All Forum Posts by: Cathy Svercl

the numbers work, but margins are really thin.  if the Rent is $1,900, my rule of thumb is purchase price + repairs = $170,000.  doublecheck the property taxes are not what current seller is paying, but what you would be paying - they often double for the new buyer.  maintenance is fairly generous (i use $100/door) depending on local costs.  you will have to do all the Property Management, as there is no money left for that.

Renting whole house long-term, not a problem.  Renting whole house short-term, it depends on local jurisdiction's Rental/Tourism laws.  Renting individual rooms in house to people not related to each other, again depends on the local Zoning laws and definitions - some allow up to a certain number of non-related people to rent (like housemates), other places do not (Change of Use to Boarding House or etc).  This may require an inspection for smoke detectors in the home, or more extremely would require upgrades to the structure/parking if the "house" now becomes a "multi-family" (commercial grade) building.  I would call the property's Zoning and Real Estate Departments and ask everyone what is allowed first, and then ask about the different options you are weighing.

you can always submit your offer to the Listing Agent, then submit a copy directly to the Owner, if you think the Owner is not getting all the offers.  in fact, submit multiple options in your direct-to-Owner offer.  for example, an offer with shorter/longer payments, more/less cash upfront, etc.  make sure all the options would work for you!  your goal is to try to figure out WHY the seller is selling, and SOLVE that problem for him.

for your first deal, i would choose something that's easy. no mold. unless you are a mold remediation business owner. and if other HML buyers are walking away, assuming with more experience than you, it's probably a sign you should also look for something else. also, for future purchases and knowledge, you might check what the property Zoning is. if this was truly built as a Duplex, there should be no problem renting it as a Duplex in the future. but if this was built as a Single Family Home, and is in a Single Family Zoning district, then somebody probably turned it into a SFH along the way, possibly before the Zoning was updated, and if it doesn't continue being rented as a Duplex (Change of Use), it loses that Grandfathering. only checking with the local Zoning Dept and Tax/Rental License Dept will fully answer that question.

@Russell R. - i'm doing the same thing right now.  weighing my options whether to keep my house & refinance for better cashflow & rent it out, or just sell it & move.  my numbers are much better than yours, but i'm still on the fence.

we did small repairs but waited to replace our roof in Clearwater until it sprang a leak and had to replace drywall in a bedroom ceiling.  however, our property insurance would have required us to replace the roof if it was 20 years old, no matter if it was in good shape or not.  so check if your insurance does that, especially if you use Citizens.

the math doesn't seem to work either now or with the refi. can you post your Pro Forma for us? (Annual Rent) minus (Taxes Insurance Maintenance PM Utilities) minus (Mortgage PITI x12) equals what? sounds like the result is a negative number either way.

i took the class on-line through UF (University of Florida) a few years ago.  happy with the course and availability of professor for questions.

is this solid concrete, or just some type of self-leveling crete/drywall over a plywood and joist assembly?  

if solid concrete, i wonder why the crumbling - a fire, moisture problems, etc?  check with a structural engineer (call this "i can sleep at night" insurance), and hopefully just repair by floating it out.  

if it's not solid concrete, i would tear it out or you'll just have problems later.  if you try to repair/float it, the new work will be stronger than the old stuff, which will probably continue to disintegrate.

that's not a small expense.  is there room inside the house or will you have to add on?  are you on septic (drainfield) or city water/sewer?  is this anything other than a 3/2 (3 bedroom, 2 bath) house right now?