All Forum Posts by: Craig Daniels

Hi Raymond - thank you for the reply.  

Yes, I think I am seeing what you mention. . .Florida (at least for me in the Melbourne area) is cash flow marginal. I found an SFR in Palm Bay, my buy box was 3/2 SFR in the 250k max 300 range. Most properties on MLS won't cash flow, or only marginally, but I found a decent deal and I am happy with ~400/month cash flow (managing it myself).

The area that I live is a big government contractor area, so they are hiring lots, but there are also a ton of SFR's and apartments coming on line due to that boom in population, so it is getting saturated. I was hoping/wondering if there were other areas of FL that might not be as saturated yet.

I had heard good things about Ocala, where they are going to build out the Villages in the upcoming few years which might produce opportunity for the influx of supporting industry personnel for the rental market, but I am only starting to research that.  

Price point for me remains in the 200-300 range, preference for SFR's at the moment, but willing to look into multifamily with a higher price point (up to 600k) if I can find something.

Hi - 

For my second rental property, I am looking for turnkey companies in the Florida area that would cover - finding the deal, any rehab, and then property management.  I am already talking to some companies in other parts of the US that I might pursue, but I wanted to see if there was also something closer to home in Florida.  I live on the Space Coast, but I am open to investing anywhere in Florida (provided of course that the investment thesis works).  There are some marginal markets in FL, but there are so many growth markets, I was hoping to expand beyond my local market with some help from a turnkey company.  

Thank you in advance.

Thank you for the positive words.  I am going to manage it myself, so that will add another 180 to the take home, and yes, the 175 was after everything: management fee, capex reserve, projected maintenance expenses, and I assumed 93% rented (7% vacancy per year), etc.  

For my first one here, I tried to be a bit more conservative.  I see a lot of 250-300k 3/2 for sale that are going to compete with the new builds, and that size is only renting for 1800-1900 to month max, so I find that the numbers don't work for me, or are very marginal at best.  

Looking into other markets now, I can find returns in the 400-500/month using a similar fee model which leads to me to believe that while you can still find deals in Palm Bay, it is very tough to do so.   

Thank you both, this is super helpful to hear relative investment return expectations from others.  I do think I am going to start looking into multi-family as a means of looking for higher returns.  

Hi - I am curious what the forums will make of my first deal and whether it is relatively good or relatively marginal. I am in the Palm Bay, FL area and bought an SFR 3/2 for 220k. 30% down, 6.375% rate, and after all expenses, with a property management company, it should cash flow roughly 175/month. I did put in about 15k of work into the place to get it from the 1980's look to something more modern as the rentals I am competing against are newer builds, but at higher price points. This is the investment thesis in my area, it is becoming a bit saturated, but if you can rent just below the new build/corporates, and maybe accept tenants that are a bit outside of the corporate approved model, you can keep your place rented. I am geographically close to this property, so I am pondering not using property management to get another 175/month out of it.

I continue to look in the Brevard area of Florida - As far as north as Titusville/Cocoa and as far south as Sebastien.  It seems that if you can find a good deal on the purchase price, are willing to do cosmetic updates (floors, painting, maybe a kitchen) you can get that 100-200/month cash flow.  

Is this a good cash flow relatively speaking?  I have not started to look outside of the area to out of state rental opportunities, but I am wondering if there are remote markets with a higher return than this that I should be looking into.   

Hi - This was partially answered on one of the BP Podcasts recently, but I was curious to get a few opinions.  I just bought a rental for 30% down and have a 6.375% 155k mortgage on the place.  The rental will cash flow between 200-300/month.  Looking at pure spreadsheet math and common convention; if you pay down your mortgage you are effectively making that interest rate on your money.  If I were to put 2400 per year back towards the mortgage, the 6.375% equates to only (maybe) 150 per year that I am "making", but if you do that for a few years up front you can shave off years on the back end of the mortgage.  

I get the 2 schools of thought on keeping cash flow to stay liquid vs. investing your money where it will make the highest return, but my W2 job salary means I don't "need" the 2400/year of cash flow at the moment, really all I am looking to do is maximize this rental return over a 10-15 year return window.  

Anyone in a similar situation and thinking along these lines?  Curious to hear the forum's thoughts!