All Forum Posts by: Yolanda Salas

AMEN to @DmitriyFomichenko and @Brian Eastman...  NO self dealing means NO Self dealing directly or indirectly!  

@Keith Fowler what are you looking for with a bank?  Based on what needs to be done - rehab? Purchase for long term rental? I can offer a few suggestions.  IM me in the BP system.

 Just to respond and set the facts - the east end of Panama City Beach and especially the older condos at the east end had much damage.  Newer homes/condos fared better than older homes/condos. One of the popular vacation rental places (oldies but goodies) closer to St Andrews State park have still not reopened to allow units to rent as vacation rentals.   Most every condo on the east side of the beach had some form of damage to roofs and rooftop equipment systems , elevator systems,  seeping water behind the stucco, windows, sliding doors, balconies, pool and facility damages, etc.  Most condos have deductibles in the hundreds of thousands and higher which causes a special assessment.  Many condos have chosen today the assessments in installments. The ever popular Pier Park was spared for the most part and just about everything west of highway 79 was mostly OK condo/house wise.  

The point was that special assessments were levied in 2018 and 2019 and are still in many cases being paid for, so its a question that needs tone asked here because of the hurricane in October 2018. 

Frankly I think it depends on how many you're prepared to buy/flip in a year. I do think the education is worth it, and I think being licensed with access to the MLS is better for selling than FSBO, but if you compare say the 5% or 6% you would pay in commission to your licensing start up costs, interviewing brokers to hang your license with, brokerage splits, etc, at least for your 3rd flip, you may just want to hire a realtor in your area to assist you. If the costs outweigh the benefits don't get licensed, otherwise do it! Are you in the state of Florida by chance? You will be held to a higher standard of disclosure and ethics if you do become licensed.

I live work and play in Panama City Beach - a few thoughts to share:

1. Summer is the high season here is 12 weeks - Memorial Day to Labor Day

2. The winter season, November to end of February  you will be lucky to rent by the month what you rent per week in high season. Your per night "rent" will likely drop to 1/4 the high season rate.

I'd recommend calling a vacation rental company and ask them for an analysis of the property you're interested in by month. Don't focus on just the percentage of occupancy for the year.  You will need 100% occupancy in the peak season,  you will need very high weekend occupancy during the shoulder season (March April May September October) which is when we hold a lot of weekend festivals and concerts. 

HOA fees are extremely high and if they are not including water/sewer/cable/internet/pest control in the fees then that is really nuts.

Also please keep in mind the fact that we had a severe hurricane Cat 5 in October 2018 and you need to ask if there are any special assessments pending. 

Hmm - I will be very interested in following up with my CPA on this - she told me tax law changes 5-6-7 years ago required all STR (condo-hotel types that we have here in Florida - like AirBnB/Homeaway,VRBO with check in check out service) to be on Schedule C. These have nothing to do with making meals - and rooms are cleaned on checkout, where rentals are 3 day minimums...

 In Florida, Dual Agency is not allowed, however Florida supports three agency models, Single Agent, Transaction Broker and No-brokerage.  By default all agents are Transaction Brokers when there is no prior notification to the parties; Because some of the duties to the public as a Transaction Broker of dealing honestly and fairly, of limited confidentiality, AND of care and diligence, many agents that are transaction brokers should probably think twice about working both sides of a transaction.   If found in that situation, at least in Florida, the agent should enter into agreements with both parties as a no-brokerage agency which is a signed document removing the duties of care and diligence and limited confidentiality.  I agree with some of the other posts I read - if you're a great agent you will do the best for the side you were hired for.  Doing both sides means you're working for the completion of the transaction not either side, and frankly in a residential transaction, the buyer needs to be more aware and take on all the care and diligence.  This may be fine for sophisticated buyers/investors, but I wouldn't want to see new buyers in this situation.  My 2 cents.  I sit on the Professional Standards committee for my association - so this is something I care about. 

I am not naive to think that this doesn't happen, however, if an agent is a member of the National Association of Realtors, this behavior is a clear violation of the code of ethics and there are simpler remedies that sueing. A consumer can file a complaint with the local realtor association. The agent if found guilty of violating the code of ethics, could be fined, sanctioned and possibly lose their membership and/or license if referred to the state licensing board.  While the consumer would not receive compensation from this process, the agent behaving badly would potentially be removed or hopefully mend their ways.  

I hate it @D Turner that your initial experience has not been positive. Please note that only REALTORS® are required to adhere to the NAR code of ethics, and licensed agents that are not affiliated with NAR do not. Unfortunately these behaviors by some can spoil the reputation of the industry, but not all Realtors are greedy or behave like this.

@Kurtis Eaton I have had all three types of income producing rentals, STR, single family LTR and Multi Fam. I personally prefer Multi-fam best as it presents better cash flow I lacked on single family LTR, is passive income (Schedule E on your fed Taxes) and is less management and work. Everything tho depends on your goals, and where you are. As a first investment I started with SF LTR since I was still an employee and was investing for the long haul- slow and steady for retirement. STR does give you more gross income if you go that route as long as you manage it yourself. If you have to bring in a property manager you may reduce that income significantly and if you're leveraging the purchase, then you need to take that into consideration as well. Also note that STR income must be filed on schedule C. Depending on your tax bracket and employment status and life stage, you will want to discuss with your CPA and see what works best in your situation.

I'm here !  I am both an investor and a Broker/Agent in Florida - mostly focus on the panhandle area between Mexico Beach and Destin FL