All Forum Posts by: Sam O'Brien

 Thanks, Nicholas, good point. The lack of cash flow is making me reconsider this area and check out a town in Indiana where I went to school. The thought behind Orlando was get a stable home, have a tenant pay down the mortgage for me and sell it in 10 years, using the profit as our down payment for our house. The success of this is fairly dependent on the house appreciating, which I have mixed feelings about. Selling at the same entry multiple (0% appreciation) results in 5.42% returns, which isn't exciting.

Thanks, Brandon -- I pasted the wrong second picture, the correct one is below. It would be a 3/3 ARM.

 Thanks for catching that. I was running two scenarios -- one for this Orlando home and the other for a house in Indiana and must have pasted the wrong second picture. The right one is below:

Thanks for the insight, Michael

Hi BP community, my offer was recently accepted on a SFH in Orlando and I would appreciate your thoughts / feedback on the financials to see if I should move forward. This would be my first rental property. I have until Friday to decide how to proceed without penalty.

A few more details -- I live out of state but grew up in Orlando and know the area well. I'd really like to invest in my first rental property in order to diversify my net worth. As many are alluding to, the Florida market has exploded in recent years I've been finding it difficult to find strong cash flow. My goal is to hold this house for 7-10 years then sell it and either use the proceeds for the down payment of my primary residence, or continue acquiring properties. 

I'd like to commit to the central Florida SFH strategy but not sure if the numbers are supporting this.

Below are my calculations -- what are your thoughts? The cash flow is obviously not good but the overall returns are still strong based on growth in the area? Am I being too optimistic? Thanks in advance!

Purchase price: 315,000 (putting 20% down payment)

Interest rate: 5.25% ARM (anyone have a strong view for / against these?)

Hi BP community, my offer was recently accepted on a SFH in Orlando and I would appreciate your thoughts / feedback on the financials to see if I should move forward. This would be my first rental property. I have until Friday to decide how to proceed without penalty.

A few more details -- I live out of state but grew up in Orlando and know the area well. I'd really like to invest in my first rental property in order to diversify my net worth. As many are alluding to, the Florida market has exploded in recent years I've been finding it difficult to find strong cash flow. The pros of investing in the market are that I know the area well, I have contractor/ property management contacts, and I think central Florida will only continue to rise in popularity. The cons are that the cash flow for most properties is not very exciting. My goal is to hold this house for 7-10 years then sell it and either use the proceeds for the down payment of my primary residence, or continue acquiring properties. There is maybe one other market in Indiana I would consider investing in as I went to college there, but I don't know a ton about the town and would need to get a trusted agent to make it work. Also appreciation has been low in the area due to stable/stagnating population. So, facing a bit of analysis paralysis between the "not great cash flow / good area" and "good cash flow / low appreciating" options. 

I'd like to commit to the central Florida SFH strategy but not sure if the numbers are supporting this.

Below are my calculations -- what are your thoughts? The cash flow is obviously not good but the overall returns are still strong based on growth in the area? Am I being too optimistic? Thanks in advance!

Purchase price: 315,000 (putting 20% down payment)

Interest rate: 5.25% ARM (anyone have a strong view for / against these?)