All Forum Posts by: Sarp Ka

 It's for the long term tenants. I'm flexible with properties that can go as high as 500k.

 Hi Tim,

thanks for the help. I've checked few different counties they all seem to have similar taxes. I've ran some numbers and it's not cashflow positive. I'm wondering if the price point I'm looking for is wrong. Which areas at what price point can provide cash flow positive?

I've been checking Miami, Fort Lauderdale area. I've realized the tax millage for properties are 19 to 22. Which means for properties that are worth $500k you'd be paying $10k property tax!

I find this way too high. I tried to look for rentals around the area and it seems like they are not that high to make up for the taxes.

My question is which areas (and zip codes) i should look for cashflow positive? Also what price point do properties make cashflow positive? It seems like the lower the property value is, the more likely it would make cashflow positive?

 Appreciation is also problematic in TX. That's because appreciation yields higher property taxes. Ie paying $1k higher property taxes would also negate $100/mo increase in the rental pricing.

So I'm really trying to understand if I can have cashflow positive properties in Dallas. I'm okay with waiting 1-2 years if it grows over time.

What's the monthly expenses for $200k property? Taxes, insurances, HOA etc?

Assuming 20% downpayment with 3.8% interest rate.

Which one would bring higher cashflow on rental properties?
If also anyone invested in 2021 (or you've got clients who did that) could you please share your numbers?

Hello there,

I'm an out-of-state investor. I found an issue regarding to property taxes. They are never accurate on Zillow etc. I've recently been browsing Miami area, and I found that most likely you'd be paying property tax around 1.9-2.2% depending on the county. According to Zillow it's much less than that. Not knowing those areas well is a problem, asking around or checking individual county's website is often slow too.

I found that out by checking local county's tax calculator + found properties in the same area that's sold for similar pricing back in 2019 and how much they are taxed in 2020.

I had the opposite for Las Vegas, where the numbers were higher than the truth.

When you google, "property taxes in xyz" they only mention what an average property tax is in a given area, often that percentage has nothing to do with booming markets and does not indicate anything near what you'd be paying.

Anyway, just curious if there's any service where I can just put the zip code and get the real property tax amount/percentage that I would be paying if I purchase a house in that area?

Thanks

Hi there,

Where are the best areas for SFH investments in Miami area?
I'll be looking for areas where I can rent the property out to white collar or stable income families who would be paying rent responsibly and not damage the property.
Also areas should have cash-flow positive.

Hello there,

I am just curious what returns do people see from a SFH in this area?

Hello there,

TL;DR, I want to invest $100,000 per year as downpayment on 3/4plex as a primary resident, which city can give the best cashflow?

I've recently been looking for houses for investment purposes, however as lenders requiring 25% downpayment, it's too much money to invest. Since my work allows me to go remote, and work form anywhere I can use that to optimize living in that area. My current area is terrible when it comes to real estate investment and looking for any cash flow positiveness.

Also since I can only buy a single property per year as a primary resident, by utilizing 10% downpayment, I'd like to maximize as much cashflow as positive rather than just ROI. So if there's a property A, worth 500k; and generating 10k cashflow; property B is worth 800k and generating 15k cashflow positive; I'd still go for property B.

I didn't include SFH because I don't need to buy a super large house and not be able to rent any part of it (I am not keen renting it room by room or sharing common spaces). I also didn't consider duplexes since I don't think they'll generate as much cashflow as triplex/4plex. Also anything more than 4 units (5plex+) is also out of question, since I won't be able to get competitive rates with 10% downpayment.

My strategy to invest each year $100k downpayment to a 3plex/4plex until I can make $3500/mo cashflow positive income. At the end of each year I would simply keep the property and buy a new one as primary residence.

As for the area, I really cannot live in anywhere cold, so somewhere in sunbelt or near sunbelt would be nice. Also I'd only be interested in large metro areas that are consistently growing, would not be interested in small towns. One more thing is, I would not rather to live in C class neighbors, or any neighbors with high crime. I'd be targeting for more reliable tenant pool.

Any ideas/recommendations into which cities to look?