Village of South Walton

[Smiling JOe]

Beachmouse:

I've not heard of anyone experiencing a 10% cap ratio on rental properties in the Panhandle... unless of course, you're talking about a property that was purchased many years ago prior to the boom. Therefore, if you can believe the unit does rent for $19K/yr., I agree it appears to be a good deal.

Little Fish

I bet that Gross of $19K per year doesn't include management fees and cleaning fees and monthly dues and assessments. You may as well cut that number in half to get the real number, and that won't cash flow (at least not in a positive manner).

With 20% down, a monthly rental income of 1% of purchase price will give you about 10% annual return on your investment, that is with you being the landlord, rental guy, cleaning guy, maintenance guy, and without excessive insurance rates.