Hello everyone,
I recently read an article that suggests investing in real estate markets of growing cities such as Houston, Denver, Orlando, etc. These cities boast a low average cost of home ownership that is expected to rise with job and population growth. I was wondering if anyone could offer advice on my plans and perhaps include anything that I may be missing. After a search on Zillow for foreclosed homes in Orlando, I have found that it is possible to purchase a 3bd/2br home in the range of $50-75k. Would it be feasible to put, say, 20% down on a $50k house with the intent of renting the place? Zillow suggests that the mortgage, taxes, and insurance would total to be under $400 a month. Let's assume it costs $100 per month for a property manager. With $500 in costs, not including maintenance fees, would there be any room for a monthly profit? When the renter covers my mortgage and other fees, wouldn't this money essentially go into my bigger pocket (see what I did there) once the house was sold? Hopefully you understand what I am getting at. I would love to hear any suggestions you might have. Perhaps a larger down payment to minimize the mortgage and maximize monthly profits?
