Any investors in Florida?

[Jas142]

Any investors making cash flow off rents anywhere in the state of Florida? I'm in South Florida and it's impossible in this region.. but where else in the state should I look for positive cash flow?

Thanks guys.

[AJ290]

With SFR's, getting a positive cash flow in south FL is impossible.  With a median price of around $375K, and adding in high property taxes of around $6,500/yr, plus the homeowners insurance of around $7K/yr, is there any wonder why properties don't generate profit on a monthly basis?
I am routinely being offered properties from homeowners who are desperate to move on.  Problem is their monthly payments are $3,300 and the property will rent for $1,800 or so.  Wish I had a solution for them.

[petemfa]

The last Florida investor just shut the lights off in his pre-construction condo investment.

Great lesson to be learned down there.  3 years ago people were LITERALLY camping out in front of sales offices for condo's.  They weren't lonely.  A friend of mine did it along with about 500 others on this particular week.  All to buy the first 1000 units of a pre-construction condo developement. 

One guess as to how that ended.........

Hint........ He still has it!!!!!!!!! 

And,  he'd be happy to dump it and take a $20K hit,  can't even get that much for it.

[mangeuroiseau]

Florida is an impossible location nowadays.Pff...

[71tr]

I'll attest to the difficult Florida market.  Even for a long term holding with low debt balance the increase in property taxes and insurance has eaten away at the cash flow.  The only positive has been the extreme appreciation in the last few years. 

[eddring]

It's all about who you know, unfortunately.  If you can get a sweetheart deal from a builder you might be okay.  They cant give them away.  Here's a thought about cashflow.  Sell them to Foreigen Nationals.  The currency exchange rate is so lop-sided that you may have luck either renting to F-Nats at a higher monthly rate or sell them for more money to them.

ED DRING

[Rich_in_CT]

It's all about who you know, unfortunately.  If you can get a sweetheart deal from a builder you might be okay.  They cant give them away.  Here's a thought about cashflow.  Sell them to Foreigen Nationals.  The currency exchange rate is so lop-sided that you may have luck either renting to F-Nats at a higher monthly rate or sell them for more money to them.

ED DRING

Yeah, and what newspaper do I put my ATTN FOREIGN NATIONALS ad in?  Point is they aren't a dime a dozen and its not like they are out there in droves looking for houses, not a wise strategy to bank on selling to them.  Plus why wouldn't the rent or buy from someone cheaper, they may not be American but they aren't (probably aren't) dumb.

[SulivanEnterprises]

My family has 2 rental properties in Orlando and 1 in Melbourne.  They cash flow but only because they were bought years back.  Property taxes however are eating at the cash flow.  The property taxes on one the properties in Orlando costs $450 per month.  Our wonderful legislature failed to get anything accomplished.  If property taxes continue to rise without rents rising, we may be forced to sell which is pretty sad.

[Jas142]

Well, everyones responses certainly confirmed my estimations. I guess Floridians like myself are left with no choice other than move or invest in an area I don't live in and rely on a property management firm (a gamble, in my opinion).

[yrush2000]

I am in ft lauderdale and taking a hit to with taxes and insurance.  I did a rehab home in east ft lauderdale that just will not sell because 2 months after i bought it they raised ins rates 89% in that area. Oh 89% is about 5K so image a 10K insurance bill, a 550k mortgage and with a tax bill of $10K...Humm,mm  20K a yr and i didnt pay the mortgage yet and i do not even live on the water..Damn where do I put my boat???

Florida got tough, all over.. Ifyou can hold and have 10% downpayments, SW FL up thru NorthPort is great.  When market turns you will see profits.  You can buy new homes completed in NorthPort for 155-180K that will rent for about $750-900 a month.  Use an option arm loan, break even at best, but when market turns, it will be a $275K home again since 12months ago they were when the developer was building them.

I been looking at Cape Coral since it has a slight bounce back.  it has pretty much reached bottom, but will only buy on a deep water ocean access canal.  makes it easier to sell when market turns, and rent is better but pricing is about the same..

Just signed a contract on one today.. Appraised for 790K, sale price 590K with 3% seller concession and $50K cashback.  market rent $2900.  Will it cashflow.. With an option arm I will break even, but in 2-5yrs this will be a 1mil home again like it was in 2005 when it was built.

[campbellgroup]

HOLY COW. who isn't making money in South Florida Right Now? .If any of you were in the game in "01" you should know we are in the same type of market now.It was a buying frenzy for investors then and it is a buying frenzy for investors now.

[petemfa]

Buying Frenzy???????????????

Yea, right.  Nothing like 80%-100% insurance rate increases followed by tax increases along the same lines AND a FALLING market to create a buying frenzy??????????

If you think this mess is going to be completely cleaned up AND actually come all the way back and over the 2005 highs in 3 years your dreaming.  This snow ball has just started to pick up speed.

What happens to your barely breakeven $590K home if it's a $300K home in 3 years. (much more likely in my opinion) Can't happen???
Anyone investing in 1991???????????   it took 10 YEARS FOR IT TO COMEBACK!

[Rich_in_CT]

HOLY COW. who isn't making money in South Florida Right Now? .If any of you were in the game in "01" you should know we are in the same type of market now.It was a buying frenzy for investors then and it is a buying frenzy for investors now.

I'm.......confused.......

[AJ290]

HOLY COW. who isn't making money in South Florida Right Now? .If any of you were in the game in "01" you should know we are in the same type of market now.It was a buying frenzy for investors then and it is a buying frenzy for investors now.

You've got to be kidding!  Most folks I know are crying in their beer these days down around these parts.  They're stuck holding condos and SFR's that they bought at the peak of the market and now can't unload them at any price.  Why?  Because of the $1,500/mo negative cash flow they carry as a result of the property taxes and insurance costs.
Buying frenzy?  Then why are prices falling and inventory rising?

[petemfa]

AMEN!!   AJ290

Probably a realtor.   Hurry we still have a few left!!!!!!!!!!!!!!!!