All Forum Posts by: JR Paulemon

Hello BP! I need your help. I am looking to build a 6-8 unit apartment on my lot. I currently have a 4 bedroom single family investment property on the lot but still have about a half of an acre towards the back of the property. I am looking to expand my real estate portfolio and to me the best way to get in the multi-family without competing with the big dogs is using my lot. I am looking to provide affordable housing (40% of units dedicated to affordable housing) and the rest of the units would be for short-term rentals. With affordable housing I would be able to expedite the re-zoning of my lot. Also, some possible reimbursement of certain fees. I am looking to speak with a General Contractor that has experience with Multi-Family and affordable housing requirements in the East Orlando, FL area. I hope someone on here can recommend some people. I have a business plan that outlines a 3 year proforma as well. I hope someone can assist me finding a point of contact in this area. I thank you in advance!!!

 It’s not a “great whiz bang idea” (whatever that means). It’s a very old, boring, and simple thing that’s been around forever. Einstein called it the 8th wonder of the world...compound interest. “He who understands it, earns it... he who doesn't... pays it.”

 Thank you @Thomas Rutkowski for your much appreciated input!! Thank you for referring BP threads on this subject, this is extremely informative. Yes, the most important thing I have recently learned from read this amazing book is to minimize death benefit/maximize cash value and select Paid Up Additional Insurance. Thank you again for your help!

Thank you @Alex Deacon for your advice and input! I do have a question and would love some input. About a year ago I paid the remaining balance off my mother's home. Due to how difficult it is to fund a deal without much experience, my mother has agreed to sign over the deed to me in order for me to take out a HELOC to potentially have enough for a down deposit on a 25+ unit building. My question is almost all seasoned investors that I have communicated with have said to look for 100+ unit properties and they will help close/funding will come, how would you go about this? Save the HELOC for a 2nd deal and go with 100+ units and hope to get funding or go with a smaller deal and rely on the HELOC for down deposit and minor improvements on the property?

There’s no right or wrong answer and I am not asking what I should do (It’s always tough to answer these questions without having much details) but just wanted your opinion as to what would you do if you were in my position.

Thank you!

Hello BP

A few weeks ago, I finished reading Becoming Your Own Bank (The Infinite Banking Concept) by R. Nelson Nash. Prior to reading the book I have been pursuing my 1st multi-family apartment deal in the Orange County, FL area. Everyone knows the 1st deal is the hardest in the multi-family apartment world to come by. All that being said I am hoping to find a mentor that has extensive experience in multi-family and using the Infinite Banking Concept to fund apartment deals. More specifically, I would like to know how did you go about finding an insurance agent that thoroughly understood the Infinite Banking Concept and knew how to leverage your policy for your real estate needs. Any help/recommendations would be greatly appreciated.

Thank you in advance!

Same here! But I will chime in. The cap rate is the rate of return you expect to get on your investment. If you are buying a property that is newer and in a good area, this would be less risky property to own, so you would expect to get a lower return. If you're interested in a property in a tough area and it had a lot of deferred maintenance, you should expect to get a higher return after you make the improvements of course.

That's why @Brian Schmelzlen was referring to forced appreciation. That's what investors typically look for in commercial units to get higher returns. If you can increase the NOI then you will increase the value of the building. Therefore purchasing with a higher cap rate and then lowering it over time will make your returns great!

I hope this is true! That would be amazing.

Totally agree with you!

How is the Kissimmee market for rental properties? 

Thank you! In the Orlando market it just makes sense to have it as an investment option. Last year 68 million visitors visited Orlando, FL which is a record but the numbers for Hotels dropped lasted year. The macro outlook is purchased single family homes by Millennials are at low rates. Also, not signing their name on a lease but still rent out a room month to month (AirBnB) is not out of this world for them.

I had a student from UCF that just graduated and wanted to rent my room month to month through Air BnB because she was still working at a local hospital and when she completes her internship she is not sure if she wants to remain in Orlando or live somewhere else.

It's just a great mixture of tourists, students, young working professionals, and nice family area. 

Congratulations! It just takes action. Much success for 2018!!

Congratulations! That is really an awesome thing to read, thank you for sharing.

Orlando is on the up and up. It has a steady growth rate, median income is very solid for a city in FL, median age is 34, and not to mention a university (UCF) that enrolls about 70,000 students a year and one of the largest state colleges in the US, Valencia that enrolls another 68,000 students. 

I just closed on my first investment property SFH in Orlando (East Orlando on Old Cheney Hwy) in mid October and I am projecting to cash flow $600 a month. Last month I cashed flowed $473.55 while being at 50% occupancy. I am renting out by rooms (student housing) and the 2 vacant rooms I have I placed 1 room on Air BnB just to get some type of cash flow. Within 4 days that I created my profile on Air BnB I booked 3 guests which brought in $1004.92 at the end of the month. The 2 vacant rooms combined would bring in $1,200 a month or $20 a night if I had those under leases. I am getting $35 a night with my first few bookings for one room. The hassle of traveling on weekends that I book tours is not the best so Air BnB is the choice for now.

For right now I will keep a room on Air BnB. I have 2 tenants currently on the property, one is a student and the other is a young professional. They seem comfortable with the student transient/air BnB thing therefore this will be good until the new school year for UCF, Valencia, etc. comes around. 

After going through closing I have shifted my focus to multi-family apartment units. I am hoping to find a great investment opportunity in Orlando.

Also, thanks for mentioning Mills50, I will visit that area when I come back down from Brooklyn. I read on the area and It seems like a mini Wynwood (Miami Art District) or Williamsburg up here in Brooklyn. Can't wait to check it out in person.