All Forum Posts by: Will F.

Good point. I’m from Los Angeles too. To be honest, everything is inflated if looking at it today. The folks here on thread are no joke from Cape. I’ve interacted with them on various threads and trust them from an expert point of view. 

I just think it’s tougher to find deals in Cape, Los Angeles, San Antonio, and Parts of Nashville. These are my markets. Hindsight is 20/20, but heck, i was Fearful too and prices somehow still going up. 

I think Cape has a good future due to influx of people from certain states. I just wish i had More money to invest there. 

im on the sidelines now and will only submit offers where I can find a steal (though hard these days). Otherwise, I’m just saving cash for future deals and shore up reserves for potential correction to ride that vacancy and not bleed out. Again, conservative side of me. 

all points well taken above. 

Hello Everyone,

I’m a college student looking for a house hack opportunity in South Florida. I’m trying to build a house hack/ rental portfolio and I’m wondering now if Fort Lauderdale is too late to get into. Wondering what everyone’s thoughts are/ if people are still buying rental properties in this climate.

Thanks

@Will F. When @Malgorzata Sadowska talks about Little Haiti being "one of the highest points in the county" she's referring to its elevation. Little Haiti as an investment area started trending after Hurricane Irma because it was one of the few places that didn't flood because it's on higher ground than the rest of the county (one perk of this is that you're not going to have to pay flood insurance, which, as @Daniel Smyth mentioned is a concern for most of Miami-Dade County). 

Little Haiti is also one of the closest of the cheap neighborhoods near the ever-more-popular Wynwood and the Design District. So definitely up-and coming. The only thing I would really look into is the state of the building itself. The housing stock there is pretty dilapidated and probably wasn't well-maintained for the most part. If it was renovated, great! but check their work.  If it's between N Miami and US1, I'd buy. Would make a great Airbnb.

@Will F. OOS investor here building 7 SFHs in NW Cape Coral - 6 of the 7 on freshwater canal lots. No one has a crystal ball for sure and it's easy to sound smart when the market goes up and up. That said, a few pieces of information to chew on from my own experiences and information I've gathered:

Back in early 2021, I could get a freshwater canal lot on the MLS for $10-$15k. Those same lots are now selling for $45-$50k. So a 4x increase in just under a year. In early 2021, I could construct a 1600-1700 sq ft 4/2 or 4/3 for $225k through Rent to Retirement. Now I can't do it for under $250k. So build prices went up about 10%, but land went up nearly 400%.

So some would look at that and say "I'm too late to the party." However, keep in mind that rent in early 2021 was around $1,800 for that 160-1700 sqft 4/2 and is now closer to $2,400-$2,500. Additionally, appraisals on that 1600-1700 sqft 4/2 that I could build all in for $238k (lot + build + closing costs) appraised for around $280k, but are now appraising for $360-$410k. 

So today you can still build a 1775 sqft 4/2 (current model I'm building) for just under $300k on a freshwater canal lot (lot + build price) that will rent TODAY for $2,500. I don't think rents can continue on their current upward trajectory. However, Cape Coral has some large tailwinds helping it out such as the massive influx of people (look up recent articles by UHaul on migration patterns and they cite Cape Coral/Fort Myers in specific), low supply of available rental and housing, and overall desirability due to weather, proximity to the Ocean, price point, low taxes, business-friendly state, etc. 

Personally, I think the underlying value of land is what will continue to increase at a rapid pace in 2022. You see that in coastal areas across the nation. It's the land that is the real value. At some point, the combined cost of the land + build (mainly driven by land increases) will reach a point where there isn't enough cash flow to justify anything other than an appreciation move. However, I still think canal lots this close to the Ocean in SW Florida under $50k remain a good value. 

Look, hindsight is 20:20. We all wish we would have bought 100 lots early last year. Who knew? Well @Peter Davis has been singing this for years, but unfortunately, most of us didn't know him then. However, I think you need to look at what's in front of you right now rather than lamenting that you didn't get in earlier and ask yourself if a new construction 4/2 1775 sqft home with a custom builder for $300k on a freshwater canal lot within a couple miles of the Ocean in Southern Florida that rents for $2,400 conservatively makes sense. It does for me. It might not in 6 months or a year, but right now I'm making hay while the sun is shining! 

I've said it before and I still believe it, that Cape Coral is a great place to invest. Year over year, December 2020 to December 2021 the average sales price went up 30% and current inventory is at around three weeks. There's huge demand for limited supply. And I think that trend will continue in 2022 albeit at a somewhat slower pace. 

  Little Haiti is definitely a great area. Also depends exactly what avenue and how close you are to Biscayne Blvd or if its on NW 2 ave and at what height of it? The closer South to Wynwood the better. I have a friend who is only buying along that avenue. Also important to keep in mind the massive $1.3 Bil development Magic city innovation district.  

My question to you is - What are you planning on doing with this investment? 
Are you planning to run it as a STR or a flip and so forth?
Depending on your investment metric, I would give you different advice, but in general my thought process for you would be:
1. Definitely make sure someone (your real estate agent) goes out there to see the street the complex it is in. Although Miami realtors like myself know the streets, they change quickly in Miami. I lived in Miami for 8 years and Lil Haiti is growing but it's still considered an "up and coming" not great neighborhood. You have to be careful what street you invest there. I think that depending on your investment strategy, it can work. 

What's the condition of the building? Each unit? Rent ready? Which part of Little Haiti? In general, great area to invest (due to proximity you already mentioned & it's one of the highest points in the county). Where's the building on their 40 year / 50 (etc.) (re)certification process? 

Rental & sale comps will depend on all that & some additional factors.