All Forum Posts by: Matt Leber

@Solomon Stavis I have been investing in that price range in 32210 near Normandy blvd on the west side in Jacksonville. I see pricing on single family homes and the occasional small multifamily in that neighborhood all the time.

@Maggie Lundstrom I recommend setting up contact with an agent that operates in the greater Orlando area and with an agent in the Brevard County area. That way you can look at both. My wife and I live in Lake Nona area in Orlando but do most of our investing in Brevard because the rents are comparable but the prices tend to be a bit lower and you can get a nicer place for less money. We have picked up 3 SFH in Brevard since late 2016 (one each in Melbourne, West Melbourne, Port St John). All of them are well above the 1% rule and cash flow nicely.

Most investment criteria homes I see in Orlando are closer to 0.8-1% rule because the prices are a bit higher. Taxes may be a bit higher in Orlando proper which dampens cash flow a bit. That’s why I say look at “greater” Orlando. Think Kissimmee, Apopka, Deltona, Debary, even Polk County areas.

I end up watching several counties (Orange, Brevard, Volusia, Polk, Lake, Seminole, Osceola, Duval) for investment opportunities. I would love to buy another house in Orange County, but until I can buy there at a price I like, I will continue to buy in Brevard.

@Juliane Calboli put a larger than normal earnest money deposit down. That will show the seller you are very serious about making the deal happen. If you find issues and want out, as long as you pull out before your contingency period is over you can get your earnest money back.

@Jeff Plotkin I think I have a flat rolled asphalt membrane roof in Jacksonville FL that is insured with American Integrity. You might want to check if they will cover your property. Policy is $650/year on a duplex that I bought for $80k. It is a DP1 which is basically a cash value policy, bare minimum landlord insurance. I do recall DP3’s (replacement value) either being outrageously expensive or unavailable for that type of roof. Maybe you should consider asking about a DP1 policy.

@Margaret Jay there will be a hurricane deductible. I don’t know if many 2 bedrooms pushing 200k in my area that would be good rentals, but most of my homeowners policies run between $800-1200 per year for properties in the $100k-$150k range.

@Tristan Osborne job transfer out to the Melbourne FL Grumman location and once you hit 35k savings put 20% down (plus closing costs) on a single family under $150k at the 1% rule in Brevard County. But seriously...

If you're out in CA, you may need a bit more savings to buy your first rental locally. You can either go the FHA route and owner occupy for a time or identify an out of state market to invest in. Not that it can't be done in CA but it will be done differently.

We have several investments in Central Florida (Brevard County) and North Florida (Jacksonville) that cash flow anywhere between $150 and $450 each. Most of our properties are in the upper range and our $150 door could be raised to around $400 but I have been keeping the rent low bc those tenants are my ideal.

My cash flow calculation is after PITI and after 50% to 60% of remaining margin set aside for capex, repairs, vacancy, misc expenses etc.

@Jose Barberi with $30k you could probably get a 20% down plus closing costs deal done in Brevard County (Melbourne, Cocoa, Titusville, Palm Bay). There’s some properties there in the $120k range that could get you 1% to 1.5%.

Only issue I see is you won’t have much in reserves once you close. And you would need to buy something with only cosmetic work needed to get rent ready if you only have $30k.

@Samvel Gevorgyan hello. I invest in Jacksonville, along with areas further south along the Space Coast. Own a couple duplexes in Southwest Jax that do pretty well for us. Good luck with your investing journey!

@JC Leach I wouldn’t. If there’s one thing COVID has taught me its that reserves are important. You never know what your tenants are going to do under this weird time of eviction moratoriums, government intervention, rent strike talk, etc.

Another option if you must do a deal: if you own a primary get with a bank to open a HELOC against it. This could give you a fund to use in emergencies at a low interest rate in case all crap hits the fan with your new deal. I would not depend on a HELOC as your reserves indefinitely, but it could work in a pinch if a great deal comes your way. However, in order to implement this strategy you would likely need to complete your HELOC closing prior to obtaining financing on the current deal. I don't think you can open one in the middle of closing on a deal, the lender might see it as a red flag.