Orlando investing cap rates
My name is JT and I moved to Orlando Approx 1 year ago from Hawaii. I am a Paramedic with virtually no experience in real estate. I house hacked my living situation when I was single and renting. Now, I'm house hacking again, but this time, with my wife. We own a house with a cottage in the back..... Anyways .... Wife and I are looking to get another property or two and I've listened to a lot of BP podcasts over the last 2 years and seen a lot of rules of thumb. I'm wondering if local investors can tell me what numbers are good for Orlando? such as the 2% or 1% rule which seem difficult to find.... or finding good purchase price guides for example
(ARV x .7) - repair costs = offer price on property.
I see this one a lot and have made offers using this as a guide but I'm wondering if I am going to low as I am consinsently beaten out by other buyers. I don't want to pay too much because I want to buy smart but am wondering if I should adjust for local market knowledge that I don't yet have.
Also... what are good cap rates and Cash on Cash ROI percentages here in Orlando?
Thank you so much for your time.
-JT Aleman
Most Popular Reply
It all depends on what your goals are. The rules of thumb are guidelines to help you sift through deals quickly. As you keep looking at the market and analyzing deals it will be easier to notice when something comes up that is better then the rest.
Are you planning on flipping? The ARV x .7 = offer price is mostly used for that kind of investing.
The 1% and 2% rules are for quickly getting an idea if a property is worth doing a full analysis on. Also if you haven't already try out the calculators that BP has to offer they are great!
Hope that helps.