Florida Investor Turns $360,000 Condo Purchase into Cash-Flowing Rentals

Ted Garber, a Florida-based investor, expanded his property search beyond his local area and purchased a portfolio of three condos for $360,000 in September 2022. This marked his first venture into out-of-area rentals, located about 90 minutes from his home.

The condos, which were already occupied, generated a combined monthly rent of $3,675, aligning with Garber's investment strategy known as the 1% rule, which suggests that monthly rent should be at least 1% of the purchase price. After negotiating the initial listing price down from $390,000 to $360,000, Garber financed the purchase with a commercial loan, putting down 25% and investing a total of $113,548.

Since the acquisition, the monthly rent has increased to $4,530, despite rising expenses due to HOA dues and insurance costs. Garber noted that the tenants have contributed to paying down the mortgage, and he prefers to keep rents slightly below market to maintain tenant satisfaction and reduce turnover. He continues to seek new investment opportunities, although current market conditions present challenges.