Florida VS Atlanta

We have a property in Florida, unfortunately I cannot compare it to Atlanta, but I am happy with Florida and the market there.

That being said, there is oppurtunity in both markets, so it is more important you select the right property in either area.

As of the last few months, there has been a rat race of international and domestic investors in SW Florida to buy "cheap" properties.  "CHEAP" will lead you to rural areas of Cape Coral and Lehigh Acres, the ROI derived from a pro forma.  Recently, I have seen investors WAY overpaying for homes in these areas.  I think the biggest issue with international investors is the mentality that cheaper is better.  I understand the fundamentals of cash flow, but you also have to understand the fundamentals of supply and demand.  It's getting way to close in these sub markets and I just can't justify any longer paying for what is available in the more rural markets anymore. 

As of about 60 days ago, I am exiting that market of the rat race and focusing on Fort Myers.  You will spend more so if you are more keen on buying homes under $75,000, Fort Myers is not for you.  I am looking at $100k to $140k in good areas.  ROI and net yield numbers will be less but naturally that is the case because of the much lower risk in higher end areas.

Smart investors in my opinion should look into more unique product then entering into the rat race.   Fort Myers is the metropolitan epicenter.  It's worth a look.  Far less competition.

WI:
I know the area Steve is buying in.  Most of them are off of Palm Beach Blvd just east of downtown Ft. Myers.  I know several HUD agents who sell REO's there.  Those prices still exist.  Keep in mind your goal in this area should simply be off cash flow and not potential upside though.  This area is considered the Ft. Myers "warzone".  Even though it is not similar to bad parts in Detroit, it is one of our inferior areas.  My brother just bought a home there and after repairs he was in it for $38,000.  His rent is $650 and fixed expenses are very low.  He is subsidized by Section 8 for $500 of the $650 so at the very least, he is guaranteed $500 a month. 

To me, you need to own several here to make it worthwhile.  These prices in the $20's are still do-able though.  I have talked to many investors who buy here and some love it and some hate it.  I guess it's just a hit or miss and you have to have someone on the ground and really good management to maintain a good investment here.  A property manager can make or break this area for you.  But you just have to know where you are buying into and as long as you are comfortable with that, then you can run your risk numbers.

Hi Jay-
I spoke to Alex.  We are actually diverting to similar strategy that we believe will have a more maximum return on the dollar and not really caring about the word "cheap".  Of course I am going to have my ceiling from an investor perspective, but I'm not buying into the $20k range.  My father in law owned a double wide.  Actually not bad looking..  Bought it for $9,000 and rents for $600 a month.  Problem after problem he decided to sell and got $12,000 as a FSBO.  He is retiring now   kidding.

I'm just thinking aheah.  I've got a good track record of doing so.  I'll always update my personal properties on my website if anyone wants to see what I am personally doing and what my investors are doing. 

FYI, I know nothing about trailer parks except the fact as you mentioned there is no financing for it. 

What I do know is where to minimize my risk and maximize my yield.  We are just one big happy family of forum members of creative individuals.  

Hi CH
Varies greatly depending on the deal, some as low as 14% gross.

I am focused on cashflow  for good reason, there is plenty of slippage, ie property management fees, vacancies, insurance, maintenance etc.   
 
I also like  properties that rent over $1000  – 1300 per month. purchasing properties anywhere from $18-25 sq ft, I have not found anything close to this now and even when I was purchasing at these prices were pretty amazing. But I was also buying homes that were distressed and some investors possibly would not touch, ie termite damage, of course you would never buy anything usless you knew the problem could be fixed.

So now it is a different ball game, some investors  are still buying gems.
 
I know an investor who has just settled on  a block of 4 townhouses approx.  $78,000 in Altanta, brick construction, excellent county and each property will rent out for $850 per month, it was a bidding war she simply wiped out her competition by offering much higher bid and it has paid off. I guess she recognised an amazing deal and prepared to pay more for it. I wish it was mine. Good luck to her.

Cheers, WI

Hi Sparky, you are an Australian who can get mortgages in Florida? How are you accessing them and under what terms?

Thanks,
Matt

Atlanta is a major City and Florida is a state . So that alone should separate the two of them completely . I think Atlanta up to a couple of months ago offered one of the cheapest price point for quality rentals in the USA.  Florida has multiple markets that investors are playing in.

Some of our international lenders are buying Million dollar penthouse condo's in Miami. Where I see alot of action in the following markets, Orlando, Tampa , North Port , Lei-high acres .

So to try to compare a city to a state is apples and oranges. It would be more fair to compare Orlando, Florida = versus Atlanta Georgia. At the end of the day both states have some great buys for investors.