Newbie investor, considering FL

[John Henry]

Hello group.

My faith in the internet proves there is no topic that there isn't a forum for!!

I have been considering investing in a rental property in central FL because houses down there are so cheap. I have been looking at single family homes (3/2, 4/2) in the Kissimmee area in the $50-$80k range (there are dozens and dozens) and looking at bank owned. I will pay cash for the property.

I did go down there and look at a couple 2 weeks ago, and drove through a lot of neighborhoods, most of what I saw, while blue collar looking, was pretty well kept up and neat. Taxes are all over the place, from $70-$250/mo. Originally I was not really considering renting it long term, I was think of maybe just sitting on it, eating the ownership costs and maybe using it occasionally for getaways, or letting friends use it.

The realtor I was working with told me there is high demand for rental property and I could probably do well if my ownership/mgmt costs were low. So I am think now about a long term rental property that I will likely never spend a night in myself.

I live in MA, and would have to pay a management co to take care of everything. I spoke with one on the phone yesterday who gave me some details, and warned me of the "blue collar" housing market in this price range, damage, etc. But also elaborated on his screen process etc. He quoted me $150/mo with a $1000 initial fee to screen and secure a tenant. I have no idea where that fits in the general range of these types of services.

The figures in my head are rents in the $550-$900/mo range, and ownership costs (mgmt, insurance, taxes) in the $300-$500/mo range. Startup costs are the wild card.

Anyway, I'll stop there, lest I lose you. I guess my first question is if you had $50k-$70k to invest in RE for rental income where would you look? SF house or condo? (aware that some HOA/Condo fees are insane and may go out of control). $300- $400/mo clear with at least a property value that holds if not increases a bit is appealing and seems possible.

I am not dead set on FL, or even central FL, but there seems to be an abundance of homes there and a good rental market.

Comments? Suggestions of other sites/threads to go read? I realize that is a WIDE OPEN question, but was hoping to gain some insight from some other landlords here.

Thanks in advance for any help....