All Forum Posts by: Obed Calixte

Just some raw thoughts.

Value add properties that have the opportunity to add ADU or garage conversion and then either rent by the room, MTR or LTR.

ADU rules vary widely by locale in Pinellas so you'll definitely want to research where it is most feasible. In St Pete, ADUs are allowed in zones starting with NT and NS (conditions apply).

For rent by room: ideally you'll want large common area, plenty of storage, split plans, 4+ bedrooms and several bathrooms. A SFH with inlaw suite is also an option.

MTR: you'll want to be close to hospitals/airport/large employers or entertainment 

Flipping is cash intensive and unless you have a great plan and solid team that can execute quickly, it can mean having your money tied up for lengthy periods of time. 

There aren't as many great deals in Tampa Bay, but they do pop up every so often. 

A way to get into flipping and not have all your capital tied up in one deal would be to JV with experienced flippers. You can then split the profits at the sale. No interest needed and you have exposure to more earning power.

Amazing story and great win!

You did alot of right things to make it work, and that could have only been done by putting in the work!!

How did you find the new anchor tenant?

Ramping them up to speed on the local market, costs (insurance/taxes/property prices etc) and contracts.

With VA, the VA Amendatory Clause will supersede any financing contingency if the property does not appraise. With that said, the buyer can still proceed with the sale if they are comfortable & able to overcome the appraisal gap and/or a solution is worked out financially between buyer and seller to make it feasible.

So if appraisal gap is a concern

Before accepting:

- Ensure the sales price on the contract is inline with market expectations. 

Before or after accepting:

- Lower the sales price  or lower the sales price AND lower seller credit (only do this if you are confident in the sale)

- find a value add opportunity (I've had situation where we put new roof on and split the cost 50/50 with the buyer via credits to up the home's value to meet appraised value). This works only in situations where there are meaningful opportunities such as that. 

I'm not sure your role in the transaction but make sure the listing agent is present when the appraiser is there or at VERY MINIMUM provide the appraiser with a packet of comps, SOW and/or receipts of work done in a nice and neat packet that is easy to read and follow. Appraisers are human too and I've found they do appreciate having key information readily available if/when they need it.

Ryan above hits on alot of the key numbers.

I will also add that you would need to consider sell costs which can range from 3-8% (depending on commissions, credits, staging  etc). There are other costs to consider such as utilities etc but we'll focus on the bigger numbers.

With those numbers you'll be closer to 25K before taxes.

Also @Daniel Rodriguez - BP has a fix and flip calculator that you can use to run your numbers on. 

There may be a limit on how many times you can use it if you are not a PRO member but it's a great start.

Hello, may you  add me to your list.

[email protected]

Thank you.

You mention that you plan to reside in your current home for one year and then move on to your next investment   but also mention investing in a townhome/condo in either TPA or Gville.

Are you planning to make the next purchase your new primary? Or is your plan to rent out both properties and live elsewhere?

If you are going to move out your current property and then move into the next property as your new primary, you can use 5% conventional loan.

Welcome @Kiara Spence

There's alot of great points mentioned.

You'll surely want to understand your budget, narrow your focus/objective, work with a lender/broker that understands your goals and put the right people in your corner to help identify deals.

Are you going to reside in your primary and buy the rental? or are you open/able to move from your current primary to rent it out while you buy and reside in the second home?

 Those were the areas you mentioned in this post.