Thoughts on how to make my next Real Estate deal
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
Hi CJ,
Congratulations on the 2 flips you've successfully executed! Have you considered doing a BRRRR? I'd saying following your experience and scaling off of your flips would make the most sense as you can use skills/knowledge you've already cultivated. At the end of the day flips, FHA house hacks and rentals all work even in this market. BRRRRs would allow you to combine both your experience in flips and your interest in rental, and it's a great way to scale.
Hi CJ, I am in Saint Pete and invest as well so I know the market well especially on the long term rental side and house hacking using FHA as that is what me and my husband have done.
I'd need to know what your credit looks like but just running numbers off the information given in this post, you could do a multi family property, using rental income from property to help qualify around 400k price point which is with 5% down. You could do more or less down but just wanted to give you an idea. It sounds like it would be doable for you!
There are a couple options at this price point and again, depending on your credit, you may be able to go up in price/put more money down, etc.
https://www.zillow.com/saint-petersburg-fl/duplex/?searchQue...
Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
Question: What is your current living situation? Especially if you're renting, I'd say 100% get into a house-hack. You'll want to use your skills and some creativity if you want to push yourself farther into the "profitability" side of the scale over "comfortability". I've done several house-hacks personally with different strategies as well and have helped many clients do them in Pinellas/Hillsborough/Pasco/Manatee counties as well so if you have questions let me know and I can give you a rundown of your best options based on your preferences.
If you don't want, or don't need to house-hack, then you have a couple options and that is going to depend on your goals, savings rate, and other details. With $100k, if you buy an investment property, you're not going to get a lot. Most of that here will go into the downpayment and closing costs and even then, especially if you long-term rent out the property, you'll likely not cash flow much at all even if you self-manage. If you want to a short term rental, I'd say your budget is getting close to enough to have a great one IF you're willing to do work on it but likely should save up a little more regardless. That leaves doing another flip or two to get your capital up to qualify you for better ROI holds.
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Quote from @Josh Green:
Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
Question: What is your current living situation? Especially if you're renting, I'd say 100% get into a house-hack. You'll want to use your skills and some creativity if you want to push yourself farther into the "profitability" side of the scale over "comfortability". I've done several house-hacks personally with different strategies as well and have helped many clients do them in Pinellas/Hillsborough/Pasco/Manatee counties as well so if you have questions let me know and I can give you a rundown of your best options based on your preferences.
If you don't want, or don't need to house-hack, then you have a couple options and that is going to depend on your goals, savings rate, and other details. With $100k, if you buy an investment property, you're not going to get a lot. Most of that here will go into the downpayment and closing costs and even then, especially if you long-term rent out the property, you'll likely not cash flow much at all even if you self-manage. If you want to a short term rental, I'd say your budget is getting close to enough to have a great one IF you're willing to do work on it but likely should save up a little more regardless. That leaves doing another flip or two to get your capital up to qualify you for better ROI holds.
The 2nd house I flipped was a house hack. It was a foreclosure that I lived in while renovating. I sold that and moved in with my parents. They are moving to Texas so we agreed that I could move back in if i help renovate their home to get ready for sale. They'll be listing in about 3 or 4 months. Based on the info I've received from a few nice people here, it's looking like a BRRRR/house hack is going to be my next best bet. Especially since the down payment % has gone down to 10% opposed to the 20% it was the last time I bought.
Hey @CJ Bennett
I'm in Central FL and know the market well. I guess one question I have is how are you looking for your deals? If you are solely searching MLS and not looking off-market, you are limiting yourself. You may find a property to BRRRR, but that is ever more difficult in FL, especially in the Tampa Metro. I would expand your search radius and what you are looking at, meaning not only location but more distressed properties as well. If you buy distressed, leverage your cash against hard money and put 10-15% down and rehab the property. When underwriting the deal, just make sure you have the two exit strategies available, flipping for profit or refinancing and renting for cash flow (outline what metric you are after for the cash flow side, meaning what cash on cash return or whatever metric you are looking for). I always think it is a good idea to build a system that combines flipping and renting, as flipping allows you to continuously reinject capital into your capital and doesn't hinder your ability to continue growing your renal portfolio. Feel free to reach out if you need any advice, best of luck!
Find as many distressed deals as possible, once you have them under contract choose what exit strategy makes most sense. You could flip it, buy and renovate, or wholesale, but don't wait. There are plenty of distressed deals out there that could be earning you income today.
Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
If you're up for house hacking, you can put 5% down on multifamily, live in one side and rent out the other.
