Answers
Investors and landlords
Scoping a flip, turning over a rental, and modelling Central Florida returns with the operating costs that actually apply.
4 questions
- How do people keep flips from blowing the budget?By scoping before buying, not after. The overruns are almost never the kitchen — they are the panel, the plumbing material, the roof, an unpermitted addition, and whatever is hidden under the flooring. Put a 15% contingency on a line-item scope, not on a lump sum.Read the answer
- What's actually worth replacing between tenants?Spend on what fails and gets you an 11pm call; skip what looks good for a month. LVP instead of carpet, one paint colour across the portfolio, decent hardware, and proactive replacement of angle stops, supply lines and wax rings.Read the answer
- Is a property manager worth 10%?Worth it if you are more than about 45 minutes away, if your job cannot take a Tuesday-afternoon call, or if you own more than two or three units without a vendor bench. What you are buying is the vendor list and the legal process, not rent collection.Read the answer
- Is Central Florida still a decent rental market?It is a market where operating expenses decide the deal rather than rent. Run the numbers with current insurance quotes rather than last year's, and with real roof and HVAC reserves — in this climate a 15-year roof and a 12-year air conditioner are not pessimistic.Read the answer