All Forum Posts by: Katie Lyon

Hi @Katie Lyon,

Properties are typically still selling in Cape Coral right now to active buyers, even with elevated inventory. Aggressive pricing is necessary to achieve this, so it's important to ensure the property is realistically priced in line with market standards, which often is not necessarily what you're hoping to sell for. 

As for offering subject-to financing, this is something that can be advertised under 'seller financing' in our local MLS, and there's investors that search specifically for listings with that marked, so that should introduce your property to a new set of buyers that may not have considered it before. I would also include 'creative financing available' at the beginning of the listing description to capture everyone else looking on Zillow, etc

Yep. 

I don't know what area you are in, but generally just take them to Small Claims Court. Get the judgment and frequently the court personnel will instruct you on how you can collect. You may be able to get a levy against their bank account or file a wage garnishment without the need for going to collections. 

I'd first take it up with the eviction court and ask for a monetary judgment at that time. Then I'd turn it over to a collections agency. 

 Katie you will be popular when that system hits! I'm interested already!

Hey Katie, 

This doesn't sound ideal, and I'm sorry you are in that situation. 

I think your assessment is spot on, the cost and risk associated with Hurricane Ian have already put a significant dent in your finances, amounting to $10k out of pocket. With the potential for more storms predicted this summer, there's a genuine concern for further damage and financial loss. Selling the property would help you mitigate these risks and avoid additional costs. Your gut might be in the right place here.

If the current rental demand in the area is lower, it could be quite challenging to maintain consistent occupancy and rental income. By selling the property, you would be relieved of the responsibility of finding tenants and managing the property from a distance. This is the second reason why I'd sell too.

The Florida real estate market can be quite unpredictable, particularly given the current political climate. Selling now would allow you to take advantage of any value appreciation the property has experienced while avoiding potential market fluctuations and uncertainties. 

While furnishing the property and listing it as a short-term rental may seem like an option, your concerns about high insurance costs and the lack of nearby properties are valid. These factors can increase the risk involved and potentially lead to financial challenges if the short-term rental strategy doesn't pan out as expected.

Considering all these factors, selling the property could be a prudent decision to limit your financial exposure, reduce risk, and provide you with the flexibility to explore other investment opportunities. Based on all these points, it sounds like you already know what to do. I too would take the L and shift into preservation mode. Good luck with everything, I hope situations become more favorable for you. 

 Does that mortgage include property taxes and insurance, and is it a 30 year fixed? What was your downpayment?

Assuming yes to both first questions and you put 20% down ($107,200), and also assuming 15% of rents allocated to CAPEX/Maintenance/Vacancy, you're looking at a net $800/month profit and a 8.95% COC return (not inclusive of future appreciation, loan paydown, tax benefits if any).

Of that 15% allocated to CAPEX/Maintenance/Vacancy, say 10% is allocated to CAPEX/Maintenance. If so, that is $6000/year. 1.5years of that reserve buildup covers that Ian expense. Things like that happen, but as long as you are saving those reserves for unforeseen circumstances like hurricanes, you should be fine as long as you believe in the market fundamentals and want to hold long term.

Katie,

The question is what you think is the future of the Cape Coral FL area. Do you think it's going to bounce back and have the same rental potential that you had previously? I see that you're looking at the potential of doing a short term rental and that would not be good for you insurance wise from what you said, but did you consider medium term rental? Is there a draw in your area for corporate travel or visiting nurses or a college where I furnish rental could help you bridge through.

I know that the insurance market in general in Florida is going crazy especially with the risk of hurricanes. Is your house in a flooding path? I see that you were previously affected by hurricane Ian. In the end you're going to need to make the decision that will make you sleep best at night. From the tone of your post I don't think you're comfortable with Florida as a market relative to the insurance slash hurricane risk reward scenario.