Rental property #8 closed - Melbourne Florida

[Matt Leber]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $28,000

3 bedroom 1.5 bathroom single family buy and hold rental purchased in Melbourne Florida (Brevard County). Will rent for $1250 on the section 8 program. After setting aside half of margin for vacancy, capex and reserves it will cash flow $350 per month, bringing in 15% cash on cash return for the year. Doing more section 8 this year in my portfolio with potential covid moratorium impacts looming.

What made you interested in investing in this type of deal?

Pretty low out of pocket and low rates. Interested in picking up section 8 opportunities in current covid climate due to moratorium uncertainty.

How did you find this deal and how did you negotiate it?

Standard MLS

How did you finance this deal?

20% Downpayment conventional loan, saved from other rental profits and w2 job

[Matt Leber]

@Chris Witham check out West Melbourne 32904, Palm Bay west of I-95, Port St John Cocoa 32927 and Rockledge south of Pluckbaum rd. You might have to be patient but those are pretty good neighborhoods that occasionally pop a good property in the $120-160k range that can get you pretty close or over the 1% rule. But you’ll have to move quick. Look out for 2 bedroom houses that might have a “hidden bedroom” or bonus room, too. Sometimes you can make it work as an extra bedroom.

Honestly, I don’t see homes around $100k that aren’t in C neighborhoods or need a lot of TLC anymore. Unless you’re buying cash or willing to put in a lot of work. I’m OK with a C or C- neighborhood if the numbers are good enough to work in a PM if I decide to at some point.