All Forum Posts by: Stetson Miller

@James Harris This would be completely dependent upon how involved you're wanting to get in this. Like @Doug Smith mentioned above, the job does require familiarity with contracts and the other paperwork involved to be able to properly advise on listings and transaction proceedings. A few different options could be:

-(Most involved) Activate your license and join a brokerage which would allow you to list these yourself. This often comes with initial costs such as the MLS and association activation fees. Depending on the broker, they may be willing to help out and co-list these properties with you, but at that point you may not be coming out ahead on the commission for the sale after accounting for all fees and splits

-(Moderately Involved) Pay a discount service to handle the listings, and you handle all other transaction coordination. You could still be the main point of contact in terms of contract negotiations and such, but keep in mind your family members could just as easily do this without you involved, so that's something you should disclose to them. What you're bringing to the table in this scenario is your licensing knowledge, although limited

-(Least Involved) Refer to local brokerages/agent(s), as you mentioned in your post. This could be done in one contract for all properties and you lock in a minimum payout percentage without any additional work on your end. Most referrals that I make are paid out on a 70/30 split (30% to the referrer), subject to any negotiations on total commission that were already pre-negotiated before the referral was made

@Phillip Lebron Flood zone changes are often spurred by a large flooding event, which we've had several of in recent years. With the most recent flood risk rating maps going into effect late last year, it's unlikely we'll see a major change again any time soon, but it is always possible

One additional thing to consider is that it is possible to have a flood designation changed after you close on the property, but this is never guaranteed. For example, newer construction properties are often built at a higher elevation that could negate the need for flood insurance, but if the unimproved lot was not of sufficient elevation, you would be stuck paying flood insurance unnecessarily. The lender (if applicable) though, will always have the final say in the decision to wave the flood insurance requirement or not

Hi @Sara Aviv Berger,

The build for resale vs build to rent debate can go both ways, but both sides certainly have their pros and cons. Building for resale allows a relatively quick turnaround (compared to holding indefinitely) for quick capital exchange, but lacks the recurring income factor most are looking for, and comes with a higher tax burden. Building to rent and hold ties up capital, but allows you to see recurring income from the property, provides additional tax incentives without a heavy burden from the funds acquired through a sale, and you can always be flexible with a sale later on, or sooner than you were initially anticipating if the capital is needed

Another thing to consider is that a HELOC or Refinance after completion is an option to pull some equity out of the completed property if capital is needed for other projects without a full sale. As mentioned above, keeping the property could also allow you to sell in the mid term, 2-5 years after completion. This would likely allow you to see much more growth in value from appreciation, even though the property will no longer fetch the 'new construction premium' on the market

@Frank DiGiorgio I'm also not aware of any local company offering the limited service model at this time. One option that I would recommend looking into though are the online national management companies, like Vacasa. These companies are much more likely to offer something like you're looking for, but can lack the local touches for obvious reasons

Regarding insurance, I would highly recommend connecting with a broker rather than a specific company, and for that, I would recommend State Insurance USA

@Preeti Kale Although there were certain areas of Fort Myers that were hit hard by the past hurricane, there are only a few smaller areas that are still seeing the ramifications of that while the remainder of the area has been completely recovered for months now

If cashflow is what you're looking for, I would advise starting with a multifamily property over single family as price point is similar, but you're often able to get fairly close to the 1% rule with an entry-level duplex. Areas to check out include Fort Myers, Cape Coral, and Lehigh Acres

@Mark Kovacs I would highly recommend A Handy Home Inspector for your inspection needs

Hi @Shawn Dandridge,

I'm working with a newer developer in the area that would be happy to connect. Let me know if you're interested and I would be happy to send his contact information over PM

@Jose Alejandro Hernandez I frequently work with investors in your same situation, their home markets just don't offer any great options, comparatively. Following cashflow trends in emerging markets can allow you to meet your goals much quicker, even if that means getting a bit out of your comfort zone. With the right team that has experience in this space, it's more than possible to do, potentially even easier than starting without the right team in your home market

Purchasing on your own with a team in place to help with any needs will allow you to maximize your returns, but to truly have all bases covered with someone to manage the entire process, a turnkey company would be a great place to start. For that and this area, I would highly recommend Rent To Retirement. Let me know if you would like me to make an email introduction and I would be happy to do that!

@Marc Gabriel Pangilinan It's definitely not cheaper to build new construction, typically not even close after accounting for land purchase, permitting and startup costs, etc. I would recommend reaching out to local builders in the area with floorplans that you like and proceeding from there. One great resource for this would be Rent To Retirement, as they have all of this information available on their website and can easily answer any additional questions you may have. Let me know if you're interested in that and I would be happy to make an introduction for you!

Hi @Marc Gabriel Pangilinan,

If you're needing a reference for a local mortgage broker that specializes in VA loans to get some insight on how that process works here, I would be happy to provide that

Regarding the investment as a whole, are you looking only for new construction properties? From the prices you listed that's what I'm assuming, but if not, you can certainly find existing construction well below that range. In addition to that, there's other local markets that offer very similar new construction duplexes in the low $500's, so that could be another option to consider as well