Disintegration of a Hometown

Alex Alsup, a committed Detroit citizen, captures the rapid disintegration of his hometown by comparing Bing and Google Street View images of the same homes over the course of several years.

Here are a few examples…

Eastwood Dr.

07-Eastwood 2

 

Thaddeus St

06-Thaddeus-and-Leigh-Street 2

Bryden Street

01-Bryden-Street 2

 

Boulder Street

02-Boulder-St 2

Arndt Street

03-Arndt-Street 2

 

Pfent Street

04-Pfent-Street 2

 

Hazelridge Road

05-Hazelridge 2

 

Hoyt Street

10-Hoyt 2

 

Hickory Street

08-Hickory-Street 2

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Before & After

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We are always very proud of our clients and love when they send us their success stories.  If you have been on the fence about investing, reach out to us now and let us help you.  We are always happy to answer any questions.

 

Altura Investment Realty    407.622.7148

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Success Story of the Week

Deltona Flip Success Story
Abby Terrace
Deltona Florida 32725

 

Over the last few years, Altura Investment Realty has viewed Deltona as a prime rental market with great equity. Now, as Deltona’s home values have started to soar, more and more investors are able to make fast cash by buying these homes, fixing them up and flipping them.

 

Our first flip offered in Deltona was a huge success for a couple of our brand new, first time clients. Following what records indicate to be the common flip model in Deltona (buy at approximately $45 a square foot and sell for $92 a square foot after the rehab is complete), these first time flippers were able to get an offer accepted within days of putting their finished product back on the market.

 

A freshly rehabbed home sells fast, especially in Deltona. Combined with the lower entry point of the inexpensive Deltona homes, this is an ideal, safe, and generous market for first time flippers and seasoned pros alike. Consider a Deltona Flip property as your next investment you make with Altura Investment Realty.

 
Written By:
Josh Swanson

josh2

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Success Story of the Week

Another Happy Investor with Altura.

I recently had a first time flipper wanting to get into the real estate investment game, but they didn’t know the first thing about it.  I scheduled a meeting with the husband and wife to find out what their goals were and to explain the process of how to get started.  After months of working with them and waiting to find just the right “homerun” property for them, it finally surfaced.  I walked them through the property and explained the rehab that would be required to make top dollar for their investment.

Being very excited and nervous at the same time, they bought the property and began the rehab process.  I would check in on their progress every few days and discuss their rehab decisions.  As most new flippers do, they were deciding on a lot of unnecessary expenses that would look beautiful but not necessary and just eat up on their profits.

Once construction began, I told them to go ahead and put a “FOR SALE” in the yard to get the word out to “passer-bys” that the house was going to be on the market.  This created a lot of interest, and people would actually stop in and look around while the construction was going on.  The investors would walk them through and show them the improvement plans they had and give them an idea of what the end results would be.

By the time the property rehab was complete, they had a bidding war on their hands and ended up selling the property for $20,000 over their initial asking price!  Needless to say, they were ecstatic and well on their way to buying more.  They are now on their third investment property and moving in the right direction with both rehab expenses and profits.

 

Written By:

Dan Oliver

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Mobile Homes as an Investment?

Anytime the words mobile home are discussed in real estate, most people would probably imagine a scene from Raising Arizona.   People living in a tin can somewhere in the middle of the desert, with T.V. tray dinners, dfdand a dirt lot for a garage. Contrary to popular belief
a manufactured home can give an investor a great return annually with little amount of money down. Mobile homes in Florida range from $20,000 – $30,000 per unit.

In today’s market a single cash purchase of $25,000 can yield up to a 25% R.O.I for each unit owned. A mobile home can provide housing for our retired community, seniors who live on a fixed income, and snowbirds trying to escape the Northeast part of the U.S. Renters that live in a mobile home will have low utilities throughout the month as well as the safety of living in a gated community which most homes are located in.

People have no problem purchasing a $75,000 luxury car which will depreciate immediately as soon as you drive of the lot. With one single mobile home purchase can double your money in just   3-4 years with very little maintenance throughout the year. Finding ways to stay ahead of the market is the key to investing.

Let me know your thoughts.

