All Forum Posts by: Josh Green

Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.

Question: What is your current living situation? Especially if you're renting, I'd say 100% get into a house-hack. You'll want to use your skills and some creativity if you want to push yourself farther into the "profitability" side of the scale over "comfortability". I've done several house-hacks personally with different strategies as well and have helped many clients do them in Pinellas/Hillsborough/Pasco/Manatee counties as well so if you have questions let me know and I can give you a rundown of your best options based on your preferences.

If you don't want, or don't need to house-hack, then you have a couple options and that is going to depend on your goals, savings rate, and other details. With $100k, if you buy an investment property, you're not going to get a lot. Most of that here will go into the downpayment and closing costs and even then, especially if you long-term rent out the property, you'll likely not cash flow much at all even if you self-manage. If you want to a short term rental, I'd say your budget is getting close to enough to have a great one IF you're willing to do work on it but likely should save up a little more regardless. That leaves doing another flip or two to get your capital up to qualify you for better ROI holds.

0 Votes

Saint Petersburg, Florida

Starting Out

Post: Tampa rental market

Josh Green

Posted March 24, 2024 17:47

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Trace Adams:

Hi all, I recently posted about buying a rental in Tampa and got a lot of good replies. Since then I figured out since I meet the income threshold I could consider it a "second home" vs. rental investment so I could put 10% down, which has me even more interested. I wanted to do a follow up post to get everyone's thoughts on the other things I am thinking about currently as I crunch my numbers and look for properties:

-Trying to decide on whether I would want to rent on a short term or a long term basis. Leaning toward a turn-key property and renting it out long term - easier to manage, don't have to furnish, reasonable property management fees (~10% of monthly rent income from what I've read), and more stable income. Seems like short term would likely generate more revenue but not really sure about profit when you consider vacancy and property management fees of ~30% (I would consider remote management but I would think cleaning fees would still be ~$400/mo. which is high). Thoughts?

-On that point, what are the best areas/neighborhoods for short term rentals and the best areas/neighborhoods for long term rentals in the Tampa metro (willing to go outside of Tampa city limits to areas like St Pete/Clearwater/etc.)?

-Touched on it a bit above but what are everyone's thoughts on hiring a property manager for a long term rental? And for a short term rental?

-Lastly, any areas I should avoid that have had flooding issues in the past? I have heard the St Pete area can be bad...

-Any other specific tips for the Tampa market would be welcomed!

Thanks!

Trace Adams

You hit a lot of good points above and here are some thoughts your should consider:
1) IF you’re buying with a second home loan, don’t rent it out long term. You can easily get audited and caught for mortgage fraud for putting in a 12 month lease. Also, you won’t find a long term rental with a 10% down loan that isn’t going to be cash flow negative with todays rates and property values, especially if you’re not self managing.
2) STR will net more but to do a great STR, you need to put the cash into the property to make it a top listing. With 10% down, again, will be hard to consistently cash flow unless you are truly a top 10% listing and likely self manage it well. With PM fees, 10% down, and today’s property values and interest rates, you’ll be skirting the line. Profitable months will be green and lower months you’ll be red. Might come out green overall but it’ll be close.

bonus: if you’re willing and capable to do an excellent t STR, which I would budget a good $40k-$50k on the furnishing/design/decor (more if you are outsourcing it all) AND are putting down 20%+, you’ll be able to have a very positive cash flow asset. I also co-host properties for a discount for clients (I have over a dozen currently) at a much lower rate than the market 20-30% which really helps. Don’t want to discourage you with leverage but 10% down…I’m just going to be honest with you on what to expect and not over promise.

0 Votes

Short-Term & Vacation Rental Discussions

Post: Negative Impact for Vacation Rentals Florida Law Makers Pass SB 280

Josh Green

Posted March 15, 2024 18:45

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Adam Bartomeo:

For those of you that know or follow me you know that I am not a fan of vacation rentals in the state of Florida for a multitude of reasons. I have owned Vacation Rentals and my company managed about 20 and the experience was terrible. The guests are horrible, the expenses are very high, and the ROI is awful. People are enamored with vacation rentals because they get caught up in feelings instead of the true numbers. They feel like they will have a profitable investment AND be able to use this investment as a second home. But, the truth is that unless you bought before 2020 you are probably going to have an underperforming asset that is a negative cash flowing liability. The hard part is knowing how much you will make over the course of a year. Unlike an annual rental where the rent is locked in for a year, the prices and amount of vacancies have a high-rate fluctuation.

