All Forum Posts by: Ross Kerne

I use Jared Gary with Assurance Financial out of Baton Rouge. He has helped my purchased multiple small multi-families and my recent luxury house hack. Even though I moved from Louisiana to TX, I still use Jared for my financing. Jared is an very experienced real estate investor himself, so I find a ton of value in being able to talk to "Jared the Lender" and "Jared the Investor" on the same phone call. You can find him online, but you can PM me for his number if you need.

Yes, some PM contracts will state that the rental needs to be available to them for X number of weeks per year. That number can range from 6-14 weeks on the gulf coast. If you want your personal vacation home to be available whenever you want it, then purchase with that intent. If you want your vacation home to pay for itself like the OP ask, then allow it to be rented as much as possible. If I wanted my beach condo to make the greatest return, then it would not be wise of me to owner occupy it during the summer. I usually go the beach during the off seasons bookending summer, when there is less people and the weather is still great. I don't want to be at the overcrowded beaches for the 4th of July which is our highest grossing month.

I am from Louisiana and just bought a personal residence in New Braunfels. My lender is in LA and has financed my last two duplexes. Very competitive, fast, and professional. If you want his info send me a PM. 

Dan, Where were your condos in Gulf Shores and what year/storms did damage to your properties? We have a STR in Gulf Shores and Orange Beach. We do have insurance to cover lost rentals, but the magnitude of the storm will determine how long the unit is down.

 Candance, could you suggest some groups on FB? My reach is limited to friends, family, and sponsored post.
Thanks.

Yes, we have two beach front condos that generate a decent cash on cash return, have appreciated, and of course pay for themselves. I live in TX and the condos are a 1B1B in Orange Beach, AL and a 3B3B in Gulf Shores, AL. We use a local property manager for the bulk of bookings and also use FB to fill in the gaps in the calendar.

Since you listed locations all across the map, pay attention to off seasons for the area you choose. Some off seasons markets are absolutely dead and some can still generate income. Snow Birds flock to the beach Nov-Feb and we usually rent to them for break even prices.

Candace,

I think the biggest advantage AL has over FL is property taxes (almost triple). I haven't purchased in FL, but why would the state have any bearing on the percentage of the down payment. Some banks allow 5/10/15% on rental properties or second home, if you're willing to pay PMI, but why would a state require more than a bank would allow? Many condos on the beach would require a jumbo mortgage, which is driving you towards 25% down.

We live in TX and have two beach front condos in AL. A 1B1B in Orange Beach and a 3B3B in Gulf Shores. Both have done well with cash flow and appreciation. Not all properties can generate the same rent roll and there can be a big difference in purchase price between one building to the next. A local property manager can offer the advice on which places pull the best rent to price ratio, if you are looking at it from a business only standpoint. We use Kaiser as our local property manager. I take my family to these condos on the beach, so there was a little more emotion in the decision that just cash flow numbers.

All that being said, I started to invest in small multifamlies because I didn't want all my eggs in one basket on the coast, that could be impacted by a hurricane. Insurance can cover lost rentals due to a storm, but a major hurricane could really impact cash flow.

I agree with the previous comments, I will just add that you could look for a duplex/triplex in your area, instead of a single family home. Since you plan to owner occupy for a few years you could use hie $20K and an FHA loan to buys something decent. Once you move our of the state, use a property manager to take care of your small multifamily property.

I am originally from LA, but now live in TX, and invest in small multi-families in Louisiana. I wish someone would have given me the advice above, instead of purchasing a single family home as my first residence.

 You are welcome. Let me know if you have any more questions.

I forgot to mention @Craig Boutte for your wholesaling needs.