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You should continue to increase your cash and utilize your real estate investing skills to analyze market circumstances, rental property prospects, house hacking, and other investment tactics. To help you decide, look into trends in real estate prices, interest rates, vacancy rates, and rental demand. Think about other financing choices, such as traditional lending or innovative financing alternatives for homes with several units. If you want to save money on housing and make money from rentals, think about house hacking.
Investigate alternate investment options such as holiday rentals, short-term rentals, and crowdfunding sites for real estate. If you're unsure of your next course of action or want to wait for the market to improve, keep developing your cash by investing in real estate flipping or other profitable ventures. For individualized advice, speak with a financial counselor or real estate investing specialist. The optimal plan of action is determined by your personal objectives, level of risk tolerance, and state of the market.
Good luck!
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Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
CJ continue flipping with your 100k and based on your income you may be able to qualify for the City of st pete down payment assistance program up to $60,000. I can connect you with our preferred lender and he will be able to give you more details. We advertise this program on all of our listings and work closely with the city of st pete.
Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals.
Have you thought about OOS investing? With 100k liquid, you can find some decent deals in Ohio that will make sense by the numbers.
I originally started off as an OOS investor from CA and have been pretty happy with my decision to invest here. Happy to answer any questions you might have.
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Real Estate Agent Ohio (#2024000296)
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Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
I would recommend trying to house hack. That is what I did here in Columbus, Ohio in 2017. I believe that this investment method gives you great cash on cash return and gives you a lot of experience
Quote from @CJ Bennett:
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
Hey CJ, house hacking is a great way to get started. I would look into an FHA loan or a 5% down conventional loan and go that route. Good luck!
Quote from @CJ Bennett:Cj - I would look into the midwestern market. Something like Columbus where you ca have a better return on your cash. My clients from the east and west coast love to do BRRRR and flip projects here. They can cashflow and properties double in value every couple of years.
Hello everyone. I'm brand new to Bigger Pockets but not so brand new to the real estate game. To give a brief background, I've flipped 2 properties and am now looking to venture into rentals. I know of FHA loans and that seemed enticing, but in my area (St. Petersburg FL) with the "low income" I'm making (around $4,200 per month) at my job, it's proving difficult to find a multi family property that I can afford with month to month tenants or with 1 vacant unit. I'm very very handy, jack of all trades if you will, so I can renovate properties without breaking the bank in labor costs. My question to everyone is this. With just under $100k in the bank to invest, how would you make your next move? Flip a few more properties? Dive into rentals to get more monthly income coming in? Wait for the intrest rates to drop a little? Move somewhere that isn't so expensive? I'm at the point where there are too many options for me and I can't decide which is the best course of action. I appreciate any thoughts and comments.
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Real Estate Agent ohio (#2022006870)
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I agree with most of what others have said.. I'm a St Pete realtor, we know the short term rental game and my Fiance invests in multi family. We were recently exploring the duplex option written in a comment above and honestly didn't see any good deals in St Pete/ Tampa. The areas the available duplex are in under 400k won't rent for enough to cashflow. They'd be more of a long term hold, especially in South St Pete.
DSCR loans are based on rental income for short term rentals which could be a lucrative opportunity. You'd need 25-35% down.
I have a few connections who are experienced flippers that take loans and profit split. So that could be an option if you don't have enough to do it on your own. One recently raised $150k for a flip and the investor got 33% profit split.
Let me know if you want me to make a connection.
Also happy to help your parents too if they're looking for a list agent ;)
@CJ Bennett i think you should first remember that few people have a skill set to be able to perform their own maintenance and repairs, possibly larger and more complex projects. This is a huge asset and I recommend you leverage it the best you can. If you pair it with a good lender who can communicate the full menu of financing products and strategies, and make good recommendations, you will be in business. BiggerPockets is an incredible resource.
You should use a FHA combined with a value-add to force some equity into the property right upon move in, while parting with very little cash and maybe using the difference to buy a rental with a typical 20% down loan product. You could also partner with a money partner, while you serve as the General Partner, responsible for operations and management. An equity or profit split can be negotiated. I am interested in working with other investors to buy and hold real estate so please reach out if interested. Good luck!
Also, time in the market > timing the market. Rates dropping means higher prices
Hey CJ,
Hope you're doing well! I've been thinking about your interest in investing in property and wanted to suggest reaching out to a property management company. They could provide valuable insights into which areas are hot for investment and could maximize your returns. What do you think?
Best regards,
Jeremiah Phipps
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