All Forum Posts by: Mike Anderson

Quote from @Jay Hinrichs:

Quote from @Mike Anderson:

Quote from @Jay Hinrichs:

Quote from @Mike Anderson:

My wife and I have been looking in this market. Had a long conversation about this with a couple buddies last night actually.

I have to assume that market (and I am including Fort Myers) is a heavy second home market. Maybe more so than most other markets, which is what we are looking at it for as a second home to have to get out of the mountains where we live and enjoy the beach and more amenities of a larger city.

We aren't as concerned with rates as we are cash buyers but the carry cost with HOA's due's, taxes, and the other items are just too high to justify. With the boomers getting older and them being so large in terms of sheer size I have to wonder how many people in 5 to 10 years will be willing to float 1k+ HOA fees.Are there enough to backfill into these places and keep the HOA's solvent? Once the amount of snowbirds and retirees starts dropping, I have to assume when the younger generations who are stilling working receive some of these in the estate if they sell because the carry costs are so high because its not worth keeping to spend a week or two there even without a mortgage. The younger generations seem to really enjoy traveling but they like going to different places and not commit to just one place. There are exceptions to all of these thoughts of course but I think we might be looking at a really bumpy road in these markets if we can't figure out how to get these costs down.

I'm just not convinced that enough people will be willing long term to pay these high HOA fee's, insurance costs, and property taxes for a second home. It's going to interesting, I welcome all thoughts and opinions on this.

I dont think a lot of the SFRs that have been built in the 3000 to 400k range have those kind of HOA's I think maybe your talking about a condo.. and those are legit concerns for FLA condos

Condo or townhouse. 

I have a townhouse in Vegas its 450 a month.. Just fyi.. so your probably right on the money factoring in 450 to 1k a month.. our rate has not gone up in the 7 years I have own it. Although the development does not have any real amenities  just a crappy little pool we never use. but nicely located and its gated which in my mind in Vegas  is pretty much a necessity.  U could for sure buy something out in Lehigh acres for probably  steal and those are large lots that you could park your RV no problem. Not sure you want to live there though :)  

RV resorts are pretty cool I have tracked a few over the years thinking about developing one myself.. never got to it.. But I have seen a few really nice ones..  One in Bend Or and other up on Flathead lake in Montana.. I suspect the RV lots sell pretty much north of 100k each and have a real sense of community when the owners pull in and stay for a while.  ANything like that in your neck of the woods ?  Or do everyone just buy cabins and go to the local KOA for their RV needs ?

I've seen as high as 2200$ to 2300$ HOA a month. I have no idea how that will hold up. Not like super high end either in the 300-500k condo...

The issue with RV lots right now is people are asking more for one that you can get a townhouse or condo for. With HOA's around 1000-1200 a quarter and they don't even mow any grass on your lot or anything so it seems odd. I've looked at the ones in Gulf Waters down in fort myers they seem nice but not worth the cost in my opinion. Yes tons this way in my neck of the woods you can buy the lot and own it, and either rent it or live on it.

Quote from @Jay Hinrichs:

Quote from @Mike Anderson:

My wife and I have been looking in this market. Had a long conversation about this with a couple buddies last night actually.

I have to assume that market (and I am including Fort Myers) is a heavy second home market. Maybe more so than most other markets, which is what we are looking at it for as a second home to have to get out of the mountains where we live and enjoy the beach and more amenities of a larger city.

We aren't as concerned with rates as we are cash buyers but the carry cost with HOA's due's, taxes, and the other items are just too high to justify. With the boomers getting older and them being so large in terms of sheer size I have to wonder how many people in 5 to 10 years will be willing to float 1k+ HOA fees.Are there enough to backfill into these places and keep the HOA's solvent? Once the amount of snowbirds and retirees starts dropping, I have to assume when the younger generations who are stilling working receive some of these in the estate if they sell because the carry costs are so high because its not worth keeping to spend a week or two there even without a mortgage. The younger generations seem to really enjoy traveling but they like going to different places and not commit to just one place. There are exceptions to all of these thoughts of course but I think we might be looking at a really bumpy road in these markets if we can't figure out how to get these costs down.

