Hello all, I live in Key West Florida which is seeing tremendous rise in values (1br/1ba $599,000)! mY question: Do you have any suggestions for getting started in such a high value market?
It may be difficult for you to buy and hold in your area unless you can get very high rents. What you can do is find financially distressed properties locally and turn them. If done properly, you might even exchange these at a profit for properties that produce more favorable cash flow. We have a similar situation in Northern CA.
That is the crux of the problem. Mortgage payments almost always outstrip rents. For example a typical monthly payment for 750,000 borrowed on a 0 down (80/20) interest only loan is approx 4,200, but the most you can rent this property for is approx 2,500/month. Demand here still far exceeds supply as does QD/QS. A friend o fmine owns several properties here and typically marks up single family homes as much as 500,000 and resells them within months, oftyen with little or no rehab.
It may be difficult for you to buy and hold in your area unless you can get very high rents. What you can do is find financially distressed properties locally and turn them. If done properly, you might even exchange these at a profit for properties that produce more favorable cash flow. We have a similar situation in Northern CA.
That is the crux of the problem. Mortgage payments almost always outstrip rents. For example a typical monthly payment for 750,000 borrowed on a 0 down (80/20) interest only loan is approx 4,200, but the most you can rent this property for is approx 2,500/month. Demand here still far exceeds supply as does QD/QS. A friend o fmine owns several properties here and typically marks up single family homes as much as 500,000 and resells them within months, oftyen with little or no rehab.