All Forum Posts by: Kevin Reid

Ok I'm back. So let me elaborate on the cash flow deal. We don't need the cash so our plan is anything above the base mortgage will go to a reserve account for that property for a year or 2. Once the reserve account is built up we might use that cash to either pay down the principal, or invest in another one. We would like to pick up a property every 3-5yrs. Maybe end up with 4 or 5 rentals. When we retire, depending on how much of a headache they are, we will use the monthly income for entertainment/travel. Or liquidate our assets and enjoy the cash.

Nathan, thank you for laying out most of what I've been thinking. I do feel more comfortable with LTRs because of those reasons. I'll look into Memphis invests, but I dont think I'll have an issue finding a decent rental here, or a renter.

Ed, I agree about the I-4 corridor, it seems to have exploded in the last decade and Lakeland's population along with it. It might be a good idea to start with a few local rentals and work up to the STR later. Rental prices look like they are trending up a little in the last few years. Are your homes in south Lakeland?

Thanks everyone. I'm short on time but I'll reply to everyone soon.

Real quick though. Mark, I'm not eligible for SS, my city opted out of it when they still could in the 70's. That said I have a good pension, and am on track to retire without any additional income by age 52, I'll go to age 57 because that adds a significant amount of additional income. We have additional retirement investments beyond that too. That said, these real estate investments are more of us heightening our retirement rather then providing it.

I gotta go, but thank you all again. I'll write more this afternoon.

Can anyone direct me to a good pro con list or advice article? 

So my wife and I are having a hard time deciding our direction in life. We know we want to invest in some kind of real estate in the next few years. We keep going back and forth on what to do. We don't really need the cash flow as we have decent enough careers, we are just looking to build equity to use towards a slightly earlier retirement. For context we live in Lakeland, FL.

Way We see it we have a few options.

#1 (safest) buy another home locally and rent ours out long term. We know our house, it is desirable, and know what we can get for it.

#2 (semi safe) stay in our home and add a pool. Then buy some local inexpensive property to rent long term. Again we know our area and what we can do more or less.

#3 (riskier?) Stay in our home, and use our money to get a small short term rental in a city in SW FL. We would use it for a week here and there in the slower months. This is the "get your feet wet" deal as we have no experience as landlords for STR.

#4 (riskiest?) Stay in our home and buy a nicer property, somewhere with water access in SW FL for a STR. We would still use it in slower months.

#3 & #4 worry us a bit as they are so dynamic. High and low months, cleaning......plus we have to furnish it....

Anyone have both LTR and STR? Which do you prefer? For STR do you go with a management company?

That was what I was afraid of. I need something fairly local while I'm getting started so I don't want to leave the state.

I thought I had seen a few good deals near me in West central Florida until I spoke to a friend recently. 

He told me he is picking up small 2/1 and 3/1 homes in Ohio for 60-80k in rent ready condition, and getting $900-1000/month. These are in decent areas not far from the lake. Well that sounds better then buying a 200k home here and getting $1600/month.

So are there any areas in Florida left like this? Not far from the water in halfway decent areas?

Most of them I've looked into you must sign a contract saying you will keep it as your primary residence for 5 to 7 years. If you break the contract you forfeit the assistance money and must repay it.

I posted this earlier, but I am curious. How can you really trust current statistics when they are artificially bolstered by the stimulus, PPP loans, and bonuses on unemployment?

I'm fairly new to this, but it seems a bit shortsighted to quote statistics for the next few months as the true fallout might not be felt until some of these programs end after July.

I'm sure riots, looting, and burning businesses won't have any effect. 

Not if you can get it direct shipped from outside the US, or a big automated warehouse. Big issue with the retail apocalypse that this covid just accelerated imo.

I'm no PhD, but I've come to the conclusion it's near pointless to try and predict anything based on current statistics. Until a month or more after the unemployment bonus is gone and any eviction/foreclosure moratoriums end, you won't see any real numbers. Then the fallout will begin.

To add to the businesses declaring bankruptcy you still have massive companies doing layoffs. Boeing announced its laying off 12,000 employees and expects more over the coming months. BRP announced it will stop all production of their outboard line, the only ones made here. You have companies like Peir1, sweet tomatoes, soup Nation,..... gone for good now with some more on the horizon.

I'm generally not a pessimist, but how could there not be a negative effect?