All Forum Posts by: Frantzy Louis

Hey @Irvin Nguyen - I operate in Florida, mostly Tampa, Orlando, Jacksonville, lakeland and Central Florida (everything in between).

As you noted, many markets in Florida are already saturated and have higher prices leading to lower yield in many cases. Not to say you can’t find a deal but it typically requires alot of money and returns are low IMO (4-6%). A lot of the resales under 600k you will find around the “good areas”, #1 - won’t even be in a nice area, are going to be old and built in early to mid 1900’s, require a lot of maintenance/renovations/ a mobile home, be in a location you wouldn’t want to invest in. A new construction basic duplex in a GOOD part Jacksonville, Orlando or Tampa is going to cost a minimum $600k, I am not as confident that you will be able to get at-least $6k in monthly revenues (location specific) compared to the alternative. This seems a little riskier being that prices are higher and yield is lower for the product you are getting. 

Migration to Florida has seen population growth almost everywhere, and in that people had to start moving inland. Ocala is the main city in the Central Florida portion of the state, that is north of Orlando and has the infrastructure to support growth. You have seen a lot of companies such as Amazon, Lockheed Martin, dollar general and Orlando health expand major operations out here. Cost of land and build isn’t bad out here and you don’t sacrifice growth / yield. The goal would be to find a 1% deal as I have done multiple times and am doing now. 

I would look into duplexes out here in Ocala. Yield and appreciation much higher. You can expect 10%+ unleveled cash flow. Although we never bank in appreciation, we feel well positioned in this market for the long run and any appreciation will be icing on the cake.