You may be able to find available condos in Boca Raton within 2 miles of FAU, and you may end up with a cap rate of around 10% based on rental rates.
However, after taxes (2% of what you pay for the unit), plus monthly condo fees of at least $250 per month) your cash on cash return is likely to be in the 6-7.5% range. And that does not take into account miscellaneous expenses such as repairs, appliance contracts, vacancies, or liability insurance.
REOs, if they are available, are sold for cash to the highest and best bid. In the current real estate market, REOs often sell from 10-20% above list price.
When you purchase a condo unit in the area, make sure that the condo rules allow for immediate rental. Some condos have a mandatory 1-3 year ownership period before they allow rental of the unit.
Also, in case you were thinking of putting 4 students into a 2/2 condo unit, check the condos rules concerning the number of unrelated individuals who can live in a rented dwelling.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions