1% deal in the Ocala/Marion County Florida market?

1% deal in the Ocala/Marion County Florida market?

Rental Property Investor · Ocala, FL · Member since 2020 · 33 posts · 15 votes

Has anyone been able to find 1% deals in the Ocala/Marion County market?  I am willing to put the work and try some strategies for at least a 6 month period to try and find as close of a 1% deal as I can.  I am currently working with two agents, however, what they keep bringing me is negative cash flow deals at market value.  

I'd like to hear from any investors in the Ocala/Marion County Florida area that put the time and effort and was able to find and land as close to a 1% deal as possible and share their experience.

I greatly appreciate your responses.

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  • Lender · Member since 2019 · 250 posts · 219 votes
    4y

    @Luis De Jesus

    Hey Luis, I am actually from Ocala, I lived there most of my life!

    I have heard that some people are crushing the returns on STR's near the new world equestrian center. I think the 1% rule overall in Florida is extremely hard to come by.

  • Rental Property Investor · Ocala, FL · Member since 2020 · 33 posts · 15 votes
    4y

    @Nick Velez

    I appreciate your response. I might have to look more into that. One of the realtors I am working with did bring up properties near the WEC. Long term rental numbers don't work out, but they may very well work for STR.

  • Member since 2018 · 107 posts · 92 votes
    4y

    Good evening Luis!!  What's up??  With the way home prices have gone up, the 1% rule is really hard to achieve.  Rents have definitely gone up as well, but not as fast as home prices.  And while it is in your favor that you are willing to put in work, there haven't been a lot of distressed deals to purchase that would allow for you to leverage your willingness to work.  But there is good news on the horizon, potentially.  Inventory has increased significantly in the last 2 months and while prices are still going up, they are going up at a lower rate.  These things point to the market cooling somewhat.  I don't think we will see a crash, but I am keeping an eye on the numbers to see how quickly things might come down.  I hope this is helpful!

    And I agree, WEC is a great place to look.  Another thing to consider is short term rental.  My management company doesn't manage short term and I don't have any, but the returns can be really strong, so that might get you closer to the 1% rule.

  • Rental Property Investor · Ocala, FL · Member since 2020 · 33 posts · 15 votes
    4y

    @Clay Lehman All good. Funny, a few after I initially posted this, an e-mail came from Mona's MLS site and it's the closest thing I've seen on the market to the 1% rule. I immediately called her and we are looking into it. The challenge off the bat seems to be tenants in place with contract until 9/30 according to the listing agent apparently.

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