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!

[Michael Smythe]

@Bruce Tieu how much research have you done on all this?

Most of Florida meets your two inquiries.

There are so many other questions you haven't asked:

1) What price points are in what markets?

2) What can you afford?

3) What markets have a decent amount of small MFR (2-4 units)?

4) Who are you going to work with to find properties?

and many more!

[Bryce Nerland]

@Bruce Tieu The Tallahassee market has been good to me. We have colleges and state jobs that are unlikely to leave the area. We have beautiful canopy roads and close-by beaches. We are one of the fastest growing cities in the country right now.  https://realestate.usnews.com/places/rankings/fastest-growing-places

[Mike Dymski]

You're in a great market.  I recommend buying a fixer in Denver, do a live in flip over two years, make six figures tax free, and repeat.  I can't image moving across the country to invest in real estate.

[Nicholas L.]

@Mike Dymski

I think OP is actually doing that already, I looked at his other posts after I responded.  So maybe he should just do it again!

[Adrian Lammersdorf-Scioll]

The best way to cash flow/live free from something like this in my opinion is find a 2/1 on both sides duplex near the actual city of Orlando (theres alot near the advent hospital) that you can fix up to add immediate value. Make sure to do a FHA 203k loan so you can finance most of the renovation and save some money for anything that may come up, and furniture. Air Bnb the other side while you and your friend live in one side so you live free, and after a year you can make both sides medium term rentals and buy something else. Look up on pinterest some good ideas to make the renovation stand out and place have trendy furniture. Then after a year refinance into a conventional since most experts say they will drop by that time, and do it again. You may not cash flow that much, but over time you will eventually get there.

I'm doing this myself, but made the mistake of not doing a 203k loan and put most of my funds into renovation with cash. The 0% down FHA wasn't available at the time either. Anyways you will need a job to get that so make sure you have something lined up and maybe live in a medium term rental with your friend until you have enough income to buy something, and learn how they are run.