All Forum Posts by: Matthew Creel

@Michael James Hamlin I'm a former tax accountant/business consultant turned fix n flipper and investor friendly agent.  I almost exclusively work with investors and business owners in buying and selling in Baldwin County. I'd love an opportunity to meet up soon. I have time this Friday or from 2 -5 Tuesday thru Thursday of next week.  Let me know what works best for you!! 

@Jason Hatfield Afternoon! When my business partner and I were still flipping we bought a couple through Auction.com and we always used a private money lender to fund those and our other flips.  It is not uncommon for auctions like this one to get rescheduled multiple times before ever actually making it to the courthouse steps.  I am an investor and real estate agent in Gulf Shores / Orange Beach and would be glad to help in anyway that I can.  It could be possible to still negotiate a purchase depending on the stage of foreclosure it is in.  Do you happen to know who the lender is?

@Chris Primavera Hey Chris! I am an investor and full time RE Agent that serves the Gulf Shores / Orange Beach area. I've lived in GS/OB since 2015. My specialty is working with investors and business owners in locating island based cash flowing rentals and or non rental second homes. As a "retired" public accountant and tax consultant I perform a lot of detailed ROI analysis for my clients. If you would like to jump on a call soon I'd be happy to share my local insights with you. There are a handful of gulf front complexes that still cash flow positively but you need to be very careful as to which complex you choose as not all complexes and especially HOA's are created or managed equally. I'd also like to echo @John Underwood comments....if this your first rental investment it could be best to learn the ropes with LTR. The variables associated with beach STR's can be much more unpredictable. Let's connect as you have time. I'm happy to spend more time discussing GS & OBA properties in detail with you!

@Ryan Johnson Morning! As a local investor and full time agent I can definitely help by being boots on the ground for your out of state investments and recommend contacts for your new construction projects. As a fix n flip investor and an agent that primarily works with out of town investors I have a lot of experience in finding and working off market leads. Our brokerage also manages a number of STRs. I'd love to connect and talk REI whenever is convenient for you.

@Derek Fike I am a local agent/investor living in Orange Beach, AL. I've helped numerous clients successfully purchase condos and houses as cash flowing STRs. That being said, it has become much harder to produce a true cash on cash return in our market in recent years. But with the right house or unit solid, returns can still be accomplished. Inflationary pressures are being felt in all the categories that play into this ROI calculation. Along with substantial property price increases we have seen exponential increases in insurance premiums, property taxes, repair costs, and capital expenditures. One thing I didn't see mentioned as I skimmed the responses above is the risk for special assessments. It has become more important than ever to perform a detailed review of the HOA. Many associations are feeling these same inflationary pressures and as many of the buildings in the area age they are needing more and more repairs that are in many cases being passed onto the owners in large sums. These assessments can wipe out years of cash flow all at once. It's super important to buy in a newer concrete constructed building with a solid HOA. If you'd like to learn more about Gulf Shores and Orange Beach feel free to reach out. I'm happy to talk REI anytime......it's my favorite thing to do :)

War Eagle Carol!  If you need any help in Gulf Shores or Orange Beach please let me know.  I found BP through a blog post back in 2017 and it changed my life.  Officially left my W2 back in September of 2020.  Feel free to reach out to talk RE or personal development.....my two favorite things :)

@Derek Fike

Hey Derek, I hope you're doing well! As a full time agent and investor living in Orange Beach I have a lot of experience in the STR market in GS and OBA and I've helped a number of investor clients work through the exact analysis you are looking for. Feel free to message me. I'm happy to walk you through whether an investment in a STR here on the island is right for you.

Thanks!!

Hey Laura!  I'm in agent in Baldwin County.  Work mostly in Orange Beach and Gulf Shores but I'm happy to run a search for you.  Message me your email and I'll get that to you ASAP.  

@David Mueller

We offer to pay all closing costs when purchasing and with our last Dalraida purchase we paid a total of $1,126 for closing which included an owners title policy, title search, attorneys fees, other title fees and recording/transfer fees.  

I would say your vacancy estimate is reasonable. @Greg Parker would be a good person to reach out to concerning vacancy rates in those areas.  

Repairs we reserve 5 to 10 % depending on the age and condition of the property.

Same as above for Cap-ex.  Obviously the age and condition of the major components like the roof and AC play a big part in determining this.  

Mgmt seems reasonable.  I see anywhere from 7 to 10% pretty regularly. Again, Greg Parker is a great reference here. 

Are you talking about 5% of the ARV in regards to taxes? The house we currently own in Dalraida is valued by the County at $127,900 with the the current estimated tax bill being $943.

We regularly get 75% LTV on single family homes we decide to retain as rentals. These are commercial loans through an LLC with recent rates around 4 to 4.3% interest.

I personally think it's more important for you to define what is an acceptable cash on cash return for yourself vs asking what the Montgomery market tends to yield. Define your "buy box" criteria and go after those deals. 

Hope this helps!

@Noah Frerichs Hey Noah! Congrats on your decision to jump into REI. My business partner and I flip and do buy in hold in the Montgomery area and we've recently been looking at deals in Auburn as well. We pay cash for all our properties. Send me a DM and I'll give you some contact info. Also, I have a few connections there in Auburn I'm happy to share that could be very useful for you. Let's connect and schedule a time to chat. I would love to have a wholesale connection in that area.