All Forum Posts by: Michelle Gao

Welcome to Biggerpockets!

We are buy and hold investors. It looks like we both invest in the same class A properties, with an eye towards appreciation. While I can't answer your question about those houses I can comment on your needing a pm due to being out of the area. We live over 3,000 miles from our rentals and travel frequently. While it has had some "Stress" moments, we have been very successful. It has allowed us to save alot of property management fee.

This is an amazing place because the only thing everyone agree with is real estate. Other than that everyone has their own niche. So look around the blogs, forums and listen to the podcasts. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog or website in your signature, if you have one. Its a great additional networking source.

Look forward to seeing you around! Let me know if I can help!

Thanks so much for the input! Your telling me about "self-managing 3,000+ miles away" is really valuable and encouraging. I never thought that would be possible. But it makes a big difference, as for some properties, the monthly profit is only between $100 to $200 which is about the PM fee (1-month leasing fee prorated + 8% monthly rental). I will also check out the signatures more which I didn't have a chance to really pay attention! 

Hey @Michelle Gao - I recently moved to Cape Coral and looked at a lot of property here and in Orlando.  I'm curious what you mean by "on the water" in Cape Coral?  The canal lots (no house) are around $160-170K.  I'm also not sure you'd really want something "on the water" for a rental property.  These properties command a premium in price when purchasing (think double) and offer much more liability.

That's the term I borrow from my realtor there. I think he means the houses by the canal. For example: 2105 SE 2ND TER, CAPE CORAL, FL 33990. I also thought of liability issue but he says unless it's a broken deck it's no issue.

As for your strategy are you wanting only appreciation or some equity with a return? I ask because with a $1,500/month rent for a property that cost almost $200k it will be a 9% gross return. Once you deduct taxes, insurance, 10% property management fee you will have around a net of 3% a year. Will you have a mortgage also? But if your strategy is strictly appreciation then the return won't be as important. Just be careful you take into account vacancies and your expenses don't exceed the income.

@Michelle Gao 

Your insurance costs will be higher when you are with in a few miles from the coast, I can't remember if it is 5 or 10.  Also, if you can get a home built after 2003 and has good wind mitigation, there is a chance you will have options besides Citizens insurance (the state sponsored insurance program).