i am buying an investment property near downtown Orlando(zip 32805).
the house was built in 1966..no major issues with the rood or the property overall(1100 sq ft duplex) and it might also give me a positive cash flow.
there is news about a new development coming up in the area in the next few years. however i believe the crime rats are higher aaround the area and people who rent here wont come with a good credit history.
Im a very worried now about the challenges that i might have to face with such risky properties. should i still go ahead with buying or back out ??
Analysis Paralysis! Get off the fence and buy something now!
Florida real estate is going up across the board, so stay in the 200k and over range for best all around "experience."
Not only is it a Seller's market, it's a Landlord's market too! There are millions of good renters looking to rent due to recent BKs, SS, FCs who think they can't purchase right now (unless I get a shot at them and will own in 30 days! ha) or have simply decided to rent for the rest of their lives.
You got about a good 7 to 10 years to accumulate as much wealth in Florida real estate as you can, so while the door is open to the vault, grab as much as you can, while you can!
As far as netting some cash flow? OM Gosh, give me a freakin break! Right now, grandpa's way of thinking my not be the best road to go down during this time. Let any deficiency accumulate in your PAL Account (ask your CPA) for future tax savings.
Will we see another real estate crash? The answer is... 100% YES!
But what you and me and everyone else has made it thru over the past 10-12 yrs gives us a major advantage!
When you see the following...Get up. Make your way to the exit and step off the train and SELL, SELL, SELL!!
1. you see me advertising 1 day out of BK, 100% No DOC, Hybrid Pay Option Arm, Negative Amortizing loans with a 680 score (btw- great tool for those who know how to use it)
2. your barber starts offering stock advice (something like Janis - Global Technology. ha!)
My advice is to look at financing your purchases vs sinking so much money into DEAD EQUITY and go buy a 250k +home in a desirable neighborhood or a 350k+ Duplex that will appreciate much better.
@Sandeep G. Most of my rental buyers don't buy in bad neighborhoods for anything less than a 12% cap rate. For example, the last 6 South St Pete rental properties sold in our office have all been above 15% gross cap rate.
I have lived in Orlando for the past 18 years. 32805 is Pine Hills, it is the worst neighborhood in the Orlando area. Rentals are hard to come by in this area at this time. Wall street owns about 30-40 thousand rental properties in this area. That was just on the local news. Myself I wouldn't buy in that area. Hope this helps