All Forum Posts by: Marshall Leipprandt

30A and the surrounding NWFL areas are generally strong STR markets. The 30A/Miramar Beach/Destin areas have been particularly strong, even this year and last (2023). There are some areas I would steer away from in this sub-market, but there is no denying the continued growth, development, and interest in this area on a national scale. Our team helps a lot of out of state and out of town investors find properties that meet their needs (usually parking equity after a 1031 or moving equity from other real estate investments in other markets).

Cashflow obviously depends on your LTV, but I would say the days of cash-flowing on an 80% LTV deal in this area are long gone, particularly with increased insurance rates and inflated operating expenses. If you're looking in that 65%-70% LTV or even lower range, then you're able to make some things happen.

@Alberto Lorenzo Welcome to BP! I'm assuming that it is just you (no significant other or children?). If it is just you, I would try to buy either a duplex or single family home with an ADU. That additional income will help you offset your mortgage. You can always repeat the process after living in it for a year and try to buy again. In terms of financing, FHA is great, especially if you're a first time homebuyer but the 5% vs 20% debate is more of a personal preference. If you're looking at this from purely an investor mindset and want to put as little down, then the 5% is a no-brainer. However, remember that with a 20% down payment, although your cash on cash ROI will be lower, you won't be paying PMI as a part of your monthly payment and you'd increase your chances of cash-flowing when the property becomes a rental because your overall monthly payment will be less.

@Jacob Mistric If your Airbnb is a rental property and an investment, you can deduct your business expenses on your taxes. This is the same for if you have any business really, however, there are no specific tax credits for just owning an Airbnb. You may be thinking of depreciation which is a separate issue and is a way of depreciating the value of your property over its useful life. Something that gets a little more complex. I work with a licensed CPA in my area in FL to ensure that I am deducting all appropriate business expenses for my rental properties and taking advantage of other tax benefits like depreciation, etc.

@CRAIG LAMONT FOREST JR Hey Craig, I'm an Air Force veteran and current RE agent in CA & FL. I was last stationed at LA Air Force Base in El Segundo and used my VA loan to purchase there.

I work with a lender who specializes in VA loans in SoCal and has helped dozens of our team's clients get VA loans (including myself). DM me if you'd like, I would be happy to share his info with you and help you in any way that I can.

Good luck with the PCS!

@Biftu Jiru If you finish school, what would your projected income be afterward? 

I'd finish school, get a solid paying job, keep your bills and expenses low and start saving for a house. Keep your credit good and house hack your first deal when you are qualified enough. I'd say that you need a decent 5 years to save, invest, and build credit in order to even consider quitting your job and going full-time in real estate. Living off cash flow is possible but it takes a long time to get to that point. Also, keep in mid that when you no longer have a W2, it will be much more difficult to get loans for new properties. I am going through that process now personally.

For reference, I finished college and spent 6 years in a career before going full-time as a realtor, investor, and property manager. I am glad I did what I did. Quitting my W2 2 years ago would not have been enough time to build the capital and strong financial position needed to invest in RE from a position of strength.

@Mary Jay Our house is at about $14K in annual property tax. We cash flow about $150/mo on average, so any cashflow we have is completely wiped out by our depreciation so we're running it at a loss from a tax perspective. 

@Mary Jay Hey Mary, it is going to depend as there is no clear cut answer without knowing your personal financial situation. I'm guessing you are not a CA resident but have to file a CA return on account of your rental property in CA.

I do the same with a rental I have in Los Angeles as I am a FL resident but spend some time each year in CA working as a Realtor. Since I am a FL resident, I have to file a separate CA return for any income I receive in CA. However, I've begun using a CPA to help with my tax filings staring for the 2021 tax season and I pay him to navigate the rules and regulations of what is required.

I have heard of CA pursuing "unpaid" taxes on out of state residents who have rentals or earn income in CA, so for my situation, it is worth hiring a tax professional to ensure I am doing everything correctly and am not hit with a bill 5 years from now from unpaid taxes + interest claimed by CA.

@Connor Welch Where are you looking in FL? 

If they owe nothing, you can be a little more creative in seller financing if you think that might be something they would consider. However, most sellers will typically elect to just sell at that point to get the capital out of that property. 

I have two short-term rentals in Florida and if you do pursue this property, I would encourage you to also try and get it furnished. Will save you possible tens of thousands of dollars and a lot of time. You'd be able to get it back up as a rental quickly after closing.

@Amy Ngo Well good luck! I do think there is a lot of opportunity for newer, quality PM services. I am looking to do a similar PM company except for vacation rentals down in Florida.

@Amy Ngo I have yet to use a PM. I interviewed a few when I decided to put my LTR rental in LA up for rent, but never got a good feeling that the PMs I spoke with were really going to find quality tenants and treat the property up to my standards. I decided to rent it out myself and I still manage it myself.

Are you looking to rent out your property or are you setting up a PM team?