So Frustrated! Seeking good places to invest down south

[Christie Speciale]

We want to invest in a waterfront property in Crystal River/Homosassa, FL area as a STR but now with interest rates, it's not panning out and making it impossible to purchase something sustainable as I'm not confident the rent will cover the mortgage, taxes and insurance, let alone the utilities. Are there any good up and coming areas in the south that will guarantee a return on investment (that will at least cover the mortgage, insurance, taxes and utilities)?!

[Josef Hardi]

Hi Christie, 

I plan to raise rent annually, nothing too crazy (3-5%), to get it closer to market rate. 

But yes, if you are not comfortable with the negative cash flow, then don't even spend any more time on it. I find that it's too emotionally taxing trying to make certain property work. Since we are trying to run a marathon, I try to be really conscious with the effort I spent analyzing each property.

I do revisit my strategy after about a month or so. If it hasn't been successful, then I tweak it a little bit. I went from:

1. Wanting to invest out of state (in Detroit, Indiana, Chicago)

2. To looking for SFH to BRRR

3. To looking for SFH to ADU (need to add kitchen, bathroom, partition)

4. To eventually finding a duplex

Just gotta keep finding a strategy that works best for you. You got this!