All Forum Posts by: Matt Leber

@Elenis C. Awesome to hear your story! My wife and I graduated from UF in Gainesville as well and have family/friend ties to Jacksonville. We have properties in Jax and also on the space coast. Congrats!

@Steve Meyers in my opinion you should have a separate budget set aside for each of those. Whether you have a separate bank account for each, or simply a "REI repairs" account, is up to you. You could also use an application like Stessa to categorize any charges that hit your bank into their own category. That would allow you to track them individually. At the end of the day, tracking them separately will allow you to narrow down the areas of your business that need the most improvement or attention.

@Robert Goldman looks like HB 6053 & SB 1390.

@Alec Avery do you mind explaining how you arrived at $350 cash flow? I am arriving at a lower number in my quick analysis. I'm not sure even sure it's positive when accounting for CapEx, vacancy and miscellaneous repairs. Also, make sure you verify the property tax is correct. Sometimes these websites have it low, perhaps because the property had homestead from the previous owner. Maybe taxes are just lower in your area. If so, good for you!

If you see comps in the neighborhood renting for $2k, it’s probably a deal. But be careful speculating that rents will increase $600 in 5 years. Check comps, not just comps in beds/baths but also properties in a similar location and that have similar upgrades.

@Cody Croteau for our HELOC they just did a drive by appraisal. So they wouldn't have seen or known about any upgrades we did to the inside. The HELOC application basically had us write in an estimated current home value, and in the end, the appraisal came back to match our estimated value exactly.

@Caleb Hur welcome to BP! My wife and I also do some investing in Central Florida. Orlando is a great market, sounds like you already have a nice start if you own your primary here. Message me if you have any questions and I’ll see if I can help! Good luck!

@Wesley Whitehead I second trulia. I find they have the best crime map overlay.

@Andy Bauman it could negatively affect your Debt to Income (DTI) ratio of you are looking to use the HELOC to put down a down payment when getting bank financing. Lenders typically have a DTI threshold where they don't lend if you exceed. If you're buying cash, this is not an issue. Also not an issue when you have a zero balance on the LOC.

Most HELOCs I have seen have an adjustable rate. They'll start you out at a low intro rate and it could increase over time. However, fixed rate options do exist if you would rather lock it in. We have a fixed rate HELOC at 4% - which is pretty great.

HELOCs are callable by the bank, meaning they can demand you pay the balance off at any time. This is unlikely but it could happen.

@Jared Fannin I have 4 rentals that are 625 sq feet each. They are also 2 bedroom, 1 bath units. Honestly, 900+ sq feet seems like it would be spacious for a 2 bed rental. However, you will probably be renting to a more transient crowd who is less likely to stay multiple years. This is because your pool of tenants will probably not include families - 2 bedroom units can cause space issues and your tenants will have less stuff tying them down. They will be more likely to move which can mean more turnover costs for you. But that doesn’t mean 2 bedrooms aren’t good investments. They’re definitely less to maintain, clean and renovate when the time comes. Also, people will always need affordable housing. Go for it if the numbers make sense for you!

@Andrew Denelsbeck stay active on the forums (specifically the local forums), make connections on BP, and attend local meetups to network. Check out CFRI and GOREIA in Orlando. Those are the main meetups.

There are definitely some small multifamilies in Orlando, but you will usually pay a premium if they are in good condition and in a good area. You might find some that will help you reduce your monthly expenses if you househack, but just make sure it still cash flows if you decide to move out. Last thing you want is to be stuck with an underperforming/expensive property in a househack you wish you could move out of. Also, consider househacking a single family by the bedroom if you have some friends in the renter pool. I know a few people who have done this successfully. You will find many more single families in greater Orlando than multifamilies, and much cheaper. Not to say you can’t find a deal on a multi, but it will likely be much more competitive/rare. Good luck!