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Plano Rental…, Home Buyer in Plano, TX

Rental/Investment Properties in Florida

Asked by Plano Rental Property, Plano, TX Thu Aug 5, 2010

What areas/cities of Florida are good for buying Rental properties? Are single homes, town homes or condos preferred? Is it possible to generate a small positive cash flow out of these rental properties? Is it worth to buy even if they break even? Is there any appreciation that can be expected in these markets in the next 10 years given the market has been down significantly?

I am looking to buy a rental property that I can hold for 10 years and even may be longer. I would like to have the property to break even at least or better generate small positive cash flow ($100-$200).

Please let me know if there are any such properties that can be found in Florida. Please advise.

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I see from your two other questions that you are pretty much brand new to the idea of real estate investing. WELCOME TO THE CLUB.

I think it is safe to say that you can probably find at least 5,000 such properties in Central Florida. I could write a long answer, but you've got all the resources right here. Just scroll to the bottom of the page and search this huge database of answers and advice. I've got a primer for beginning investors that I'd be gald to send you as well.

The best places to be for a long term investment is anywhere within an easy commute of the new medical city being built in Lake Nona. The complex already includes 2 research facilities and the UCF College of Medicine and there are a sea of cranes putting up 2 huge hospitals right now. The entire project has an economic impact of 30,000 new jobs.

Let me know if you'd like me to help you check out the area.

Good luck,
Mark LeMenager
Find your next house with the click of a mouse.
Search the MLS without obligation or registration from my website.
1 vote Thank Flag Link Fri Aug 6, 2010
Hello,

You have some great questions. I will attempt to address them all as thoroughly as possible. The first thing you need to consider is that in this lending environment you will need to put 20% down. With that kind of downpayment, it is possible to go cashflow positive now. Not to mention you will write off all of the mortgage interest and property taxes, which is really equivalent to cash flow. I believe the Windermere area is the best place in Central Florida to find such properties. Families swarm to the area because it's a beautiful place and the schools are great. Plus it's 10-15 minutes from Disney.

There are many homes on the market for less than 50% of what the previous buyer paid. The communities that have been hit the hardest were those built during the peak years (05-06). Since there are so many owners underwater, there's a huge supply of short sales and foreclosures suppressing prices. I recommend single family homes. The problem I have with townhomes and condos is that the HOA dues keep going up (to make up for all of the people who stopped paying when they foreclosed). You can find a lawn service for $80/month which is much less expensive than some of the fees I've seen recently.

I think anyone with a 10 year plan will definitely be happy they bought Florida real estate now. Rates are at an all time low. With a 10 year plan you don't have to worry about timing the bottom. As long as you are cash-flow positive you are making a wise investment. Please email me your criteria at cvaughan34@gmail.com and I will find you some properties that will rent easily and cash flow for you.
0 votes Thank Flag Link Thu Aug 5, 2010
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