You’d be able to pull out $330,455, which is significantly more than your initial $236,930 investment.Your Initial Investment Back: This means that in 5 years, you’ll not only get your original investment back but also keep an additional $93k in your pocket.However, there’s a downside:Negative Cash Flow Impact: Over the next 5 years, due to the negative cash flow of $1,229 per month, your total cumulative loss will be $(60,153).

While this can be good for long-term appreciation, it can also impact cash flow for buy-and-hold investors.Insurance Costs: Florida's hurricane risk can translate to higher insurance premiums for property owners.Competition: Florida's popularity attracts a lot of investors.

The real estate investing industry uses "Classes" to rank property performance risk, but there's NO agreed upon industry model:(Here's what we use for our Metro Detroit market:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Keep in mind, we did have a 37-day delay due to Hurricane Ian which impacted the build timeline as well as the entire region.

This decision will also be impacted by your interest rate.

How much should I consider the impact to the higher interest rates of today?

As Stuart mentioned, there are several issues that might arise with the property, which could definitely impact your cash flow. 

Even if one tenant is responsible for rent payments, the others will live there and impact your liability as a landlord.Accountability:Requiring all adults to apply and sign the lease holds everyone legally responsible for the terms.

While we faced minor delays with contractor scheduling, strong project management minimized impact.

However, 2024’s holiday season was impacted by other compounding factors, making the usual seasonal dip more pronounced.2.