1% Rule (or close) in Any US/state City?

1% Rule (or close) in Any US/state City?

Member since 2020 · 19 posts · 11 votes

Hi Investors!

I'm feeling a bit stuck and hoping I could benefit from your expertise and/or experience in this field, first some background:

1. I'm a Canadian (living in Toronto) and want to quit my 9 to 5.

2. I bought Condo 1 (1 bed) in Clearwater, Florida for $65k (USD) cash in 2016. Netting around $650/month. Condo is likely worth about $150k now.

3. I took out a HELOC on Condo 1 to buy Condo 2 (1 bed) in Seminole, Florida outright for $55k (USD) in 2017. Netting around $630/month. Condo is likely worth about $150k now, HELOC is paid off, owned free and clear.

4. I bought Condo 3 in the same building for $120k in 2020, it's now worth $150k, owned free and clear. Nets $650/month.

I would continue buying in Florida but am getting very concerned with the hurricanes so would like to invest in another state that has something, somewhat close to the 1% rule or can net me around $600+/month. The things I really like about Florida, specifically the Tampa/Pinellas region: honest contractors, honest renters, low taxes, low HOA fees.

I'm interested in a duplex/triplex or another condo as my next purchase but have no idea where else to look. I like Texas but hear the property taxes are way too high. Are there any hidden gem cities and areas within those cities that can get me similar numbers to the above? My budget would be around <$300k. 

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Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
1y

@Rene Hosman thanks for the mention!

@Sas Sel I invest heavily in the SE, especially in FL for the very reasons you mentioned.  I do think there are specific markets that do quite well in FL still, but it's also a good idea to diversify to multiple locations for many reasons.  TX is great, but property taxes are higher making it hard to cash flow.  There are many other great markets to consider in the SE like Columbia, SC, suburbs of Atlanta, GA, Tuscaloosa, AL, Tulsa, OK etc.  I recommend investigating some of those markets based on the criteria you outlined.  As Rene mentioned, our team at Rent To Retirement offers turnkey, new construction properties in all these markets including many in TX and FL as well.  We are happy to assist you however we can, regardless if you invest through our marketplace or on your own!  We have a ton of market data on all these locations that we are happy to share!

Hope this helps!

-Zach

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  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    If something is selling at a higher rent percent then rest of market it means it’s in a bad area and as mentioned above likely won’t perform how you think it will. Just focus on value add deals in good areas and be patient as watch them grow long term. 

    P.S investor friendly doesn’t matter if you buy in a good high demand area where won’t have any tenant issues. Yes investor friendly areas if need evict it’s quick but the tenants damage your  place and it costs you a lot of money in turnover. Not the magic pill many on this site preach for high cash flow low class investor friendly areas. 

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    1y

    Pretty easy in multifamily in Houston.  All day long.  And in good areas.  I just bought a 16 unit in a nice area of Houston.  Paid $82k/door.  Avg rents are $900/month. 

  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    1y

    We to   are  Canadian  but use the 2%  rule  and find this possible  in  the Detroit area  in  good neighbourhoods.  Trick  is  to have  a great  team  on the ground. More then willing  to share what we do with anyone who wants to chat

  • Ethan HaiglerBusiness Member
    Real Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
    1y

    Plenty! I have properties in multiple cities that hit > 1%.. Most needed rehab but once completed, great long term holds. Dm me if you’d would like to connect

    3 Little Pigs Rental Management
    Ethan Haigler Realty
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