All Forum Posts by: Michael Goldsmith

I think your first hurdle is how many units do you have there? If you're on a commercial mortgage, I'm guessing more than 4 doors. If that's the case, then I don't think FHA can touch that. I could be wrong about that. You'll have to check the FHA website for what their restrictions are, but that's definitely the first hurdle you'll have to deal with.

There aren't a TON of multifamily properties outside of major metro areas in Florida. Period.  Houses are rather inexpensive here, so there just isn't that much of a need as far as I can tell.  Lithia is a pretty nice area.  It's getting a little "out there" relative to Tampa, but not terribly so.  Brandon is also nice.  It really depends on what you're looking to go for.  Are you looking for a place for you, or are you looking for a straight rental?  What are your needs vs. what are the needs of the tenants you hope to attract?  Are you looking for more beachy areas?  Urban?  Suburbs?  Are you looking to make the property an AirBnB, seasonal rental, or year round?

I see from your profile that you're from NJ.  I'm a relatively recent transplant from NJ myself (about 2 years now).  I'll tell you this now.  You're not used to the weather here.  It doesn't take much to acclimate yourself here, but there are weather related things you need to think about here that you didn't have to think about in NJ- namely hurricanes/ flooding, and insects.  No one tells you this ahead of time.  There are a lot of bugs in Florida.  Lizards too, but they're cute and not nearly as heavy in the gross out department as "Palmetto Bugs."  We know them in NJ as roaches.  They're not quite like NY roaches in how they nest- but where you are will have an affect on how much you're going to have to deal with them.

Food for thought.  I'm by no means an expert on the area yet, but I've been exactly where you are.  If you'd like, hit  me up, and I can tell you what I know about the area.

It's not necessarily a good thing.  A low or 0 down payment means you're taking a larger loan.  That means more interest down the line, and a higher monthly mortgage payment.  It's going to take you a lot longer to gain a good foothold in your equity stance as well, since you'll mostly be putting your money towards the interest and not the principle.  Now, if you're getting a REALLY good rent relative to the cost of your mortgage, then that may be another story, but thats a lot of margin to make up

Yeah... you don't need to pay them $1500/ month for that. If you're feeling fancy, get yourself a license for propstream at 100/ month so you can run your own comps. Get to know a good realtor who specializes in dealing with investors, and find a local REI group to you and you can find investors on your own- or your realtor might know of some that they can introduce you to. Hey look, I just saved you $1400/ month. Feel free to paypal me half the difference. That's a reasonable split right? ;)

And what do YOU get out of this, if they're funding the deal 100%, funding the rehab 100%, and what do you have to do for it, aside from paying them $1500/ month?  That seems really suspect to me.  It looks, at face value, that you're paying them for you to bird dog for them.  In short, they want you to pay them for the privilege of you working for them....  

Two things jump out at me from your report.  1) Your tenants should be paying their own utilities.  2) If you're owner occupying, you're not getting half of that rent you're projecting for the first year, at least, as long as you stay there, which you didnt take into account.  That's going to knock down your cash flow quite a bit for a while.

Are you house hacking?  If that's the case, then the numbers aren't SOO bad.  Yeah, you're negative, but you're not figuring in YOUR cost of living.  Doing down that rabbit hole a bit... What's your rent currently?  If you move in and you're only $100 down per month after expenses, then you're only paying $100 in rent.  That's not so bad.  That number isn't entirely accurate, as it doesn't account for your unit's capex, repairs, etc, but the point is the same.

Since this is a multifamily, try breaking it down to the units, so you can show your work a bit better.  Is this a duplex, triplex, 4 plex?  Where's that 1700/ month coming from?  The numbers might not be so bad, but you'll have to dig a bit deeper. 

The calculators only spit out what you put into them.  The "math" is fine.  The deal, as is, may not be.  Is there a reason in particular you're only putting 5% down?  If you're looking for cash flow, if you put more money down, your monthly payment will go up, and you'll get a better CoCROI.  Also, your vacancy looks a little high.  I normally set that to 5%.  Are you also planning on paying the water bill for your tenants?  Same with garbage?  Those expenses should be on the tenant.  Maybe the rent is too low?  Lots to consider.  Try reworking the numbers with those adjustments and see what you get from there.

Hello everyone,

I'm looking to find a very flexible commercial mortgage broker in the Hernando Country, FL area, and wants to work on a very interesting, and somewhat complex project. I'd like to keep some of the finer the details of the property to myself at this time, as it is a very unique lot and I don't want to get scooped on it. But if you are local, think that you're the very best at pulling a proverbial rabbit out of your hat, and want a real challenge and the opportunity help me get funding for something really interesting, send me a message, and I can disclose the details to you.  I can say with some degree of certainty, that this will probably be the most interesting project you work on this year.  

I was under the impression that commercial loans require 20% down, which I don't have, and have higher rates, and shorter terms.  Am I wrong?