If you do not live in the state than you may not be aware of SB 280. So, I made a short video with a brief explanation. Over the years it has been up to the city and county to pass ordinances if they choose to regulate vacation rentals. A several cities have implemented rules with the minimum per night stay and registering as a VR. Key West has very strict guidelines for VRs for registration and minimum night stay. Ft Myers Beach regulates the minimum stay to daily, weekly, and monthly based in the street the property is on. Cape Coral has a very loose 7-day minimum stay that isn't heavily enforced. Now, the Senate has passed SB 280 which will involve state regulation of VR's. I highly advise you research the bill which can still be vetoed by the Governor.

This is a GOOD thing for investors. The state is overall pro-tourism and pro-landlord. Creating uniform and basic minimum standards is going to be better than allowing local cities and municipalities to make all kinds of overlays. Overall it should loosen regulation as it currently stands while also making the regulations more uniform across the state.

As for your blanket summary of STRs I have to disagree. I’m also in the Tampa Bay Area. I personally own and host 14+ high performing short term rentals. Most of those bought within the last 18 months and for market value. I even paid over appraisal value on one personally that was a flipped home so the opposite of a “unicorn deal”. That same property, with the high rates (7+%) is going to net me $40k+ on the first 12 months run. To bring that into perspective, that will be close to a 25-30% cash on cash return. Not to mention I got to write off over $175k from my income taxes using a cost-segregation study.

Why people fail is because these take a much higher level of skill, knowledge and upfront effort, and upfront capital. I’m a top operator and really understand the business from start to finished product to managing them well so I’m going to be able to push higher returns naturally than my competition. You can’t expect to get the same results as I mentioned above without the same level of skill and knowledge but it is absolutely possible to be very successful today with STRs here in the Tampa Bay Area.

Also: the guests tend to also be better the better the finished product is. Higher end = higher prices = higher end clients/guests (this is the case in any business generally speaking).

3 Votes

New Member Introductions

Post: Jumping into the St. Petersburg Market to House Hack

Josh Green

Posted January 31, 2024 18:34

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Connor Cushing:

Hello All! I'm starting the process of evaluating deals and finding a multifamily property in St. Petersburg for a House Hack. This would not be a traditional Hack, as we would be buying the unit for my brother in law that lives in the area, splitting financing with him and managing the unit primarily out of state in Colorado. I've been lurking on the forums and listening to BP Podcasts for years and have built up my knowledge and finances to a place where I feel (relatively) confident getting started. I have my RE license in Colorado and currently Property Manage a portfolio for investors that have LTR and STR in the Bradenton and Sarasota area along with the larger CO portfolio.

With the intro out of the way I'm looking for any spreadsheets or calculators for the area to start crunching numbers, as well as any local, investor focused Realtors in the area to dig into neighborhoods and ROI potential for duplexes, triplexes or quadplexes. I'd love to see what is available as we have the Property Mgmt side covered and some vendor contacts in the area. Lipstick jobs or even turnkey are the focus as I'd like to save any major reno jobs for later investments.

Thanks in advance!

@Raymond J. Rodrigues thanks for the shout-out man! @Connor, you'll definitely want to hit him up though for some quotes. He and I have done a ton of house-hacks for people from out of state as well as local - we've done quite the mix from SFR to MFR and various loan types, budgets, goals, etc. Another big reason you'll want a great lender as well is, Ray and I, for example, have been able to win a lot of deals for clients through a more personal approach and effort when an offer is sent out. This might not sound that important as a lot of people assume you can just get what you want when you want, but when the market is heavily favoring sellers (as is likely the case coming up with the rates dropping) it becomes critical to have that competitive edge.

Not to spill it all out here on the forums, but for example, a good listing agent is going to vet the buyers when they have a stack of offers. Well, a good listing agent is going to really vet the lender and the experienced agents that do high volume are able to pick out which lenders have a good track record. That's one way that Ray is able to win deals vs others - he's got a great track record here and in other parts of FL.

