All Forum Posts by: Lucas LeBlanc

It is that time of year again and we need to start thinking about our year end income sheet to minimize the check we have to write to the IRS.

Lori Hornby, CPA is a local accountant and she will review key ways to maintain your books and records through Quickbooks as part of your real estate rental business as well as cover items you need to prepare for the IRS when filing 2019. During the meeting, Lori will touch on:

1) How to access information on all of your accounts in one place
2) Managing the funds going in and out of your account
3) Staying on top of income and expenses with a customized budget
4) Viewing your property’s performance using a variety of reports

Eric Odum, commercial realtor and co-host of the Invest Florida Podcast, and Scott Maurer, business development director for Advanta IRA, are pleased to co-host this real estate investor's group at the Suites at Madison in downtown Tampa. This investment group is aimed at real estate investors of all experience levels, and will provide both time for networking and for education.

networking starts at 6PM, presentation at 6:30PM

UPDATE: This is a hard no go. Just spoke with someone from the HOA and it very much operates like a traditional HOA despite what the agent/tenant were saying. They are currently working with legal council to get amendments put in so they can limit STR.

Thank you everyone for your thoughts/feedback! On to the next!

@Ned Carey @Justin Ellis @Joe Scaparra

Thank you for your thoughts! If what I'm hearing is correct these are the reasons you would walk away from this deal and some more detail around them:

1. Risk of the underlying viability of the tenant's STR business with this property and their ability to pay the monthly rent

- They have been running this specific STR for almost a year now and average ~$14k/month in rental income, and future months are already filling up. We would do a full audit of their finances during due diligence to have them prove this $14k number. @Ned Carey you are correct that they are paying well above market long term rent at $8k/month.

- If the current tenant leaves for some reason, my wife and I would take over running the STR business as we have experience with that and it is part of our overall strategy.

2. HOA risk

- This isn't your typical HOA as it is optional and doesn't hold the typical HOA powers. We are currently digging into the specifics, but if the HOA has ANY restrictions or covenants over this specific property then we walk. The agent and tenant are adamant that they don't, but we need to find this out for ourselves.

So overall, the only way we would end up being upside down on this is if the ability to use it as a STR goes away. And if that happens 4+ years down the road we will still come out ahead even if we take a bit of a loss on the resale due to the accrued cash flow.

Hello everyone! We have a deal that we are evaluating and need some thoughts/feedback on what we could be missing or looking at incorrectly. The numbers are great, but there are a few risks involved too.

Looking for thoughts, guidance, insight that could help us make the right decision.

Details:

- Large SFH (6 bedrooms / 5 baths) in a good community with a mix of newer large homes and older ranch style homes

- Comes with a tenant that just signed a 5 year lease for $8,000/month with $300 increases built in every year

- Basically NNN as the owner is only responsible for taxes (~$16,000/year) and insurance (~$300-400/month), the tenant pays for everything else

- The tenant doesn't live there, but lists the property on short term rental sites like AirBnB/VRBO. They do this with a few other properties in the area. Some they own, and some they rent. AirBnB is fully legal in our state/county/city.

- Purchase price would be around $700k, which is equal to the highest selling property in the area over the last 2 years. No appreciation expected so selling in the future would be a last resort exit strategy. We would also lose money renting it long term.

- Weird house layout as it has had several additions over the years. So it is great for STR, but bad for a primary residence. It has been on/off the market for several years and would be difficult to resell due to the layout. Listed by a commercial brokerage possibly because of previous challenges selling on the MLS.

- We had a bad experience with this broker in the past which makes us wary of anything he represents

- Optional HOA in this neighborhood for the community amenities, but supposedly any deed restrictions on this property have expired. If during due diligence we find that isn't the case this deal would be an immediate no go.

Financial breakdown:

Monthly Expenses = $4,775 (P&I = $3,092 ; Insurance = $350 ; Taxes = $1,333)

Monthly Income = $8,000

Monthly cash flow = $3,225 (27% cash on cash, 10.83% cap rate, 2.04 debt coverage)

The return seems to outweigh any potential risks, but we can't help but think we are missing something.

Thanks in advance for your help!

Join us for this free event to network with other investors and learn about Note Investing.

When notes and mortgage go unpaid, this can present a great opportunity for the savvy investor. At this month’s Invest Florida Meet-Up, we will have Nahir Solis to explain how you can take advantage by investing in both non-performing and performing notes. During her presentation, Nahir will cover:

• Performing proper due diligence on a note
• Understanding assignment chains
• Identifying potential title issues
• Unique concerns when investing in notes
• How to buy at a good price and maximize cash flow

Networking starts at 6 followed by the presentation. Light snacks and refreshments will be provided. 

@Account Closed No need to sign up, but if you want to get on a list for the event you can do so here: https://www.meetup.com/Invest-Florida-Show-Tampa-Cashflow-Meetup/events/mnhlbqyzjbjc/

If you're a real estate investor, or just a homeowner, you will want to attend this month’s Invest Florida Meet-Up. We will have former Hillsborough County Property Appraiser Rob Turner discussing how you reduce your annual property tax bill, and what that process looks like. During his presentation, Rob will cover:

- Background and timing of the process
- Assessment evaluation
- The eight criteria used to determine value
- The formal and informal appeal process

Eric Odum, commercial realtor and co-host of the Invest Florida Podcast, and Scott Maurer, business development director for Advanta IRA, are pleased to co-host this real estate investor's group at the Suites at Madison in downtown Tampa. This investment group is aimed at real estate investors of all experience levels, and will provide both time for networking and for education.

The doors open at 6:00 pm for some great networking opportunities, which will be followed by the presentation from Rob.

Attendance is free at the event and light appetizers and drinks are provided. Seats are limited,

When looking to make investments in real estate, too often an investor may forget about or neglect to consider the tax aspects of their transaction. For those who utilize either a 1031 exchange or invest inside of a retirement plan, the savings can be huge. 

Join us at this month’s Invest Florida Meet-Up where we will have Dave Foster of Exchange Resource Group discuss the impact of taxes in your next real estate deal and how you can legally avoid them. During his presentation, Dave will cover:

The 6 basics requirements for a successful 1031 exchange
Living tax deferred inside or outside a retirement account
Turning tax-deferred into tax-free

Networking starts at 6PM, presentation at 6:30PM

Details

Whether you are looking to purchase your next long-term rental or short-term flip, you will want to come to this month’s Invest Florida Meet-Up. We will have Frank Coto from Lincoln Lending to discuss many different areas of financing and using leverage for your next real estate deal. Frank will also give his thoughts on where the market is headed. During his presentation, Frank will cover:

Investment loan programs for residential and commercial properties
Asset-based lending
Buying 2nd homes and legally getting rental income
Private money lending, and much more
This investment group is aimed at real estate investors of all experience levels, and will provide both time for networking and for education.

The doors open at 6:00pm for networking, speaker begins at 6:30

@Samera Harvey I actually don't currently invest in mobile homes, but @Adrian Smude is the resident expert. I'm going to be learning from him along with everyone else at the meetup next week!