All Forum Posts by: Chris Nelson

Hi all, 

We moved to Tampa Bay area about a year ago (St Petersburg, FL). We are in the process of doing a 1031 exchange on 2 out of state properties and looking to buy investment properties here locally. 

We currently have a duplex and a SFR out of state. The SFR just sold so we have 45 days to find an investment home here in Tampa Bay.

For those who invest here what location seems to give you the best cap rate? We have been looking in St Pete area, but are willing to look where we can get the best bang for our buck (within reasonable driving distance as we will be managing the properties ourselves). 

Also, does anyone do vacation home rentals? 

And finally which REIA meetings do you find the most helpful?

Thank you in advance! 

Chris

Thanks @Dave Foster and @Steven Hickox for the excellent advice and insight!  I'll see if we can connect locally Dave.  Thanks again!

Chris

Thanks @Torin Murphin, @Marelyn Valdes and @Ralph R. for the helpful insight and recommendations.  I'll keep you posted as things develop.  I'm definitely taking action in one way or the other.

And yes, @Aaron Moore, the 9% cap rate is based on our purchase price. 

Thanks again!

Thank you @Aaron Moore,@Jenn N. and @Colin Smith. Your insight is very much appreciated and now we have some things to think about from local residents and experts. Thank you so much for the valuable insight! 

Chris

Debating putting our SFR up for sale in CO Springs.

A few specs: 

SFR 3/2.5 and 2 car garage. Powers neighborhood. District 49 schools. Built in 1999

Current Cap rate 9%

Purchase price 184K (2009). Owe 163K. Estimated sale price 235K (based on other homes recently sold)

Thing is, we have moved to Florida and are considering re-investing the money here so we can be involved in the day to day property management. 

Would now a good time to sell in Colorado Springs? Why? or Why not? Living out of state we can do some research but can't get the real "feel" for what's happening. 

Thank you so much in advance!

Hi BP,

Wife and I purchased a duplex in September, 2014 for $142,000 as owner occupied with 15% down.  We put roughly $20,000 into it and have successfully rented it the last 2 years for $25,800 annual gross rent.  We now live in Florida and are absentee landlords for the last 11 months.  The property shares a driveway with the neighboring 4-plex that leads to a shared packing lot in the back of both properties.  Our duplex was built in 2007 and has two units - 3BR / 2BA with stainless appliances, hardwood floors, 10ft ceilings and plenty of upgrades .  We've attracted high quality tenants and have done pretty well with it until recently.  

The neighboring 4-plex was built in the 1920s and the landlord has put minimal back into it.  He doesn't do background checks on tenants and doesn't have them sign a lease.  His logic is that he can boot them out at any time if they don't pay.  Needless to say there is a lot of turnover and always drama from that side of the parking lot.  I'm constantly reassuring our tenants and jumping in to resolve issues that directly stem from the neighboring property.  If we didn't share the space in the back it wouldn't be an issue as much.  The mess would at least be contained and not have as much spill over.  Nextdoor currently has a tenant that is allowing drug dealing thugs to "post up" during the day in his place to sell crack for a few hours and then they move on once the product has moved.  His tenant gets a percentage or some crack in form of payment.  During that time when the crack dealers are "posting up for business"  there is anywhere from 20-30 people moving on foot into the back apartment.  I've notified the landlord and he has taken an unexpected stance lately.  His new attitude is that he can't control what they do in their home and if I have a problem with it I should call the police.  The landlord notified his downstairs tenant that my tenant complained.  Needless to say the crack head tenant approached my tenant about it and there has been drama, to the point my tenant is moving out and not signing a new lease.  Previously when I lived there I had a good working relationship with the landlord next door and he would just boot them out if I had an issue.  Now that I'm an absentee landlord he feels like he doesn't need to help me out and it's my problem to deal with.  He also faults me for being an absentee landlord in the first place.  The upstairs tenant has called the police non-emergency line to complain about the drug activity when it's taking place and has seen minimal results. 

I'm not a big fan of using a property management company and I don't think they are going to work on the drama next door for me anyway.  Our upstairs tenant is moving out December 1st and the downstairs tenant is currently month to month.  I'm going to contact the downstairs tenant and see if they will sign a 1 year lease.  I'm really worried the property next door is going to scare away the high quality tenants and force us to take riskier applications and possibly less rent in the future.  This area is up and coming with a great deal of desirable attributes with the less desirable.  Most tenants are aware of this but the house next door is the source of a lot of the bad news in this area.  

I know that was a lot but my question for you guys is do we:

1. Stay put and weather the storm with hopes that it gets better even though its out of our control nextdoor.
2. Sell the property and find something locally in Florida to invest in.

Personally I run a ecommerce business full time and I enjoy focusing on that.  Dealing with this drama really screws up my day.  I'm big into quality of life and believe there are a lot of ways to make money out there.  Dealing with crack heads next door is not what gets me excited in the morning.  We had the duplex appraised in July and it came back at $260,000.

Thanks guys for looking at my load of drama and helping me out with it.

Chris 

Hi BP,

Wife and I purchased a duplex in NC on June 13, 2014 lived in it until September, 2015 (15 mts) and rented it out for the remainder; we've owned it for a total of 29 months.  We moved to Florida for work.  Can we take a tax free gain out of the duplex with a SEC 121 for the 15/29 percentage as it relates to us using it as our primary residence?  Is this completely tax free? Is the depreciation taken back here?  We want to use some of the money for personal use and reinvest the remaining into an investment property here in Saint Petersburg, FL. Can we use a SEC 121 for the tax free gain on our personal use and a 1031 for the remaining investment portion to reinvest into an investment property here locally?  Are you allowed to use both at the same time?  Can a QI manage both the sec 121 and 1031 simultaneously.  With this much complexity in a deal structure how likely is it to completely fall apart?  I've seen a local St. Pete QI on here that has given some great advice to members just for buying lunch! :) @Dave Foster  I hope he's hungry! ;)

Thanks BP!

Thanks! This is very helpful! 

Hi all

I am looking for a sample "Notice to Vacate" letter that would be applicable in Florida. We are inheriting a bad tenant as part of our purchase of a duplex. The tenant is on a month to month lease and never pays rent on time.  The current seller won't agree to give her the notice prior to closing. We want to give her a 30 day notice by certified mail when the opportunity arises (after closing). Does anyone have a sample of a notice to vacate letter that would work in FL? 

Thanks in advance! 

Chris