All Forum Posts by: J P.

Hello, all! Newbie here! Looking for my first deal within the next month. I found a place in the Pine Castle area of Orlando. It's in between Edgewood and Pinecastle (Would be off Oakridge and to the West of Orange by a hair).

Asking price is $96.9k. Looking at comps (and it seems to be a foreclosure), I'm thinking of my max offer being 80k so that was used for analysis. The home is a 3/1 with 1500 sq ft, which I think is HUGE! Also, to note, it has a pool. Looking at the pictures, it definitely needs a kitchen rehab and flooring as there has been some damage (some stripping of the tiles, appliances, and some of the cabinets removed). I'm thinking if I can do the painting of the inside and try to tackle the flooring (watching videos and shows), I can keep my rehab price below 30k. What do you think?

Anyway, here's my analysis! I hope you're able to see!

I do have a question on the analysis. I originally did it without the cost of rehab but in example below I included it b/c I wasn't sure if you include rehab costs if it's just a one time thing?

Without the rehab costs, the cash & closing cost is 18,400, making the cap rate 15.9 and cash on cash 66.9%.

With rehab costs (in case you can't see) cap is 15, and cash on cash is 27.8%.

Thanks so much for your help!

Hello, all! Newbie here! Looking for my first deal within the next month. I found a place in the Pine Castle area of Orlando. It's in between Edgewood and Pinecastle (Would be off Oakridge and to the West of Orange by a hair).

Asking price is $96.9k. Looking at comps (and it seems to be a foreclosure), I'm thinking of my max offer being 80k so that was used for analysis. The home is a 3/1 with 1500 sq ft, which I think is HUGE! Also, to note, it has a pool. Looking at the pictures, it definitely needs a kitchen rehab and flooring as there has been some damage (some stripping of the tiles, appliances, and some of the cabinets removed). I'm thinking if I can do the painting of the inside and try to tackle the flooring (watching videos and shows), I can keep my rehab price below 30k. What do you think?

Anyway, here's my analysis! I hope you're able to see!

I do have a question on the analysis. I originally did it without the cost of rehab but in example below I included it b/c I wasn't sure if you include rehab costs if it's just a one time thing?

Without the rehab costs, the cash & closing cost is 18,400, making the cap rate 15.9 and cash on cash 66.9%.

With rehab costs (in case you can't see) cap is 15, and cash on cash is 27.8%.

Thanks so much for your help!

It's great that we all agree on something! LOL

Hello! 

I'm a newbie as well who is currently going through this. I thought of all the money I pay to rent and how I could be putting it into something that I will own. This brought me to real estate investing. As Alexander above, I plan to rent it out vs sell. Do a search online. I found a calculator that will give you a breakdown of rent vs buy and how you might save. Looking at your numbers, I think you'd be better off getting a house. I have eliminated condos and townhomes from my search due to the high HOA fees. That is what seems to be making your numbers not work out well, IMO. If you are set on a townhome, then perhaps look at others and see if you can find a lower HOA fee. It may also be better for you to continue to rent until you are somewhere more permanently or at least for a longer period to be able to truly see appreciation (although most say don't base purchase on this).

Best wishes with your decision!

~J

Welcome! @Michael Petrone

Your experience will be invaluable, for sure! I hope to one day have as much experience as you. Any tips on how you got started in your first deal?

To your continued success!

Thank you! @Mark Nolan

Thanks @Jonathan J. Miller and @Christine T.

I'm trying to remain optimistic. LOL
@Christine T.

@John Kent Thank you for the much needed info! It's hard to decipher what the war zones are as I hear that Parramore, Pine Hills, and Texas Ave are bad areas. Moving here from Atlanta, I think that my idea of a "bad area"may be different but could use guidance on what is the most tolerable.

I reached out to you in a message and will be in contact.

@Elio L. Thank you!
@Daria B.

@Daria B. Thanks so much for the kind words and the clarification about loans. Hopefully your friend can shed light on the topic of financing. Getting a loan should be no problem as my credit score is 770+, I am employed, and I can put 20% or more down. I just don't think it's feasible to put all of my cash into a home because you have to be prepared for the what-ifs. Unfortunately, the real estate investing groups have conflicted with my schedule but hopefully I'll be able to attend in the near future.

Hello all!

I am an RN who's been in Orlando for 4.5 years now (Georgia native) and am looking to embark on my first investment property in the next few months. I've been reading a lot here on BP as well as on my own. Currently, Cash Flow Quadrant and Building Wealth One House at a Time. I've been looking at houses in different areas on Realtor.com and also viewing the crime maps on spotcrime.com as well at neighborhood scout.

What I seek is a SFH or small multi-family unit with good cash flow. I see several different techniques that are used here. I've been reading about the sub-50k which is interesting but I don't know if Orlando is the best market with crime seeming to be generalized unless you are further north (Winter Park) or West in the more expensive areas (Windermere). My budget is preferably less than 140k. It seems like it is a seller's market currently so I'm not sure if now is the time to buy or if it will change in a few months.

With all of that being said, I'm looking to find an investor-friendly REA who is knowledgeable on the market and good areas with low vacancy rates and good cash-flow. I searched Zillow and thought that I'd found someone but upon speaking with him, let's just say that we weren't a good match. He seemed to brush me off because I'm not a cash buyer. I felt like I was belittled and basically laughed at. I've worked hard to save about 60k and hearing people speak, it just doesn't seem like enough. He told me I wouldn't be able to finance anything less than $100k and that all of the investors here are cash buyers who would always beat me out if I ever obtained financing. While I do believe there's some truth to the cash buyers, I've been reading lots of blogs here on BP and I thought that anything over $50k+ could be financed? Is this wrong or would this more so be a hard-money lender? How does a property qualify for a renovation loan?

Sorry this is a long post...I'm rambling...but he kind of crushed my little dreams. I appreciate any and all feedback and look forward to networking!

@Michael Palma What areas do you think in Orlando are more on the upcoming side, showing growth? I'm a newbie as well looking to either buy/hold or flip. Looking for something more central but am open to Seminole county. What's your take on the Aloma and UCF areas for rentals?