All Forum Posts by: Kristin Kiddy

@Anthony TurnerI co-listing would keep you in the loop more than a referral, which is probably best if you want to build client trust.  Much of the work involved is done with email, especially once you are under contract.  If all you need is boots on the ground to open a house or attend an inspection then you might discuss flat fees with a trusted agent.  Not being there for a closing can be tricky if the client needs hand holding or emotional support because another agent hasn't been working with them like you have and so I would recommend going the referral or co-list route if you are going to mis a bunch of closings.  Clients who are experienced don't often care if you are there or not and now a days they often choose to close remotely.

I had a similar situation when I was going to be out of town for an extended period but had begun working with a buyer.  I did a referral with another agent in the office with a 50% split between the two of us for the period I was gone in case the buyer wanted to offer on one of the properties we were looking at.  The referral expired when I was back in town and could take over.  I would find an agent you like to work with and set up an agreement.  I think referral fees work best if they are structured to reflect what each of you are bringing to the table. 

When are you available?  If they are ready to work right away, there is probably a reason why.  All the good quality contractors are booked months out.

@Bruce Lynn is correct, many new home communities require buyers to be owner occupants in order to take advantage of builder incentives. A work around is to make it you primary for a few years and then rent it out. I've not heard of an HOA completely banning rentals in a single family community, although they can require registration and background checks of renters. In Florida, homes built before 2005 have higher insurance rates than an new or almost new build and that can really affect return. Add to that the desirability of renting a new home (which would allow a maximized rental rate), I would definitely look into the opportunity.

I used IPX1031.  They are all over the country.  Pretty standard rates.  Not a lot of hand holding.  But everything went smoothly.

I'm not quite sure why you or your realtor didn't request a copy of all the HOA documents, rules and regs, etc. In Florida we have an HOA rider which is required... I'm not sure if you are saying that something like that was filled out wrong. If you just took someones word for it without something in writing, well not a good idea ever. Trust but verify!

Yes.  It's called a cash out refinance.  Call around to different banks, a smaller bank may be more flexible if this was a recent purchase.  You will either qualify for the loan on your personal income or you may be able to qualify on the property's performance.  

Definitely speak with a CPA.  But when you convert a personal residence to a rental property, you loose out on part or all of the gain exemption.  If you lived in the property 2 out of the last 5 years of owning the property, you will need to calculate the percentage of time the property spent as a personal residence vs. the percentage of time it was a rental property.  Best place for research is the IRS website.  Be careful when reading other blogs/pages.  Tax laws change.

Personal experience as an investor is really important.  There is a lot of detail and nuance.  I've owned and managed vacation rentals, long term rentals in other states, and local rental properties over the last 12 years.  That's 12 years of learning the tax laws (and paying taxes), finding vendors to make repairs and improvements, dealing with problem tenants, making mistakes, and finding solutions to a long list of issues.  You just can't learn all of it overnight, even though there are some great resources available (like BiggerPockets).  

@Scott Esmail Sounds like you aren't feeling super confident on this property. Location in Daytona is everything. STR is not yet an option for most of the area, although there are people on the city council trying to change that (for a small section of the beachside). There is a great need for lower cost housing. You may want to look at section 8 once you rehab the building. If you have consistently paying tenants that don't cause trouble, I wouldn't rule them out.