Curious About Rental Properties Having Net Cash Flow
Hi everyone... I live in South Florida (Boynton Beach)which has appreciated greatly over the past few years. I bought two pre-construction props when it was booming and built up 400k in equity in them. I have them both currently rented for just the mortgage payments due to the tough rental market. I have great tenants no complaints. I want to aquire more property but obviously paying 400 per month per property is dumb unless equity is going up like mad. I need to find a location or area where aquiring net cash properties is a thing of reality. Does anyone down here do it... or where do you go to find these properties or areas?
Any help is appreciated!
Upstate NY okay thats good.. im guessing Ithica and that area Syracuse perhaps when you say upstate. I grew up in Rockland County near NYC which is awfully expensive now.
Anyone want to share some areas where they can still aquire net cash props around them?
Wow, Congrats om the closing ...41 Units with no Propery manager ? Please share your day to day experiences (ups and downs). It sounds like the property is located far from your residency, even more of a challenge. Was the building(s) in perfect shape when you bought them? DO you sub out repair work? Are you getting many turnovers a month? Have large reserves for major repairs? Cash flow real good? Not really personal questions but more of a idea of how you are pulling it off and working full time at another job. 51 units , 51 leases, 51 tenants No Property Management Company ?,,,again I say WOW. Post more here for us small timers to enjoy.
I would think that 51 units would get very complicated (tenants & toliets) very quickly. You must be a superman to handle that and a day job AND live far away from the units. Please, do tell your secret.
Will you be in the office tomorrow? I would like to have my mentor in Pawleys Island call and talk with you further.
[ Edited by NewKidInTown3 on Date 12/19/2005 ]
I know that area, good luck with filling the vacancies. After Labor day all the wages from the tourist serving jobs disappear. Money gets real tight in the lean months for those who would be renting in that area. I can understnad why many do not want to come up with a security deposit. How about offering 100.00 of the first months rent? They could use that money towards the Sec. Deposit. Less initail rent is better than watching the units sit vacant. I would be surprised if you could collect FIrst, Last and Security or even First plus a Security deposit larger than the rent. Maybe during the tourist season when money flows but in Fall/Wnter ?, tough times for some. Bad timing to be looking for renters. Very careful screening appears to be the only solution to minimize damage. It appears that chasing down someone in the court system usually is not worth the end result. I must say that I am new at this so I could be way off base, just sharing some thoughts.
As someone else mentioned (Monkfish?) Vacancies are a killer...you can never recoup that lost money. [ Edited by Waylon on Date 12/19/2005 ]
Just another thought, they are already in the house so how much more harm could they do? Of course you will know more after tomorrow. Tell them they can stay, if they give you $$$ for additional security deposit.
Brenda
Thanks for the advice. I appreciate the response. I will update you when I do the inspection tonight and let you know what happens. I hope I am not in for an undesirable treat.