Suitable Home Value in south Florida for Cash Flow

4 Replies

Hi,

As a Newbie, I am going fast. This is my 3rd question post in four days.

My investment priority is Cash Flow. The rental in south Florida seems quite low, my 1st purchase was $240k two years ago, now worth of $300k. But the rental is just a bit over $2k. Originally, I wanted to buy another property in the same area, but it seems difficult to have CF. Financially, I feel a little bit more flexibility after talked to a couple of lenders. So I don't mind go for $350k or even multi-units.

For a positive CF, which areas in FL should I look? And what price range?

Best Regards

Pilar

Pilar,

every area in FL will be a little different. as prices climb and rents do not, your margins will go down. in Tampa I am seeing between .08%-1% on the 2% rule.

now CF is not that great in areas, but you will see it or make it up on appreciation.

Aaron T., Elite Developers of Tampa Bay

Multifamily will almost always have a better cash flow, as a percentage of price, but will generally lag behind SFR's in appreciation. But, for SFR's cash flow percentage will be higher with under $150k.

@Pilar Jin

As a fellow newb, a newbier newb than you, I'm glad to hear you are doing well here in South Florida.  I am born and raised down here and now have been living in my primary residence for a year and half now and just getting into the mindset of generating passive income and cash flow, myself.

Multi-family definitely seems to be a theme of what I read as to what is the best bet, but of course, above all, it has to be a deal in the first place.

Looking forward to following your investment journey.  Good luck!

Hi @Pilar Jin

In Pasco County (north Tampa) I am seeing 3-4 bed single family homes renting for $950-$1150 per month based on turnkey prices of $85,000 - $100,000. Send me a PM if you would like more details.

Medium logoColin Murphy, Torcana Ltd | [email protected] | http://www.torcana.com

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