2 Votes

Saint Petersburg, Florida

Classifieds

Post: Looking for an experienced Mortgage Broker in Tampa, Local is preferd but not req.

Josh Green

Posted January 31, 2024 18:27

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Bryce Kennebeck:

Im looking for a mortgage broker to help me find proper funding for my first house hack in Pinellas county. Im looking to do an owner occupied 1-4 unit with 5% down and im also open to possible FHA if it proves to be a better option. Just looking to get pre approved for now and pull the trigger in the very near future. Im looking for someone that can help me in the future as this isnt likely to be my last investment in real-estate and my work history is a little complex but steady and sufficient.

Hi Bryce! @Nick above is an excellent lender. Works for David Greene's brokerage and you won't be disappointed - we've won a lot of competitive deals together for clients even against higher offers and cash offers with some tricks and extra creativity.

Feel free to connect as well - I've done 3 house-hacks in 3 years before I just started to only buy investment property without house-hacking them all and I've done a mixture of room-by-room, renting half as a LTR, MTR and STR. Great way to start by the way and tons of great opportunities here for those that are willing to put in work or be creative!

0 Votes

Tampa, Florida

New Member Introductions

Post: First time STR

Josh Green

Posted January 25, 2024 14:29

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote:

Hi @Jim Hagstrom, have you purchased the condo already or are you looking to make the purchase? Check the bylaws of the condo to make sure that STR is allowed. @Josh Green, do you know if STR's are allowed in Palm Harbor?

Great question @Ray, Palm Harbor does, yes, but the bigger barrier to entry is going to be if the HOA allows STRs. To get that information, the listing agent SHOULD have it posted on the listing but many times they don't simply because they don't know or care to know and the seller doesn't know or care to know either. So in most cases you have to obtain and review the condo association's documents and rules for leasing restrictions. Most HOAs post a copy on their website for public access but some don't have them online and so you'd have to call and request it.

1 Vote

Saint Petersburg, Florida

House Hacking

Post: Financing options for Multifamily House Hack | FHA/Fannie Mae/LLC

Josh Green

Posted January 23, 2024 14:34

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Tim Tyrrell:

I'm looking at the FHA and Fannie Mae loans for a quadplex in St. Petersburg. I would qualify for the FHA loan or the Fannie Mae loan as an individual. I have around 20K to put down myself along with another 60K from two independent investors, one family member and one friend, if necessary.

I'm wondering if it's possible to take advantage of the 3.5% FHA loan as an LLC that I create as a partnership with my investors, or if the loan needs to be in my name to qualify for the FHA loan? This would be my first home purchase, and I would move into one of the units after purchasing.

I don't see a reason why the 5% Fannie Mae loan would have issues with our LLC, but please correct me if I'm wrong.

If we can qualify for either loan as an LLC, is there one that you would prefer over the other? I read this post by Andrew Postell, so I'm aware of the basic differences re self sufficient/funding fee/MPI/etc -- but I wonder if there is another lens to view these loans through when there's a team of investors considering them. Appreciate the help and happy hunting!

This is a great question and has been answered well from the above. Now, the easy answer is if that MFR you're looking at is cheap enough you can cover the down payment/CC's yourself then just use the other funds if even needed to cover updates/upgrades to the property outside of the transaction. As mentioned above, on one hand, FHA will be tough in a scenario involving even moderate rehab to a property as well as the whole self-sufficiency test when your LTV is so high in today's market. However, on the other hand, this is one of the few times you can actually lock-in a MFR with FHA in the past couple of years due to the competition being high. It's also very likely that in the coming weeks and months the market picks up again to that point.

Assuming the price isn't dirt cheap, the only other two ideas would be: 1) if the seller is motivated and willing to do a form of creative finance (unlikely), or 2) @Raymond J. Rodrigues let me know if i'm serving too far into the lender sphere here but maybe, just maybe, if the funds were "gifted" to a family member and then "gifted" to the buyer it could work. Though I assume there's some seasoning potentially needed for that or it might be too easy to trace back 2 levels and sniff that out?

1 Vote

Saint Petersburg, Florida

Private Lending & Conventional Mortgage Advice

Post: Purchasing a short term rental

Josh Green

Posted January 23, 2024 09:06

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Jill Widmer:

Hello,

I was hoping to get some advice on whether this was doable.

