Can this work?

[Matt Blutowski]

I'm thinking about a SFH or condo in the central west florida area (e.g. sarasota et al.). I don't live in the area so will use property management to rent it.

This will not be a business, more of a longer term investment and a way to diversify my savings (all in stocks). I don't own a home, pay no rent, have no debt and have access to a 50K loan at 1% (borrowing yen - so changes in the exchange rate could make the real rate negative, or up to 5% - I would guess that real rates will be 1% or less). I can make up for the rest of the mortgage by borrowing $ at 4.7% 30y fixed.

Property is selling at less than $100/sq. foot in some areas, and although it may take time, I think there will be appreciation in the area. I don't know what rents are like in Sarasota.

How do I know when a deal makes sense for me - if I'm interested more in a buy and hold investment than a cash-flow business? Any rules of thumb?

I have read about a 2% rule, and 50% rule, but am not sure if they both are rules of thumb for a SFH/condo?

Any thoughts would be much appreciated!