All Forum Posts by: Tim Kaminski

@Stephan K.  They qualify by property?  Would think it would be by area.  How would I check?

@Bill Regan Yeah, would be much better to be at the beach but flood insurance is not an expense I'm willing to take.  I'm not as familiar as well but I've explored the area a bit.

Some extra info.  Duplex units in back currently rented for $600 each and 2/1 could easily rent for $800 so 1% rule is very attainable.

Looking to make my first purchase an Airbnb House hack.  Its a 2/1 building in the front(That I would occupy), and (2) 1/1s in a separate duplex behind(That I would AirBnB).  Property is a 1946 wood frame build in Clearwater, FL., non floodzone.  It is just before the bridge leading down to the beaches, for those familiar with the area. Seller is asking 210k.  AirBnBs are common in that area but my concern was 1.) The amount of rehab the home needs and 2.) The area for AirBnb success as it is not on the beaches(5-7 min drive).

1.) The front house was empty when we saw it, which may have made it look more appealing as the back 2 units were occupied and very messy.  Front house has wavy floors, bathroom that needs to be redone, old wood siding on ext., possible old plumbing and electric.  Back homes will need carpets pulled up, flooring put down, bathroom remodels and update on all appliances.  Landscaping as well.

2.) I'm very interested in the AirBnb route as I think the profit can be high, no eviction headaches, cleaned every 2-3 days etc. The thing I'm concerned with is that the location might not be ideal for those going to the beach as I would assume most ppl would want to stay somewhere without having to drive to the beach.  There are airBnBs in my area (6-8), similar specs, that are going for $100-200/night.  Some more popular than others.

I definitely would not offer anything close to 210k they are asking for as having seen it first hand, and talked to tenants about problems,  there is PLENTY of work to be done to get it up to AirBnB standards.  I would do conventional as well so any rehab costs would come out of my own pocket.

Just looking for advice/thoughts on if this could be a good first investment!

Thanks!

@Anthony Gayden Are you investing in these older homes for Buy and Hold?  If so, why do you prefer them?  Why would you not take a 50 yr old home over a 100 yr old home?  I'm afraid I'll buy something and face structural issues in 10-15 years.

@Account Closed I'm not looking at flood zone properties as well.  Thank you for the average, will use that as a reference point.  Do you have annual termite treatment or do you just wait and tent every 10 yrs? 

@Raven Parmer Thanks for the response.  Curious, why would you turn it into a single family home?  Can you get more value from it that way?  Also, shouldn't you be concerned as to what problems were lurking that wasn't picked up on inspection regardless of number of units?  Or do you mean that you will be doing so much construction that most things will likely get replaced/updated yourself?  From a price point, I like older homes but buying anything 100+ years old scares me.

@Account Closed Thanks for your response! Yes, that is why I would prefer a newer, block home.  Being a new investor and first time buyer, around what price does insurance become too expensive for you?

Hello,

Looking to owner occupy a 3-4 unit multifamily and a lot of the homes I am looking at are all 90-100 year old.  Plenty are wood frame and being that I'm in Tampa, Fl, I am hesitant (Hurricanes/termites).  Some say, "Oh if they are still standing, then that shows that they are durable".  I am more looking at it as that most of the others have been torn down or destroyed (hurricanes, structural damage, etc.) and these are the ones that happen to be left.  It just happens that these are the properties that I can mostly afford as the market down here is very hot.

This is my first property that I plan on using as a Buy and Hold and I don't want to buy something that will put me in a hole for years to come.  

What is your experience with older homes? 

Do you recommend for/against? 

What year/decade do you draw the line on investment purposes?

Thanks!

@Russell Brazil  Interesting.  As long as I can still cashflow from the purchase price, that might work.

@Nick C. I've been considering this as I currently hate having to go through my Realtor to see properties. I have recently started looking at HUD but typically see only SFH. I imagine multifamilies get picked up rather quickly though. Does Fannie Mae offer properties? Thought they were just a giant mortgage lender company?

I'm looking anywhere in the Greater Tampa Bay Area.  There is not a lot on the market that doesn't get scooped up fast. 

Like I said, I want to house hack so Sarasota or Lakeland would be too far of a commute for me.

Why not consider a metal roof?  Much longer life than shingle roof.

@Jordan Butz Around 7-8 months of seriously looking with Realtor. I recently had some of my time wasted due to my lender falsely leading me to believe they would be able to give me conventional loan with 5% down on 1-4 units. When the time came, they realized they couldn't do that and now I'm back on the FHA train.

Every rent check I currently pay seems like a waste.  Something that I could be putting into my own investment home instead of throwing it away each month.