All Forum Posts by: Lake Lutes

Hey Chad! I am investor and agent here in Destin/Fort Walton Beach - happy to help if you need help! As others have mentioned, price appreciation over the past few years have made finding deals harder, but there are certainly still deals, and very lucrative deals at that.

For the Florida panhandle, we've been using the 15-20% rule for a number of years now. That is, the gross rental income for the year should be approx. 15-20% of the purchase price. For example, if the purchase price is $400K, we're looking for $60K-80K of rental income. As properties have appreciated rapidly, we're now looking for 12-15%. For example, a $400K property that does $50K-60K is achievable.

Where are you looking for an STR and what sort of income numbers are you seeing, @Easton Hill?

Hey Melanie! Awesome goal for yourself and a great way to start your 2023! I invest and help investor up in the Florida panhandle, but even further north than Port Richey - Pensacola to Destin to Panama City Beach. We're in the middle of our slow months (Nov-Feb), so occupancy has definitely been low, but that is to be expected. However, we tropically start seeing a bit more bookings for early next year (2023) than we currently have, so it is safe to say the bookings have slowed a hair. With that being said, listings that are priced competitively, and have great marketing and reviews are still performing well and booking as expected. Our area is known for fantastic YoY gross STR income numbers compared to price points, and has appreciated very well over the years. Let me know if I can you help you out at all! Best of luck

I would agree with the others that 0 showings would indicate improper and high pricing. End of the year is always notorious for slow rental and sales markets, but 0 showings in a month is definitely a red flag. As a realtor, I would have raised my caution flag and had a conversation with the seller if we had 0 showings in the first week, let alone a whole month.

If you'd like, I'd love to evaluate it for you and give you my opinion. No matter the market or time of year, a home that is correctly priced and marketed well will definitely get showings, and can absolutely sell.

Best of luck to you and happy holidays.

@ROBERT JOHNSON would love to hear about your muilti-family complex in FWB! Awesome stuff

Hey @Charis WolfeBarron! Marshall had some great info above. I'll say from my experience, the majority of quality multi-families I've seen have been in PCB - Pensacola and FWB are options as well, and I've seen a few decent deals in Crestview as well. I have a few investors who short-term rent multi-families in PCB and do very well, as they'll rent each unit out individually short term. Really lucrative for the right property! Are you thinking short or long term for your MFH?

Ya @Yoko Hankins!! So stoked for you guys.

Hey @Mel Adams! I've definitely had the same thoughts. There's no way it is still working in every market. Thankfully, my market is still favorable for them. I have a BRRR going now and I still expect solid numbers on the cash-out refi. Obviously not as solid as a year ago, but still attractive numbers. Let me know if you want to chat about it or what your numbers are looking like!

I completely understand the perceived difficulty in finding a contractor - but I'd like to offer a few solutions in doing so:

1)  go to local material stores - flooring, tile, paint etc. stores will have racks of local contractor's business cards

2) ask the seller of the house who they used. They might have a "Johnny around the corner" type guy who can be a reliable, go-to handyman

3) Go to Home Depot or lowes, and walk up and down the aisles. You'll be able to tell who the contractors are. Start some conversations!

4) Get multiple quotes. Often time, the highest quote is super busy and shooting you a number he/she isn't expecting you to take. The lowest quote is too desperate for work and most likely won't give you the quality you want. Quotes in the middle of the 2 are typically your best bet.

If anyone needs a recommendation in the Florida panhandle near Destin, Fort Walton Beach, PCB, Pensacola, Crestview, etc. Let me know!

@Jay Hurst I shot you a message, Jay. I have a property in San Antonio with a bunch of equity I'd like to leverage. Looking forward to connecting - thanks!