Real Estate Investor · Delray Beach, FL · Member since 2013 · 52 posts · 11 votes
Hello all. I just joined BP hoping to gain a little more education on owning single family rentals. My husband and I own a 3br rental property in North carolina that is currently quite profitable. We have about 100k equity in this house and only have about 20k remaining on the mortgage. We would like to now invest in a second property closer to where we are in Delray Beach (south) Florida. My concern is that property costs here seem to be rising pretty quickly and most good houses are being scooped up quickly by cash buyers (lots from overseas). And, the 2% purchase price to rent rule just doesn't seem to be adding up here. Any advice for the smaller investor who's not yet a cash buyer to get into this local market and not get swallowed up by it? There seems to be a wealth of knowledge on here. Any advice would be greatly appreciated.
Hey Lori -
My best advice is to make sure you establish purchasing guidelines and stick to them. Don't chase the market or battle other investors for shrinking margins on bad deals. Be patient, market to distressed owners, look outside your immediate market, and explore other options available to you. The worst thing you can do as an investor, IMO, is to buy bad deals because you believe you need something now or because you think there's nothing else out there.
I hope that helps.
Welcome to the site and congrats on that first profitable deal. You'll find more!
Thanks Joshua,
Yes. That is great advice! There is such valuable information and so many brilliant minds here on BP, we are very grateful to have this resource. Hy husband and I have been listening to all the podcasts, bought J Scott's books, and are researching getting our real estate license. We have decided the first step is to learn as much as possible so we know we are making educated decisions. Thanks again for taking the time to say hi and to share your knowledge!