All Forum Posts by: Paul Ricci Jr

Hello all, we are in a position to purchase a home in Flagler Beach Fl, for 590k. 3/2 1800 sqft solid home with a stem wall (not in flood zone). Property is 3 streets from the ocean, very close nit community. This would be our primary residence. We also own a business in the area.

As everything goes up my fear is that we end up with less of a house by sitting on the sidelines. Also, many properties that sold two months prior are more desirable/ more sqft.

The house was on the market for 1 day, we offered asking 600k

The house did not appraise (565k) so change of plans if we want to proceed. We negotiated down to 590k but of course this is still more out of pocket because of appraisal.

Looking for a bit of perspective on this situation. Also is it safe to assume because it's a beach town the property will continue to cost more due to the scarcity?

Thank you in advance for your thoughts!

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Originally posted by @Gary Parilis:

I agree with the others. Hold! Tap in the capital with a cash-out refi. (Not sure why people are suggesting HELOC if you know you'll be re-investing it.)

One of my biggest regrets is selling my first home 20 years ago, when I was a little older than you. It would have cash flowed all this time, the mortgage would be pretty much gone -- and it's now worth 3x what it was then.

I have a property in Daytona and one in S.Daytona. I like the market, but I'm finding the cash flow isn't as great as in other places. Interested to know about your experience @Paul Ricci Jr. Where "just north of Daytona" are you?

Hey Gary, I appreciate your perspective and thank you for taking the time to respond. I live in Palm Coast and am always checking the surrounding areas for deals. Iv'e had a great experience with my duplex and definitely like the idea of acquiring another multi of some sort.

I have never heard of a cash out refi so I will need to look into that, sounds intriguing! I own the duplex outright so If I were to purchase another property would you suggest that I pull money from the duplex + add some more funds to pay off this future investment (assuming I have enough when I find that property) or should I put down a downpayment on this future investment then just get a mortgage and leave the duplex debt free?

I understand interest rates are low rn, so I would want to make an educated decision and figure out the best option

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Originally posted by @Lee Judd:

@Paul Ricci Jr the one advantage you have with your situations would be the tax free capital if you do sell. Which you choose would depend on you goals. Cash out won't give you as much cash to reinvest buy you maintain that property.

Very true, It would be nice to take advantage of the tax free capital however it seems like holding makes the most sense from a long term perspective

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Originally posted by @Jason Scavilla:

@Paul Ricci Jr I'm an agent and investor in Ormond, I would HOLD AND NEVER SELL. Take out the HELOC. If you do need help/advice/anything then let me know. I have 5 properties, 1 of them my primary, so 4 rentals. All single family and when I have the capital will be looking at a duplex.

Thank you for that perspective Jason. Seems like buy and hold is the way to go. I plan on getting my real-estate license soon that way I can fully navigate through my own deals. What was the catalyst for you purchasing the single families vs a multi?

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Originally posted by @Nat C.:

I will give you some advice which I wish someone had drilled into me years ago. NEVER SELL. Well, only sell if the asset is creating problems that you can't resolve. Otherwise your goal should be to hold as much RE as possible and keep buying.

So indeed, a HELOC is the way to go. Just keep buying, renovating and refinancing, as per the BRRRR model. By the time you are 40, you would have amassed great wealth.

By the way, which area North of Daytona are you referring to? Ormond Beach?

I appreciate that! I am not in a position where I need the cash or anything like that, seems I need to get a bit more educated on HELOC's and go from there.

I am in Palm Coast but actively look in surrounding areas, including Ormond !

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Hey everyone, I had a question about when / is there a good time to cash out on a rental property to then leverage that into a better situation or multiple new builds.

I purchased and lived in my first duplex about 5 years ago. I paid $166,000 for it and collected rent while I lived for in the other side. The market is hot right now (North East FL, just north of Daytona Beach) and me and my family just build a new home. I'm confident I could get $350,000 (for the sake of discussion lets roll with that). The units are in great shape, newer AC units (3 and 4 yrs old) and a new roof (1 year old) built in 2004.

The house is now paid off and renting for $1,400 (each side) which is great. Lots of people are moving into this area and there is a new house being built on every street, new apartments and many old folks homes.

My question is, wouldn't it make sense to sell now, make $184,000 profit free from capital gains and reinvest in something bigger? I would be able to build 2 new duplexes with that $184,000 in this area plus have my initial $166,000.

Any thoughts would be appreciated! I'm 27 and enjoy real-estate so I'm looking for ways to move up and leverage my equity to acquire another multifamily. I own a duplex zoned lot as well so the new build would be ready to go (275K for a 3/2 duplex in this area) + land.

Or would a HELOC make more sense to fund a new build?

I appreciate your thoughts in advance!

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All Forum Posts by: Paul Ricci Jr

Paul Ricci Jr has started 2 posts and replied 6 times.

Post: Should I buy SFR Flagler Beach

Post: Should I sell or should I hold?

Post: Should I sell or should I hold?

Post: Should I sell or should I hold?

Post: Should I sell or should I hold?

Post: Should I sell or should I hold?