All Forum Posts by: Kevin Reid

To many of them seem ridiculous. Like the $175k Miami condo that's worth 1.2mil?

I think I'll use them with a grain of salt. If I see something I like ill do my own investigation before any contact. Thanks.

I've been trying to see the costs of building a SFR. Seems to be a wide range.

What hare tha averages you guys are seeing out there for block, stick, and modular homes?

Thank you Carl. I'm 13-18 years away from retirement, because my day job (Firefighter) allows for an earlier exit then most industries. I'm not looking around my area, because of the expense, but more towards SW Florida. I'm looking to buy and hold, eventually get a few, maybe quite a few, rentals for us to help with retirement. The area we like I can get 1/4+/- acre lots for maybe 1/8 the price of Lakeland in decent areas. 

I like your idea on development. Building new means you know exactly what you have and how it's built. My biggest worry with purchasing is buying someone else's headache.

I ran across a site, myhousedeals.com, and I'm wondering if it or others like it, are legit? Some of the deals seem very realistic, some don't seem worth it with a low estimated profit, and a few seem way to good to be true.

If it is legit, are there other sites you guys recommend?

I've been posting a bit lately, and it may seem all over the place, but I'm just trying to explore all our options.

I've posted about buying a long or short term rental down where we want to retire. That is still on the table, but as I explore the area more I feel it has great potential in the future. There is a neighborhood that started to be developed, but I guess when the great recession hit it put some major brakes on it. So roads and utilities are already in place for the lots. That said, I can buy the lots fairly cheap, actually very cheap, even the water front lots are a good deal. When things pick back up in a few years I think it will rise sharply in price.

So lets say I went forward and got a lot for a nice retirement home later on. Would you just hold onto it, and build a home later. Or would you develop it now as a rental (there is a need in this area)? 

I guess a better question is does it pay to build a SFR as a rental if you get the land cheap? Or is it still better to find an existing property?

I don't have much experience with owning them, but I work around mobile homes all the time. As a new investor I'd have to ask what is the upside here?

A 40 year old mobile home is near worthless as it is past the typical life cycle to many, and might not be insurable. A 20 year old one is a little better. So even if they are income producing, if the land it only worth 60k, what makes the 2 units worth 60k? Mobile homes lose value with age, while the land under it appreciates sometimes. Is it still a good deal if you need to replace one or both units?

They just dropped one of their 3300sq ft models to $88/sq ft. A new 6 bedroom home for under 300k. Will these communities go up in value? I don't know but it's tempting.

So I've decided after another thread that a LTR will suit our needs best for a starting point into investing. Now we are looking at options.

There Is a mild shortage of nice existing homes that are affordable in the area, but a good amount of new construction. The new homes seem to have a covid discount going on. Early this year they were selling well for $125-135/sq ft, but now some of the larger 2 story homes are going as low as $95sq ft. So back to the options, with rents being within $100 or 2 of each other:

#1 buy an existing home for $125+sq ft. It might need some updating and repairs, but usually have a larger lot (.23-.30 acres), and might be no HOA. They were selling north of $150/ft at the beginning of the year.

#2 build a new home for $95-102/sq ft. It would be in a "master planned community" if that means anything, lol. It will have parks and pools, but CDD fees also ($150-175/month). The lots are smaller also (.16-.21 acres), but it's a new home with a warranty. Again these were selling for $125-135/ft prior to covid. 

Which direction would interest you more? Established neighborhoods, or new subdivisions with zero lot lines?

Mark H Porter, I was thinking of a place where you could easily get both STR and LTR tenants, not necessarily get equal revenue, but just have them occupied often enough. Like down in Englewood. Even in the off season (summer) it is still a fairly popular place, but gets real busy with snowbirds in the winter.

That said, Sebastian Giraldo, you bring up an excellent point. I wouldn't want to field constant complaints from my LT tenants because of rowdy ST guys. I'm sure we could work it out with proper screening, but it sounds like it's more complicated then it might be worth.

Brian Gerlach, I don't really need to maximize a cash return so it seems a LTR would be more fitting. We are just looking to get our feet wet and add a bit to help us retire down the road. 

I think the LTR has definitely won us over for now. Once we get a few properties running well we might revisit the STR side of things.

Maybe we can get/build a LTR for now with the idea to convert it over later on? I'm not sure, My wife wants to watch the market for a few months to see if anything we like pops up for a primary residence. So far after a year though not much seems worth it for us to move.

Linda S., thank you. I wouldn't say we are in a great position, but a secure one for sure I think. You guys have collectively talked me out of a STR for our first investment, but I'll keep the idea in the back of my head for later down the road. I'm not lazy, but I don't like an abundance of drama.

Edward Barton, my home is not far from imperial lakes, we are just south of the airport. There are 3000 new homes going in next to our subdivision in River Stone. It's kind of messing with our heads a bit. With covid the builders dropped the prices, in some cases its less then $100/sq ft. We are considering one, but the lots are small and they have CDD fees.

Melissa Wesling, thank you for the insight. Right now easier sounds like the way for us to go. Once the kids are older and things settle a bit we might be up for more "fun". My wife and I talked and we enjoy visiting and traveling to new areas. Later in life I'm sure we will want to be more planted so STR might work well then.

I have a few other things we are considering. I'll make another post to ask more. That said, how about a combo STR/LTR?

Has anyone tried getting a duplex and renting one side LT and the other ST? My thinking is the LT side would cover the mortgage more or less, and then maybe the ST is all cash positive but still gives us something we could use? Maybe I'm overthinking this as I'm sure a SFR will be more valuable later on.