All Forum Posts by: Matthew Brill

Investment Info:

Single-family residence buy & hold investment in Ocala.

Purchase price: $159,900
Cash invested: $35,490

3/2 1357 sq ft
This was a new construction build to rent.
Pro forma Cash flow was $156/month CoC return 5.3%. After getting a tenant signed lease the net cash flow after reserves is $220 with CoC return 7.6%.

What made you interested in investing in this type of deal?

This was meant to be more an appreciation play with sold enough cash flow to support itself. Plan is to have little maintenance the first 10 years and then sell before any large CapEx.

How did you find this deal and how did you negotiate it?

I used a marketer with sizable network and lots of experience with this builder, no negotiation.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

No value add, just the new construction proposition.

What was the outcome?

Still renting.

Lessons learned? Challenges?

New contsruction is great.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used Jason Hartman Platinum Properties network.

Are you still filling vacancies?

@Jeffrey Grieshop Unfortunately not any responses. I still have yet to do a deal partnering up with someone.

I use a CPA in Vero that is familiar with real estate and other tax strategies. Message me if you would his info. 

I've had experience with a few. Ben is on the higher end but worth it. Benjamin Schwab GRI, E-PRO, CMS, CNS, SFRBROKER OF Keyrenter Property ManagementManaging Broker, ERA Rising Realty

Not all Realtors are created equal. I would recommend seeking out some that are used to working with investors. And have a narrow criteria to best guide them. It is possible is West Palm but my guess is the Roswell area in GA will be easier to find something that cash flows. The properties in West Palm that are cheaper with better RV ratios are going to be in areas that are D class and management intensive. I think most local investors down here in the single family and small multifamily space are currently looking elsewhere to find that kind of inventory. 

I agree that it is tough to find cash flowing rentals in decent areas in Palm Beach county. I have been doing house hacking and even so the numbers are really tight to get break even one moving out. Happy talk chat sometime. There's also a Meetup in Delray beach once a month if you're interested. Good luck!

I have dealt with the city of Delray Beach but not west palm. 

It's a good plan, just may need some patience to make it work. I moved to palm beach county a year ago and bought a triplex in Delray Beach and am living in one unit and renting the other too. I calculated it based on what would my rent be now in a comparable property to rent and what income would be once I move out. The numbers are definitely tight. I'll barely have any cashflow once I move accounting for PM fee and other expenses/reserves. I was willing to accept this since it's a highly priced asset and I'll be living in it at first. As a frame of reference the two other units gross $3200/month, my PITI is $4200 and I estimate my unit will get $2000/month once I move out. I could also improve the numbers should I convert any of them to a short term rental.

It took some time to find the property and I looked east of 95 from palm beach gardens to delray. There are definitely areas to make it work but it will depend on your criteria. Happy to share more on what I came across if you are interested. 

@Jill Haselman @Account Closed

I thought about managing it myself, and I have been dealing with hold over tenants which hasn't been enjoyable. I'm a doctor and can been inaccessible while I'm working. I imagine I could find a system to make it work but ultimately I don't plan on managing myself. For my time, I decided it's not worth the $320/month I would save. Plus the manager will (should) be a professional and more efficient at managing and can better tend to the tenant. Plus, it's the first PM I'm hiring in this market and I plan to own more, so living there may help me better assess how they manage my asset.