All Forum Posts by: Petronella Kerssens

Hey fellow Investors!

I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
I'm torn between Tampa and Orlando.

So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment?

Your advice would be greatly appriciated. Thanks in advance!

Renate (Petronella) Kerssens

Hey fellow Investors!

I'm gearing up to make a substantial investment of around $200k in Florida's real estate market in 2024, and I could use your insights.
I'm torn between Tampa and Orlando.

So, folks in the know, I'd love your input! Which of these Florida locations do you think holds more promise for investment, considering the current market trends? And within these areas, what property types would you recommend diving into for a solid investment? 

Your advice would be greatly appriciated. Thanks in advance!

Renate (Petronella) Kerssens

Quote from @Stephanie P.:

Quote from @Petronella Kerssens:

Good afternoon, My name is Petronella Kerssens and I hope you are able to help me with the following challenge I`m facing. We lived in Florida for 10 years and are US citizens. We moved back to Europe 4 years ago and are currently working there. We have no immediate plans to return to the States. We are actively working on enhancing our current credit score of 590.

In Europe, we own several investment properties. However, due to recent changes in local tax laws, we are contemplating investing in the U.S. again.

We have a strong affinity for the Tampa area, and our trusted realtor there is not only a professional contact but also a personal friend. We have a budget of approximately $175k-$200k to invest.

The question we're struggling with is whether it would be more beneficial to buy one apartment cash or to make a 40-45% down payment on two apartments and secure a DSCR loan for the balance. Despite conducting extensive research, we're struggling to find a loan with an attractive interest rate. Thus, we're keen to connect with an experienced loan officer, who can help us with this. Our main goal is to have pasive income/cashflow.

We'd greatly appreciate any advice, particularly on what you would do differently under these circumstances, excluding relocating to a completely different area.

Thanks for your help,

Petronella

 Unless you're going to pay cash for the apartment, I would focus on improving my US credit score.  The difference in rates and loan to value between a 590 score and a 700 score is significant.

 Thanks Stephanie for your input!

Quote from @Erik Estrada:

Quote from @Petronella Kerssens:

Good afternoon, My name is Petronella Kerssens and I hope you are able to help me with the following challenge I`m facing. We lived in Florida for 10 years and are US citizens. We moved back to Europe 4 years ago and are currently working there. We have no immediate plans to return to the States. We are actively working on enhancing our current credit score of 590.

In Europe, we own several investment properties. However, due to recent changes in local tax laws, we are contemplating investing in the U.S. again.

We have a strong affinity for the Tampa area, and our trusted realtor there is not only a professional contact but also a personal friend. We have a budget of approximately $175k-$200k to invest.

The question we're struggling with is whether it would be more beneficial to buy one apartment cash or to make a 40-45% down payment on two apartments and secure a DSCR loan for the balance. Despite conducting extensive research, we're struggling to find a loan with an attractive interest rate. Thus, we're keen to connect with an experienced loan officer, who can help us with this. Our main goal is to have pasive income/cashflow.

We'd greatly appreciate any advice, particularly on what you would do differently under these circumstances, excluding relocating to a completely different area.

Thanks for your help,

Petronella

You are far better off working on your FICO score with the cash you have ready to invest. Most DSCR lenders will be competitive at 700+ FICO.

And if you deploy all your cash into the deal, How will you get it back? If you get your FICO score higher, you may be able to finance with a DSCR and once you increase the value of the property, cash out refinance.

 Thanks for your input!

Quote from @Basit Siddiqi:

I would focus on trying to get your credit score higher. 
What is making the score low as it is?

I think the current market environment is rewarding those who are lending money.

You might be able to make 10% as a private lender which would be about $17,500 - $20,000 on your $175,000 - $200,000.

Hard to say that you can guarantee a similar return with a LTR.

Best of luck.

 Hi Basit, 

Thank you for your reply. I have heard that comment before to go into PL. It might be an angle to investigate. Thanks again.

Quote from @Daniel O'Donnell:

Hello,

Regarding your question about whether it's more beneficial to buy one apartment with cash or make a 40-45% down payment on two apartments and secure a DSCR loan for the balance, I would recommend considering a few factors:

1. Diversification: Investing in two apartments might offer diversification benefits, spreading risk across multiple properties.
2. Cashflow: The DSCR loan could potentially allow you to leverage your funds, using debt to invest in additional properties. This might enhance your potential for passive income and cash flow.
3. Interest Rates: While you mentioned struggling to find an attractive interest rate, it's essential to explore different lenders and loan options to secure the best terms possible.

As an experienced loan officer, my primary goal is to assist you in achieving your passive income objectives. I suggest evaluating the potential return on investment for both scenarios, factoring in property appreciation, rental income, and potential tax benefits. Additionally, I can provide insights into the current market trends and help you navigate the loan process effectively.

Feel free to connect with me to discuss your specific situation and preferences in more detail. I'm dedicated to helping you make well-informed decisions.

Best regards,

Dan O'Donnell

Revolution Mortgage

NMLS# 1996808

 Thanks Dan for your reply, looking forward to connect.

Good afternoon, My name is Petronella Kerssens and I hope you are able to help me with the following challenge I`m facing. We lived in Florida for 10 years and are US citizens. We moved back to Europe 4 years ago and are currently working there. We have no immediate plans to return to the States. We are actively working on enhancing our current credit score of 590.

In Europe, we own several investment properties. However, due to recent changes in local tax laws, we are contemplating investing in the U.S. again.

We have a strong affinity for the Tampa area, and our trusted realtor there is not only a professional contact but also a personal friend. We have a budget of approximately $175k-$200k to invest.

The question we're struggling with is whether it would be more beneficial to buy one apartment cash or to make a 40-45% down payment on two apartments and secure a DSCR loan for the balance. Despite conducting extensive research, we're struggling to find a loan with an attractive interest rate. Thus, we're keen to connect with an experienced loan officer, who can help us with this. Our main goal is to have pasive income/cashflow.

We'd greatly appreciate any advice, particularly on what you would do differently under these circumstances, excluding relocating to a completely different area.

Thanks for your help,

Petronella

Good afternoon, My name is Petronella Kerssens and I hope you are able to help me with the following challenge I`m facing. We lived in Florida for 10 years and are US citizens. We moved back to Europe 4 years ago and are currently working there. We have no immediate plans to return to the States. We are actively working on enhancing our current credit score of 590.

In Europe, we own several investment properties. However, due to recent changes in local tax laws, we are contemplating investing in the U.S. again.

We have a strong affinity for the Tampa area, and our trusted realtor there is not only a professional contact but also a personal friend. We have a budget of approximately $175k-$200k to invest.

The question we're struggling with is whether it would be more beneficial to buy one apartment cash or to make a 40-45% down payment on two apartments and secure a DSCR loan for the balance. Despite conducting extensive research, we're struggling to find a loan with an attractive interest rate. Thus, we're keen to connect with an experienced loan officer, who can help us with this. Our main goal is to have pasive income/cashflow.

We'd greatly appreciate any advice, particularly on what you would do differently under these circumstances, excluding relocating to a completely different area.

Thanks for your help,

Petronella