San Jose, CA · Member since 2017 · 9 posts · 2 votes
Hi All!
I am looking at a turn key real estate property in New Port Richey, Florida. This is a single family home priced roughly at ~$100,000. The expected rental income is $925. Its in the 34652 zip code and has been fixed up by the turn key provider so there should be no additional expenses.
I am not familiar with New Port Richey as a city and it did not come up on any of my research as a target market ( I was thinking more in terms of Orlando/Jacksonville in FL). However, the cash flow seems to make sense and I am wondering if this could be a good opportunity.
Can someone with experience and knowledge regarding this city please comment and give feedback to evaluate this opportunity? My main goal right now is to get positive cash flow along with standard property appreciation (~3% like rest of the US).
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y
$100k purchase price vs $925 in rent is a bad ratio in NPR.
NPR is no different than the rest of Florida. Some good areas, and a lot of bad areas. You should be able to tell a lot from google maps.
Whatever you decide please take a trip to see the house and drive the neighborhood before you purchase. You don't have to look far to find the horror stories about turnkey companies and out of state buyers.
Real Estate Agent · Tarpon Springs, FL · Member since 2015 · 21 posts · 1 vote
9y
Good rentals but New Port Richey is a high crime area. Do significantly more research on your Tennant, and make sure they are from the area. I wouldnt rent to anyone moving to that area that isn't familiar with the city. Is the home a 3 bedroom 2 baths?
Agent / Investor · Clearwater, FL · Member since 2014 · 573 posts · 281 votes
9y
Jai Koolwal - that zip code isn't all bad, but I would want to see the actual address to give you a better idea. I have done quite a few deals in that area recently for people looking for better returns than they can find closer to the bigger cities.
If you want to PM me the address and info I can give you more specific opinions on the property and what this turnkey company is telling you about rents.
Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
9y
@Jai Koolwal there are a few pitfalls to turnkey. Make sure you do your homework on the turnkey provider, and ensure they have a solid, positive track record. You want to work with a turnkey company that owns or has property management vertically integrated with their business. There are some great turnkey operators in many different markets, but unfortunately there are also some shady operators. Happy to provide more detail if needed.
I am looking at a turn key real estate property in New Port Richey, Florida. This is a single family home priced roughly at ~$100,000. The expected rental income is $925. Its in the 34652 zip code and has been fixed up by the turn key provider so there should be no additional expenses.
I am not familiar with New Port Richey as a city and it did not come up on any of my research as a target market ( I was thinking more in terms of Orlando/Jacksonville in FL). However, the cash flow seems to make sense and I am wondering if this could be a good opportunity.
Can someone with experience and knowledge regarding this city please comment and give feedback to evaluate this opportunity? My main goal right now is to get positive cash flow along with standard property appreciation (~3% like rest of the US).
Thanks
Jai
Hello,
Make sure whoever you go with that is using the word "turnkey" is not just throwing it around. Turnkey providers should own the home and do all of the renovations themselves. You do not want to go with someone just using that word lightly. Some agents just use it as a way to make you think the home does not need a lot of work.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y
$100k purchase price vs $925 in rent is a bad ratio in NPR.
NPR is no different than the rest of Florida. Some good areas, and a lot of bad areas. You should be able to tell a lot from google maps.
Whatever you decide please take a trip to see the house and drive the neighborhood before you purchase. You don't have to look far to find the horror stories about turnkey companies and out of state buyers.
San Jose, CA · Member since 2017 · 9 posts · 2 votes
9y
@Phillip Schaeffer Yes, its a 3 bed 2 bath. The property is already rented and the tenant has been there for over an year. I will ask more details about them and see if a renewal is on the cards.
@Nick C. - I was trying to go by the classic 1 percent rule. What kind of rent to price ratios would make more sense in the NPR area per your experience?
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y
@Jai Koolwal Most of the properties can be bought for around $60 - $70k and rent for about $800/mo. It's an area you can definitely beat the 1% rule. If you really want to use the 1% rule, I'd invest in a better area. That rule can be achieved in Tampa or St Pete, much better areas, much better renters.
San Jose, CA · Member since 2017 · 9 posts · 2 votes
9y
@Nick C. - thanks. That makes sense. I am also on the fence considering that NPR is not that desirable a community. 100K purchase price with a $900 odd rent amount would go a long way in better, more stable cities.
Real Estate Agent · Spring Hill, FL · Member since 2015 · 42 posts · 17 votes
9y
You can definitely out-achieve the 1% rule in NPR.
You're essentially paying a premium for a "turnkey" property, in my opinion, for this particular deal. To confirm or deny that, we'd need a physical address to review the specific comps/neighborhood/rental comps.
I am in the process of looking at a property which has been renovated and is now fully rented. Its a triplex with side by side units in New Port Richey (34652). Each unit is rented for $1K (utilities paid by tenant) and property retails at$339K (off market listing). I am out of state buyer and this property will be managed by PM from day 1. I have couple of questions from people who are well versed with this zip code and can offer valuable suggestions / recommendations, if any.
- Is New Port Richey a nice area to invest from a buy and hold perspective? - How's the rental market? Is it saturated ? - How's the tenant quality ?
I havent come across any economic drivers data for NPR but if someone has any insights, it would be greatly appreciated.
Thank you all in advance for your time and responses.
New Port Richey, FL · Member since 2019 · 48 posts · 16 votes
4y
I live in NPR. Can vary from block to block. if it’s a full rehab might not be a bad deal as rentals are hard to find. If you want to send me the address I’ll drive by. And if it’s a good deal I’ll split it with ya! Lol
most have been selling for $100k a unit rehabbed. A little overpriced IMO but not to say you can’t negotiate
Real Estate Investor · Port Richey, FL · Member since 2015 · 4 posts · 1 vote
4y
Manny
I currently invest in this area . I'm assuming these are 2/1 units ,and at that price I would add it to my portfolio. If your inside the city limits , the city will want you to register with them . A small fee and possible annual inspections . I have some duplexes in the area that are 3/2 units and are at $1200-1400/mo . The city is improving the down town atmosphere and 34652 is a short drive to Pinellas County world class beaches . With PM from day 1 you should get qualified tenants .
Thank you @Joe Young - its a turn key property from what I see. Once under contract, I can surely send you the address to take a look and if case you or any investor is interested, I would be inclined to partner up.
@Gary Trapeo - Yes, you are absolutely correct. These are 3 -> 2/1 units side by side. How's the vacancy rates in NPR ? I quickly searched online it shows 5% although not sure how much of quality tenants are out there looking for a nice place to rent in NPR. Is economic market strong ?
Real Estate Investor · Port Richey, FL · Member since 2015 · 4 posts · 1 vote
4y
I'm always 100% occupied . Rents and property values are on the rise . I collect 1st/last/Security . By the time they pay me and turn on the utilities ,they have several thousand dollars tied up . The odds are in your favor. Your property manager should be doing there job for their 10%
@Gary Trapeo do you know good PM in NPR area ? I have an acquaintance who invests in this area and manages his properties. I asked if he would manage my properties for a fee, and he quoted a 30% turnkey rate, which I find to be quite expensive.