All Forum Posts by: Obed Calixte

 40. It covers the cost of background, credit etc 

You can't sign a contract now - once both parties sign, it is executed. There is no ability to set execution date to the future.

The 90 day rule starts from the date the current deed was recorded to the date the contract with FHA buyer is signed. There are limited exemptions such as if you inherited the property where it would be allowed.

There are technical means to navigate the 90 day rule but your best bet by far is to talk to the lender and let them know the situation and ask for their direct guidance.  

This thread shows there is a need for a larger guided discussion on best practices as it relates to (renters) insurance.

 It's "illegal" in FL to require renters insurance?

Are you certain of this?

State statues do not require tenants have renter's insurance, however I have yet to ever find where it is banned, illegal or otherwise for PMCs or landlords to require it of tenants.

Most desirable areas in Tampa Bay are in AE or higher risk flood zones and generally sell for a premium for a comparable home placed elsewhere - all else equal . 

Areas such as Shore Acres flood with frequency and maintain high demand.  The latest storms have brought about heightened attention and buyers are more astute than years past with purchasing flood risk homes. How that will play out for long term values is unknown - however human nature has shown proximity to water is desirable. 

You didn't provide any numbers so can't answer if it's a good deal. With that said, it all comes down to your goals, your risk appetite and sufficient reserves. If the deal fits your parameters then go for it, otherwise skip it and find another.

It's unclear what you mean by Buildium is a reactive approach. Buildium is just PM software and has nothing to do with filling or managing vacancies.

In regards to proactively managing vacancies moving forward - Buildium breaksdown the number of units 30/60/90 days out from lease term ending. That will help with planning. Since the property is a multiplex- I am assuming the unit mix includes multiple units with the same floorplans. 

Take professional photos (and possibly layout) of each floorplan. With future leases, as soon as it is determined there is nonrenewal, you start marketing that floorplan.  

With that said, the best proactive measure for vacancies are to have none in the first place - meaning improving retention. Not everyone will renew, but having great customer service, quick maintenance, good renewal rates, solid communication etc go a long way in retention. A small incentive at renewal also helps. 

For your existing vacancies - there are no proactive measures - simply active or passive measures you can take. I only know my market, however I am certain marketing and pricing strategies will be key to filling those units up as quickly as possible. 

 "Now Leasing" banners, open house and other analog marketing channels will need to be explored along side digital. Make touring a unit a seamless and painfree process. Consider incentives and pricing to get people through the doors. 

I have great recommendations I can send you.

Start with the end in mind --- what would be the investor's exit strategy for this home? 

Is it high appreciation area with a low rate mortgage?

Does it cashflow as is? 

If you can't identify why an investor would want to buy it - you'll likely have a hard time moving it

There are a ton of free tenant applications online and through property management software companies such as turbotenant, rentspree, zillow etc.

You will want your application to meet any state specific guidelines (if applicable). 

For your question on background, credit checks etc - what is customary in your area? And more importantly did you disclose ahead of time to the applicants there is a charge?

In my office - applicants cover the fee entirely. 

It's always nice to have an opportunity come your way. 

Few things in your analysis.

-Interest rate of 5% is much lower than market interest rates. 7-8%+

-There are no capex reserve considerations included. 5% is a starting point.

-Is 5% property management rate the market rate? 

- Look into if property taxes are reassessed after purchase. That may impact the amount you have listed

Your most advantageous route for financing will be seller carry or finding a private lender. It will be an uphill battle to find a lender willing to lend on a low loan amount. They exist but are far and few between.