Written By:

Clint McLaughlin

clint

Clint is a seasoned investor as well Sales and Acquisitions agent with Altura with his focus on Apopka.  He can be reached at clint.altura@gmail.com

 

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I have been using the term “24 month flip” for so long now, I believe I have coined the phrase.  In fact, for the purposes of this post I’m more than happy to take ownership of it, because this is an investment strategy I preach to all of my clients as well as use myself.

If you, as an investor prefers the conventional flip, I am not here to tell you that you are wrong.  I merely want to express my approach and share with you the benefits of the 24 Month Flip .

Basic Ways Of Making Money In Real Estate

1.  Buy & Hold (Rental):  Purchase a property in lower income neighborhoods, invest very little upfront and each month you collect a check.  Again, this is the basic nuts and bolts on how this is done.  Obviously there is a little more to it.

2.  Flipping:  You have seen the shows, and may have done a few yourself.  This is when you purchase a property low, fix it up, make it shiny and new then sell it for a profit.

Now without getting into, short term rentals, tax deeds, commercial, etc. this is the basic way of making money in real estate.  What I propose to you, is to have your cake and eat it too.

24 Month Flip:  Get the buy and holds with equity growth… Don’t sell it off in 3, 4, 5 months.  Purchase a property in a higher end neighborhood.  Look at what is being built around the community, the schools, etc.  After purchased, and rehabbed you put a renter in place.  Your returns will be a little bit less, but you will sit back and enjoy the benefits and security associated with inherently much better rental clients.

In todays market buying a property and flipping it in 24 months you will pay a 33% capital gains tax.  By holding it for 25 months or longer, your capital gains get cut in half.  Not only that but in those 24 months, your equity has had time to really build, and you have had tax benefits.  Isn’t this beautiful?  When a lot of investors, especially new investors think of a flip, they imagine purchasing a home and flipping it quickly and making 25-50k. I say hold it and reap all of the benefits.

Here is an example:  Lets use a 3 Bedroom, 2 Bathroom, 2 Car Garage Pool home in Seminole County.  Rehab is 10k and the ARV (After Repair Value) is 190k.  Rent is $1500/Month

 

Brendon Spalding

Again, this example is using just basic numbers to give you a general idea of the “24 Month Flip”.  Should you want to get into details, reach out to me and let me show you some examples from my clients as well as my own personal properties.

Written By:

Brendon Spalding


 

Bren

Brendon has been a leader in Central Florida investment real estate for over a decade.  He has made his clients hundreds of thousands of dollars with his ability to find the best possible deals.   Brendon.altura@gmail.com

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A Few Tips When Rehabbing A House

When rehabbing a house, you will find that your mind is constantly spinning with “To Dos” and “What Ifs”.  I’m here to tell you it will all be okay.  Comps look good, rehab numbers are in the ball park, and sure maybe things are taking a little longer than expected but relax, equity is just continuing to grow. 

Now I know this is a lot easier to say when you’re not in the middle of it, BUT, I have been through the same thing and know the feelings that can arise.  

I would like to throw a few things in front of you to remember as you finish up your project to ensure you sell as quickly as possible.  So many times during the rehab you can find yourself just wanting the project done, but I would like to remind you of a few simple things to not overlook.  Items may seem small but they mean a lot to the end buyer.

Landscaping:  Companies spend billions of dollars for beautiful logos, advertising and storefronts in efforts to sell as much of their product as the market can bear.  Well, landscaping is your marketing campaign for your product and it will be the first thing buyers see.  This will also include the mailbox and driveway/walkway.  CURB APPEAL is your one chance at a first impression. Make sure everything is pressure washed and looking like a magazine ad.

Crown Molding:  I recently bought my dream truck (thank you, thank you) and while I already knew what I wanted, I found myself spending more on the upgraded version.  After I told the salesperson which model I wanted, I was shown the higher priced truck and when I opened the door, I was hooked.  The trim on the seats were so subtle and beautiful there was no way I was going back to the original truck I came for…. How could I?  I had seen the best of the best.  Treat crown molding the same.  It just adds that extra “welcome home” factor.

Paint/Outlets:  When painting, use neutral colors and have the trim a contrasting color with gloss so they are easy to wipe off.  With regards to the outlets, get some new ones and make sure they are all matching.

Fixtures:  From the lights, to door/drawer knobs, to plumbing fixtures.  Get new ones and make sure they are matching.  You want the buyer to want to turn on that faucet.  This is not very expensive to do and will be a game changer.  While I’m at it, please remember to put new light bulbs in.

