All Forum Posts by: Kevin Marshburn

Shayan, your West Palm deal is too tight. You're spending over $600k (purchase price + rehab + fees) to make $25k, and then you'll have short term capital gains on that... Better off buying short term treasuries with as close to zero risk as exists in investing. I think 10% total return is a good baseline (although can be dependent on the deal and price point). In other words, if you spend $600k, getting a $60k return would be your benchmark. 

Hey Gio, I have a few options in mind and have both on and off market deal flow. Happy to chat in more detail, send me a DM if you'd like to discuss. 

Chris is spot on here. I find this level of underwriting lacking with many flippers as well, failing to properly consider the holding costs, insurance costs, taxes, etc. These quickly eat up profits and adjust the risk profile of deals. 

First, sit down with a local lender in detail and work out what you qualify for, including the potential rental income. From there, narrow down your budget range and then start shopping more seriously. This home seems too expensive for you. You may have to start in a less desirable area or a home that needs some work or is more dated to get started, even with the house hack. But that's the tradeoff to build the equity / wealth that Russell alluded to. 

Don't over leverage starting out. Sounds like you're also counting on some salary increases which is building too much optimism into your math. Be conservative, buy, but buy something you can afford. Play the long game, you can start small and build, just don't go to zero. 

Welcome and congrats Brandon! It's still a great time to invest in South Florida. 

You need to carry insurance, especially since there may be renters given it's a triplex. Send me a PM if you want me to recommend a good South FL insurance agent who can work with you on less expensive policies with larger deductibles, etc. The potential risk you're taking on is not worth the cost savings IMO. 

South Florida is an amazing place to live, although it's become more expensive, it has a great quality of life. I'm also very bullish on FL and South Florida real estate long term. We have great weather so it's an easier adjustment coming from LA. It is tricky to find cash flow, but house hack helps solve that, and numbers won't be as good as your $300k VA deal, but will look better than you're LA triplex example...

Hi Yesenia, you'll likely want to determine your strategy and then confirm which financing option works best for that deal as there is a wide range of options out there. If you're focused on a flip, you'll want to use hard money (bridge loan). If you want to BRRR there are lenders who will offer you a hard money loan that converts to DSCR once your renovation is complete (and it will save you some money in origination fees staying with same lender). Or if it's a clean enough BRRR, you can just start with a DSCR style loan as well. It really will be deal and strategy dependent. My two cents: try to select a strategy that works best for your skill set, market, and risk tolerance. From there, you can figure out financing. Shoot me a DM if you want to chat more, I'm Miami based.

Hey Rod, congrats. I'm Miami based as well. If you ever want to network, discuss flips here locally in FL, just send me a PM. Always great to connect with other local investors. Best of luck. 

Hi Elyse, I'm an investor and agent based in Miami. Anything I can do to help, would be happy to lend a hand or guide you through your first deal as an agent. I work with investors pursuing both on and off market deals. If you'd like to chat in more detail, please send me a note, would be happy to have a call and get better introduced as I love meeting more local investors! Best of luck to you starting this exciting journey!