Realistic expectations for minimal effort?

Question

Looking to buy first rental in Orlando or Tampa from Connecticut. I've stocks over real estate guy, but I've maxed out 401k & IRA. Only debt is primary residence mortgage at 2.0875%. Have about $120k cash and an extra $3500/month I've been putting into a taxable stock account. My local realtor hooked me up with some experienced investors in Orlando. I'd like to buy a newer townhome or house around $300k and have property manager handle yearly leases. Looking for long term appreciation, don't need cash flow.

JD Martin · Answer

What makes you pick Tampa or Orlando? I'd skip both areas, which had a huge run up in prices the last few years and now is coming back to earth. I own a house near Orlando - a really nice house, on a small lake, in a nice community - and I'd be lucky to break even if I sold it today. The amount of inventory available both places is nauseating right now.

In the price range you're looking at you need to think about cash flow because $300k is not going to buy you strong long-term appreciation; that's a starter home market in most places these days. Unless you can find a real wreck of a house in a great neighborhood in a high-priced market on the cheap. That will entail a distance rehab but better chances for long term appreciation.

Ashish Acharya · Answer

@Thomas Slifka You're well-positioned for a minimal-effort long-term rental or STR strategy in Orlando or Tampa. With ~$120K cash and strong monthly savings, buying a ~$300K property using 25% down leaves room for closing costs and reserves.

What to Expect:

• Cash Flow: For a long-term rental (LTR), expect breakeven or slightly negative cash flow after mortgage, taxes, insurance, and 10% property management fees. If used as a short-term rental (STR), you may see stronger cash flow potential, depending on local demand and management efficiency.
• Returns: ~6–10% annually, mostly from appreciation, principal paydown, and depreciation. STRs can enhance both cash flow and tax efficiency.
• Effort: Minimal with a property manager; more hands-on if you self-manage an STR (or outsource to a STR manager).
• Tax Perks: Depreciation reduces taxable income. With STRs, if you materially participate, you may qualify for the STR tax loophole, allowing losses to offset W-2 or active income without needing Real Estate Professional (REP) status. Also, consider using a 1031 exchange when selling to defer capital gains.

What Not to Expect:

• No guaranteed monthly cash flow, especially with LTRs.
• Appreciation takes time, plan for a 10+ year hold.
• Not 100% passive, expect to make some strategic decisions and handle financial tracking.

Whether LTR or STR, it’s a strong long-term play with mostly passive wealth-building and potential for enhanced tax benefits—just don’t expect quick cash flow. STRs can add upside but require more planning.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Eric Fernwood · Answer

Hello @Thomas Slifka,

The best way to save time, reduce risk, and maximize your return is by working with an experienced local investment team. In other words, your best bet for hands-off investing is through a good team. Here’s how to find and qualify the right team.

Start with an Investment Realtor

Unlike residential (or “investor-friendly”) realtors, who focus on buying and selling homes, investment realtors specialize in income-generating properties. They provide the information you need, including:

• Price and rent ranges based on ROI goals
• Tenant demographics
• Area rent growth and appreciation trends
• Cash flow, ROI, and renovation cost estimates
• Local rent restrictions

Investment realtors are always part of a team because no one person can know it all.  Investment realtors work closely with property managers and renovation experts, ensuring you have a team with the expertise to handle every aspect of your investment.

Finding an Investment Realtor

To start, compile a list of potential candidates from sources like the following:

• Real estate investing platforms like BiggerPockets
• Local property managers and investors
• Real estate brokers, Google searches, and meetups

How to Evaluate Candidates

Once you’ve identified potential realtors, interview them using these key questions:

• Do you have an investment team? They must be part of an investment team, or they bring little to no value.
• Do you own investment properties? Unless they are investors, they will not understand what you need to be successful.
• How many investment properties have you closed in the past year? Look for at least 12.
• Who selected the properties? Reject candidates who rely on clients to select properties.
• What criteria do you use for property selection? Expect data-driven answers, not opinions.
• What tenant pool do you target? They should demonstrate knowledge of tenant behavior and demographics.
• What’s the average tenant stay? Look for specifics—e.g., “Our tenants stay over five years.”
• How do you estimate rent and time to rent? Answers should reflect recent, comparable rentals, not unreliable online estimation tools like Zillow and Rentometer.
• What’s your renovation process? They should collaborate with property managers and contractors.

After each interview, assess their honesty, expertise, and whether you feel comfortable working with them. Adjust your questions as needed, and if they check all the boxes, you’ve likely found the right partner.

By following this process, you’ll build a team that minimizes your time and risk and maximizes your returns.

Let me know if you would like any details for the above. I had to be as brief as possible to keep the post at a reasonable length.

Chris Romany · Answer

Thomas,

Good to hear to thinking of investing in Central Florida. I'm based in Orlando and have been investing in real estate here since 2014. My specialty is buying homes that need work, bringing them up to a high quality standard and renting them out. I do that for some other investors as well and manage their property.

Your current price of $300K for a newer townhome or house is a tough ask. The median price of a home in the Greater Orlando is $385K while the average price is $486K.

Cash flow is important to me as well as appreciation; I am not a fan of townhomes or condos as the HOA fees typically eats up all the cash. I mostly buy single family homes as they rent faster and appreciate more over the long term. Once they're ready to rent, I've never had a vacancy for more than 2 weeks or so.If you need help in your investing journey here, don't hesitate to contact me. I'm happy to help.

Regards,

ChrisHouse Solutions USA

Jr Miller · Answer

Thomas-

Townhomes are generally a safe buy, generally rent less than a home and are desirable for those who don't want the maintenance of a lawn.

I am happy to weigh in on anything thats caught your attention. Send me the link. I am 35 years in the Orlando market.

Best of luck on the next chapter.

Tyler Gibson · Answer

That price point might be a little challenging here in Metro Orlando, but within an hour of Orlando you can certainly find this kind of property.

Thomas Slifka · Answer

@JD Martin I'm in CT with high taxes, low appreciation rates,  nobody moves here, and no forecast for growth. I read that Tampa/Orlando had growing economies, schools, tourism, good appreciation rates, etc. Initially I wanted an Orlando STR, but this forum discouraged it based on the limited time I want to invest. I'm comparing it to investing in stocks. ChatGPT says $75k in stocks would be $237k in 15yr, and a rental would be $400k. I made very conservative estimates on rental to get those numbers. I appreciate your advice. I'll ask my local realtor/investor friends to try to sell me on a local rental property.

Jorge Vazquez · Answer

Hey Thomas—been investing in Florida for over 20 years now, started as a financial advisor before jumping full-time into real estate. Sounds like you’re in a great spot financially, and I love the long-term appreciation play. Just a heads-up though: even with a property manager, rentals aren’t totally set-it-and-forget-it. There’s always a little homework involved—tenants, maintenance calls, insurance stuff, etc. But man, the tax benefits and equity growth make it all worth it if you stay patient. Happy to share what’s worked for me in Tampa if you ever wanna compare notes.

—Jorge

Realistic expectations for minimal effort?

Most Popular Reply