Tracewater Homes Podcast Episode 10: Investing in the Florida Panhandle Duplex Market

Trace Water Homes Podcast Episode 10 focuses on the newest plan in the Trace Water portfolio: the duplex, and the benefits of owning one in the Florida Panhandle market. Host Brent is joined by TJ of Avid Martin Group, Tammy from the finance team (the Fritz), and other team members to discuss the simple, turnkey process for investors.Key takeaways from the discussion include:Simplicity and Team Trace Water Homes offers a simple investment process where the team assists with identifying the lot, ensuring proper zoning (like R2 zoning in the west end of Panama City Beach), financing, design, and connecting with property management and insurance.Financing Financing for investment property is easy today, with options like full documentation loans that use 75% of the rental analysis to offset the payment, or the DSCR (Debt Service Covered Ratio) loan. The DSCR loan only verifies rental income, credit score, and assets, and can close in as little as six or seven days.Duplex Versatility The duplex plan, featuring two three-bedroom sides for a total of six bedrooms, offers unique marketability. It can be marketed as two separate units or a single six-bedroom home, appealing to large groups. The versatility allows for combinations like long-term renting one side and short-term renting the other.Construction Quality and Savings The homes use steel framing, which offers better windload ratings, fire resistance, and termite resistance than wood framing. Other features like impact windows, impact doors, and LP SmartSide siding contribute to asset protection and better insurance rates. This high quality can significantly lower operating expenses (opex) and repair costs, potentially reducing the opex percentage from 20% down to 5%.Investment Opportunity For approximately $500,000 in build cost, an investor gets a well-appointed six-bedroom duplex. This price point makes it easier for new investors to enter the market. Additionally, the new construction and high-quality materials often lead to insurance rates being rated as masonry construction, which is a better rating. The investment can also be used as a tax shelter for bonus depreciation and write-offs.