I am graduating next year with a major in real estate from Orlando FL. The prices/taxes/insurance are prohibitive to cash flow here, so I am currently researching markets outside of Florida. I am looking for decent cash flow with the possibility of slightly above average appreciation in the long run of say 15 years.
I read a lot of articles of “best retirement locations” etc and think to myself how could I profit from these locations, as most of them are small towns. I am trying to find a niche for myself and I can see providing affordable housing to retirees being a part of it. The demographics of this population shift is going to be quite interesting to say the least.
I have read propertymanager say anywhere in “flyover country” is good for cash flow. I know that no one has a crystal ball but where do you guys see good cash flow now and steady economic growth over the long term.
From my experience Florida stinks for cash flow. Prices have risen substantially in the last five years, insurance is outlandishly expensive and property taxes are horrendous. These are variable costs that have risen much faster than rents thus negatively impacting cash flow.
An interesting and useful resource would be a cost index of these variables on a nationwide basis. While rental income on similar properties will vary by market it’s the taxes and insurance that can make or break a deal.
good info. I have been thinking about Texas but it looks like the property taxes are around 3% and there is no insurance regulation there. probably not a deal killer, can anyone give info on this?
Any ideas on how to capitalize on afforable housing for seniors. Are there any ways to ONLY rent to seniors, or does that go against the fair housing act. Maybe there are government programs. I like the idea of renting to seniors because they wont tear the place up and the low turnover.
It seems like there are lots of developments that are restricted to seniors only. Plenty of MH parks are age restricted. I did a google search a while back and there’s all kinds of info out there incl. gov’t programs of course. But I think that the need for this type of housing is going to be so great that private entrepeneurs will be leading the way with everything from 200 sq. ft. units with little patios on up. There’s certainly no lack of land available, especially in the heartland. Probably just outside of sun belt cities would be the best bet. I’d like more information on TX. prpty. taxes myself. I believe it varies quite a bit depending on the school district. (not an issue to retirees) and the specifics of the water district. And they could be considerably lower if you’re outside the city limits.
I am definitely interested in affordable housing for seniors. I want to start out with SFH’s, are there any strategies to get seniors in your houses without “discriminating” against the rest of the population?
Any other ideas on to what to look for in town and cities that are good indicators of long term healthy growth
That’s a good question about SFH’s and discrimination. I’d like to think there was some sort of niche to get around it. I’ll have to do some research. I do know for a fact that it’s very common to use single family homes for group senior housing. Usually these places are interim housing for people that are no longer able to completely care for themselves but still are able to function up to an extent. The next step for these folks is the rest home .There’s managers in place but they are not medical facilities and the resident’s conditions need to conform to strict medical guidelines. As far as good areas go, I would say So. TX. (San Antonio to the Rio Grande Valley) for a number of reasons. One being the cost and another the fact that it’s been a retirement area for a long time. And there’s great upside appreciation potential. Hopefully this thread continues but feel free to PM me if you’d want to discuss it further.
Chris
I live in Orlando and it is getting hard with rentals but flips are getting easier. I just bought a 3/2 for 125k put 5-6k into it and sold in a week for 190k. If you look hard people are giving their houses away that only need paint, carpet and some updating. Remember never reward someone for losing there house when you can have it for free.
People don’t want to retire in Texas. The retirement strategy is to live in a state with low or no income taxes while you are earning money during your working life building your nest egg (Texas). After you retire and have low income so income taxes are not as much a worry but you don’t want high property taxes. Texas is a high property tax state…You want Arizona.
Bluemoon,
That makes sense. Thanks. Correct me if I’m wrong, but you do see alot of retirees in TX. or are they mostly snowbirds in RV parks, etc. in the Valley?
Property taxes aren’t bad here for landlords. Since we don’t have state income tax, the state gets funding for schools, etc. through property taxes. They’re typically 2.711 in Austin and are lower elsewhere. If you’re in a MUD or have additional taxing districts, you pay those too.
Since landlords will typically buy their rentals taking PITI into consideration, taxes wouldn’t preclude anyone from investing.
any new thoughts on any cities that have a good long term outlook. I am going to move to Greenville, SC this summer to start acquiring rental properties. low cost and high quality of life. it is on the I-85 corridor and i see good growth. comments?