Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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#17
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For a lot of people it’s for the profit that can be realized south of 44, and they stay down there with another purchase.
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#18
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Yes
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I can’t golf, but I can sail Fairfax VA Stamford CT Rye NH Provincetown MA |
#19
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Packer Fan Oak Creek, Wi Village of Hillsborough and Fernandina Snow Flake until I retire |
#20
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Rental
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#21
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As for the how many bedrooms question. I always buy at least three. With no basements and sweatbox attics, I use the third bedroom as my storage room. All I need is two, mine and a guest room, but the third is a necessity for me.
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_____________________ "It's a magical world, Hobbes, Ol' Buddy... let's go exploring!" |
#22
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Yes, a lot of work for sure. That is the reason we only do annual rentals. Much less work and no "hotel tax".
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#23
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If that’s the case , be prepared to NOT make friends within the neighborhood !! I would suggest you also join the NextDoor forum and do some searches to see what the consensus is with that type of rental property !! |
#24
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Asking TOTV for expenses is not a complete due diligence exercise:
Whose your target market? Demographics? What's their expectations on spend? What's their repeat buying preference? What's their prefered months, what's their expected max rental rates? Different clientele for high season versus low season, what's your targeted market repeat seasonal renter and their requirements? Golf cart included makes a huge difference in appeal, when priced in. . . Final make or break number: what's your occupancy assumption and rate for April through Dec off season? so, real world figures from a rental in an LLC for limited liability this year: purchased: 2018, closed 2019 about $350K, custom designer furnishing cost pre pandemic: $15K internet hardwired outlets 2 in each room, plus whole house wireless Golf cart cost: $12K current value @500K lot purchase number out of 99 lots, somewhere between 10 and 20, Southern Oaks nearby amenities: no rec center, no food and 1 restaurant, no 18 hole golf, 3 executives with no golf cart access and no bridge access to cross 44. ie, marsh bend was just dirt with Fenney down the road. . annual occupancy rate from 50% to 80%, varies by year current expenses basis for a non local owner: $20,000 - $25,000 per year, depending upon PM percentage, repairs AND INSURANCE (ding ding!) excluding mortgage, including bond, lawn care, watering, insurance, taxes, cable for any type of renter, heat, and electricity, home watch, repairs, and PM fees. With 80/20 LTV mortgage, add another $15K at 4.5% commercial loan. RE tax basis increases at 7% per year, insurance increases are currently 5-50% per year, with a non zero probability of cancellation. cash flow positive after three years, starting year 4. pandemic had a huge impact on travel and renting, income tax still no taxes paid, and will never had taxes given loss carry forward and depreciation carrying cost. ROI will NOT be realized from income generated from renting, especially not with a mortgage nor with a PM fee. ROI will come from the terminal value, ie, disposal or sell value. If you plan to go from slumlord to resident, there is no ROI, there is only expense offset while not a resident. Without income, a house is only shelter costs and there are NOT ROIs on shelter costs. if you don't understand these points, then be sure you consult with a financial expert so that you have the proper expectations for outcome probabilities. good luck, but if you don't have a financial model set up to figure out these items, or you think that slumlording is an easy road to instant ROI riches, you might want to re-think that naive assumption. As far as illiquid asset house flipping goes, the easy money had been made, though you can still make money if you are experienced negotiator, can find estate sales of older homes, and can rent them out with 100% availability, with a for sale sign in the background. . or buying in a brand new development and selling when the developed area has no more land left. However, if you look at the sheer amount of new houses being built, why would someone buying want to buy a used house when new ones are being released constantly and look exactly like yours? former corporate finance guy, with lots of investment and modelling experience. |
#25
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Sensible advice! |
#27
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Second, in recent years, the villages become saturated with "investment" properties used for short term rentals. Third, many other property owners distain very short term (less than a month) in their neighborhoods. But, there are property management (watch) companies that can walk you through the numbers. |
#28
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Agreed !
But not one person yet has mentioned the demeanor of the tenants that you will be subjected too as a tentative landlord. We have had 5 rental homes in TV since 2008 and have been in the rental business for 35 years in Wisconsin as well. Overall it has been just okay but by no means did we get " rich " in the TV rental game believe me. We were extremely lucky to have broken even for the most part. Some tenants did do damage to our homes...red wine spilled on new carpeting and furniture, cigarette burns in our furniture, items stolen from the house, dents in the garage door, excess company on thier part filled the house and parked illegally in the neighbor driveways , dog poop left all over the yard, and constant partying day and night just to name a few considerations you may encounter...needless to say the neighbors there were not fond of us many times and they let us know it. Overall, the big picture.. it really is not worth the expense and the headaches involved in my opinion thru our experiences. Eastport is going to be a beautiful area to live, my suggestion is buy your dream home there and YOU live in it and enjoy it ! If you want to rent it out to just friends you know or family to enjoy, that also is an option.
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Tater |
#29
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#30
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I think you may have had a great deal on your rental of $1,825. You didn't mention if that includes electric & internet, so I proceeded with the figures as if they are included. I looked for 2 bedroom, 2 bath patio villas in the Spanish Springs area & found some for sale. One was asking $255,000. If they got their asking price, & the buyer put 20% down, with the mortgage, property tax, amenity fee (including water, sewer, trash), insurance, electric, internet, I arrived at a monthly payment of $2,195. But for that monthly payment, the buyer owns house & there are some tax breaks for mortgage interest & property tax. Also, it is the buyer's house for as long as he cares to keep it, at the end of which he or his heirs will have a substantial asset, that can be sold, rented out or lived in. I also looked at the rent from a Villager site for a long term rental for a patio villa in the Spanish Springs area & today, renting for this next year, I only found 1 & it is asking $2,000. Electric, internet, gas not included. I don't have a price for gas, but if electric is $130 (average for the whole year) & internet is $50 (high speed fiber optic), then the monthly payment would be $2,180. For a savings of $15 a month, but no tax break for the mortgage interest or property tax & it is not the renter's house, meaning the price can rise next year & or the owner can decide to sell the house & the renter has no ownership stake in the house. The numbers can change based on different variables. The mortgage calculation site used an interest rate of 7.883%, hopefully a lower interest rate could be found & also the owner might accept a slightly lower price for the house. In your example, you didn't say if you need to rent another place to live soon. If so, good luck in your search. If you don't need to find another place to live and were only giving an example of buying a property to rent out, then the numbers are not as hugely negative as first supposed. But as many have indicated, breaking even is a challenge, especially in the early years. |
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