Kitchens/Baths:  This is the most important feature of any house.  If you are treating your landscaping as your marketing for the property, think of the kitchen and bathrooms as your closer.  In the kitchen, it’s better to put new cabinets in instead of painting old ones. 

 The Garage:  Okay, so this may be a personal preference of mine, but I know it has never hurt me when reselling a house.  Have the garage clean and sterile of oil spots and fossils of projects gone wrong.  I love to use the epoxy coat on the garage floor.   Paint the walls and ceiling while you’re at it. Use an eggshell or light gray. Again, it could very well be my thing but it ends the showing on a great note and makes the house look shiny and clean.

Please, let me know if you have some “Must Do’s” to sell a house that you’d like to add.   I love trading ideas.

Written By:

Mike Oliver

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Success Story of the Week

 

clint I recently had a general contractor call me about the distressed homes we sell to investors. He was looking for work for himself and his crew. He is a licensed contractor who, like many, found themselves not having as much work due to the economy.  His intent was to offer his construction services to buyers of the homes we sell.  I had a better idea.

 

We both sat down and came up with a plan for him to use hard money to purchase high end properties to flip, which then gave him and his construction crew work for a month. The hard money lenders assisted him in buying three homes in April from me.

 

All three of those homes are almost done, work has been provided for several crew members, and the hard money lenders successfully funded all three properties.  The use of hard money lending can be extremely helpful if used wisely.

 

A total of three homes was purchased for $757,000.

The cost to upgrade all three homes was $189,000.

After the homes sold, the total profit was $226,890.

That is a net return of 25%.

 

 

Written by:  Clint McLaughlin – Sales/Acquisition Agent at Altura Investment Realty

Clint can be reached at 619-890-9299

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Success Story of the Week

blake It seems in today’s market, many rehabbers are looking for “no-brainer” flip opportunities where a quick rehab can result in a huge profit.  While those deals are fantastic, our most successful investors are the ones who are able to turn “difficult” flips into great homes and realize value where others can’t.

I had an investor who recently purchased a downtown property that was in need of a substantial rehab.  One of the best value-adding decisions that she made was to turn the current carport into a 2-car garage.  Some investors would not want to deal with the hassle of getting this extra renovation done, however, this investor sure is glad she did. Even though the garage renovation cost close to $7,000, this decision added approximately $30,000 to the home’s ARV!

Another tool that this particular investor utilized was home staging.  I can’t stress enough how much better a home looks if it is properly staged.  Especially if you have a smaller room or a tough layout, home staging really helps the buyer visualize how they would utilize the house. My investor used a lot of careful thought and design choices to highlight the features of the home all while keeping an open and bright concept in mind.  Buyers loved it.  She had 3 offers on the table within the first 5 days on the market! Although it does take extra effort, home staging can go a long way towards selling your home faster and for more money.

These are just a couple of highlights from this investor’s flip.  Please contact us for any ideas for your next project.  We have a large team here at Altura with a lot of experience with different types of homes.  You might be surprised at the profit you can make on a “tough house” to flip.  By thinking a little outside the box, sometimes the toughest homes can result in the largest returns.

 

Written By: Blake Messina – Acquisition/Sales Agent with Altura Investment Realty

Blake can be reached at 407.595.9641

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5 REASONS TO INVEST IN THE SHORT TERM RENTAL MARKET

Dan   I remember as a child always begging my parents to take me to Disney World. Finally, after years of pleading with them, they had saved up enough money and surprised me with a one week vacation of my dreams. We didn’t have a lot of money back then, and I remember seeing some of the  expressions on their faces with certain costs they incurred. Mom and dad started adding up the cost of this family excursion and realized their savings account was quickly disappearing. Travel cost, food, attractions tickets, and then there’s the cost of lodging a family of five near their destination which, if you’re looking to stay in a decent hotel that’s  close to your destination, it can range upward of  $300 per day in today’s market. And that’s just for a hotel!  Then there’s eating out. The restaurants know you’re stuck and they mark the menus up accordingly. The price of everything continues to climb and the economy has yet to catch up. But family vacations are still a must and children’s memories must be made. With these added costs and the need for family vacations are more important than ever, there is a small niche that is quickly growing in the investment world. Investors are starting to see the value in short term rental properties because of the demand to create a “win win” situation for both the investor and the vacationing family.

