Updated over 8 years ago on . Most recent reply
Florida real estate pricing question
I have considered getting into real estate investing for awhile. Been reading forums, doing math in our local area, etc. Nothing terribly exciting, so kept passing.
Was on vacation in Florida, and noticed homes nearby for sale in a short-term rental community. Saw places like this (https://www.redfin.com/FL/Kissimmee/8551-La-Isla-D...) Places nearby for cheaper, but this is a decent example.
Says $370k price. Says in the description $92k gross. Not sure what that means, but lets pretend full occupancy at $252 per day. At 70% occupancy, we'd make ~$65k. That's $5,416 per month. Property taxes are $5,200 annually. HOA is $3,540 annually, which looks like it covers lawn maintenance & a few other things.
Assuming "normal" costs, I think the $5416-$433 (taxes)-$295 (hoa) = $4,688 per month. On a $370k purchase price, that feels... pretty good? What am I missing? Lots of homes in the area cheaper as well.
Just learning how to evaluate potential investments, and would love a heads up on some of the "gotchas" on this type of investment.