Florida rentals (out of state investor)

Long Island, New York
Starting Out
4yFollow

Florida rentals (out of state investor)

Kristin Riker
Member since 2022 · 35 posts · 15 votes

Hello!

I recently sold my house on Long Island and netted a nice profit (270K).  Im looking for an income generating rental but right now with house prices/interest rates especially here in NY its very tough.  I'm open to out of state investing more than likely FLORIDA.  Any suggestions for cities that can net me a $300-$500 a month cash flow?

Going to have to pay property manager since I am out of state.  Average cost 10%

Thanks in advance!

2Reply
67 views

Most Popular Reply

Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
4y

Hey @Kristin Riker - your go to broker in Florida is @Khaled Morad - he's helped me purchase a couple of my investment properties and things went smoothly. 

Good luck! 

1Reply
See this reply in the discussion

16 Replies

Jump to latestLatest
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    4y

    Hi Kristin,

    I am actually here in Florida on the Gulf Beach side of Pinellas County.  Take a look at some properties around this area on or around the beach side.  You have some great options in Seminole, Largo, and out by the intercoastal.  We have a lot of condo-tels and smaller beach cottage style homes that are alwasy booked year round.

    Feel free to reach out if you want to Network.

    [email protected]727-637-4289
    1Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y
    Quote from @Kristin Riker:

    Hello!

    I recently sold my house on Long Island and netted a nice profit (270K).  Im looking for an income generating rental but right now with house prices/interest rates especially here in NY its very tough.  I'm open to out of state investing more than likely FLORIDA.  Any suggestions for cities that can net me a $300-$500 a month cash flow?

    Going to have to pay property manager since I am out of state.  Average cost 10%

    Thanks in advance!

    A long Term PM will average about 10%, while a STR PM will average around 18%. You'd may be hard pressed to find something long-term that will cash flow anything meaningful with the current sale prices -- everything's going for a 4 cap or less, at least in Tampa Bay.

    But, as @Jason Wray points out, there is a lot of opportunity in Pinellas. That cash will get you into an STR that could have an NOI of anywhere from 55k to 85k. That should cash flow you well over 1,000-2,000/ month (or a multiple of that) depending on how much cash you put in and what purchase price you choose.  

    0Reply
  • Joseph Stern
    Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes
    4y

    @Kristin Riker Hi Kristin, in Tampa and St. Petersburg many areas allow for SFH with ADU's that you can either place long term tenants in or Airbnb. Implementing this strategy will allow you to achieve the cash flow you're looking for. Message me if you'd like to talk further.

    0Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    4y

    Kristin,

    First of all, congratulations on the profit, and I hope you won't be paying much tax on it. 

    I am out of state investor too as I am in the bay area, California. 

    In general, in the midwest, you can get $400 per month cash flow for the house you buy with $60,000 down. This is a very rough estimation. Out-of-state investment used to be scary, but not anymore, there are enough trustworthy people helping investors from big cities. 

    Message me, and I can advise as per your current situation, personal preferences, and future goals. 

    0Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    4y

    @Kristin Riker

    All the STR's I have helped investors buy this year, even after the rate increases, cashflow a minimum $300 - $500. This is after the STR property mgmt fee of 18% - 20%.

    Most STR travel is based on low cost, convenient location, and household amenities. I would focus your search on Tampa proper (city of limits Tampa) which is 25-30 minute drive westbound to clearwater beach. In Tampa, you have STR travel based on education tourism (USF & UT), medical tourism (some of the best hospitals including Baycare and TGF) and sports tourism (Bucs stadium & Lightning arena). I have a few personal AirBNB's in Tampa and have helped quite a few investors in 2022 find the perfect one for them. Feel free to reach out if you have any questions.

    1Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    @Kristin Riker Tampa is a great market. The zoning regulations are easy to navigate. Some great locations that can give you steady occupancy rates/cash flow throughout the year. LTR averages 10% as already mentioned in posts above and 15% on STR. Great contacts for both! Reach out any time!

