All Forum Posts by: Kevin Howard

@Jerry V. When I mentioned "we" designed it I meant I approved the layout etc. I'm not a contractor, engineer, or architect. The plans that I have show a central HVAC which is why this caught me off guard.

But after reviewing everyone's insight it seems these might not be a bad option after all. We just need to get used to the appearance of them and be ready to service them more regularly.

S**t does happen...there's no doubt about that! 

@Arn Cenedella Thank you for your reply. Each unit is roughly 1250 square feet (3 bedrooms/2bath). It's my understanding that they're intending to install one unit in the main living area and then a unit in each bedroom. My main concern was how they would take away from the aesthetics and also general maintenance. We really don't see them much in our area (NE Florida) unless they're in an ADU, sun room, etc. I'm really curious if it will affect resale value or not?

Not having this discussion in the design phase is also unsettling. I would have preferred to know about if before they were being installed (obviously we can't do anything about it now).

Thanks to everyone that responded...greatly appreciated! 

I'm under construction on my first duplex. I chose a local builder who has been building a lot of modern homes in the area that looked appealing to me (why I chose him). We spent time designing the duplexes together and overall I was excited about the project...that is until he called me yesterday and notified me they're planning on using mini split systems in the units. This was never talked about and I certainly never agreed to it. The plans have a central HVAC on it as does the contract.

I think he messed up with the design and is trying to figure out a solution to the problem. My guess is that they messed up on the engineering and didn't account for enough space in the attic for AC ducts. He's trying to pitch these mini splits to me as being more efficient and better overall. However in my opinion they look terrible and will effect resale value. Here's a link to the duplex design for reference: https://imgur.com/a/T5rX07D

In our area you rarely see mini splits unless they're in an ADU. I'm pretty bummed at the idea of having these obtrusive wall units in every room as it will take away from the clean modern design we were looking for. Alternatively he said he could switch it to a central HVAC system but would need to have the ducts exposed or he can drywall around them...this would also look funny because it would essentially be an 18" drop down in the ceiling (going down the hallway).

Does anyone have opinions on mini splits? From what I read they're somewhat more efficient but also more expensive to maintain. My biggest concern is how they look aesthetically as this was going to be a STR (or for sale). We live in Florida and it's hot almost all year which means these units will be running 24/7/365

I'm having a meeting with the builder this week to discuss our options. I'm upset this was never discussed up until this point because I would have never agreed to either option he's providing. He made it clear that there would be up charges for any change orders I made...what about a decrease in price for any change orders he makes?

How would you handle this situation? We're still uncertain if we're going to use these as STR, LTR, or sell.

By the way, these weren't cheap to build. If I were getting a killer deal then I wouldn't care as much but we aren't. It's roughly $200 a square foot to build...

@Christian Ehlers Nocatee is an awesome planned community between Jacksonville and St.Augustine however they have restrictions against short term renting. For the most part, any neighborhood with a home owner's association is going to restrict short term rentals (not all but most). If you were wanting to invest in STR then I would highly recommend looking at properties close to downtown St.Augustine and the beaches...these are the two areas that bring tourist to the area and it's where they typically want to stay. Another hot spot with a lot of potential will be the west St.Augustine area (just west of downtown). Downtown is maxed out with the only way to expand being west...I'm buying in the area and fully expect it to boom within the next 5 years. Obviously we're in a "shifting market" so just make sure your numbers work and can handle a slight downturn. I'm always available to help if you need anything in the St.Augustine area.

@Bill B. Thanks for the input Bill. It was really to assist with getting my tax liability down in the immediate future. I'm a Realtor so REP status which certainly helps. I do plan on holding the property long term though so that's something to consider. If I ever sold I would 1031 into a different property. Kicking the can down the road

@Julio Gonzalez I appreciate your response. I met with my accountant and he was going to attempt to assist with the study but after reading your articles I think I'm better off reaching out to a company who specializes in it to get a consultation. I'll certainly be doing them on the new construction projects I have going on...thanks again! 

Hi BP Community, 

I'm not too familiar with Cost Segregation and was hoping to get a little input from someone who is... I inherited a quadruplex in 2018 and assumed the mortgage which was right around $500k. I had an appraisal done at the time which appraised it at $800k. The property is now worth roughly $1.4mm and cash flows nicely. I own 3 rental properties currently and am a Realtor so I'm labeled a "real estate professional" in the eyes of the IRS. I did well last year with real estate sales but was killed when it came time to pay taxes. I'm trying to think of ways to bring my tax liability down and thought doing a cost segregation on the quad might be beneficial. However I'm not sure where to start...

I have put roughly $150k into the quad since purchasing it (roof, siding, lift station, interior remodel, HVACs, etc).

I'm meeting with my CPA tomorrow to discuss the benefits of doing a cost segregation study on the quad. I'm not sure he's too familiar with this process so I wanted to do more research before meeting with him. Any suggestions on where I should start? Any guidance is much appreciated! 

Hi Alex, 

I'm a St.Augustine native. I own a handful of STR in the area and am in the process of building two duplexes in the West King Street area. It used to be a bit rough (still is in certain areas) however it's proximity to our downtown historic district in great. We're the "Nation's Oldest City" so people travel here to be downtown and also close to the beaches. I'm a believer that the West King Street area is the next hot spot. If you'd like to call me I'd be happy to give you a more thorough rundown of the area.

Hi BP Community... I have a nasty reoccurring issue at one of my multifamily complexes. The lift station keeps backing up due to the grinder pump seizing up or breaking completely. I replaced one last year and another one just last week (there are two) each at the cost of $3k. The cause seems to be from the tenants flushing condoms, wipes, tampons, etc... The tenants all sign a list of rules when they move in but this is one rule that's hard to enforce considering I can't pinpoint the unit (4 unit building). Is there anything I can do to recoup the cost other than increasing their rent at renewal time? I'm curious what others have done when you have irresponsible tenants who don't necessarily care? Always appreciate the input! 

@David C. Thank you! This is a very logical way to break it down. Much appreciated