Relocating to Florida to invest in real estate

[Bruce Tieu]

Hi,

A friend and I are thinking of moving to Florida from Denver, CO by the end of the year to invest in real estate. Our strategy is to purchase a multi-family unit that would allow us to occupy one unit and rent out the remaining units on a long term basis. While living there, we'd like to live for free, and after moving out, cashflow at a net amount $500-1000 and have a property manager manage it for us. 

What are some cities and neighborhoods we should consider for both good appreciation and modest to high cash flow? We are each willing to put down as much as $50k for a downpayment.

We are also open to considering other markets as well, but Florida is a place we'd like to live in. 

Any suggestions is appreciated. Thanks!

[Nicholas L.]

@Bruce Tieu

house hacking is a great way to get started and I think your plan is great - but I would reset your expectations on the numbers:

1. the goal of a house hack isn't to live for free.  if you can somehow - you rent out all the rooms in a house and sleep on the couch or in the garage or something - that's fantastic.  but, higher interest rates have made that much tougher.  remember: if the net amount that goes to your mortgage after you collect rent is equal to or less than what you'd pay renting - you're ahead.  you're building equity.

2. good appreciation and high cash flow - well, we'd all love that!  but again, recent changes in the market have made cash flow much tougher just about everywhere.

i don't invest in Florida myself but I'd pick a couple markets, go to each one in person, and look at as many places as you can.  moving and buying your first property is a big deal.  hopefully your schedule and budget allow you to spend some meaningful time and effort traveling and looking.

good luck!