All Forum Posts by: Stetson Miller

@Account Closed In my market, $100 a door is very attainable, even $200, but most of the time, you're going to pay to get that. It wouldn't make sense to spend $300,000 on a duplex cash flowing $200 monthly because that will result in a very poor ROI. This is why it's important to consider both cash flow and ROI when evaluating rental properties for purchase.

@Jordan Browning sending it over now!

@James Smyth The 1% rule is just a tool to use to help you analyze properties quickly and efficiently. There are markets where 2% is easily attainable, and 1% is nearly unheard of, but what's important is that you still have a minimum cashflow and ROI that you're willing to accept after completing a full analysis.

@Jairo Zapata The 1% rule is just a quick analysis tool that I use to maximize the number of properties that I'm able to look at. If it's close to this, then I know it's worth looking at, but if not, then I can move on. A property doesn't necessarily have to meet this rule to be profitable. In your case, the 1% rule may only be one way to gauge the property's potential, with others being the ROI and cashflow that you will receive from the property. I'll send that spreadsheet over now!

@Paul D. My first step is always the 1% rule (monthly rent is at least 1% of the purchase price). If it's close to this, then I run it through a spreadsheet that I made which I would be happy to send to you. This is quick and easy and lets me see my potential ROI at purchase and with necessary property renovations. Where the BP calculator comes in though, is presenting deals to banks and other investors. The graphs that are automatically formulated for your deals through the calculator are priceless and really help you, and anyone else who you're trying to convince, visualize the returns that are projected over a large period of time. It may take a bit longer, but the BP calculators certainly have their place and are a great tool to have when you run into issues with funding!

Hi @Owen Thornton,

Lehigh Acres is a great investment market. The general area goes from B to C, and some gated A neighborhoods, but the best investments are going to be the C properties in the B areas.

The local schools are fairly consistent with what is available in surrounding cities such as Fort Myers and Cape Coral. The only places that I would invest are walkable, but there are certainly areas to avoid, like most cities. Public transportation is fairly poor in most of Florida as it has never been a big consideration for the state. Because of this, it's generally expected, and not a shock for anyone who has previously lived here. 

Within the housing market, the typical tenant is a middle-class blue collar family looking for a 3/2 in the $1100-$1400 rental range. All the rest of your questions regarding tenants can really only be dealt with on a case by case basis, as there's no typical tenant that reflects the actions of an entire city. However, utilizing effective property management, it's very easy to avoid any serious issues regarding the questions you've brought up. 

The current property tax millage rate is 14.6339, so on a $180,000 purchase, the average purchase price of clean properties in great condition matching the previous description, that would come out to $2370 in property taxes annually. A very large majority of Lehigh is not in a flood zone, so that's an expense that you will rarely have to be on the lookout for, and very different than most of the other surrounding cities.

There is a great flow of jobs in the area as most people who live in Lehigh commute to work in any of the other surrounding areas. There is a hospital in Lehigh, but as stated earlier, most people are blue collar workers that likely have their own small business, or work for another. The area is heavily residential, which leads to the higher commuting rates for the area.

Send me a message if you have any more questions and I would be happy to help!

Hi @Kevin Padula,

To answer your initial question, no, 1997 is not too old to successfully run a profitable rental until you're ready to move in down the road, but it's important to do you research before purchasing.

A great way to gauge future expenses for existing condos is to look at their past assessment history, and the history of those around it that may be a bit older. This can easily be found for each of the different buildings that you're looking to purchase in through a real estate agent, if you're already working with one. 

When it comes time to remodel, finishings shouldn't be too big of an expense, being built around 1997, so cosmetic updates will likely be a constant that you will be able to account for with each condo. However, starting out with one that is recently renovated would be a great start because this is one less time that you'll have to do a full cosmetic renovation.

It's just about that time that it's possible to come in just after some large assessments, that the previous owners will have paid for. However, the key in making this profitable will be to ensure that those are avoided. Let me know if you have any more questions!

@Matt Nico that seems like a great strategy! Funny, but I can't think of many houses I've seen that would come close to working with that strategy in my area, but we definitely have those standard small multi-families! Glad to see you adapting to an area and succeeding in that, that's awesome!

@Alex Smith You're absolutely correct with the Naples and Fort Myers areas being more retirement focused. However, are you solely focused on vacation rentals over long term rentals, and if so, what is your reasoning behind that? It's absolutely still possible to run short term rentals in the area, there are several people in the area on BP that do it successfully, but we have a very strong long term rental market that I think you will find much more stability and consistency in. 

@Matt Nico Definitely a bold claim to say that there's no duplexes in Florida, it's a big state! Seems like you just never found the right person to help you look, but there's a huge inventory of both older and new construction duplexes in the Fort Myers area where I am. This may not compare to other places in the US, but we definitely still have them!

@Paul D., Cape Coral certainly has a huge inventory of duplexes and other small multi-family properties available. There are also several other cities within the same Fort Myers area that offer the same inventory, but at several different price points to fit your budget. The area has a little bit of everything depending on the actual location you decide on. Send me a PM and I would be happy to send you a few properties to give you an idea of what the area has to offer!