I'm just not convinced that enough people will be willing long term to pay these high HOA fee's, insurance costs, and property taxes for a second home. It's going to interesting, I welcome all thoughts and opinions on this.

I dont think a lot of the SFRs that have been built in the 3000 to 400k range have those kind of HOA's I think maybe your talking about a condo.. and those are legit concerns for FLA condos

Condo or townhouse. 

Quote from @Adam Bartomeo:

@Mike Anderson This was probably true years ago but in todays world most snow birds second the home as a STR which helps offset some of the costs. As for the HOA, simple, just don't buy in an HOA. None of my properties are in an HOA, I hate them! Also, you forgot about the rise in insurance. But, we use Citizens for most of our insurance which is still affordable.

Yea we thought about STR too. I've had a few airbnbs and sold out in 2023 after the dramatic increase i wanted to take that money off the table I had those in the mountain markets. None HOA's areas are harder to find seems like everything is in an HOA down there but i do know there are some. We started looking condo's but have since moved to townhouse as those seem to have much lower HOA's. We don't want to have manage people to do outside work and such. We also have a motorhome so we look at RV lots too and the HOA's on those are nuts considering they are just a small plot of land. We did think about putting it into a rental pool but even that seems to be drying up to some extent. 

My wife and I have been looking in this market. Had a long conversation about this with a couple buddies last night actually.

I have to assume that market (and I am including Fort Myers) is a heavy second home market. Maybe more so than most other markets, which is what we are looking at it for as a second home to have to get out of the mountains where we live and enjoy the beach and more amenities of a larger city.

We aren't as concerned with rates as we are cash buyers but the carry cost with HOA's due's, taxes, and the other items are just too high to justify. With the boomers getting older and them being so large in terms of sheer size I have to wonder how many people in 5 to 10 years will be willing to float 1k+ HOA fees.Are there enough to backfill into these places and keep the HOA's solvent? Once the amount of snowbirds and retirees starts dropping, I have to assume when the younger generations who are stilling working receive some of these in the estate if they sell because the carry costs are so high because its not worth keeping to spend a week or two there even without a mortgage. The younger generations seem to really enjoy traveling but they like going to different places and not commit to just one place. There are exceptions to all of these thoughts of course but I think we might be looking at a really bumpy road in these markets if we can't figure out how to get these costs down.

I'm just not convinced that enough people will be willing long term to pay these high HOA fee's, insurance costs, and property taxes for a second home. It's going to interesting, I welcome all thoughts and opinions on this.

Quote from @Christopher Arnold:

Quote from @Mike Anderson:

Its still got a good bit to go till it hits bottom. It's going to continue to decline only questions is how much. 

Numerous buildings have plenty of room to decline. However, I've noticed in several places, the lower-priced units are absorbing in a market with the lowest absorption rate in 20 years. There's a strong likelihood that non-investors will snap up all the reasonably priced properties, which make up about one third of the current listings.

I agree.. I want to buy a condo but honestly the entire market in Florida for a condo is just getting to the point of so much uncertainty.

Its still got a good bit to go till it hits bottom. It's going to continue to decline only questions is how much. 

I My story is similar to yours I'm just a few years ahead of you. High income earner but hated my career. I decided i was going to replace my w2 income with Airbnbs in 2020 and started on my path. While that did work out as I made really good money CoC return i sold them after seeing what i think is weakness in the airbnb market in 2022 after basically doubling up. Since I've invested that cash in a simple S&P index fund and have had 20%+ returns the last 2 years.

Real estate is a piece of the pie here. I think your question should be posted into a few of the F.I.R.E community groups too. I plan on getting a few more pieces of real estate once i see how the market shakes out. With that said I feel like I significantly improved my position and reduced my stress..

