All Forum Posts by: Jose Goncalvez

Thanks Erik!

I'm already invested in index funds and a few individual stocks. It is definitely a better way when it comes to truly passive investing. 

Just trying to diversify.

I agree the numbers are super tight. I may need to restructure this deal in some other way or just let it go. 

I requested insurance quote, should be getting it soon to have a clear picture on that. 

I agree regarding inheriting tenants, landlord does not want to take them out before closing. I am still pushing to get them to agree to that. 

Reserves would not be an issue, enough to carry for a few years. 

At 35% downpayment the property would be $195 negative with current rents, and around $1,255 positive after raising rents. 

Thank you Caroline! 

Hi everyone, 

I would like to get an opinion on a deal I have under contract, I have been a bit hesitant due to the interest rate that I am getting on this deal. I may be overthinking too much, feel like I'm stuck on analysis paralysis, so any input I can get will be helpful. 

This is the property info:

Located East side of Hollywood, FL

Fourplex consisting of (2) Studios and (2) One Bedrooms

Property is in good shape but outdated, needs: (4) new bathrooms, fresh paint, maybe windows 

Current rents are $4,150 total

Market rents are $5,600 total (Conservative) 

I would be inheriting tenants, so I would have to go through the process of vacating the units, renovating, renting. 

Purchase price $655,000

Loan terms: DSCR with 20% Downpayment at 8% interest rate

I estimate insurance to be around $4,500-$6,000 / year

Taxes around $10,000-$11,000 / year 

Based on this numbers, the property will not cash flow on day one. After raising rents at conservative numbers it will cash flow about $500-$600 total per month. 

I am not even calculating for vacancies, management, etc. Not to worried about it because I will be self-managing and I know I can get them rented pretty quick on that market. 

I think the numbers are not super attractive, nor terrible, and what keeps me engaged is the future appreciation and rent increase over the years. 

My plan with the property is to hold it as a rental but would like to recover as much as possible from the capital invested while keeping it cash flow positive. 

I have experience investing in condos but I feel those are pretty straight forward and easy to do, this would be my first time getting into this type of deals. 

Any thoughts on this? 

@Tony Iwen

Unpopular opinion, but still here it goes.

Instead of focusing so hard finding the “perfect” brokerage, focus on finding who the best agents and teams in your area are.

Try to meet with them, maybe go to their open houses, see if you can bring value to them, etc etc.

Find an opportunity to work with/for a highly successful agent/team in your area.

Compensation may not be the best, but still is better than zero. And the real value to you will be skipping on YEARS of learning, frustrations, etc etc etc.

@Greg R.

I don’t believe real estate can be discussed or analyzed as simple as this. Specially with all the craziness we saw during 2020 and 2021.

In my opinion, in order to properly discuss the possibilities of what could happen, we must identify the market that we are talking about.

Which area? What type of property? Within what price range?

Take a look at the macroeconomics, what’s happening in that specific market? Why it is where it is today? What would make it “crash” and what won’t?

Etc etc etc

Reality is that there is not a black or white type of answer. Usually people follow whatever they see on the headlines, but reality is that the data we hear about is way too broad and general to be used as a determining factor.  

When it comes to evaluating the market that we are interested in, it is important to define what market are we talking about? Which area? What type of property are we looking to invest in? What is the projection? Understanding the trend and macroeconomics of that particular area, etc. Real estate is hyper-hyper-hyper local! 

All these factors combined with our own very specific situation. What are we looking for as a result of this investment? Are we looking for cash-flow? Appreciation? Short or long term investment? What's our exit? What is an acceptable return on investment for me specifically? 

In terms of the general market dropping, does it really matter if it drops 10% if I already have a deal that works on my hands now? Is it worth the risk holding back to find out that the market does not drop but continues to go up? What is the opportunity cost? 

Something I see people never consider - specially when starting out - do I have the resources and aggressiveness to win the home-run deals when the market drops and a bunch of seasoned investors are all over the market? 

In my opinion, there is no such thing as a great/bad market, of course we can see general trends but it will come down to finding the strategy that works for you and the area were those opportunities can be found. 

Find properties, analyze them, run the numbers, evaluate the different scenarios, etc. Do the numbers meet my expectations? If yes, great! If no, then move on to the next one. 

If you need help with the Miami market, I'm happy to assist! 

Hey @Shawn Bhatti thanks a lot for your response! For some reason I must have missed it. 

That's somewhat around what I had in mind for both units. I also thought about the mini-splits but considering that these units may be converted into 3 bedrooms each + living space, not sure if the cost difference would be that big. 

I will definitely send you a message to continue the conversation. I appreciate your reply!

Hello everyone!

I have been following BP for years but I believe this is the first time I post in the forum.

I am under contract for a Duplex in Miami. I am planning on doing major renovations because it is completely outdated.

I do have a ballpark idea of most of the costs on the things I am planning on doing, except one - central A/C.

This duplex has wall units and I am contemplating the idea of installing central A/C on both sides, but have zero idea of the cost when it comes to “building” the ducts, finding the place for the system, etc.

Each side is just below 1,000 sq ft, 2 bedrooms + 1 bathroom. There is space for a 3rd bedroom on each side, which I am also considering doing.

Hoping someone expert on this field can provide at least an idea of the cost of this job in general terms. And if you are local and would be interested in providing a more exact estimate to do the project, even better!

I am also in the look for contractors that can take the project. Property is located in 33161 and some of the things I have on the list are:

- New kitchens

- Bathroom renovations

- New flooring

- Other general cosmetic work

Thanks!

Hey Pedro!

Can you be a bit more specific with your question? Are you looking to buy your client’s condo?

Let me know, I am an agent in South Florida and I can help out.

@Pedro Small

@Juan Pablo jaramillo ormaza

Grande Juan Pablo! Cualquier ayuda que necesites aqui estamos 👍🏼 Yo vivo y trabajo en Miami! Saludos