First time here…I would like to buy a rental property with cash flow positive (not expecting too much, but if it can break even at least…). I am looking at buying a property and holding it for long term (15 years at least). My budget is under $150k. I live in San Francisco, CA area. I heard about Anderson, SC and Jacksonville, Florida as possible options. Any other areas that you might suggest? If someone is from Jacksonvile, Florida here…which neighborhoods would you suggest that i can buy in?
Des Moines Iowa and surrounding area. I recently flipped a 4 unit apartment that grossed $1500 per month, sold it for $65K. That’s not typical but you can easily find 2 bedrooms that rent for $700-900 for $60-80K.
That $400 to $500 per month is per house. With $150k you are going to have around 8 to 10 houses so your return is in the 20% range. You should not have very much tax to pay if any. If you do it properly. The income from these houses will be covered almost completely by depreciation.
Make sure you focus on houses that are within 15 to 30 minutes from your house. If you can get some between work and home that would be ideal. I live in Cypress so my houses are in Spring, Tomball Cypress and northwest Houston. There are good houses all over town.
Thanks for the tip Bluesman!! Much appreciated indeed. I live in Katy and am focussing my search west of beltway 8 and north of 1-10 for single family homes in the 80-110 range. I am curious of your opinion of the current state of the Houston real estate market, is now the time to buy or should we wait a little longer to see if prices continue to fall?
I haven’t invested in Florida but you could do a search for investment properties on Mashvisor and get a cash flow analysis for each listing.
Tampa, FL is a good investment location as well. What makes Florida a good investment state is the tourism and the proximity to the universities - so search for those types of neighborhoods and see what’s best.
Some of the best neighborhoods in Jacksonville are the riverside, San Marco square, Neptune Beach and Jacksonville Beach areas, but the latter may be beyond your budget. Orange Park (west side) is more reasonable priced.
Florida is a great place to acquire property for rental purposes because of its large human traffic. Several people come to Florida every so often for tourism and study purposes hence the target market is large and accessible. If you have the time and resources, you can get a fixer upper then work some magic on it in order to get good returns. Don’t go over the top though.