am currently learning all that I can every day from books, audio, and websites. Just want to learn with hands on EXP.

Looking forward to learning a ton, and meeting some amazing people.

Cheers, my wise new friends

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All Forum Posts by: Jonathon Van Dine

Jonathon Van Dine has started 5 posts and replied 8 times.

Post: Good Location/Price for Raw Farm Land South Florida

Post: Up and Coming development & locations in South Florida journal

Post: Looking for a Real Estate Investing Agent in South Florida!

Post: All Cash, Big Risk, First Investment, critique my strategy!

Post: All Cash, Big Risk, First Investment, critique my strategy!

Post: All Cash, Big Risk, First Investment, critique my strategy!

Post: All Cash, Big Risk, First Investment, critique my strategy!

Post: Networking for investors in South FL-Boca, Deerfield, Delray!