Being  high income earner is great, but the goal is what you keep and what you spend. The most satisfying changes I've made is move out of tech management and back into just engineering roles, I sold my house in the city and moved to 5 acres in the hills where i work remotely for less money gladly, I've paid off everything, and now I have the flexibility to do anything. I work but without the weight of the world on me at this job, I also fish more, and spend more time sipping whiskey just watching the sun go behind the mountains.... Maybe the answer isn't "replace your W2 as quick as you can" but maybe the conversation needs to be how can i lower me expenses, while still enjoying life, and maybe just doing a job that pays 200k with no expenses and a few rental properties that bring in some income. Which brings me back to the "F.I.R.E" thing maybe you should look into that and changing your lifestyle and doing a blend of a lesser/easier job, less expenses, some real estate investments, and some stock investments. Ultimately the purpose here is to enjoy and be happy with your days, if you own everything you need daily, you don't "need" 500k a year.

Quote from @Steve K.:

Quote from @Mike Anderson:

Quote from @Steve K.:

Quote from @Mike Anderson:

Quote from @Steve K.:

Wait, so politics and name-calling are allowed on BP now? This thread is revolting. There’s a reason news outlets stopped allowing comments after articles (except Fox News of course which has become a cesspool, and if BP turns into that, I’m out).  

From "Boulder" huh. Comes as no surprise how "revolted" you are that you have now learned other people have a different opinion from you being from there. The reason a lot of these outlets stopped comment is purposely trying to silence one side. I didn't know you before, and I won't remember you 20 minutes from now... That said I will pray for you that you make it through this incredibly hard time you are having now that you *GASP* read an opposing viewpoint. 

This type of trolling is exactly the reason we can’t have real political discourse as it relates to real estate on here. Thanks for proving my point.   

Being offended is a choice.. You cant have discorse if one side is perpetually offended and wants the other wide silenced.. Thanks for proving my point! 

Where did I say I was offended? You’re jumping to a lot of conclusions buddy. Assuming I’m offended, assuming you know anything about me and my politics based on where I live, assuming I want to silence people. That’s a lot of mental gymnastics based on a short comment in which I simply pointed out how name-calling is revolting. You’re free to disagree that name calling is revolting if you want. That’s only position I actually presented.  The rest of the stuff you just made up. 

 No you called this thread revolting because it has views you didn't like. I didn't assume anything you are threatening to leave because you can't handle seeing an opposing view. Thats the goal of your overly emotional response is to get people to back down and force admins/moderators or whatever to stop opposing view points thus silencing them. This isn't a new strategy or mental gymnastics its page 1 from the well used playbook. You also actually gave a position on fox news, which immediately revealed your political position. I'm sorry but I just strong enough mentally and emotionally to not let name calling trigger me like it has you. Good luck on getting passed that emotionally and mentally. I wish you well, have a blessed day.

Quote from @Steve K.:

Quote from @Mike Anderson:

Quote from @Steve K.:

Wait, so politics and name-calling are allowed on BP now? This thread is revolting. There’s a reason news outlets stopped allowing comments after articles (except Fox News of course which has become a cesspool, and if BP turns into that, I’m out).  

From "Boulder" huh. Comes as no surprise how "revolted" you are that you have now learned other people have a different opinion from you being from there. The reason a lot of these outlets stopped comment is purposely trying to silence one side. I didn't know you before, and I won't remember you 20 minutes from now... That said I will pray for you that you make it through this incredibly hard time you are having now that you *GASP* read an opposing viewpoint. 

This type of trolling is exactly the reason we can’t have real political discourse as it relates to real estate on here. Thanks for proving my point.   

Being offended is a choice.. You cant have discorse if one side is perpetually offended and wants the other wide silenced.. Thanks for proving my point! 

Quote from @Sarah Kensinger:

Anderson Business Advisors all the way! We love using them and really enjoy taking in all the educational content they offer clients. 

I mean i really like my guy i recommended and he is local to the house and in GA. That said the name if this place comes in real strong.. lol. 

The link doesn't work though.