need help with rental property

[Account Closed]

Hello everyone. 

Thank you for taking the time to read my post.

I am currently planning to purchase a rental property and I would like some suggestions on location based on my goals and the amount of money that I can use. 

I would like to generate good monthly cash flow in a low risk area with good capital growth, with working families and young professionals as tenants. I have about 70-100k cash that I can use and got a pre approval for 200k ,based on the parameters given to the home loan officer.  I would prefer not to take on a dept of more than 150k. 

My current search has taken me to  Orlando FL, in and around the lake nona area. A property purchased here would net me about 200-300 a month, which includes hoa, mortgage, property management, taxes, insurance. This is not factoring any vacancies or repairs. The property themselves are in the 150-200k range. Or, 5% roi if the property is paid in full. 

I was hoping to generate more cash flow with the amount that I have but not sure where to begin my search. I am not looking to take big risks but to invest in a safe area.

I was hoping to get some feed back on this forum with my current plan,  some other possible locations, or any other ideas on how to invest. Your feed back is very much appreciated. 

Thank you for your time. 

[Levi Bennett]

Hey man, not sure if "Account Closed" refers to BP shutting you down or a reference to you closing deals.. but here is my take on Orlando. There are a LOT of different types of RE markets here in Orlando. I live here and I'm familiar with Lake Nona.. be advised that there is a lot of high-end investing there, mainly because there is a massive medical park going in there. It's not a bad place to invest, but I would say that it's more suited for the person wanting to rent out a place $250-450,000 units. One of the easiest places to rent, and have the highest ROI's are south of Disney where "short term rentals" are zoned. If you look in Davenport, FL, or Four Corners, FL.. these are areas zoned for short term rental, and only in the last few years have taken off with new home building. You can get a fairly new (10 years old) home, 4 bedrooms, and rents 3-4 weeks out of the month (@650 per week) in a gated community for $150-$200,000. For your price range, that seems to be the way to go if you can handle short term rentals.

That area might be one of the largest markets for short term vacation rentals in the world, and the prices to hire a management company are very reasonable (read: competitive). 

If you can hack short term rentals (they're not that bad really), then I highly encourage you to take a look at "homeaway.com" and search the area. 

Keep in mind, Orange County Florida (all of Orlando) is NOT short term rental-friendly, so if you buy in Orlando, renting it out for a vacation rental is off the table. But, back to original plan, there is still a lot of great investment in Orlando. I believe outside of Texas, it is the fastest growing metro-area in the South, so there are lots of opportunities all around the city.