Enter the world of the short term rental market. These single family homes offer vacationers the opportunity to lodge close to the attractions, have their own private pool. Fix meals in a fully equipped kitchen so they are not eating out for every meal, and since the property is usually 3-4 bedrooms and sleeps 10-12 people, they can now invite other family members to help with the costs. And the occupancy rates for these properties are $185-$200 per night, depending on location and the time of the year.

The allure for the investor is just as nice. The returns on these properties are solid and equitable and managing these properties is fairly easy and straight forward.

5 REASONS YOU SHOULD START LOOKING AT SHORT TERM INVESTMENT

GOOD RETURNS

Let’s start with the numbers. When I look for a short term rental property, I’m strictly looking at the numbers. I analyze what the rental history has been for a property for the past 3 years and decide if it has been steady and if it sees a lot of return guests.

  • Check the rates. Peak season rates and off season rates.
  • What are the monthly expenses? (HOA fees, utilities, lawn maintenance, pool, etc.)
  • Management company in place. The management company can be a strong asset in this purchase. They know the property better than anyone and they know the history.
  • Annual occupancy percentage.
  • Pre bookings. How much money is already scheduled to come in to my pocket once I close on the property?

In my experience with purchasing short term rentals, I don’t want anything with less than an average annual occupancy rate of 85%. I also want to see at least 3 months of pre bookings in place and an annual cap rate of 15% or higher.

Now, this might sound like a property that would be impossible to find, but I’m amazed almost daily of what I am finding as I research these properties and run the numbers.

MANAGEMENT COMPANY TAKES THE HEADACHES AND WORRY AWAY.

These companies are not your typical rental property managers. These companies know the market and your property inside and out. They will market your property for you. They will provide 24 hour service for your guests. They will inspect the property prior to your guests arrival and make sure it has been cleaned and the towels have been folded into various animals. They will fix minor issues for you, (smoke detector batteries, burned out light bulbs, etc.) and they will notify you of any more serious problems and help you get them corrected.

FAMILIES WILL ALWAYS BE LOOKING FOR WAYS TO CUT COST

Today, families are always trying to save money, and the word has gotten out that they can lodge in a home for almost half the cost of staying in a hotel with one room and two queen size beds. Plus, they can save on the cost of eating out every night by utilizing the kitchen and grill you have provided for them.

  • Resort lodging close to the attraction for a family of 5 will typically cost $300 per night or more. Your property will save them around 1/3 per day.
  • They will have to eat out for every meal. One dinner for a family of 5 will cost around half of what they would spend by stopping by the grocery store and stocking up for the week.

USUALLY ALREADY FURNISHED

You only want to invest in property that comes fully furnished. I’m not talking just talking about bedroom and living room sets. I mean FURNISHED! Towels, utensils, plates and glasses, sheets, decorations, tvs, electronics, pool furniture, games, and all the appliances. I would also recommend you only purchase property with a pool. That is a must. Your property will book before anyone else’s because of this. I would also look for one with a hot tub and a lot of them have converted the garage into a game room, with pool table, ping pong table, air hockey and so on.

YOU NOT ONLY HAVE AN INVESTMENT PROPERTY BUT ALSO YOUR OWN VACATION DESTINATION!

Ah! The piece de resistance! Now not only are you making money on your property, but you picked a place where you would like to vacation as well and your guests are paying for your annual vacations. What could be better!

Now that you have the information, where do you start? Well, pick a destination that you know is a popular tourist attraction, and a place you would like to visit as well. Find the neighborhoods where the HOA allows for short term rentals. Do the research on the subdivisions. Make sure they are in close proximity to the attractions. Make sure it’s fully equipped and furnished with all the amenities you would want in a vacation home. Now, you can find short term rentals cheaper without furniture and you can put apartment style furniture in them fairly cheaply, but then you are probably finding a property that was in a short term rental area but only used for personal use. So, for the $10,000 savings, you will lose the comfort of an established rental history, pre bookings and a management company who has knowledge of the property.

So do your research and analyze the numbers. Once you’ve found everything you’re looking for from the above information, grab it, sit back and enjoy your new found investment opportunity.

Written By: Dan Oliver – Acquisition/Sales agent with Altura Investment Realty

Dan Oliver has been a feature blogger on biggerpockets.com.  He can be reached at 407.341.9359

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