All Forum Posts by: John Thedford

I like and use Quickbooks.

I am building but not holding new builds. Those are for sale upon completion. I do own several SFR in the cape I hold as annuals and the demand is strong. In fact absurd. Don't price too high to have regular turnovers. Those cost money.

@Corey Morrison I heard something about it but have not received any extortion demands from the city yet. 

No question in particular but if other people running STR have something to add that would be great. Seems like running a motel...

I am going to make the leap into STR with a cute 3/2/2 in the SE Cape on city water. Annual rental rates are sky high so I suspect I won't get as big a boost that I hope. If I decide I don't want the "headache" of a STR then set it back up as a rental.

I am setting one up in Cape Coral next year. So far all I have done is annuals but going to test the waters.

My new build is almost done in the NW Cape. I was going to rent it but going to take profit instead. I have three more lots we are going to build on next. Cape Coral is a great area with lots of growth as is all of SW Florida.

I love the term "Hard Money" lender. That can be due to the fact it is HARD TO PAY IT OFF. I can say without a double I have had some GREAT luck in finding good rate private lenders. Term are negotiable between the parties. Some I/O others amortized. What is the collateral LTV? How long do you want the money? Terms matter.

I BORROWED ALMOST 100K AT 12%...AM I CRAZY???How many would balk and walk? How many would tell me it is a BAD idea? How many would NEVER consider paying that? The fact is, it does NOT matter what you pay for money in many instances. Agreeing to 12% interest must be thought through. The big question is: for how long AND what is my return ON the money (interest expense). Actually, to be precise I borrowed 80K. At 12% interest that comes to $800/month interest only. The key to this arrangement was simple: I had use of that money to make well over 50K TAX FREE if desired...or taxable if I choose to go that route. However, If you string out the principal loan for very long, that would greatly reduce profits. $9600 per year is interest only. So, I got the new property rented, and along with other income, started on a strong FAST pay-off period. I was prepaying 5K/month along with the current interest due. Of course, when Covid hit, etc, I elected to go interest only which by that time was around $200/month. Anyways--the moral of this post is: It DOES NOT matter how much you pay for borrowed money IF the deal pays for itself and you have a solid exit strategy.

@Dave Foster no briefcase. SOLD! So part of his explanation had something to do with borrowing more money for the replacement property and then having tax issues stopping one from selling IF I got this right. I am going to have lunch with him and try to get more clarity.