[devilfishlane]

Hello

I am thinking about investing in small homes in South Florida that need work, and then rent them out (under 100K each home ) or buy an apt. complex (6 to 12 apts.) fix them up and rent out. Do you think its a wise investment at this time? I have the time and some experience in fixing up the properties and can buy with cash. Also willing to change markets from South Fla. Any thoughts?

Thanks for your time

[mango23]

Originally Posted by devilfishlane

Hello

I am thinking about investing in small homes in South Florida that need work, and then rent them out (under 100K each home ) or buy an apt. complex (6 to 12 apts.) fix them up and rent out. Do you think its a wise investment at this time? I have the time and some experience in fixing up the properties and can buy with cash. Also willing to change markets from South Fla. Any thoughts?

Thanks for your time

You have to think long and hard on this. It used to be you bought investment property, rented it and hopefully ended up with a positive cash flow and at some point sell it due to normal appreciation and make a profit. Times have changed. The property will not go up in value for maybe many years. Add to that the high cost of insurance you will have to pay along with tax and other costs of ownership and you may never see a profit or any positive cash flow what so ever. If you are buying one house you will be homesteading and getting the value by living in the house it is can be worth it. Or if you get a good buy on a house and fix it up and flip it and when I say flip it, I am talking about making minimal profits. You may find a house work on it for a few months doing all the work yourself to make maybe 10 or 15 thousand dollars if you are lucky. You could of course if you get a house cheap enough to flip it to another flipper for a very small profit doing no work at all or a final home owner. All in all very risky and a ton of work, but doable. just my opinion of course. I forgot to add, if you are an absentee owner, plan on getting your property wrecked. Mostly due to the level of value you are talking about and the kinds of tenants who will be renting those kinds of low value places. You will not be renting to the cream of the crop.

[SoFLGal]

Right now I have several investors that are buying multifamily units from me. They are buying them anywhere between $30k-65K and renting out for $550-$650 per month. Most are duplexes in Port Charlotte. I actually own two and I am getting a pretty good return on my investment.

I also have another group of investors that are buying homes in North Port, cheap and then renting them out. You can pick up a newer home in the range of $60k-$80k. It just takes some time, patience and luck.

Here's a link to a story a about a guy in SW Fl that has done pretty well with it: Quietly, he's busy buying and selling | HeraldTribune.com Of course, I would think he's more the exception than the rule.

Good luck with your venture

[BECLAZONE]

Originally Posted by mango23

You have to think long and hard on this. It used to be you bought investment property, rented it and hopefully ended up with a positive cash flow and at some point sell it due to normal appreciation and make a profit. Times have changed. The property will not go up in value for maybe many years. Add to that the high cost of insurance you will have to pay along with tax and other costs of ownership and you may never see a profit or any positive cash flow what so ever. If you are buying one house you will be homesteading and getting the value by living in the house it is can be worth it. Or if you get a good buy on a house and fix it up and flip it and when I say flip it, I am talking about making minimal profits. You may find a house work on it for a few months doing all the work yourself to make maybe 10 or 15 thousand dollars if you are lucky. You could of course if you get a house cheap enough to flip it to another flipper for a very small profit doing no work at all or a final home owner. All in all very risky and a ton of work, but doable. just my opinion of course. I forgot to add, if you are an absentee owner, plan on getting your property wrecked. Mostly due to the level of value you are talking about and the kinds of tenants who will be renting those kinds of low value places. You will not be renting to the cream of the crop.

I agree, this is good advice, and probably goes for any rental property, anywhere.