Florida Buy and Hold Investment Property Suggestions

38 Replies

@Brian Johnson  Not to be a bringer of doom and bad luck, but won't those area get hit hard again, should another recession come about?

Originally posted by @Jerry Poon :

@Brian Johnson Not to be a bringer of doom and bad luck, but won't those area get hit hard again, should another recession come about?

 Yes you are correct.  The key is to know when to sell out.  Like the housing bubble around 2008.  I don't think we will experience that for a very long time.  The key is to buy low enough that you can ride the highs and lows.  

Sounds like your criteria fits Cape Coral perfectly. Although prices have gone up there are still decent homes at less than 150k and rents are way up. Close to the beach, B or C neighborhoods. We have all that. Low vacancy rates and lots of appreciation upside. 7.5 to 8% return is tough but doable. Some parts of Fort Myers will qualify also. 

@Kevin Page, can you recommend a realtor there that works with investors? Thanks!

Aly NA 

Hi Aly,

Kevin is right. There's a huge demand for rentals in Cape Coral with extremely limited supply. Home prices are creeping up but there are still good deals to be had in the 125K to 150K range as Kevin suggests. 

Originally posted by @Dave Bingham :

@Brian Johnson 

Have fun in Tampa. It's a beautiful city!

 Well the weather is much nicer by 100 times!  We have drove around and saw some nice properties and not so nice properties.  Based on what I have found at this point and doing the numbers without contacting a insurance guy and finding exact taxes.  I did find the taxes payed on the county PVA. The information I have found I like the investments!

The best returns in my area and some parts of Florida will be in the appreciation, not cash flow. I think it will be greater than most other areas of the country. Baby boomers are retiring and where are they moving to? Not to the Midwest or Northeast. 60% of our sales are cash and we have a balanced market. What is going to happen when credit is loosened up? It is already happening. I think prices will explode again. I could go on and on why I am so bullish but that is for another post

@Brian Johnson is correct. The key is to know when to unload. Some investors hold on too long and miss the boat. You never go broke taking a profit or money off the table.

@Michael Siekerka I'm with you. I personally want nicer properties. The returns may not be so great initially but the appreciation will be much higher and they will always sell.

RE: Louisville KY - Necessity is the mother of invention... With limited funds I've been able to successfully acquire and rent great SFR properties in D neighborhoods that return 2% to as much as 3%. Most folks don't like the neighborhoods or what it takes to get solid, well intentioned low income tenants (time and work) but it can be done. They often stay for years as well with very little trouble, but to do it properly there's a lot of upfront work in getting the right houses, making sure they're solid and "hardened", and vetting a lot of tenants to make sure you place the right ones in your houses.

I also think there's quite a big difference between an F area (war zone) and a D or D+ area, but the nuances might be lost on most folks just giving these areas a cursory look.  I also think that like most things, there are some niches that folks are not cut out for and there are others that they might be particularly well suited for.  You have to be wired a certain way to be a (mostly) stress free landlord, but even more so when working in more sketchy neighborhoods.

I hope to one day graduate to more properties in better C and B neighborhoods (and look forward to more appreciation) but next year I hope to buy another three or four of these low income properties.  Once I have enough cash flow I'll consider branching out some more.  

To define the numbers better... these are typically houses that cost $25K to $45K and might need a few grand in make ready or as much as 15K in updates.  I'm kind of picky in the quality and appearance of the houses, moreso than many low income landlords, but I know I'm competing for quality section 8 tenants so you need a good product.  I spend more upfront anticipating a longer and more trouble free stay from my tenants.  They typically rent for $800 to $950 a month on section 8.  

If anyone would like advice, opinions, etc. on the Louisville KY market, particularly around low income SFR, don't hesitate to yell. I'm glad to help however I can.

- Chuck

I have lived in fl for many years, and Hobe Sound fl is actually rated something along the lines of number 1 beach town in the us.  It is a excellent town, which also includes Jupiter Island, where some of our nations wealthiest people live, including Tiger Woods

Hey Michael, 

I currently invest in low income properties in Orlando, Lakeland, St. Pete, Tampa, and Winter Garden.

We have 42 units currently spread out. Doing pretty well.

Originally posted by @Zamir Kazi :

Hey Michael, 

I currently invest in low income properties in Orlando, Lakeland, St. Pete, Tampa, and Winter Garden.

We have 42 units currently spread out. Doing pretty well.

 So my trip down to Tampa Bay area over the Holidays was mostly trying to find the areas we like the most.  We did look at some real estate also.  Mostly condos were our focus at that time.  So what price rage are your low income properties in the St. Pete  and Tampa area?  

What is a real expected price range for a rental?

@Brian Johnson  We manage about 50 units in Tampa and another 250 or so in and around Orlando. 

Based on current sales prices I'm seeing 2 beds selling around 60-80k (depending on location and condition) that rent in the range of $800 - $925. 3 bed condos selling $75k + renting $950 and upwards (depending on condition and specific locations)

I know some areas in and around Ybor and a few other locations you can find old single family home for the 30k - $50k mark but the areas are R O U G H.. and come with a different set of problems altogether. 

Are you still in an acquisition phase? 

I don't want to deal with low income areas.  Did that and don't like the chasing money around along with all the other drama that goes with low income.  

i like the idea of condos for rent for the time we are still living in Kentucky.  

Are you coming to look at any property in Orlando @Bob Ritner  ? I think that we have some really great cash flow areas in Orlando, like Azalea Park and Sunshine Gardens 

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