All Forum Posts by: Rob Drum

@Wynn Williams You could buy it subject to the existing mortgage, but I'm hearing about those due-on-sale clauses being exercised often now.

I would structure it as a lease with an option to buy. The strike price follows the declining principal balance of the underlying mortgage. The lease is written to mirror the payment on the underlying mortgage. You capture the paydown, appreciation, and low payment. Missing out on depreciation doesn't matter for now because you're living there. Secure your option with a mortgage in second position to block out your equity.

@Brent Richardson Welcome! BP is a great place to learn the business.

Quote from @Crystal Wiley:

@Rob Drum Thank you. I appreciate that you're in town so I may reach out this week to chat if that's OK.

Absolutely! That’s my direct line in the signature. I look forward to discussing.

Quote from @Crystal Wiley:

Thank you @Rob Drum -  Do you assist with and/or are you familiar with other types of long-term rental real estate investments as well such as mobile homes/storage units/condos?

I’ve done almost anything you can think of in residential real estate investing. 😁 Not much as much experience in commercial though.

Quote from @Crystal Wiley:

Looking for an agent to help us purchase a small property in Bradenton, FL to use as a FT AirBNB. We are new to the area and looking to invest.

Hi Crystal. I’m a realtor in Bradenton, and have experience with AirBnb. I own one a little further south. We only manage long term, but I can refer you to a couple short term manager options. Dm me on here or send me a text!

Investor-focused stats on the Sarasota and Manatee County real estate market.

- How much of a buyer market are we in? Latest MLS Stats.

- What are home builders doing? New home building permit tracking.

- What's happening with mortgage rates and the yield curve? Tracking changes in the debt markets.

@Denis Orlov I don't do STR, but I've rented one of my personal properties for arbitrage before.

Like everything in real estate, it comes down to negotiating a good deal upfront. From what I've seen in this area right now, it seems like you'd have a hard time paying market LTR rents and making a good spread. 

Also, I've always wondered why arbitragers don't negotiate an option to buy upfront? It seems like a major missed opportunity. There's long-term money to be made on that strategy.

@Ryan Johnston A couple of questions worth asking.. Is $150 negative cashflow a lot for you? Is this your only rental? How much did you put down when you purchased it? 

If you put less than 5% down, your return on equity is likely sky-high. You've got to include loan pay down, appreciation, and depreciation in your return calculations.

The point of cash flow is to keep you safe. If you can cover small negative cashflow without destabilizing yourself or the property it's not a problem IMO

@Ian Bollinger I'm in Lakewood Ranch. There are a lot of new townhomes being built here. Some have really good builder incentives right now. There's also a lot of mid-term demand in this area from people moving down and waiting on their home to be finished. I'd say most people in my neighborhood rented for a period before moving in.

Quote from @Edreco Amos:

Quote from @Rob Drum:

I’ve owned a condo and Tampa, and two houses down the west coast of Florida the last two years. Insurance and storms hit everything hard, but you can really see the buying opportunities further down the coast. Better potential for current cashflow and you can definitely find discounts to “market top” pricing as you look South from Tampa.

 Thanks Rob. As far as the coast goes, what are your thoughts on LTRs? I'm skeptical because of what just happened with the flooding that happened as a result of the hurricanes. I think fix and flips in those areas would probably make a little more sense. Sell and get out.

I’d say LTR’s that fully cashflow are still tough to find. Easier as you go South. 

The flooding cuts both ways.  there are a lot of projects just waiting for someone who wants to renovate, they pretty much have to sell to an investor, so good opportunities. On the other hand it backs up inventory, which hurts prices in the short term.