All Forum Posts by: Keith Nugent

thanks for the input @Taylor Shields.

I have not met the owner yet, only spoken on the phone as i only became aware of the situation 2 days ago. Part of the uncertainty is that the owner doesn't quite know what she wants outside of having retirement income without the responsibility of landlording.

@Roy N. I agree, and I'm certainly not minimizing that aspect, but I'm interested in other creative options for the financing. 

I probably overstated my relationship to the current tenant in that I do work at the same company as them, along with 14000 other employees. I interface with them perhaps once a month at most, work in a different department/role so will not be assigned to the same project. Conclusion, while I hope to avoide evictions whenever possible, yes I could if it came to it. 

Thank you @Jeff Rabinowitz and @Roy N. I appreciate the comments and perspective. Seller financing is certainly one approach I was considering, I think you summed it up well I would just need to convince the owner that headache free income and tax benefits are better then a lump sum today.

A co-worker of mine loves the home she has been renting for 5 years, but the landlord is tired and wants to sell which may result in my co-worker being forced to move. Ideally, I'd like to pick up the property and let the tennents stay on...but the numbers have to work.

Property is a 3/2 SFR, well maintained, approx value $100k.

Current rent is $850, comp rents are $950 in the neighborhood.

Owner has no mortgage on the property and notionally wants $98k.

May be some flexibility on the price/rent and the tennents are open to a lease option...but I think the owner wants to get cash in hand and be free of landlord headaches. 

What ways would you structure a deal so that its a win/win/win?

I tend to agree with @Aly W. are certainly a major factor and are being redefined more regularly these days so being up to date is important. 

As for taxes, to get an initial estimate I've actually found zillow to be fairly helpful there...rough estimate. 

GRM: well Palm Bay is an interesting area when looking at GRM and the 2% rule....

First, I would say there are fewer duplex and quad units in Palm Bay then a lot of other areas. It's mainly dominated by SFRs and then there are a lot of condos in the general area once you get closer to the beach and also in older Melbourne. The one triplex I viewed would have barely made the "1%" rule which was a non-starter for me. 

It feels like 2% can be fairly illusive for general buy and hold but there is opportunity. 

I've noticed that rents are much more stable across areas here where the retail purchase price swings more dramatically over the same region....so there can be a sweet spot at lower value properties that likely will not appreciate much but will have much stronger GRM and NOI.

There are actually still some condos in the area that sell below $40k and make $800+/mo but those are the deals and not the average place.

I feel like the largest opportunities for this area are the distressed and  REOs that will be some rehab then hold and rent. The banks are finally starting to accept more reasonable offers and negotiate. 

There are also other investors in the area doing larger rehabs and selling at prices that target investors (leaving enough in the deal to make it a good cash flow investment). 

I think all that can be summed up by saying good research or boots on the ground here can still net some great investments. 

-Keith 

hi @Will F.  I live in Palm Bay and have to agree with @Walt Payne 

Lots of opportunity for solid cash flow and the area is expanding and bringing new jobs but I don't think major appreciation is anywhere on the horizon. Location, school zones, and highway access... Keep those in mind when you buy and buy for the right price you can't go wrong. 

South Florida is a little like California I suppose in that you can probably make money prospecting on appreciation but that's not my business model and you certainly have to know when to exit or you will be left holding a crashing property. 

How many hold properties are you looking to acquire in Florida the next year?

-Keith 

hi @David Taylor - welcome to the forums.

I second @Walt Payne 's suggestion regarding the local groups (wherever local will be for you). If you are interested in the Brevard group @Michael Smith , @Priscilla Z. , and I can all give you more info. 

See you around the forums.

-Keith

Hi @Michael Edwards - welcome to BP, great to see a fellow Central Florida investor.

Be sure to set up some keyword alerts in your profile so you can stay on top of topics that interest you. 

I am focused on Brevard country but I do know some out of state wholesales that are focused on Florida that may be a good POC for you.

-Keith 

Hi @Edwin Duran  - I have to agree with @Ashley Swindell that certain areas are currently a "sellers market", but the market is highly carried by location and even neighborhood. 

The research is critical... Boots on the ground could be a great way to go as well. 

Best of luck!

-Keith

hi @Kim Handelman 

We generally started from scratch... Or adapted what we knew to meet our needs.

Generally I would recommend getting the layout of the key parts of the plan - it doesn't need to be grandiose but if you plan to pitch to investors a well thought out plan is key. 

Key portions >> outline >> start filling in details.... Make it make sense to you since it is for you in the long run. 

Any extra research or data or number you crunch to support it should be kept in a separate appendix or backup material should you ever wish to revise or when an investor want to dive a little deeper.

Depending on your plan and the sensitivity of your information determine if confidentiality is required or not.

What is your investing focus? best of luck!

-Keith