All Forum Posts by: Matthew Grebeta

One thing that struck me in @Gregory Schwartz original post is that you mentioned you are campaigning to find distressed off market multi family properties.

This is something I am realizing I should start pursuing here in Sarasota County FL I can not find a property that hits the 1% rule at a bare minimum that is in a safe location for my family to househack and I’ve been on the hunt for about 7-8 weeks now.

I would love some info on how you plan to find off market multi family deals, thank you so much for any information!

I'd also be willing to buy a distressed SFH for my family to live in and then once prices start dropping pick up a multi family as strictly a rental property.

Alright guys let me know what you think.

This is a property in a flood zone (AE)

1st question: that will make or break it. Can you rent out an apartment downstairs if it is legally within the BFE.

This is a 3/2 upstairs and a 1/1 downstairs with living space no full kitchen.

Mortgage would be for 320k 5.04 IR

My principal and interest = 1,777

No PMI

Property taxes = 248

Home insurance = 110?

Wind = 100?

Flood = 100?

No HOA or CDDs

Total monthly = 2,335

If Short Term which I have confirmed as legal in this neighborhood then add utilities say an additional 400 = 2,735

1)

Now Step one would be to house hack for the first year or two.

After comparing similar 1 bedrooms on AirBNB VRBO and Booking I should be able to bring in about 110 +or- per night ($3,300 pm) . Averaging 1.5 turn overs per week with a $50 cleaning fee adds $300 per month brings total income to 3,600 per month revenue. Now expecting over a years time only 75% total bookings that is a total of $35,100 per year or $2,925 per month on average. Now after setting $200 aside each month for expenses (in FL AirBNB automatically adds my taxes so I don’t have to set aside for that) brings me to an average monthly profit of 2,725.

So in scenario 1 as a house hack according to the numbers I could live in this $360,000 house for approximately $10 and that’s including utilities. Seems to good to be true.

That is why I’m posting this. Please let me know if I am overlooking something. Under estimating or over estimating.

If all goes well I will be going under contract tomorrow.

2.

After a year or two of this the plan is to move into another house hack and turn this into a full time vacation rental. In that scenario if the lower floor could be legal (see first question) then I’d be able to have a 4 bedroom 3 bathroom two story home with two living spaces (seems pretty sweet) within 1 mile I found two comps. They rent out for a minimum of a week at a time and rent for 1800 plus $200 cleaning fees so $2000 a week if I manage myself. I spoke with an owner and he said he stays consistently book except for 3-4 months where he is only booked for 1-2 weeks. At $8,000 dollars a month if only fully booked for 9 full months out of the year that equals $72,000 per year averaging to $6,000 per month. Even if it’s less say $5,000 per month and set aside more say $500 being that fill time rental means more abuse that’s still $4,500 per month. Take away the expenses of 2,725 and that leaves a cash flow of $1,775 per month.

Again this seems awesome. To good to be true? What am I missing? From my studies this seems accurate which is why I’m wanting to move forward to sign a contract tomorrow but what are y’all s thoughts. You experts out there.

Ive gotta be missing something!

Thanks guys🙂

In the past I have looked at commercial real estate and remember that they go off of cap rates pretty heavily. When investing in a rental property is “cap rate” something everyone goes off of or is it just general “market value” and looking for the best deal they can find regardless?

@Andrew DeWeerd

@Stephen David Smith Jr.

There a lot of good info here, what I’m picking up is that it is more so about the deal you get verses the actual price point you go in at. I’ve heard Meet Kevin on YouTube talking about Wedge deals. Buying a house far below market value 50-100k in his examples.

In a scenario like that if you had 300k duplex and it was a 3/2 - 3/2 renting out for 1700 per month leaving me with $150pm to cover vs a 200k tiny duplex 2/1 -2/1 renting for 900 leaving me with $400pm to cover at the end of the day it will depend on which one leaves less of the mortgage for me to cover on the other side right?

Not necessarily the price of the house but the number of expenses to income?

@Stephen David Smith Jr.

This is a solid point we drove by a 240k duplex in Nokomis and there were about 8 guys playing basketball in the driveway and smoking enough weed we could smell it with the windows up in our van lol. Definitely helped us get a feel for the community.

I was really surprised to see that type of a community 5 minutes from the beautiful beaches though. Definitely not like that in Jacksonville.

I can see if have a lot to learn.

I can’t wait to get my feet on the ground full time in a few weeks!

@Joshua Rountree

This is all really solid. Now unfortunately for my situation work is located NE of Venice and church is located just N of Englewood so we were really hoping to stay between Osprey and Englwood. With a budget of 300-350 it is posing difficult. I have been in construction/carpentry work for the past 7 years though so I do desire to buy something that is old/not nice but still financeable. I don’t know if my hopes are to large for reality but so far I haven’t found anything and I’ve been looking for three weeks now.

Do you think there’s hope?

@Kevin Zolea

That is awesome! I’m looking forward to hearing what kind of deal you find, best of luck to ya!

@Stephen David Smith Jr.

This is gold, thanks so much for the reply. My credit union set me up with a realtor but I have yet to ask those types of questions, I will be reaching out today. Thank you for responding that is super helpful!

@Daniel Haberkost

Thanks so much Daniel I really appreciate you reaching out, I will be sure to keep you in mind!

@Kevin Zolea

Amazing Kevin! How is the process going? Are you renovating your duplex currently?

I just set up a handle of alerts, I didn’t know about that so thank you for informing me, hopefully I can make good connections!