    0Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    @Kristin Riker if you'd like a revenue projection for any property you will have your eyes on (Hillsborough or even Pinellas county) just to have an extra tool to make the best decision for yourself and your goals, can be done ;)

    0Reply
  • Ke Nan Wang
    Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes
    4y

    Hi Kristin, 

    With 270k cash, we can help you easily find a suitable lot and build a 3 bed 2 ba 1250 sq ft SFH in St. Augustine, FL (St. Johns County one of the fastest growing county in the state) in 6 months turnkey from start to finish. These houses will rent out easily for $2000 a month => $24000 annual gross rent. Assuming 10% management fee and no cost for tenant placement if you are using us as property management. Next to no maintenance because our warranty and new construction. Property tax you are looking at $2000 a year. Property insurance $600-700 a year. You are netting $18900 a year with one property. You can check out our website: https://www.knancorp.com/ and instagram at

    https://www.instagram.com/knan...

    Feel free to reach out.

    0Reply
  • John WilliamsBusiness Member
    Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
    4y

    Make sure you check out Clarksville, TN (where cash flow meets appreciation!). I've got a team in place to assist out of state investors like yourself get started with a portfolio. We are a full-service, "A to Z" real estate brokerage and property management company that caters to out of state investors. 

    Cheers!

    [email protected]931-272-3065
    Rent My Home - Property Management4.8209 Reviews
    WebsiteView Page
    0Reply
  • Stephen Dispensa
    Real Estate Professional · Tampa, FL · Member since 2015 · 176 posts · 252 votes
    4y

    Hi Kristin,

    Broker/Property Manager in Tampa here, (originally from LI as well), to answer your question, YES, you absolutely can find properties that cashflow at 300 to 500 a month, especially with 270k to play with. I work with a lot of out of state investors in situations similar to yours. I know of a portfolio on market in Tampa right now that would likely cashflow considerably more than that just as one example.

    0Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y

    Florida is seeing a lot of new construction and is turning out to to be a good place for short term and long term rentals. The rent to value ratio is also pretty good so good luck with investing in Florida. 

    If you are interested in exploring markets outside Florida, I invest in Cleveland in SFH and Multi family and the purchase price is less to get started with higher rents available. Feel free to reach out and we can connect and chat real estate.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4y

    @Kristin Riker

    Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

    Many OOS investors set themselves up for failure because they don't truly take the time to understand:

    1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

    2) The Class of the PROPERTY they are buying - which is relative to the overall area.

    3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

    4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

    5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

    6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

    7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

    8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

    9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

    10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

    11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
    ***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

    https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

    Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

    Good luck with whatever you decide😊

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    4y

    Hey @Kristin Riker - your go to broker in Florida is @Khaled Morad - he's helped me purchase a couple of my investment properties and things went smoothly. 

    Good luck! 

    1Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    4y

    Thanks for the shout out @Mohammed Rahman. @Kristin Riker I’d be happy to chat. I’m also an investor and be happy to speak to that side of things or give my own experience here regardless of you are looking for a mortgage! Always happy to help :)

    1Reply
  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 491 votes
    4y
    Align yourself with property management companies in areas where you want to invest. Many of them often have off market deals from reluctant landlords in their portfolio! It all about WHO you know after all! Good luck and happy investing!
    [email protected]
    RentWerx Property Management4.73215 Reviews
    WebsiteView Page
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4y

    @Kristin Riker

    We think the Midwest is a GREAT place for OOS investors to consider!

    YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...

    Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

    Many OOS investors set themselves up for failure because they don't truly take the time to understand:

    1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

    2) The Class of the PROPERTY they are buying - which is relative to the overall area.

    3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

    4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

    5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

    6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

    7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

    8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

    9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

    10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

    11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
    ***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

    https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

    Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

    Good luck with whatever you decide😊

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free