All Forum Posts by: Tom Day

I don't think the extra rent is worth the added wear and tear to the property and the potential complaints from the neighbors from unruly renters. I would rather have good tenants that would treat the house as their own. You still get a good return with less risk and hassles.

I have managed some short term rentals in Fort Lauderdale and Pompano Beach. Those numbers seem plausible, but homes without pools don't do as well. I am getting out of the management business.  There are a lot of hassles with short term rentals. I would be especially cautious about letting someone sublet your home as a vacation rental. My recommendation is don't bother. Just as an annual rental your home should do very well without the potential liability vacation rentals bring. 

The way property taxes are calculated in Florida is very complex. I couldn't explain in a paragraph or two. Short term rentals are not taxed any differently. Go to bcpa.net for an explanation.

I don't see the need to market yourself to REO agents. Actions speak louder than words. If you can make cash offers without contingencies, then follow through and close quickly you will be remembered as a quality buyer. There are several ways the listing agent can give you preferential treatment without crossing ethical boundaries. For example in multiple offer situations asset managers would often ask me who the stronger buyer is. I often knew them from previous deals and would vouch for them. Asset managers don't like to see deals fall apart forcing them to start over. It wasn't always the highest price that won, it was the strongest buyer. Be a strong buyer and the REO agent will remember you.

Absolutely. ALWAYS USE YOUR OWN TITLE COMPANY!

Xome.com

auction.com 

hudsonandmarshall.com

Don't expect the listing agent or asset manager to negotiate with you. They are dealing with a ton of properties usually. The offers, emails and phone calls can be insane. I have had as many as 50 offers on one property. Make your best offer from the start with as few contingencies as possible and healthy earnest money deposit.

I wrote about this subject on my blog. I may re-publish it here. Too many people make critical decisions based on zillow's horrible data. Same goes for trulia, redfin and other valuation sites.

Here is how accurate zillow is. this is their own table, I captured this right off their site last year and use it in my listing presentations. In my market they only get within 5% of the sale price 33.1% of the time. So 66.9% they miss by more than 5%. That's not good. They seem to skew to the high side too, but that's just my own personal observation.

Auction.com lists several different types of sale. The process by which the bank take ownership are "foreclosure sales" and they are listed on auction.com. If you click on one of the "foreclosure sale" listings you will get redirected to the local online auction and will be in essence bidding against the bank that is foreclosing on the property. All of those properties are subject to any liens on the property and you will not be getting a warranty deed. Auction.com has nothing to do with these auctions, they are providing market assistance for the local auction. The "bank owned" listings have been foreclosed on already and commonly known as REO (real estate owned). They are being sold with clear title in most cases. Unless you are a very experienced investor don't even bother with the foreclosure sales. Auction.com and xome.com both list the foreclosure sales mostly to take up space and attract eyeballs. In Broward County FL there are only 3 REO properties being auctioned by auction.com, the other 185 are foreclosure sales.

No, not at all. But since you have the inspection contingency you might as well sign the addendum if your offer was accepted. That way if you do find something major like a bad foundation you have a chance of getting them to make an adjustment. Now that they know there is a problem they would have to work with you on the price or to disclose the problem to other potential buyers.