All Forum Posts by: Parmesh P.

Is this in Solterra resort? Its a pretty good area.

Quote from @Todd Goedeke:

@Parmesh P. there is no such TDA paying 7% or even 6% long term,5 years or longer.

One example I know of is NYC teachers has a 7% fixed with a maximum $23,500 per year currently.

Hello Jillyan, I was just wondering why you will eliminate the water and ice maker. Personally I will not be happy with a basic refridgerator in my rental. My experience is similar to Colleen's experience. I stay away from LG and Samgsung. The samgsung seems to have problems with the ice maker and circuit board in general. I have two Maytag in my rentals for about 7 years now with no problem. I bought them from home depot. This is the model # at home depot. MRFF4236RZ

I agree with all of the points laid out here, but people should also be aware of the benefits of TDAs such as: 
1. Guaranteed Returns: A fixed 7% is impressive in today's market and provides predictability unmatched by most investments.

2. Truly Passive: No management, no tenants, no repairs, just consistent income.

3. Low Risk: TDAs are insulated from market volatility, offering peace of mind.

4. Simplicity: TDAs require minimal effort after initial setup, making them attractive for those seeking stress-free investment.

For investors like myself, seeking both stability and growth, combining a TDA with real estate investments creates a diversified portfolio. TDAs offer peace of mind and a safety net, while real estate provides growth potential, tax advantages, and wealth-building opportunities. Both approaches have merit. The key is understanding your risk tolerance, time commitment, and financial goals to find the right balance.

Quote from @Kevin G.:

Please correct me if I'm wrong, but wouldn't a single-family home be a better option near Disney World, especially one with a pool, if it's affordable? That's what I'm currently looking for as I search for deals. I hope to find a single-family home with at least 4 bedrooms, use the BRRR method to turn it into a short-term rental property. Rinse and repeat. However, I'm having difficulty narrowing down a few markets, such as Tampa or Kissimmee/Orlando.

I think Andrew give you some good information. I don't think Kissimmee and surrounding areas are places where you may be able to "rense and repeat". If you are looking for cash flow and you are coming in cash, things will work in your favor. If you are not coming in cash and you plan to hold for five or more years, its the best time to pick up a property at a steep discount and make it work until the cycle turns again. 

Quote from @Scott Trench:

I agree that Florida real estate prices (and rents) are likely to either grow less quickly than the rest of the country, or decline more rapidly. Florida as a state, and many of it's major markets are some of the worst positioned in the country for real estate investors in the near-term. 

But, affordability is only part of the issue. New supply and rising expenses are probably even more impactful.

Florida has some of the most new construction going on in the country, and is seeing rapid increases in insurance costs. These two things directly impact gross rents and cash flow. 

While it's not AS bad as markets like Austin, TX, Florida real estate is near the bottom of my list in terms of return potential for the next 1-2 years. 

Long-term? As long as you don't fear climate change impacts, Florida is probably fine and buys today will probably work out great over the decades. But, I would not bet on a boom in rents or prices until 2026 at least. 

I agree with most of your assessment regarding Florida's real estate market. Here’s a recap of key points.

• Slower growth in prices and rents: Florida is expected to experience slower appreciation or even declines, affecting short-term returns for investors.
• Affordability challenges: While affordability remains an issue, the primary concerns are rising expenses and increased supply.
• Increase in new inventory: Florida is experiencing a significant rise in new housing inventory, contributing to oversupply. This increase puts downward pressure on both rental rates and property values.
• Rising insurance costs: Skyrocketing insurance premiums are further squeezing cash flow and increasing operational costs for property owners.
• Short-term outlook: With the current market conditions, Florida real estate is unlikely to yield strong returns over the next 1-2 years, making it less favorable for immediate investment.

Quote from @Alex Silang:

So I've heard this can run you a lot - around $30,000 for the average sized home of $400,000 in the area I'm looking at. So that means if my downpayment is $80,000, $30,000 is really going to affect things:

1) Capital raised. I need I need 37.5% more capital

2) If I need to sell in a few years, this capital will largely go *poof*. A new buyer is probably not going to pay the full value of those renovations. Ideally I'd be able to find a buyer that wants to do STR but that's not guaranteed by any means.

3) Cashflow will probably be only $1,000/mo. So back of the napkin, that's almost 3 years of waiting to get the money back. 

I understand that this is just a part of STR investing. Anything else I missed?

Furnishing a bedroom is very subjective but can be done for under $3K with higher than average materials. Here is a breakdown:

1. Queen bed frame: $400 - $700
2. High-quality mattress: $500 - $9,000
3. Pillows (2-4 per bed): $40 - $120
4. Linens (sheets, duvet, comforter): $150 - $300
5. Blanket: $50 - $75
6. 1 Bedside tables: $40 - $150
7. 1 Lamps/lighting: $40 - $75
8. Art decor (2 pieces): $100 - $275
9. Bathroom towel racks, dispensers and soap racks: $100 - $200
10. Makeup mirror: $20 - $80
11. Hair dryer: $20 - $60
12. 5x7 rug: $75 - $250
13. Small vase with plant: $20 - $50
14. 3-ft decorative tree: $50 - $150
15. Two window curtains (with rods): $80 - $150
16. 55-inch TV: $375 - $500

Total cost per bedroom will range from $2,320 - $3,545

I agree with Josh. It is not that simple and it looks like the builder already factor in a 200K (3Ksf x 200/sf). You have to have a sound agreement and cater for hicups along the way. 

I have a lake front property in Clermont Florida that values $175K and would like to do the same thing but don't have that experience. I had discussions with two local prospective builders but nothing was making logical sense to me so I put it on hold. I am interested to know your experience with this venture.

Quote from @Zeke Nickie:

How do you know whether to place a property under STR or rent out to regular tenants. What should you look for before deciding if a property is a STR or regular rental

You are given great advice in all of the previous posts. Yes its about the regulations, your goals and the numbers.
Just remember that you can set up lease with LTR that requires the renter to do everything ( replace a door lock, bulbs, take care of the garbage, etc) except for some major things and structural problems. For LTRs, you don't have to worry about furnishing the apartment and no management agency is needed.

I appreciate your feedback.