Interested in purchasing a property-single family home or condo in Florida or Texas along the gulf coast around the $500k-$600k range. Planning to rent out short term and use it a couple of times a year.

Currently own our primary residence in ohio. Have about $275k equity in it with a heloc with a little over $200k on it with zero balance. Have a 15 year mortgage with 2.3% interest rate and a payment of about $2100/month

Have a rental property condo in ohio that is worth about $175k and no loan. Taxable income on the rental was about $6k after depreciation last year

parent plus loan of about $27,000 in forbearance as my daughter is still in school

use credit cards but pay them off every month

no other debt

my w-2 income is 70k, and I am a shareholder in 2 small businesses where I get approx 25k extra each year

my husband makes $92k w-2 income

have about 60k in savings

is it possible to get a loan while using the heloc for a down payment? Or what are my options?

thanks so much!

Great information and what I would do is get with @Raymond J. Rodrigues above to secure your financing plan first. As for an STR, you're in a great buy-box range for where I operate out of and I can help get you a really good performing asset with some assumptions. You'll want most of that cash for just the furnishing and closing costs though or potentially even more of it if you want to outsource the setup.

I got the management and furnishing team as well if you do plan to outsource as most my investors are out of state and prefer that route but if not, you can really push that profit margin even higher here. Feel free to connect once you do know your situation so I can better describe what you can expect and just DM me.

0 Votes

Tampa, Florida

Quote from @Jessica Heller:

Hi everyone - quick question for you. I'm going to purchase my first multi family investment property in Florida. I am trying to decide whether or not I should go through a traditional bank (JPM), a morgage broker, or try and find a credit union. Does anyone have any thoughts or ideas?

Thanks so much!

I highly recommend reaching out to @Raymond J. Rodrigues above. To give you some perspective, I’ve interviewed or worked with over 50 lenders the past couple years and he’s only 1 of 2 total I recommend. He knows his stuff and cross shops so many loan programs you’re bound to get a fantastic rate.

1 Vote

Private Lending & Conventional Mortgage Advice

Post: Cash out refinancing lender

Josh Green

Posted January 21, 2024 12:20

Realtor
Tampa/St Pete/Clearwater, FL
Posts 369
Votes 337

Quote from @Waylon Bruce Moore:

We have two rental homes and are wanting to cash out equity out of one of them in order to build a house on a lot we own in tampa. Most of the mortgage brokers i talk with have never done this before . Can you recommend someone in Tampa that is more broad in their experience than a traditional lender.

Hey Waylon!

I highly recommend you reach out to @Raymond J. Rodrigues. I’ve interviewed and or worked with at least 50 lenders in the past 18 months and I only recommend 2 out of the pool. Ray is very experienced and has excellent pricing. He works primarily with investors as well so that makes things a lot easier working with someone that knows their stuff!

0 Votes

Tampa, Florida

Josh Green has started 21 posts and replied 346 times.

Rounded Star Post: Thoughts on how to make my next Real Estate deal

Rounded Star Post: Tampa rental market

Rounded Star Post: Negative Impact for Vacation Rentals Florida Law Makers Pass SB 280

Rounded Star Post: Jumping into the St. Petersburg Market to House Hack

Rounded Star Post: Looking for an experienced Mortgage Broker in Tampa, Local is preferd but not req.

Rounded Star Post: First time STR

Rounded Star Post: Financing options for Multifamily House Hack | FHA/Fannie Mae/LLC

Rounded Star Post: Purchasing a short term rental

Rounded Star Post: Traditional Bank vs Mortgage Broker vs Credit Union for a 2 Unit Investment property

Rounded Star Post: Cash out refinancing lender

Post: Thoughts on how to make my next Real Estate deal

Post: Tampa rental market

Post: Negative Impact for Vacation Rentals Florida Law Makers Pass SB 280

Post: Jumping into the St. Petersburg Market to House Hack

Post: Looking for an experienced Mortgage Broker in Tampa, Local is preferd but not req.

Post: First time STR

Post: Financing options for Multifamily House Hack | FHA/Fannie Mae/LLC

Post: Purchasing a short term rental

Post: Traditional Bank vs Mortgage Broker vs Credit Union for a 2 Unit Investment property

Post: Cash out refinancing lender