All Forum Posts by: Mike Abbate

@Caleb Heimsoth Im sorry, my verbiage was off. After I put money aside for capex, expenses, vacancy, and pool service, I am cash flowing $200 per month. Selling this property wouldnt make sense under the buy and hold plan I am operating under. I do believe the rents and market demand for property will increase and as others have said, my first year will be my worst. 

@Kerryanne Henry Thank you for the words of encouragement. I have learned so much in this process and realize the mistakes I have made and how to increase cash on cash ROI next time. Im setting a solid timeline for how I will lower the rent until I find a renter.

@Greg Gaudet Im at $200 cash flow after capex, vacancies, repairs. Hiring a PM at this point would surely put me in the negative. 

@Dennis M. yeah, I did a few things wrong when I bought. A couple of newbie mistakes  1) slightly overpaid on the initial buy 2) Underestimated monthly expenses ( insurance, pool service) 3) slightly overestimated what I can command for rent

The positive is there is a 25% equity in the house in an area that seems to not be slowing down as far as real estate climate. I do believe a break even ( after vacancies, capex, reapirs, etc)  is still a win due to the tremendous learning experience this has been. 

Again, thanks everyone for the input.

Excellent feedback. 

The photos are high quality I believe, although taken from a cell phone, the lighting, angles, and clarity is good. The property is a townhouse and the only one with a pool in the neighborhood. I have it advertised on all main websites and am awaiting the arrival of FOR RENT yard signs.

My asking rent is $1700, its a 3/3. The closest comparables I can find are 3/2's that are in the $1500 range, with one 3/3 stand alone house going for $1800. Anything above $1500 rent is cash flow so obviously, anything below $1500 is breakeven or loss.

The market is red hot. Beachside property in Florida is (almost) always in high demand. I am prepared for a month or so of vacancy due to the time of year. Thanks to all for the input. 

New landlord here with first rental property. I have had the property on the market for 10 days with 3 showings with positive feedback however, all prospective customers have commented how the rent is slightly above average for the area, which is true. The rent is slightly higher due to the unit having its own personal, custom made pool. The unit also has a brand new AC, new pool pump, and a kitchen remodeled in 2017 with new appliances. Therefor, I am about $100 above comparables in the area. 

I am only cash flowing $200 at the current rent rate (not including vacancy, repairs, and capex) and so could drop the rent $50 and still be OK. 

So the question is: How long to wait with vacancy before going down on the rent? And is this a tough time of year for rentals due to the holidays?

Thanks!

Cocoa Beach is my hometown and where I spend most of my time. I invest in a few areas just outside of the CB city limits. If you need to put eyes on a property or need any connections, feel free to reach out!