All Forum Posts by: Scott Randall

Is anyone doing cost segregation studies on single family rentals and if so what are you paying? and anyone you would recommend to preform the study? TIA!

El Paso is on the rise! Might get some good appreciation there if you're in the right area. If you can find a reliable property manager - I say rent it out! But, you'll be tied to issues in Tx. If you aren't ready for that commitment, I'd take the cash and run. 

IF you have the labor already, it's just time and management. But no class will prepare you for the bs of working with bad subs. You'll be shocked at the things they come up with. Running your own job is really a full time job. 

That being said - in my experience - once we had the right crews and blew through a few difficult/funky projects, all was well and it's much less hands on now. Took 15 months and 6 projects to find the crews though. 

@Solomon Stavis the way people remodel is different, finish out's etc. A lot of FL building codes are very different, labor market was the largest difference in my opinion. They are strict about licensing here and if you don't have your own crews is VERY easy to get in a bad situation - licensed contractors or not. 

I say yes. Access to more information and resources. Plus, this is your industry now (if you continue doing it). Being licensed and maintaining that license is an indication that you are likely to be more serious and in it for the long haul IMO. When I approach a home as an investor I get completely different attitude from agents. When I disclose I am an agent, they tend to loosen up and can be easier to work with. Just my $0.02.

following.

I'm in Tampa. I know a lot of out of town investors who like the Tampa market and move here for RE investing or partner with someone local (like myself). I think compared to other "second tier" cities it is probably up there as far as population & job growth, economic mobility, etc. But there are pros & cons to each "class" of city if you will - a city like Dallas (where I came from) might have more labor (contractors) to do the work at a better price but margins are thin bc there are so many investors. Plus larger city, possibly more stable market. Tampa, or second tier cities in general, might be emerging into the national/international scene but may not have matured to the level of a first tier city. Meaning they could be much more (or much less) adverse to market disruption. 

Pros and Cons to both sides of the coin - I say find a place you know well (or have people there you trust) and develop a strategy that matches your appetite for risk vs reward! 

Good luck out there!  

I'm an agent/investor in the Tampa Bay area and was recently having a spirited debate with a colleague over the use of Hard Money vs Cash. With hard money you have fewer dollars in the deal and therefore increase your IRR dramatically (and in some cases reduce your risk). Cash is capital intensive but nets you more real dollars.

Example: $130k pp / $40k rehab / $225k expected ARV. You have a little over $200k total. It's all the money you have. You have enough to take down the deal and some in reserve for the unexpected. Do you pay the 2pts and 9% ARV (plus add. loan fees, taxes, etc) and net less actual dollars, or float the deal cash and make more $$$?

***Note - we are assuming you can only do one deal at a time either way. You don't have the time or labor to do multiple deals at a time.   

Which would you choose and more importantly WHY?! TY in advance

@solomon are you local in the Tampa Bay area or DC? There are still deals in Tampa and plenty of room to run. I'm closing on two deals in March and looking for another - so we are full steam ahead. I do think its important, however, to have realistic expectations for the market. Moving to TPA over a yr ago from Dallas I was surprised at the challenges I faced. Very different than investing in Dallas. I'm sure you've connected with local seasoned investors. Be sure to lean on them for good advice. Good luck out there and lmk if I can help in any way! 

Thanks everyone for the help! Had to pass the deal on to another investor, couldn't find a bank in time. Most wanted 1-3 yr term with balloon payment; or had minimum values that exceeded. Some wanted me to cash out refi as it would have appraised for significantly more than I bought it for - however, I wasn't interested in taking out an unnecessarily large loan (and likely over leveraging the deal) for this particular project. On to the next one!

Hi there - I'm a seasoned flipper who is getting into my first buy-and-hold. $55k purchase price, turn key, vacant (current tenant is moving out before closing). When I reached out to my lenders I learned they all have min loan amounts of $70k-$75k! So now I'm stuck having to close on it with my cash, and refi, which I was hoping to not have to do. (or sell it I suppose)

How do people usually finance these low cost rentals?

Cheers, Happy Investing!