All Forum Posts by: Matt Nico

I will try to make the post as short as possible. I am under contract on a side by side duplex ( two - 1 bed 1 baths). Purchase price is $300k. Before I continue, I would like to say, this is a VERY desirable beach town and the demand for annual and summer rentals is ALWAYS high. Originally I was going to try to keep my construction costs to around $35,000, but if I am being honest with myself and my design tastes, I KNOW I will be closer to the $50,000 number. The arv is only $380,000 - $390,000, which would put me around $305,000 when I refi. This means I am potentially going to leave $50,000- $60,000 into the deal. The only reason I have not killed the deal, is the market rents for each are around $1400- $1500 and I know they will be filled immediately upon completion of construction. This would put my $ on $ return around 14.5- 15% (property should be $800 positive each month). I currently have $300k liquid in the bank/investments. I have very low cost of living, so for me to leave the $50,000 in there would not change my quality of life. I really am leaning towards doing the deal, especially since this is the town I REALLY want to invest in. My hesitancy is the fact that compared to my other BRRRR deals, this one seems significantly less enticing.

In this crazy market, what do you guys/gals think? My goal is to keep investing for as long as I can imagine, throughout all markets. Has anyone had a similar situation and what was your outcome?! I would REALLY appreciate any and all feedback.

Thanks everyone,

James

James,

My investment strategy is geared more towards cash flow rather than equity personally. I regularly leave $50k in my deals but they cash flow $1000+ a month. If you can cash flow that much per month but have to leave money in the house which you dont even need, then I wouldnt worry about it too much. It sounds on paper like a very solid investment.

Happy Housing,

Matt

0 Votes

Originally posted by @Jason Wray:

James - quick question if your going to refinance your duplex after renovations. A duplex (2-unit)cash out will be maxed at 75% LTV even at $390K at 75% LTV that allows you to pull out $292,500.00 but than minus closing costs typically 3-3.5%. $283K. Do you have a bank/lender quoting 80%LTV on a duplex COR?

Jason Wray,

You sound educated in the Lending department. Do you do HELOC's on investment property at Natitonwide? I have a home worth about $340k and I owe $199k on it and want to pull out some equity without refinancing it.

-Matt

0 Votes

Originally posted by @Tyler Gibson:

Originally posted by @Matt Nico:

@Tyler Gibson

Why did you give advice about staying in Osceola county for STR? I was actually on a call last week with the permitting and zoning folks in Osceola county and from what they told me they only allow airBnB's in certain pockets of areas. Polk county and Orange are similar as well. The HOA matters as much as the county.

The vast majority of Orange county does not allow it which is why I said that if STR is what she wanted to do then best to look at Osceola.

Tyler,

I understand what you mean now. I mis-read it as investing in Osceola County, not Orange County. Surprised Southern Orange county and areas around UCF and the actual city of Orlando dont allow STR's.

0 Votes

Originally posted by @Fab Ragh:

@Matt Nico I decided against a property because they said I could only do 7 month lease. It was in Osceola.

Fab,

Yeah that's exactly what I was talking about in my above posts. Some counties have small pockets of area where you can basically do anything you want. Osceola County calls it a "tourist" zone I believe. I'm not familiar with southern and eastern Osceola county, but I know that the north-west tip of Osceola county where it borders Polk is one of those special zones.

0 Votes

Originally posted by @Joseph Miller-Hall:

@Matt Nico lol at your first sentence. Congrats on 4! My long term goal is to net $10k/mo w/ rental income within the next 10 years. I guess the next step for me is to break that down into each year and focus. Appreciate your response bud!

Joseph,

If your goal is to get 10k/month in passive income, don't worry about the actual number of houses you get. Focus on the quality. I have a single family home that I bought so well a few years ago that it cash flows $2,200/MONTH. 5 of those in your market and your goal is met.

4 Votes

@Joseph Miller-Hall

I feel your emotions coming through the page my dude.

I have slowwwwwly went from 0 to 4 houses over the last 4 years growing my snowball as you would say. Its a lot of work man....learning, making mistakes, building systems. Its all tough just starting out.

My goal this year is to snowball to double my rentals and add $3,000/month in cashflow this year. Im ready to blast off like a rocket ship.

Keep building your base so when you build your castle on top its rock steady.

-Matt

6 Votes

@Garret Myers

Try 4-corners, Northern Davenport, Kissimmee, and Southern Clermont. All good areas. Just depends on how you want to fine-tune your buying. Here are nutshell tips:

Clermont is usually cheapest.

4-corners has the best quality homes with its community features but HOA's are sometimes difficult to deal with.

Davenport/Kissimmee are a blend of the first two.

Happy Housing,

Matt

1 Vote

Orlando, Florida

@Tyler Gibson

0 Votes

@Alex Schroeder

Rents have not really done down here to be honest. Ive given my tenants a rent reduction willingly to try to help them out a bit, but thats about it.

Some of the crappier airBnB’s have gone under but that will happen in any market. AirBnB is everywhere in Central FL. Its a top tourist destination after all.

0 Votes

Originally posted by @Robert NA:

How's the market now? We noticed a lot of homes for sale that have been on the market 60+ days in the area. We're also wondering what's the best area for STRs as I've read mixed reviews about emerald island.

Ive read good things about solara, Windsor Hills and emerald. Ive read most places average 75% rental?

Any input/thoughts appreciated!

Robert,

If you hop on Zillow and take a look at Windsor Hills and Emerald Island, you will see there are over 20 houses for sale in each development in a booming market. Now scroll anywhere else you want to in the area and take a look at how few homes (usually less than 2-3) per development are for sale. That should tell you all you need to know about those communities.

The HOA fee is absolutely crushing your cashflow in there and the homes are already overpriced as it is. I would look elsewhere in my opinion.

Good luck,

Matt

0 Votes

Orlando, Florida

All Forum Posts by: Matt Nico

Matt Nico has started 21 posts and replied 429 times.

Post: Leaving some serious $$ in my BRRRR, worth it?

Post: Leaving some serious $$ in my BRRRR, worth it?

Post: Looking to buy in outskirts of Orlando

Post: Looking to buy in outskirts of Orlando

Post: Slow and Steady Grind

Post: Slow and Steady Grind

Post: Looking to meet people in Orlando!

Post: Looking to buy in outskirts of Orlando

Post: Looking to buy in outskirts of Orlando

Post: Emerald Island, Kissimmee, FL advice. Newbie STR Investor!