All Forum Posts by: Stephen Reyes

What are the details on this property?  I am still having trouble finding reasonably priced rentals in the Pensacola market. 

My son is going to FSU, my wife will be making frequent visits there because he is her baby ;-).  So, this is not an investment-driven decision.  Just a way to reduce the cost of us having a place there. I live in Pensacola and manage my own rentals here, I don't want to manage a property remotely though.  

I am considering buying a property that I would like to use occasionally (6-8 weeks a year) while in Tallahassee but set it up as a STR when I am not in town. Anyone here manage STR for out of town owners in the Tallahassee area? Would also love to hear if any tips from people who have done something similar in any area.

Unfortunately I do not.  I currently manage my own rentals and, although I ultimately plan to use a management company, I have not begun that process. 

 Thanks for the update, glad to hear it is working well for you.  How did you find your Section 8 tenants?  

Ensley is certainly not the highest rent area in Pensacola. It is full of areas to avoid, depending on what you are trying to accomplish. MFR 2/1 would probably range from $550-1000 per month. I would avoid Ensley unless you are local and can review/manage the property or you are working with a property manager (not just a realtor) that works in that area. Just my opinion.

@Justin Rush

Still no real update. I have started looking a properties that have the potential to divide or build additional units. I am currently looking a couple that have low-grade MFR on the property that I could use to help fund the project of building more Not sure I am ready to take that kind of project. I have only done simple buy and hold rentals up to this point and, I do have a day job. However, I see great potential in doing it. How about you? Have you made any investments?

Sorry, I did not end up doing Section 8. I had so many applicants for traditional LTR I stayed with that. I am now considering buying (or building) something specifically for Section 8 rental. Perhaps MFR. I am being told there is a significant shortage and I would like to think I cold provide a product that would help the people needing the housing AND support my investment goals. Did you you end up accepting Section 8? If so, I would love to hear your experience.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $140,000
Cash invested: $160,000

Purchased with cash to close fast and get for low price. Intended on taking a mortgage after to use for another purchase. However, I found out that banks did not want to lend me money on a property that I had purchased less than 120 days ago. Even though I was only looking to take about %60 of the value. So I had to wait 6 months. By that time the interest rates had increased and I no longer wanted to take a loan.

What made you interested in investing in this type of deal?

I am buying and holding rentals to provide retirement savings/income.

How did you find this deal and how did you negotiate it?

Realtor brought it to me. It had fallen out of another deal due to the buyer's financing. The seller was on a tight timeline so I offered a low, all-cash price to close in 7 days.

How did you finance this deal?

Cash

How did you add value to the deal?

Replaced rear deck, some flooring repairs, small electrical repairs.

What was the outcome?

Outcome has been great, with the exception of the amount of cash I have tied up. I uses the large metal building in the back as my workshop and rent the house separately.

Lessons learned? Challenges?

You cant get a mortgage directly after a cash purchase.