All Forum Posts by: Mike S.

I give you credit, I think your brave if you are starting in D... I started in A and IMO the goal is to get the cash flow in A = cash flow you would get in D.  Don't see to many people talking about this but to me its totally possible.  If you could just find a place at a bargain that has potential to increase rents way up.. Maybe its something you can expand or add occupancy cheap. The rents can go up quick and maybe you get close to what you get in D in a couple years....

From Boston, trying to buy a place somewhere in Florida which seems to have a bunch of 10 cap properties

If I buy a 2 or  3 fam I can rent 2/3 and almost cover everything w/25% down, then have an empty place to go to any time... 

BUT if I buy a single or a condo I am stuck trying to seasonal rent it during the winter months (that I want to visit) leaving me with less income than the 2/3 full 3 fam that gets year round rent.

The question is has anyone made the seasonal rental work as well as the multi????

Tiffanie, I am a realtor and usually buy direct but thank you!

Looking at 2 fam's in one of the following areas, West Palm Beach, Delray Beach, Little Haiti Miami or Ft Lauderdale.  Noticed some of the more expensive (800k+) stuff in West palm has dropped over the last couple years.  Someone is selling a beautiful 2 fam for 800k now that they bought for 900k... been on a while... out of my price range but more looking up to 400k....

Thanks Dave! So for the 5 or 6 flips a month is the plumber hiring out the same contracter for all this and working his plumbing into the deal? If so , I'm guessing he has stuck with one contracter over the yeats as many like using their own electrician, plumbers etc. Cheers!

After over a decade of shuffling through liceneced general contracters it occurred to me having a full time crew could save a ton. When you sub things out it moves fast but it costs way more. Calculated the last 800k renovation would have  been around 500k If we had a full time crew. Have no desire in becoming the GC just hiring a full time one. curious how you guys do it?

thanks Daniel I have a few times but since all my Income is from morgaged properties I have my dti to worry about. Was turned down a few weeks ago dti was over 50...

Thanks for the response!

What I have has all turned into 10 caps because the rents went up so much. For instance:

1.) From 2100 to 4400 on a 420k purchase (condo 10 years ago)

2.) From 1800 to 3250 on a 320k purchase (condo 7 years ago)

3.) From 2500 to 7500 on a 650k purchase  (2 family 5 years ago)

Appreciation on 1 and 2  doubled and on 3 has tripled.

The area has climbed so much so fast but is now a standard 5 cap which is why I am reluctant to buy more. I would be banking on rents going up...

what do you get cap rate wise? What would a 500k property  get p/month? Can you get 5k per month? Or more like 2500?

@Nick Romano

I think those rents look good for the Boston area. Granted its way less to deal with: If you spent 770k downtown boston on a 2 or 3  bed condo you would only get around 4k/per month... 

Dont know Quincy market well but with Boston pushing out I bet soon you will get those rents up to 2k each... hitting that 1% rule.  Rents increases with new leases or with good tenants you can possibly offer them new kitchen/baths... even a new bath vanity and kitchen cabinets can go a long way. They way  even be willing to have it done while their away for the weekend so you don't lose any rents.

Good luck!