Updated almost 7 years ago on . Most recent reply
New Investor - 55+ Community
Hello,
I'm looking to make my first purchase for an investment property. I live in the California Bay Area where home prices are exorbitantly high, making the risk higher than I am willing to take at this point. My goal is to start building a long-term passive income portfolio.
My father, whom has 30+ years of experience in property management, recently retired and is moving down to South Florida. He has agreed to do the day-to-day management of the property (long term, as I accumulate more assets, I would consider hiring a property management firm).
Looking to get some advice/call out any pitfalls in my assumptions:
- Focus on low cost, 55+ communities in Boca Raton/Delray Beach Area (Century Village, Kings Point etc.)
- Setup an LLC with my dad and myself listed (otherwise, my options to purchase in 55+ communities would be limited)
- Properties must have a net operating income of $1,000/month or more, expected rent $1,600-$2,000
- HOA: $450-$550, Insurance: $50-100, Taxes: $50, Maintenance: TBD
- Initially pay for all assets in cash, no debt. ($40k-$100k purchase price)
- For the first investment only look for minor cosmetic upgrades. Can be more aggressive on future properties.
- Reinvest income to acquire more assets
- Within 2 years, purchase 5+ properties
The rental market in these communities seem pretty strong. My biggest concern is a 6 month vacancy during the summer.
Does anyone here have any experience investing in this market? Would love to get your thoughts.