First time LTR investor. Appreciate any advice!

Member since 2025 · 4 posts · 4 votes

I have been wanting to jump into the LTR market. I have a STR beach property that has been successful and looking for something more passive. My neighbor has told me recently he will sell me his home for $250k. He doesn't want to hire a realtor or deal with putting it on the market. He lives next door to me and had more upgrades, 2 car garage. My home is worth $280k. So conservatively thinking, probably worth at least that. My question is this, with current interest rates I don't think I will make a profit as a LTR. It should rent for around $1,600 looking at other comps. I have lived in this area for around 17 years. A+ neighborhood. Great schools. I have read Rental Property Investing and am trying to crunch the numbers as best I can but still not super confident. Any advice appreciated! Ashley

3 Reply

139 views

Most Popular Reply

Tyler Dyson

Property Manager · West Palm Beach, FL · Member since 2025 · 18 posts · 13 votes

8mo

Hey Ashley, With regard to your jump in to Long Term rentals; Although we all want cash flow right away, there are other items to look at. If you can cash flow or break even for the first couple years and look refinance when rates drop, you will be set up pretty good. There is also the appreciation of the home, Find a quality tenant to reduce turnover cost and aim for the appreciation play in the future!

1 Reply

See this reply in the discussion

6 Replies

Jump to latestLatest

Sort by

Matthew Thornton
Member since 2025 · 104 posts · 37 votes
10mo
Congrats on getting into the Game! Remember, you control your Cash Flow. Location and the quality of the asset is the most important thing.
0 Reply
- Ashley Slate
  OP
  Member since 2025 · 4 posts · 4 votes
  10mo
  Quote from @Matthew Thornton:
  
  Congrats on getting into the Game! Remember, you control your Cash Flow. Location and the quality of the asset is the most important thing.
  Thank you! Good point.
  0 Reply
- Matthew Thornton
  Member since 2025 · 104 posts · 37 votes
  8mo
  @Ashley Slate Absolutely!
  0 Reply
Tyler Dyson
Property Manager · West Palm Beach, FL · Member since 2025 · 18 posts · 13 votes
8mo
Hey Ashley, With regard to your jump in to Long Term rentals; Although we all want cash flow right away, there are other items to look at. If you can cash flow or break even for the first couple years and look refinance when rates drop, you will be set up pretty good. There is also the appreciation of the home, Find a quality tenant to reduce turnover cost and aim for the appreciation play in the future!
1 Reply
Juan Yepes
Lender · Miami, FL · Member since 2025 · 125 posts · 35 votes
8mo
Hi Ashley,
That is a great situation. The financing product and terms you get are a key factor in whether the property will have a positive cash flow or not. I'm happy to help you search for something that makes this property a good investment opportunity for you.
0 Reply
Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
4mo
Quote from @Ashley Slate:

I have been wanting to jump into the LTR market. I have a STR beach property that has been successful and looking for something more passive. My neighbor has told me recently he will sell me his home for $250k. He doesn't want to hire a realtor or deal with putting it on the market. He lives next door to me and had more upgrades, 2 car garage. My home is worth $280k. So conservatively thinking, probably worth at least that. My question is this, with current interest rates I don't think I will make a profit as a LTR. It should rent for around $1,600 looking at other comps. I have lived in this area for around 17 years. A+ neighborhood. Great schools. I have read Rental Property Investing and am trying to crunch the numbers as best I can but still not super confident. Any advice appreciated! Ashley

@Ashley Slate
If purchase is around $250k and rent is around $1,600/month, the rent-to-price ratio is about 0.64%, so cash flow may be tight with today’s rates unless taxes/insurance are low or you put more down.

Since you know the area well and it’s next door, that’s a big operational advantage. But I’d still underwrite:
- mortgage payment
- taxes and insurance
- repairs/capex
- vacancy
- property management, even if self-managing
- rent comps
- exit/resale value
It may still be a good long-term hold if you’re buying below market in an A+ area, but I wouldn’t expect strong monthly cash flow unless the final numbers are very favorable.
786-656-0387
DreamPoint Capital
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.