All Forum Posts by: Victor Del Hierro

@Victor Del Hierro Orlando and a lot of Florida is going to be a tough market right now in the short term, but I think if you investment term is longer than it could make sense. Firstly, like many mentioned $20k is not going to be enough, and in my opinion you might need to put down around 30-40% to make a property cash flow at all, unless it's in a C-/D area then maybe you could do less. Your NOI even for single-family properties is flat or falling because of the high supply and continually rising expenses (especially insurance, labor, and interest rates but those seemed to have plateaued). On top of that, since Orlando is a heavy appreciation market anyway, cash flow is always on the lower end compared to areas like the Midwest US. So flat or falling rents, rising expenses, and high asset prices make it tough to cash flow and would probably require a higher down payment, especially if using a DSCR loan.

However, over the long term, despite the past 2-4 years of very high new supply, new construction starts are way down. So as these developments get completed and apartment buildings lease up over the next 1-2 years, the pipeline then dries up. I've seen some people saying it's back below 2018 levels, but I can't confirm that myself. So that means that we should then see supply drop and demand start to increase more which should lead to more rent growth, appreciation, etc. Everything I see forecasts continued strong population and job growth for Florida which is the backbone of demand for residential housing especially rentals. 

I also watched Peter Linnenman yesterday on the Walker & Dunlop podcast and he predicts 3 rate cuts the end of this year as lagging rental data in CPI starts to hit, and he also thinks a recession is several years off. It was a very interesting perspective and he is very highly regarded as well.

I tend to personally feel the next 2 years are going to be mostly a lot of the same as now, operating properties to maintain rather than growing a ton. However, I could see that changing in the next 18-36 months, and as someone else mentioned, maybe you are able to get some sort of a discount today and in 3-4 years you look like a genius. 

"Buy real estate and wait. Don't wait to buy real estate."

Everyone who waited 2 years when they could have bought a 4-unit for $600k, now is looking to spend $750k for the same property.

@Victor Del Hierro FNMA/FHLMC/FHA/VA lenders only require 12 months of owner-occupancy.

Look it up!

 Hi Victor, are you on title to your mothers property? 

Hi Kiefer,

It's great that you're immersing yourself in learning and have already taken the first step with your duplex. I would start by getting clarity on what specific area within REI you want to focus on. Once you have that clarity, build a team around you—this could include a real estate agent, a lender, a mentor, contractor, a solid title company/Attorney and possibly a property manager etc. With a clear focus and a solid team, you can take massive action confidently, knowing you have a strong foundation to support you.

Best of luck on your journey!

@Victor Del Hierro First find a real estate agent that really knows Orlando. There are areas that are still hot and others that are theoretically cooling off, but no sudden dips yet. Also get a good mortgage lender. There are several options for financing that you might qualify. Also remember not all properties cash flow immediately so be prepared. It's a long term investment, not a quick ROI. Look at your the internal rate of return instead. My last suggestion is building your team is going to be crucial for success so hire a professional property management company as well. Welcome to Orlando!

Hi Victor, 

Possibly look into purchasing a multi-family and rent out the other units. 

Are you currently working? 

@Victor Del Hierro why wouldn't you buy a primary residence, only requiring 5% down, and then rent out rooms while you live there?

After 12 months, you can rent the whole thing out and repeat the process.